DELIVERING A MAFIA OFFER
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1 MODULE 6 - LESSON 7 DELIVERING A MAFIA OFFER ASH ash@spark59.com PracticeTrumpsTheory.com
2 Attention Interest Desire Action
3 Workshops Blog Book? Time
4 USERcycle - Version 1 Problem Solution Unique Value Proposition Troubleshooting trials is hard. Metrics can t tell you why. Event based tracking Metrics are People Lifecycle Messaging Turn your users into passionate customers. Unfair Advantage Personal Authority Advisors Customer Segments Software companies User motivation decays exponentially. Existing alternatives: Homegrown, Drip s, Salesforce + Eloqua/Marketo Key Metrics Success Goal: $10M revenue/year in 5 years High level concept: KISSmetrics meets Mailchimp. Channels Blog Book Workshops Early Adopter: Pre-PM Fit and familiarity with Lean Startup Cost Structure Hosting Costs - heroku: $150/month People Costs - 2 people = $20K/month Revenue Streams 30-day Free $50/month Freemium model to follow Lean Canvas is adapted from The Business Model Canvas ( and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.
5 Blog post Landing Page
6 Workshops Problem Interviews Blog Book Time
7 Persona DISTINGUISHING CHARACTERISTICS Hi, my name is Josh. I am a technical founder building a SaaS product with plans that range from $24-99/mo. I launched my product 3 months ago. I get signups a day and ~5 paid conversions a week. FEARS/FRUSTRATIONS I expected the product direction to become clearer after launch but things actually got murkier. I spend a lot of time chasing customer issues that are hard to recreate. I am getting bombarded with feature requests. I didn t expect on boarding to be so painful. I thought metrics would be a lot more helpful but all I have are dozens of numbers that tell me things aren t working but don t tell me why. CURRENT BEHAVIOR/WORKFLOW ASPIRATIONS/GOALS I know metrics are important and I have signed up to a number of analytics products. I also have my own homegrown dashboard which I monitor daily. I am focussed on listening to customers and improving the product. I want to build a successful product. I would like to improve my customer on boarding process and eventually retain more paying customers. My 6 month goal is generating $20K/month.
8 Back Current Flow Know metrics is important Launch product with Google Analytics Implement homegrown dashboard Monitor dashboard daily PERSONAS Technical Founder Run into unexpected product issues Reach out to customers manually Identify/Fix issues Need more longer-term customer insights Research other metrics solutions Try out a bunch of them Settle on 3-4 for different views Monitor daily to make sense of numbers
9 Defining the Customer CUSTOMER SEGMENTS Software Companies EARLY ADOPTERS SaaS products with > 20 sign-ups/day
10 Defining the Problem PROBLEM 1. Drown in a sea of numbers. 2. Metrics can t tell you why. 3. Hard to measure real progress. EXISTING ALTERNATIVES 1. Homegrown 2. Analytics & CRM software
11 Problem Interviews Build Demo Workshops Blog Book Time
12 You don t need code to test a vision.
13 1. Are we making progress? - WHAT 2. What caused the change? - WHY 3. How do we improve? - HOW
14 Week 1 Cohort Week 2 Cohort Week 3 Cohort Week 4 Cohort Signed-up 900 (100%) Signed-up 1000 (100%) Signed-up 1100 (100%) Signed-up 1200 (100%) Downloaded 750 (83%) Downloaded 800 (80%) Downloaded 900 (81%) Downloaded 950 (80%) Did key activity 380 (42%) Did key activity 500 (50%) Did key activity 650 (60%) Did key activity 350 (30%) Purchased 95 (11%) Purchased 100 (10%) Purchased 180 (16%) Purchased 0 (0 %) How can we make this better?
15
16 Days not weeks or months.
17
18
19 Solution Interviews Problem Interviews Build Demo Workshops Blog Book Time
20
21 Running Interviews
22
23 A I D A
24 A I D A
25 01 Nail the problem.
26
27 What you wanted
28 WTF? What you wanted The reality
29 A I D A
30 02 Deliver a compelling demo.
31
32
33
34 A I D A
35 03 Build desire - social proof, personal authority, prizing, scarcity.
36 PROSPECTS / USERS CUSTOMERS Stage High-touch, Market Risk, Qualitative Stage 2 1, Stage 3 10,000 1,000 Stage 4 100,000 10,000 Self-serve, Technical Risk, Quantiative 10X Product Launch
37 REVENUE STREAMS 14-day $200/mo
38 REVENUE STREAMS 14-day $200/mo 4X increase
39 Defining the Problem PROBLEM EXISTING ALTERNATIVES 1. Homegrown 2. Analytics & CRM software
40 04 Use explicit price anchoring.
41
42
43 Could you build a similar homegrown system spending half a day/month?
44 $200/mo < 4 developer hours /mo
45 05 Make a big promise you plan on keeping.
46 Deliver value or go home.
47 PAIN/DESIRE ATTRACTION Pull SUCCESS CRITERIA Desired Outcome CONTEXT Push Triggering event Friction Inertia ANXIETY HABIT
48 06 Don t lower sign-up friction. Raise it.
49 Qualify early adopters.
50 Position your MVP as the prize.
51 The MVP directive: Race to deliver customer value.
52 How fast is fast?
53 Use your MVP to start the conversation on the right solution.
54 Measuring a mafia offer
55 The Goal: You are done when you can create ready customers at a 80% production rate. >80% conversion rate
56 1. What is you business model? 2. How many sign-ups do you get a day? 3. What s keeping you up at night?
57 SUCCESS METRICS PROBLEM/SOLUTION FIT PRODUCT/MARKET FIT SCALE How will you determine if this is a problem worth solving? What is your early validation criteria? How many customers does that represent? By when? How will you determine if you have built something enough people want? What is your revenue goal? How many customers does that represent? By when? How will scale your business model? What is your engine of growth? What is your revenue goal? How many customers does that represent? By when? CURRENT METRICS How is your customer funnel performing? Identify your current stage. List out customer lifecycle (AARRR) metrics. 80 CUSTOMERS 2 MONTHS FROM NOW 800 CUSTOMERS 1.5 YEARS FROM NOW 8,000 CUSTOMERS 3 YEARS FROM NOW EXPERIMENTS KEY OBJECTIVE ACTIVE EXPERIMENTS COMPLETED EXPERIMENTS Determine right action, right time. What are your riskiest assumptions or leaps of faiths? What is your next significant goal? How will you get there? By when? BUILD MEASURE LEARN EXPERIMENT QUEUE Lean Dashboard Lean Stack by Spark59.com
58 SUCCESS METRICS PROBLEM/SOLUTION FIT PRODUCT/MARKET FIT SCALE How will you determine if this is a problem worth solving? What is your early validation criteria? How many customers does that represent? By when? How will you determine if you have built something enough people want? What is your revenue goal? How many customers does that represent? By when? How will scale your business model? What is your engine of growth? What is your revenue goal? How many customers does that represent? By when? CURRENT METRICS How is your customer funnel performing? Identify your current stage. List out customer lifecycle (AARRR) metrics. 20 CUSTOMERS 2 MONTHS FROM NOW 200 CUSTOMERS 1.5 YEARS FROM NOW 2,000 CUSTOMERS 3 YEARS FROM NOW EXPERIMENTS KEY OBJECTIVE ACTIVE EXPERIMENTS COMPLETED EXPERIMENTS Determine right action, right time. What are your riskiest assumptions or leaps of faiths? What is your next significant goal? How will you get there? By when? BUILD MEASURE LEARN EXPERIMENT QUEUE Lean Dashboard Lean Stack by Spark59.com
59 + + + THE MAFIA OFFER THE SMOKE TEST OFFER THE PRE-ORDER OFFER THE FREE COOKIE OFFER
60 It s time to act on your big idea. Validate and grow your business idea with advice from top business model coaches and lean experts. Life is too short to build something nobody wants Ash Maurya Author, Running Lean Founder,
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