1. Step 13: Map Process to Acquire Paying Customer

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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