By Harlan Tytus Beverly

harlan@fastai.com

http://tytusblog.blogspot.com

10/24/2014

7-Step Results-based Marketing for Startups

Quick About: Harlan Beverly

Harlan Titus Beverly• PhD from OSU (est. 2015)• MBA from UT 2004• BSEE from ONU 1999• Programmer (Networking)• Chip Designer/Architect• Family:Super-Wife, 2xkids,

3xdogs, 5xhorses

•Currently: President & CEO of Key Ingredient, Inc. (Social Food Website)

•Founder/CEO Karmaback, Inc. (social Network Marketing) Acquired Jan 2013. •Founder/CEO Bigfoot Networks & Designer Killer NIC* Raised over $20MM in VC funding. Acquired in 2011

• 15 Issued Patents, across Networking, Security, and Game Tech.

• Designed “World's first” 10-Gig Ethernet Adapter at Intel.

* CPU Mag Product of the year 2009

If you Build it, They Will Come … Definition of Insanity?

Step 1 – Proactive MarketingDecide, BEFORE you begin, that Marketing your

game/product/service is going to be necessary.Then BUILD IN the Marketing into the Product

Viral InvitesSocial SharingReferral RewardsThe Purple Cow

Or at least consider that you will have to attract people to your product somehow… and setup your business model and funding/etc. to account for that.Ads / PR / Resellers / Partners / etc.

Does everybody love SPAM? Does anybody? (Germany)

No Product can be perfect for “everyone”….Not everyone likes turn-based strategy games.Not everyone games.Not everyone has a PC / Console / Phone.Not everyone speaks the same language.Not everyone can see or hear…

Proactively decide, “I’m going to please THIS Customer… knowing full well it won’t please everyone.”Demographics: Age, Sex, Income, Location,

LanguagePsychographics: Game-preference, Violence-

preference, Past-preferences, Music-tastes, Political-persuasion

Step 2 – Begin with the Customer

Marketing before Analytics.

How do you know what’s important? If it’s necessary for initial Launch, it’s important. If it’s part of your initial launch marketing plan, it’s

important.Otherwise, you MUST measure what you do to know if it’s

important or not.Analytics are Important. Google Analytics (for

web/apps/phone) should be #1 on your marketing list.Measure every click/touch if you can. EVERY

CLICK/TOUCH is an EVENT that can be measured.Now, with Analytics, you can know what is important.

SIMPLE: If it’s in the path of you making more money/getting more sales/signups/trials… it’s important… otherwise, it’s not.

Step 3 – Do Important Marketing First

What was the price of this car when new?How much would you pay to NOT drive this car?

Pricing is important.Must offer a price that leaves ‘some value’ for the user…

(can’t charge MORE than $100 for a $100 bill… without that $100 bill being special in some way… that’s value).

Capture as much value in your price as the market will bear… (early customers are happy to pay more to get it sooner).

Most Startups Underprice… because they do it wrong.. Here are the best-to-worst pricing methods:1. Best Pricing Method: Capture Value. ($104?).. Must calculate

value somehow.2. Competitive Pricing: Price based on competition’s price or

price standard. ($59.99 anyone?)3. Cost+ Pricing: Fully-loaded costs + some margin4. WORST: Variable Cost+ Pricing: Marginal Unit Cost + some

margin

Step 4 – Offer Win-Win Value

2 kinds of Customer Needs…. Their personal/business needs (what they are seeking).Their needs once you’ve attracted their attention.

You should already know their personal needs… (see Step 2: Begin with the Customer).

Now that you’ve attracted their attention… you must:1. First, Tell them what you have… briefly. 1 Sentence.2. Second, Tell them the BENEFITS of what you have.

(Bullets)1. BENEFITS always start with “More XXX” or “Less XXX”

3. Third, Tell them how you are DIFFERENT.4. Finally, Tell them the price & how to buy.

Step 5 – Understand Customer Needs

What the hell is this commercial about?

Everything within Marketing works together to create the experience.The PR matches the Reality (Hype=Real)The Advertising matches the Offer (Connected Landing

Pages)The Product delivers the promised Value. (Quality)

If done well; customers want to return, re-purchase, refer, and recommend.

Message crafting involves starting with the needs of the customer and creating a consistent experience of both brand and voice.

4Ps Product, Place, Price, Promotion 5Cs Customer, Context, Collaborators, Competitors,

Company

Step 6 – Synergize the Message

New Coke may NOT have worked, but they didn’t wait long to fix it.

Sharpen Customer AcquisitionWeed out failed methods, try new ideas and weed

quickly.Sharpen Customer Retention

Survey to find out what customers love and hate. Figure out why customers leave/quite/don’t return.Make the product/market/synergized offering better.

Sharpen ValueAdd Smart Value to the product (through expansion/new

versions/etc).Change with the times.

Sharpen Yourself ~~~ Hopefully you’ve done some of this today.

Step 7 – Sharpen the Marketing Saw

SummaryStep 1: Be Proactive About MarketingStep 2: Begin with the Customer in MindStep 3: Do Important Marketing FirstStep 4: Offer Win-Win ValueStep 5: Understand Customer ‘s NeedsStep 6: Synergize The MessageStep 7: Sharpen the Marketing Saw

Bonus Question: What popular business book was this presentation patterned after?

http://en.wikipedia.org/wiki/The_Seven_Habits_of_Highly_Effective_People

Harlan Beverlyharlan@fastai.com

http://fastai.com (my blog)

Thank you & Backup

First, start with really understanding the basics of Marketing. (from Harlan’s blog): tytusblog.blogspot.com

Marketing for Startups

4 Ps. 5 Cs.ProductPricePlacePromotion

CustomerCompany, CompetitionCollaborationContext

customer_action = customer_need * demand(product(5cs), place(5cs), price(5cs), promotion(5cs)); 

Positioning is VERY IMPORTANTYou cannot be everything for everybody….You must be SOME thing for SOME body.

THE STATEMENT… DO THIS NOW!

_____ is a ______ that does ______ for _________.(product) (category) (core benefit) (target customer)

Unlike other _____ products, _____ does _____ . (category) (product) (unique benefit)

A Product Positioning Statement

A lot of marketing that seems important isn’t. Your Logo can be basic. Your Website can be simple. Your Design/style can be plain.

(as long as it matches your target-customers preferences). Examples: Lawyers have certain expectations about websites…

different than stay-at-home moms, or single men. Your simple design needs to appeal to them.

A Social page does not have to be fancy/have a lot of followers.

So don’t waste too much time/resources on this. Focus on conveying the CORE value of your products & getting the

core & unique BENEFITS across. Focus on trust-building and GETTING SALES> DO NOT FOCUS ON FEATURES!!!! (Benefits are more important).

Good: “Our product can reduce your Lag in games by 15%”. Bad: “We have Ping-Reduction Tech with 1GBPs connectivity.”

Logo, Design, Social, and other Junk

In an early-stage startup.. BRAND is not the goal.

Your goal is to enable early sales to happen.

FOCUS on helping the sales-team get “QUALIFIED” leads.. (see next 2 slides).

THEN, build your brand on your early successes.

The key is to help the sales team execute their sales-model and prove it to investors.

Know your Sales Plan & HELP make it happen.

Since a “human being” is involved in direct sales… marketing can best help by:Getting qualified leads for the humans.

How?Targeted Advertising -> email/phone acquisition -> list.SEO -> email/phone acquisition -> list. (if possible capture some qualifying data for the

human sales-team).*Harlan’s example:

NEVER LOSE SIGHT: Investors/your company needs to be “somewhat

scalable”… so the marketing you do, needs to be scalable too.

Marketing for Direct Sales

Lots of Web Traffic is NOT the goal… the goal is to get “Qualified” web traffic: Visitors that have the problem you solve Visitors that are in a “buying mood” Visitors that are “ready to click” BUY NOW

How? Targeted Advertising (google/facebook)… targeting people who are your Target

Market who are: Searching for what you solve. Like competing products. Fit a customer profile.

Landing Page: Focus on building great landing pages for each product. A/B test them if you can… so you will always get the best results. A/B test ads too… A/B test everything if you can.

Analytics. Did I mention A/B testing… you MUST know how your site performs to know what

is broken. Enable Google Analytics, and use any tools you can to measure “sales

conversions” See “the funnel” (next slide)

Marketing for Indirect Sales (web)

Direct or Indirect sales, you will always have customers at various stages. MEASURE AND TRACK stages of prospects

Try to keep in mind that customers have a “buying process” of their own... Learn it! Ex: who has to approve?

The Sales Funnel.

Do price based on the VALUE you deliver.Do not price based on your costs for the solution.Do price high if you can. (higher than you think).Do look at competitors price, and figure out your position.Realize, if you don’t offer the full solution, you can charge

the full price.Do not discount, unless it has a set limit (expiration)Do use coupons/discounts for ‘helping to close’, but always

with an expiration.Do give volume discounts.Do not drop price. Ever.Do try to differentiate customers & price descriminate…

(although if you are targeted enough you won’t have to).

A word on Pricing/Discounts.

Co-founders & EmployeesInvestorsSuppliersPartnersPotential Customers

“When I was CEO, my main job was selling. I was constantly selling to someone.” - Harlan

Who do Startups Sell to?

No!

If your selling feels slimy, you are either:NOT CONFIDENT ENOUGH ABOUT THE “VALUE”

your product delivers..OrYour PRODUCT is not as good as you are saying.

Avoid Slimy selling at all costs. Be honest. Provide Value. If you can’t solve customers problem and provide

value… don’t sell it to them! Find the RIGHT customers!

Is selling slimy?

Investors want to know… what is YOUR sales model. WE don’t want to know… it’s A today, and B tomorrow.

(prove B now!) even on a small scale. Get 1 or 2 customers with B and tell me how you will scale it. We care about sales ONLY to strangers. (non-friends/family)

SOME MODELS: Direct Sales

Inside Sales You will have a sales-team that calls people/meet virtually. (e.g. they don’t leave

their office) Outside Sales

Your sales-people are Face-to-Face but outside their place of business, such as Door-to-door, trade shows, etc.

SOURCE: http://en.wikipedia.org/wiki/Sales#Inside_sales_vs._Outside_sales Indirect Sales

You will not have a sales-team… but will close deals by: Internet website Mail order Phone in-order, etc.

Figure out your Sales Model!

1. Get some leads. (see Marketing section; part 2)2. Qualify some leads – call them/email them/meet them, find out if

they HAVE the problem you solve, and ARE in the market or WOULD be.

3. Each Call/Email/etc. should be about “LEARNING” about your prospect and his needs… ASK QUESTIONS! (book: SPIN selling: summary)

Situation ( questions ) Problem ( questions ) Implication ( questions ) Need-payoff ( questions )

4. Each Call/Email is a “level-up” and you should always close the call with “next step”… e.g. follow-up call… next meeting.. Etc.

5. Let the customer decide to close! “do not pressure”… 1. Good: “As always, if you are interested to order feel free to call or

email.”2. Bad: “Are you ready to place your order now?”

How to Sell with a DIRECT sales-force.

You must make it REALLY easy to “say yes or no.”Clean, simple offering… with 1 Call-to-action: Buy Now

You must give confidence to the buyer that you will deliver.. And you will not fraud them.Paypal, Visa logos, SSL sites, etc.

FEWEST CLICKS POSSIBLE

BUILD an amazing Landing Page (see: The Conversion Scientist)

Use Internet Marketing to “pre-qualify” web traffic. (see part 2)

How to sell on a Website.

Sell the VISION! A great opener tells a story about a CORE

PROBLEM.If your business idea does not “solve a problem”

for “a customer”.. Go back to the drawing board.Show the Business Model. (how you make money)Show how it will ‘scale’ and get big.Show some financials… yes even to employees…

let them know your GOAL is to get X.. Be Honest and Passionate above all else.Always wear your Positivity Goggles.

Selling to Investors/Employees

SPIN Selling is a book by Neil Rackham, and is a technique that is proven to work in direct sales:

The key is to ask questions… truly trying to learn about the prospects business, qualify them, and be able to connect YOUR product/service as a solution to THEIR problems. (at the end!)S=Situation Questions, P=Problem Questions, I=Implication Questions, N=Need-Payoff Questions

Read more & see example questions on my blog: http://tytusblog.blogspot.com/2013/10/spin-selling-for-engineers-how-to-teach.html

SPIN Selling Technique