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Sean Ellis has helped companies like Dropbox, EventBrite and Xobni grow explosively. His expertise was also essential in guiding Uproar and LogMeIn to IPO. Learn how he did it.
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Sean EllisLean Startup CircleMarch 24, 2010
Lean Startup Marketing
Channeling Resources to Create a Fast Growing Startup
Cross startup learning… for betterment of all startups
Led by entrepreneurs
- Steve Blank- Dave McClure- Eric Ries- Everyone here
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My Lean Experience
• Collective experience outweighs mine• Steve Blank recommended “lean” preso• Then couple Eric Ries posts/presentations• Limited time to participate in lean
revolution• But 15 years of “lean-ish” principles
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Objectives for Today’s Meeting
1. Share insights for growing a valuable startup
2. Fresh look at my approach growing startups using lean startup principles
3. Work together to evolve our understanding of startup growth
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What are the Lean Startup Principles?
• Low burn by design (no scaling until revenue)• Learn fast (fail fast)• Rapid hypothesis testing about market,
pricing, customers (customers & markets unknown)
• Metrics, iteration… • Agile development• What else?
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“Lean-ish” Marketing = Back-to-Back IPOs
First Startup (1996 launch)– Lead online game category– Get users at cost lower than user value
(ARPU)– Minimize waste via sophisticated metrics
Second Startup (2003 launch)– Added qualitative research and funnel
optimization6startup-marketing.com
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Goal: Build Sustainable Valuable Company
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Low value startups: Scaling or cost-effective marketing
Valuable startups: Scaling cost-effective marketing
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Valuable Company Starts with Value
• Product/market fit = product is “must have” (value)• Become a “must have” with customer
development– Validate “value” assumptions early (who needs/why?)– Get users on first release ASAP– Find “must have” users/use cases (facts outside building)– Pivot if necessary to create value
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Getting to Scalable Cost-Effective Marketing
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Scale
Get EfficientConversion
Product/Market Fit (Value)
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Pyramid through Lean Startup Lens
• Waste – Eliminate wasted time, money, effort…
• Focus – Channel resources to create value• Speed - Get to next level as quickly as
possible• Learn – Hypothesize, test, refine
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Survey User Perceived Value
• Free template at Survey.io
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Key “Value” Question
“Very Disappointed” My Recommendation
0% – 25% Keep burn low, engage, iterate
26% – 39% Try repositioning, retargeting
40% – 100% Proceed up pyramid
“How would you feel if you could no longer use Product?”
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Start Transition to Growth
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Scale
Get Efficient Conversion
Product/Market Fit
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Better conversion efficiency Improves range & scalability of viable
channels
Race to Scale – Key Projects
1. Positioning - based on perceived value2. Right metrics - to channel resources3. Optimize conversions - LP & funnel4. Viable economics – monetize user value5. Scalable growth strategy - who/intent?6. What else?
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Optimize Landing Pages & Full Funnel
Signup
Home Page
Path 1
200,000
100,000
100000
50000
X000PaidX00
PaidX00
FreeX000
X00025000
50%
12.5& 12.5%
X% X% X% X%
Path 1 (step 2)
Path 225000
X000
X%
X00
Free
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Scalable Growth Now Possible
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Scale
Get Efficient Conversion
Product/Market Fit (Value)
18
Test from Free to Paid Channels
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Channel Cost/user Scalability Viral/referral Free High Email (internal) Free Organic Blog Free Organic SEO Free or Paid Organic Widget Free or Paid Organic Biz Dev/Partners Free or Paid High Domains Paid (low) Low PR Paid (low) High Email (external) Paid (TBD) High SEM Paid (TBD) Can be High Contest Paid (TBD) Organic Affiliate/lead gen Paid (TBD) High Radio Paid (TBD) High TV Paid (TBD) High
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Driving/Managing Growth
Monitor Conversions
• Anything broken?
• AARRR
Manage Campaigns
•Optimize and scale campaigns on ROI
Develop New Campaigns
• Test new sources
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Budget to maximize positive ROI spend
Valuable Company
• Some loss of control is good
• Understand via triangulation– Origin tracking– Trend correlation – Surveys
• Feed the beast
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Channel Your Resources to Climb the Pyramid
Twitter: @seanellisBlog: startup-marketing.com
Scale
Optimize
Economics
Positioning
Product/Market Fit (Value)