Lean Marketing! W.L. Dougan, PhD! Dave Gee, MBA!!! 4/11/17! Copyright William Dougan and David Gee

Transcription

1 Lean Marketing! W.L. Dougan, PhD! Dave Gee, MBA!!! 4/11/17!

2 Your Facilitators William Dougan Ø Professor of Entrepreneurship UW-Whitewater Ø Launch Pad Co-Director UW-Whitewater Ø BREW Water Accelerator Advisor Ø Blackthorne Analytics Ø Larta Institute Principal Advisor Ø Wisconsin Innovation Awards and WI Governors Business Plan Ø PhD and MBA Cornell University, BBA University of Kansas Dave Gee Ø Lecturer in Entrepreneurship UW-Whitewater Ø Lecturer in Digital Marketing UW-Madison Ø Launch Pad Co-Director UW Whitewater Ø Bungee & Sales Sherpas CEO & Co-Founder Ø Classmunity Co-Founder Ø Humana, BellSouth, Motorola, U.S. Cellular Ø MBA Marquette, BBA UW-Whitewater

3 Agenda What is the Lean Startup Method? Lean Marketing LOCATE à Target market RAPIDLY DISCOVER à What target market VALUES VALIDATE à Assumptions about target market EVOLVE à To problem ßà solution FIT Traditional marketing vs. Lean marketing How to implement Lean Marketing Metrics Tools Copyright William Dougan and David Gee

4 Lean Startup Principles Inspired by Toyota Lean/Six Sigma Manufacturing Uncertain environments require placing priority on DISCOVERY before EXECUTION Product/Service and Business Model designs should be based on validated DEMAND Decisions should be grounded in evidence Learning integrates Small Fast Failures Experiments and Statistics are best for validation Copyright William Dougan and David Gee

5 The Lean Process BuildàMeasureàLearn Bias to Action in Customer Contact Minimum viable product Capture reliable customer information Use information to adjust business development process Spend Resources on Value Creation 1. Identify what customers value 2. Identify what customers will compensate 3. Use 1. and 2. as a basis for validation metrics

6 Tradi<onal Marke<ng vs. Lean Marke<ng Tradi<onal Marke<ng Firm Marke<ng Customer Lean Process Lean Marke<ng Firm Marke<ng Customer Marke<ng Copyright William Dougan and David Gee

7 Why Is Lean Marketing Different? Marketing metrics justify survival and growth Contacts à Numbers and Patterns Econometrics à Demand for Alternatives Behavioral à Unsolicited requests/website visits/pre-purchase Behavior has the most weight Outside information feeds BUSINESS design decisions Channel and Supplier availability and preferences New Upstream/Downstream Partners Availability and cost of resources Persist or Pivot Decisions Testing builds knowledge of what works BETTER Contacts jumpstart information flows Overcomes entrepreneur reluctance to describe and solicit Gives customers occasion to realized/articulate need Initiate customer search Involving influencers Staging of tasks is necessary Trusteds à Concierge àopen Toolsà Scale

8 Identify Assumptions Business Model Elements Customer/Problem Product/Service Distribution Pricing Demand Creation Partners Relationship of costs to Long-Term Value The Lean Marke5ng Ps Problem Product Place Price Promotion People Profit

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10 Validate Assumptions about the PROBLEM Who is suffering à Segments Day in the life Magnitude Sufferer Recognition Visions of solutions Organizational Impact ROI holdups Minimum feature set à MVP Copyright William Dougan and David Gee

11 Validate Assumptions about the SOLUTION Maximum and Minimum Feature Set Benefits Delivery Schedule Total Cost of Ownership Dependencies

12 Customer Relationships Acquisition CAC = Customer Acquisition Cost 2012 Steve Blank

13 Customer Relationships Acquisition Retention - Growth LTV = Customer Life5me Value 2012 Steve Blank

14 Traditional Marketing vs. Lean Marketing Processes Tradi5onal Lean Data Accessibility Exists Undiscovered Focus Long-Term Short-Term (Rapid Learning) Budget Mid-Large Small Resource Ownership Owned Free/Open-Source Idea Genera<on Internal Crowd Deployment Slow Rapid and Repeatable Flexibility Rigid Flexible Required Marke<ng Resources Paid Free/Pro bono/trials/low Cost

15 Tradi<onal Marke<ng Tools vs. Lean Marke<ng Tools Tradi5onal Outdoor/Billboards Print TV Radio Yellow Pages Direct Mail Tradi<onal campaign management Lean (Focus on Digital Marke5ng) SEO Paid Search Conference speeches Earned Media through Public Rela<ons Social Media Digital Distribu<on Marke<ng Marke<ng Automa<on

16 Lean Marketing Metrics Examples Lean Marke5ng Metrics Followers/Likes/Retweets/Shares Page Rank Unique Visitors Impressions Cost Per Click Click Through Rate Open Rate Churn Cost of Acquisi<on Life<me Customer Value Conversion Pledged Amount and Backers

17 Market Validation + Funding Paid Search

18 Free Public Relations Paid Search

19 1. Visits 2. Visitor types 3. Page views 4. Pages per visit 5. Visit duration 6. Bounce rates 7. New visits 8. Traffic sources 9. Campaign data 10. Conversions Website Analytics

20 Course Overview - Search Strategies SEO or Search Engine Optimization is the process of improving the visibility of a website or Web page in a search engine s organic search results. - Wikipedia

21 Organic Search & Paid Search Paid Organic Page Rank: Higher = Better

22 Search Engine Optimization Page Rank is a measure of the authority (or importance) of a specific page on the Internet. Page Rank represents the statistical likelihood of arriving on a particular Web page from any random starting point on the Internet.

23 Paid Search Keyword Targeting

24 Paid Search Paid Search Advertising

25 Paid Search Social Media Metrics

26 Rapidly Deployable Social Engagement Paid Search

27 Marke-ng Marketing Automa-on Automation So5ware Example

28 Digital Marketing & Sales Channel Integration Lead Nurturing How does lead nurturing work?

29 Digital Marketing & Sales Channel Integration Conversion Tracking

30 Questions? William Dougan williamdougan Dave Gee davidrgee