Step 13: Map Process to Acquire Paying Customer

Budgeting / Purchasing Authority Time is of the Essence Workshop Outline Overview How to Map Process Budgeting / Purchasing Authority Time is of the Essence Workshop November 19, 2018

Map out process by which customer decides to purchase your product Overview This step: Map out process by which customer decides to purchase your product Estimate the sales cycle of your product Identify any hurdles that would slow you down November 19, 2018

Figuring out Decision-Making Unit is first step Overview Figuring out Decision-Making Unit is first step Need process to convert potential to paying customer Need to map process from initial contact to final payment Process can be more complicated than you think November 19, 2018

Goals of creating this map: Understand length of sales cycle Overview Goals of creating this map: Understand length of sales cycle Build foundation for calculated COCA (cost of customer acq) Identify hidden obstacles / deal breakers early Be able to show investors that you understand process November 19, 2018

Future steps will depend on this mapping Business model Pricing Overview Future steps will depend on this mapping Business model Pricing Sales channels COCA … November 19, 2018

Budgeting / Purchasing Authority Time is of the Essence Workshop Outline Overview How to Map Process Budgeting / Purchasing Authority Time is of the Essence Workshop November 19, 2018

How will customer determine they have a need? How to Map Process Use items for Full Life Cycle Use Case as basis for mapping Process for Acquiring Paying Customers How will customer determine they have a need? How to activate customers to do something different? How do customers find out about your product? How will customers analyze your product? How do customers install your product? How will customers pay for your product? November 19, 2018

How to Map Process Use items for Full Life Cycle Use Case as basis for mapping Process for Acquiring Paying Customers (summary) Need Options Analyze Acquire Pay Install Use, get value Buy more / tell others November 19, 2018

Look at same process from company’s perspective (not customer’s) How to Map Process Difference between Full Life Cycle Use Case and process for acquiring paying customers: Look at same process from company’s perspective (not customer’s) Include various players from customer’s DMU November 19, 2018

We will ultimately draft a Sales Funnel How to Map Process We will ultimately draft a Sales Funnel Turns Full Life Cycle Use Case into an Action Plan for company! November 19, 2018

Sales Funnel has seven elements: Identification Consideration How to Map Process Sales Funnel has seven elements: Identification Consideration Engagement Purchase Intent Purchase Loyalty Advocacy November 19, 2018

1) Identification – generate leads Potential customers How to Map Process 1) Identification – generate leads Potential customers Not yet aware of company Output: quality leads that match End User Profile November 19, 2018

May develop awareness by responding to advertisements How to Map Process 2) Consideration – lead becomes aware they have problem that needs solving.. and your product solves this problem May develop awareness by responding to advertisements Once they have awareness, become suspects Yield rate- fraction of leads that become suspects November 19, 2018

3) Engagement- start meaningful 2-way dialog with suspect How to Map Process 3) Engagement- start meaningful 2-way dialog with suspect Suspect may want a demo or engage in sales call Suspect turns into prospect November 19, 2018

Starts negotiating the order Online shopping => puts item in cart How to Map Process 4) Purchase intent – prospect demonstrates clear willingness to purchase Starts negotiating the order Online shopping => puts item in cart Prospect becomes highly qualified prospect November 19, 2018

5) Purchase – moment of truth Issues purchase order, pays for product How to Map Process 5) Purchase – moment of truth Issues purchase order, pays for product Online shopping => checkout Becomes customer November 19, 2018

6) Loyalty – make sure customer receives and installs product How to Map Process 6) Loyalty – make sure customer receives and installs product Address support inquiries Make sure customer is getting expected value Hopefully customer is not satisfied customer November 19, 2018

How to Map Process 7) Advocacy – customer becomes repeat customer or evangelist for product.. November 19, 2018

For each component, ask: Who are the key players from DMU? How to Map Process For each component, ask: Who are the key players from DMU? What is their influence? What is their budget authority? How long will each component take? What are the inputs and outputs? November 19, 2018

Budgeting / Purchasing Authority Time is of the Essence Workshop Outline Overview How to Map Process Budgeting / Purchasing Authority Time is of the Essence Workshop November 19, 2018

Budgeting / Purchasing Authority Key factor: identify the budgeting / purchasing authority How much can someone spend without seeking approval? Will payment come from operational or capital budgets? How long will approval take? Week? Month? Quarter? Year? November 19, 2018

Budgeting / Purchasing Authority Time is of the Essence Workshop Outline Overview How to Map Process Budgeting / Purchasing Authority Time is of the Essence Workshop November 19, 2018

You’ll need to validate estimates Account for delays Time is of the Essence Consider the time it’ll take to move through each step in Process to Acquire Paying Customer You’ll need to validate estimates Account for delays Ask yourself: are you being aggressive? Conservative? Better to be more conservation.. November 19, 2018

Budgeting / Purchasing Authority Time is of the Essence Workshop Outline Overview How to Map Process Budgeting / Purchasing Authority Time is of the Essence Workshop November 19, 2018

Worksheet #1- Process to Acquire Paying Customer Workshop Worksheet #1- Process to Acquire Paying Customer Describe each stage in Full Life Cycle User Case Questions to answer: What does the customer do in this stage? Who, from the DMU, is involved? What are the budget limitations? What are the risks? How will you mitigate these risks? November 19, 2018

Worksheet #2- First Draft of Sales Funnel Workshop Worksheet #2- First Draft of Sales Funnel Convert previous into step-by-step action plan Goes from wide to narrow (many leads, to few customers) November 19, 2018