1. Step 23: Show That “The Dogs Will Eat The Dog Food”

2. Outline
Overview
Example Metrics
Workshop
November 14, 2018

3. “Dogs will Eat the Dog Food” Chemist makes new dog food in lab
Overview
“Dogs will Eat the Dog Food”
Chemist makes new dog food in lab
Food is superior in quality and nutritional value
Food is much cheaper than competitors
Chemist gets millions to build factory
Makes new food, sells, ships
But.. Dogs don’t eat it
Company fails..
November 14, 2018

4. “Dogs will Eat the Dog Food” Happens all the time!
Overview
“Dogs will Eat the Dog Food”
Happens all the time!
E.g., electronic medical records in the 1990s
E.g., electric car in the 1990s
November 14, 2018

5. Demonstrate that customers will pay for your MVBP
Overview
This step:
Demonstrate that customers will pay for your MVBP
Develop metrics that will indicate success / failure
Conversions
Adoption rate
Value gained …
Numbers don’t lie…
November 14, 2018

6. Time to test your MVBP objectively-
Overview
Time to test your MVBP objectively-
Whether end-user is using product and getting value
Whether economic buyer is willing to pay
Whether champion is pleased enough to continue advocacy
November 14, 2018

7. Outline
Overview
Example Metrics
Workshop
November 14, 2018

8. Use Step 18: Map Sales Process to Acquire Customer as foundation
Example Metrics
Use Step 18: Map Sales Process to Acquire Customer as foundation
Want to determine rates for each stage of sales funnel…
November 14, 2018

9. Example Metrics Initial interest Conversion rates Purchase and pay
Retention rates
Customer advocacy
COCA and LTV
Gross Margins
November 14, 2018

10. Target customers exposed to value proposition
Example Metrics
Initial interest
Target customers exposed to value proposition
What percentage actively seek to learn more
E.g., ”click-through rate”
November 14, 2018

11. Target customers in sales funnel
Example Metrics
Conversion rates
Target customers in sales funnel
Yield rates through each stage of funnel
… and trends
November 14, 2018

12. Whether customer pays for product How long does it take?
Example Metrics
Purchase and pay
Ultimate conversion
Whether customer pays for product
How long does it take?
What percentage do NOT purchase?
November 14, 2018

13. Percentage of customers who re-subscribe Opposite of churn rate
Example Metrics
Retention rates
Percentage of customers who re-subscribe
Opposite of churn rate
November 14, 2018

14. Big difference between satisfied customer and evangelist
Example Metrics
Customer advocacy
Big difference between satisfied customer and evangelist
Use the Net Promoter Score (NPS)
“On a scale of 1-10 (10 being highest), how likely are you to recommend this product to a friend or colleague?
November 14, 2018

15. Now that you have sales, estimate COCA and LTV
Example Metrics
COCA and LTV
Now that you have sales, estimate COCA and LTV
COCA – cost of customer acquisition
LTV – lifetime value of customer
November 14, 2018

16. Revisit costs of margins
Example Metrics
Gross Margins
Revisit costs of margins
Difference between cost of product and sales price
Should go up over time…
November 14, 2018

17. Before you release product, make sure team has:
Example Metrics
Before you release product, make sure team has:
clearly defined metrics
determined how these metrics will be observed
determined what success looks like
defined a time scale
November 14, 2018

18. Outline
Overview
Example Metrics
Workshop
November 14, 2018

19. Worksheet on “Dogs will Eat the Dog Food”
Workshop
Worksheet on “Dogs will Eat the Dog Food”
November 14, 2018