Step 12 & 13 DMU & DMP. MIT Global Startup Labs Peru 2018

Transcription

1 Step 12 & 13 DMU & DMP MIT Global Startup Labs Peru 2018

2 Next Wednesday! Team Presentation Guideline Slide 1 - Team Name, Logo, Pictures, Tagline Slide 2 - Quick description of problem + idea Slides Step 2 & 4 - BHM & TAM & End User Profile Step 2 - PMR - Key Assumptions Tested, Activities taken so far, Results, Plan Step 7 - High Level Specs Step 8 - Value Prop Step 10 & 11 - Core & Competitive Position Present on Wednesday Morning! Every Team Prepares Slides!!! **AND please make an appointment for Monday Team Consulting Hours

3 Step 12: Decision Making Unit (DMU)

4 What is DMU? To sell your product successfully, multiple people have to be convinced that your product is worth buying. Identify all the people who will be involved in the purchasing process! Approve Block Sway & Influence B2C vs. B2B More people involved in B2B B2C - indirect influencers - hard to guess (only found through PMR)

5 Roles in the DMU? Primary Roles in the Decision Making Unit Champion (Advocate) the person who wants the customer to purchase the product, typically but not necessarily the end user End User the person who actually use the product Primary Economic Buyer the primary decision maker, and most often controls the budget Additional Roles in the Decision Making Unit Primary and Secondary Influencers depth of experience in the subject of matter, can influence the rest of DMU Person with Veto Power have the ability to reject a purchase for any reason Purchasing Dept handles the logistics of the purchase, can be your obstacle

6 How to find them? In your PMR, ask the customer: Assuming we build our product, how do we go about testing the product in here? Who besides you would be involved in this decision? Who will have the most influence? Who could stop this from happening? Whose budget will the money come from to pay for it? Who will feel threatened by this purchase and how will they respond?

7 Example: B2C - LARK Technologies Idea: Silent Alarm Clock - vibrating wristband linked to an app Problem: Allow couples who sleep in the same bed but with differing sleep requirements to keep separate sleep schedule without waking each other DMU: End User - early riser (often male), primary economic buyer Champion (Advocate) - late riser (often female), put pressure on the early riser to find/pay for a solution Primary Influencer Friends, Family members, Lifestyle Blogger etc

8 Example: Jose s DMU - Flocktracker Flocktracker s Persona Jose is a Transportation and Mobility planner at Laboratorio para la CIudad (Innovation department of Mexico City) Primary influencer Peer transportation planners, who work in other cities. The persona is very similar to José. José learns about how different cities collect data through articles, announcements, conferences. Secondary Influencer Reviews on digital media (app store, blogs) written by other users Veto power José s department boss has veto power. AS long as he/she doesn't say NO, José can make the purchase. Economic Buyer José has the autonomy to decide and purchase the software. Software that falls below the micro transaction cost ($3,500) and have Federal-compatible Terms of Service (TOS) can be acquired with no bidding process As a transportation planner, José would have the autonomy to decide and purchase the software. End Users José and his data collection team

9 Exercise: Medical Device Assume you are selling a medical device Who are your potential end user? Primary influencers of your end user? Who are your potential economic buyer? Primary influencers of your economic buyer? The champion? Veto power?

10 Step 13: Decision Making Process (DMP)

11 What is DMP? Map the process to acquire a paying customer! o Converting a potential customer to a paying customer and from initial contact to final payment By creating a map, you can: Estimate the length of sales cycle of your product Build the foundation for Cost of Customer Acquisition (COCA) Identify any budgetary, regulatory, or compliance hurdles that would slow down your ability to sell your product Show potential investors that you understand the customers buying process

12 How to Map the Process? Convert the Full Life Cycle Use Case (Step 6) to DMP Estimate the time to complete each stage Make sales funnel with action plans

13 So What Do You Already Know? Items from the Full Life Cycle Use Case (Step 6): How end users will determine they have a need and/or opportunity to do something different How they will find out about your product How they will analyze your product How they will acquire your product How they will install your product How they will pay for your product

14 Converting Step 6 to Step 13 What is the difference? Step 6 Full Life Cycle Use Case Customer s viewpoint Step 13 Customer Acquisition Process Seller s viewpoint

15 Sales Funnel Process

16 Sales funnel with action plans

17 Example #1: GearUp Ski Gear Rental

18 Example #2: Flocktracker

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20 Two most important concepts in DMP 1. Windows of Opportunity (WoO) Time period customer is open to considering your product 2. Trigger Specific action YOU take in WoO to create urgency & strong incentive to buy

21 Examples of WoO Seasonality (selling lemonade in summer and Christmas wreaths in winter) End of fiscal year (extremely relevant for business, but also for some consumers due to taxes) Budget planning cycle Life transitions (e.g. graduation, first job, first home, pregnancy) Change in leadership (e.g. company hires a new COO) Change in regulation (e.g. enactment of the Affordable Care Act)

22 Why? Getting the customer to take the FIRST STEP towards buying your product is the HARDEST STEP & need THE MOST ATTENTION NOW!

23 2. Trigger Examples

24 Exercise #1: Company: Travel Website WoO: Users come to website and look for price on a specific route Trigger: Highlighted text under the price says Only 2 seats available at this price Comment: Extremely effective; scarcity of supply incentivizes action now Where else could this approach be tried?

25 Exercise #2: Company: IBM Selling high performance computers WoO: End of Fiscal Year - departments have money left Trigger: If you let us know in early November, we will be able to schedule our people to ensure the equipment is installed, invoiced and paid for well before the year end so you don t have to stick around over the holidays. Comment: Early commitment Where else could this approach be tried?