startup marketing: rules for revolutionaries - july 2010
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Startup Marketing:
Rules
for
Revolutionaries
Michael Gaiss
Senior Vice President
Twitter: @MichaelGaiss
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Workshop Agenda
• Background• Frame of Reference
– Technology Startup Stages– Old School versus The Digital World
• Startup Marketing “Rules”– More like suggestions on how to approach
things
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My Background
• Highland Capital Partners (since 1999)– Entrepreneurial initiatives
• Summer@Highland, PepsiCo10, Entrepreneur Centers, QUEST– Portfolio company support & consulting
• CEO & Marketing Summits, one-on-one’s, Career Network– Marketing & business development
• Various Tech Companies– Gentia Software/Planning Sciences (Boston/UK)– IQ Software (Atlanta)– Unisys (Minneapolis, New Zealand, Blue Bell, PA)
• University of Michigan (Engineering)• University of St. Thomas (MBA)
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Nasdaq: VPRT $120,200,000
Internet-based printing
$295,000,000 Acquired by Lucent
Switching equipment
Acquired by StaplesSpecialty retailer
Nasdaq: LULU $32,760,000
Specialty apparel retailer
Nasdaq: CKFR $86,4000,000
Electronic bill pay systems
Nasdaq: BFRE $67,200,000
Performance-based online marketing
Nasdaq: AVID $56,000,000
Video editing systems
Nasdaq: ASKJ $42,000,000
Online Search
$567,000,000 Acquired by Cisco Systems Broadband VPN solutions
Nasdaq: CONR $78,000,000
Acquired by J&J for $1.4B Drug eluting stents
Nasdaq: EXAS $65,000,000
Genomics-based technologies
$1,100,000,000 Acquired by AOL
Advanced mapping solution
Nasdaq: SYBS $49,600,000
Relational database management software
$325,000,000 Acquired by Cisco
Systems Web-enabled call center
Nasdaq: STAR $126,000,000
Infrastructure Products
$5,400,000,000 Acquired by Terra
Networks Global internet network
Nasdaq: NXCD $120,000,000
Online credit provider
$355,000,000 Acquired by Tellabs
Optical access solutions
Nasdaq: ODSY $54,000,000
Hospice care providerAcquired by Apple
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Backing Young Entrepreneurs
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Technology Startup Stages
• Concept– Key element is creating the basic value proposition and testing it in the market
• Seed– Key element is product development– Business focus is researching potential market opportunity to refine the business model– Product is raw but customers are using it
• Early– Key element is market adoption– Proving that customer are willing to use and pay for your products– Business focus is sales & marketing– Whole product is complete
• Growth– Key element is scale– Business focus is accelerating market adoption– Product line extensions to address new market opportunities
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Changing Paradigm
Old School The Digital WorldTransmit Engage & ParticipatePreach AdvocateCommand & Control Influence & PersuadeFormal & Instructive Informal & ConversationalTell Your Audience Build CommunityInstitutions People & RelationshipsDeadlines Real TimePowerful Media Powerful NetworksTarget Audience Communities
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Startup Marketing “Rules”
1. Immerse Yourself in the “Flow” of Your Industry
2. Embrace Thought Leadership3. Get Creative for Early Customer Access4. Establish a (Far) Superior Online Presence5. Leverage Media Relations to Project Credibility6. Harness Word-of-Mouth7. Scale Smartly
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1. Immerse Yourself in the Flow
Immerse Yourself
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Immerse Yourself
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Immerse Yourself
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Google Alerts
Immerse Yourself
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Google Reader
Immerse Yourself
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TweetDeck
Immerse Yourself
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2. Embrace Thought Leadership
• Become recognized within the industry for innovative ideas, a deep understanding of the needs of its customers, and the broader marketplace in which it operates
• Clear differentiator for companies
• Serves as the DNA to work into all aspects of marketing:– Messaging– Communications– Programs
• Platform for driving:– Recognition & awareness– Credibility & respect
Thought Leadership
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The Real Opportunity
Thought Leadership
• Intellectual capital that distinguishes your position as a knowledge resource and subject matter expert
• Point-of-view platforms to shape and influence market perceptions
Objective is to establish yourself as a trusted client advisor
Critical for enabling a “content is king” approach to marketing
A thought leadership mindset can turn your organization activity (content development & deployment strategy) into:
NOTE: You actually need leading thinkers to accomplish
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How to Accomplish?
• Establish a differentiated and compelling position– What’s your vision, perspective and insight?– Is it relevant, knowledgeable, compelling, provocative & unique?– Does it deliver value to your marketplace?
• Package into messaging, content & points-of-view (POV)• Engage the industry “influencers”
• Industry analysts• Partners• Media
• Incorporate feedback, refine and build buy-in• Articulate and further communicate it
Thought Leadership
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Thought Leadership
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3. Get Creative for Early Customer Access
• Focus on the product– Strong product-market fit?– Learn as you go
• Relentlessly work assets– Board of Directors, advisors, employees– Actual & potential investors
• Additional options– Freemium– Product Advisory Councils
Early Customer Access
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Biggest risk: making something nobody wantsBiggest risk: making something nobody wants
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Good marketing will not fix a bad product
Weak product-market fit cannot be fixed by good marketing
Weak product-market fit cannot be fixed by good marketing
Source: Drew Houston, Dropbox Early Customer Access
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Source: Drew Houston, Dropbox
A Good Product Will be a Tailwind
Early Customer Access
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Goal: product-market fit ASAPGoal: product-market fit ASAP
Early Customer Access
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Learning on a $0 budget: Talk to people!Learning on a $0 budget: Talk to people!
Source: Drew Houston, Dropbox Early Customer Access
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Go where your early adopters hang outGo where your early adopters hang out
Early Customer Access
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Product Advisory Council
• Product definition well defined but 9 months from going live
• Brought on inside sales person to validate their assumptions
• Established Product Advisory Council– Walked through value proposition, pitch– Solicited feedback and input
• Signed up 1,000 members• Primed the sales pump
Early Customer Access
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4. Establish a Superior Online Presence
• Smart website architecture– Content management system (CMS)– Database management system– RSS
• Professional look-and-feel– Look like the “big guys”
• Own the “Golden Triangle”– Compelling content strategy– SEO, SEM, Social Media
Online Presence
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What’s the “Golden Triangle”?
Pay Per Click ($$$)
Natural (Free)
Stats- 85% click on “natural” (unpaid) results - 72% of searchers click on the first link of interest- 25.5% read all listings first, then decide- Position 7-10 in natural listings = top 4 PPC slots on the right hand side of the page
Online Presence
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Compelling Content Strategy
• Content is “King”– Where it drives/spurs discussion/interaction
• Create highly relevant site content– Thought pieces / White Papers– News & articles– Customer case studies– Podcasts/Videos/Webinars– Microsites– Newsletters– Blogs – under right conditions
• Deliver value that naturally draws visitorsOnline Presence
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Exploit the Architecture of the Internet
• On-Page Search Engine Optimization (SEO)
• Title Tags, Meta Description, Keywords• Relevant Body Content with keywords worked in• Add Headings Tags, ALT text to images
• Off-Page SEO– Linking strategy– Directories
• Search Engine Marketing (SEM)Am I present everywhere people discuss my industry?
Online Presence
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SEO & SEM All Starts with Keyword Optimization
• Sources– Brainstorm from messaging
• Relevant to your target markets– Google Analytics (how are people currently find you)– Competitive analysis (meta keywords tags)– Keyword Tools
• Selecting keyword phrases– Objectives
• Search volume (goal = high)• Relevance (goal = high)• Competition (goal = low)
– Types• Core competitive• Long-tail keywords
– Segment into multiple lists• Primary• Secondary
Online Presence
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On-Page SEO Techniques
• Title Tags – HTML element that displays the title of a web page in your web browser and in the search results.• Meta Description – HTML element that summarizes the content of your web page and enforces your marketing message.
Source: Todd Friesen Online Presence
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On-Page SEO Techniques
• Body Content – must be readable and contain your key phrases.
• ALT Tags – HTML element describes images in the page. Alt tags boost relevancy as well as provide a new avenue of traffic from image searches.
Source: Todd Friesen Online Presence
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On-Page SEO Techniques
• Heading Tags – an HTML element that provides structure and tells search engines which parts of your page are most important.
• Internal Linking – proper linking leads to better indexing. Using your keywords in your internal links helps boost relevancy.
Source: Todd Friesen Online Presence
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Off-Page SEO Linking Strategies
• Competitive Intelligence – Analyze the backlinks of your competitors. Try to get links from the same sites– Google/MSN Search: “link:www.hcp.com”
• Submit to Quality General Directories• Submit to Verticals/Topical Guides• Search Ad Networks – AdBrite, AdWords, Blog Ads, etc.• Use Blogs and RSS – Google loves blogs• Create Videos/Podcasts – Bloggers love posting them• Buy Text Links – But be careful. Google doesn’t like it
Source: Todd Friesen Online Presence
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HubSpot’s WebSite Grader
Online Presence
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Paid Search
Organic
Online Presence
Search Engine Marketing (SEM)
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Google AdWords
Online Presence
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Pursue Social Media Channels
Online Presence
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Random Tips & Suggestions
• Unique long tail keyword URLs for SEO – www.datacentersoftware.com
• Leverage trustmarks– Member professional organization– Security/privacy compliance
• Facebook on weekends, Twitter during the week– 51% of corporations block Facebook
• $75 to try Google AdWords (thru 30Sep10)– www.google.com/adwords/75offer– Coupon code: 4P4E-3VEP-GXLY-42NP-5GWJ
• Listening posts as input for bragging about prospects – tweet, tell colleagues
Online Presence
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Additional Resources
• SEO/SEM Website Analysis– HubSpot’s www.websitegrader.com
• Keyword Tools– Google AdWords keyword tool– HubSport’s KeywordGrader– WordTracker (advanced)
• Social Media– Eloqua’s Playbook - http://blog.eloqua.com/eloqua-social-playbook/
• Free Link Research Tools– Google & Yahoo’s Site Explorer - siteexplorer.search.yahoo.com– Netconcepts’ Link Checker - www.netconcepts.com/linkcheck– WeBuildPages’ Neat-o Tool - www.webuildpages.com/neat-o/– SEO For Firefox - tools.seobook.com/firefox/seo-for-firefox.html– TouchGraph GoogleBrowser - www.touchgraph.com/TGGoogleBrowser.html– Tattler - www.webguerrilla.com/down-loads/tattler.zip
Online Presence
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5. Leverage Media Relations for Credibility
• Establish direct connections and personal relationships– Focus on trades– Be opportunistic with beat reporters– Build credibility and trust over time
• Generating coverage– Have a healthy news flow– Get creative and come up the “angle” for a reporter– Channel compelling thought leadership into expert
commentary, contributed articles opps• Stay focused and watch costs
Media & Credibility
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Additional Tips/Resources
• Media resources page on website• PR Web
– Cheaper news release distribution channel– Optimized for SEO
• HARO – www.helpareporter.com• Twitter
– Follow key reporters
Media & Credibility
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6. Harness Word-of-Mouth
• Step #1: Have a great product
• Step #2: Do the hard work– Build referenceable
constituencies– Make it part of the
culture• Step 3: Turn into
communities– User groups– Advisory councils– Extranets– LinkedIn Groups
Word of Mouth
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More on Word-of-Mouth
• Give them something to talk about– Deliver a great experience– Give customers a voice– Foster customer reputations– Engage the community– Tools to help them spread the word– Referral programs
• Leverage– Scarcity– Customer testimonials– Social networks
Word of Mouth
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Word of Mouth
A happy customeris the greatestendorsement
At the End of the Day…
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7. Scale Smartly
• Tie yourself to a bigger trend• Data is your friend• Simplify to drive virality (if you can)• Build repeatable lead gen engines
– Direct marketing campaigns• Email can still be effective
– Viral referral programs– Newsletters (automated)
• Own more in the sales funnelScale Smartly
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Tie yourself to a bigger trendTie yourself to a bigger trend
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Source: Mike Volpe, HubSpot
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Source: Mike Volpe, HubSpot
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Set targets for all key metrics
Source: Mike Volpe, HubSpot
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Startup Metrics Model
Website.com
Revenue $$$
Revenue $$$
Biz DevBiz DevAds, Lead Gen,
Subscriptions,
ECommerce
Ads, Lead Gen,
Subscriptions,
ECommerce
ACQUISITIONACQUISITION
SEOSEOSEMSEM
Apps & Widgets Apps & Widgets
AffiliatesAffiliates
EmailEmail
PRPR Biz Dev Biz Dev
Campaigns, Contests
Campaigns, Contests
Direct, Tel, TV Direct, Tel, TV
Social Networks
Social Networks
BlogsBlogs
DomainsDomains
Retention
Emails &
Alerts
System Events &
Time‐based Features
Blogs, RSS,
News Feeds
Source: Dave McClure
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Measure Often – Evolve Faster
Scale Smartly
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Every 10% easier 50% larger audienceEvery 10% easier 50% larger audience
Simplify to Drive Virality
Source: Drew Houston, Dropbox Scale Smartly
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Don’t make me think: No decisions nothing to screw up
Don’t make me think: No decisions nothing to screw up
Source: Drew Houston Scale Smartly
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Don’t make me read, either: Designing landing pages & signup flows
Don’t make me read, either: Designing landing pages & signup flows
early beta
late beta
• concise beats comprehensive
• call out the next step• simple converts better
Source: Drew Houston Scale Smartly
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Educate over time (tours, tip emails, etc.)Educate over time (tours, tip emails, etc.)
Hook the User First
Source: Drew Houston Scale Smartly
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Own More in the Sales Funnel
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Recap – Startup Marketing “Rules”
1. Immerse Yourself in the “Flow” of Your Industry
2. Embrace Thought Leadership3. Get Creative for Early Customer Access4. Establish a (Far) Superior Online Presence5. Leverage Media Relations to Project Credibility6. Harness Word-of-Mouth7. Scale Smartly
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Startup Marketing:
Rules
for
Revolutionaries
Michael Gaiss
Senior Vice President
Twitter: @MichaelGaiss