1. Customer Acquisition Process

2. Customer Relationships – Buying Cycles Source: Steve Blank Web and Mobile Physical Goods

3. Types of Customers ConsumersBusinessesGovernment Sales CycleShortModerate to LongLong Sales Cycle ComplexitySimpleModerate to ComplexComplex Speed to ScaleRapidModerateSlow Purchase MotivationsEmotion, Instincts, Immediate Needs Business Goals, Budgets, Vendor Relationships Goals, Budgets, Vendor Relationships Marketing Budget Requirements HighModerate to Low Support RequirementsLowModerate to High

4. Design issues in Customer Definition Lead time for research Marketing budget Size of customer service presence/budget Specialized staff Funding sources Use of the web (website, social, app) to drive sales Use of the web (website, social, app) to provide support Other

5. Customer Roles? Customer UserBuyer Decision Maker Influencer B2C – All roles could be fulfilled by 1 person B2B or B2G – Could be 1 person per role or many people in each role

6. Customer Archetypes Drive Get/Keep/Grow What’s their role? –How this person is evaluated / promoted / compensated? Who are they? –Buyer’s name –Position / title / age / sex How do they buy? –Discretionary budget (name of budget and amount) What matters to them? –What motivates them? Who influences them? –What do they read/who do they listen to?

7. Paid Demand Creation (Marketing) Activities “Paid” Media Public Relations Advertising Trade Shows Webinars Email marketing On-line search engine marketing Business Development Demand Creation

8. Free Demand Creation (Marketing) Activities “Earned” Media Publications in journals Conference speeches/papers Educational seminars Public relations Blogging / Sharable content Social Media Communities Demand Creation

9. Customer Relationships Physical Products – Customer Acquisition (Get Customers) © 2012 Steve Blank

10. Customer Relationships Physical Products – Get Customers © 2012 Steve Blank CAC = Customer Acquisition Cost

11. Customer Relationships Physical Products – Get/Keep/Grow © 2012 Steve Blank LTV = Customer Lifetime Value

12. Customer Relationships Web/Mobile Products– Get Customers © 2012 Steve Blank

13. Web/Mobile Products– Get Customers © 2012 Steve Blank CPM = cost per thousand hits

14. Web/Mobile Products– Get Customers © 2012 Steve Blank CPA = Cost per Action

15. SaaS Products – Get Customers © 2012 Steve Blank Organic Traffic, SEM, Other Paid Sources Raw Leads Registered Visitors Qualified Leads Inside Sales Closed Deal

16. Web/Mobile Products– Keep Customers

17. Customer Relationships Web/Mobile Products– Grow Customers © 2012 Steve Blank

18. Our Example Marketing Funnel Quick Marketing Calculation 50%amount of traffic that is organic versus paid $1.50cost per paid visitor (Google AdWords, etc.) $ 0.75Cost per visitor (both paid and unpaid) 3%visitors convert to raw leads 20%number of raw leads that turn into qualified leads 1qualified lead 5raw leads required 167visitors required $125Cost of visitors (also = Cost per qualified lead) Source: David Skok Matrix Partners

19. Our Example Marketing Funnel Quick Marketing Calculation 50%amount of traffic that is organic versus paid $1.50cost per paid visitor (Google AdWords, etc.) $ 0.75Cost per visitor (both paid and unpaid) 3%visitors convert to raw leads 20%number of raw leads that turn into qualified leads 1qualified lead 5raw leads required 167Visitors required $125Cost per qualified lead Source: David Skok Matrix Partners