Third class

1. Developing a Replicable
Sales & Marketing
Model
Sean Ammirati
Partner, BirchmereVentures
Adjunct Professor, Carnegie Mellon University
#CMULean

2. The Customer
Development Model
#CMULean
Today’s
Focus
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
A product solves
a problem for an
identifiable group
of users
The market is
saleable and
large enough
that a viable
business
might be built
The business is
scalable through a
repeatable sales and
marketing roadmap
Company
departments
and operational
processes are
created to support
scale

3. Market Sizing
#CMULean
Total Addressable Market
Served Available
Market
Target
Market
Top Down Bottom Up
Take key variables in revenue
model & multiple by market
data assumptions
Example:
# of Potential Users x
# of PageViews x
(Average RPM in Mkt/1000)

4. Sample:VigLink
#CMULean
http://lsvp.com/2011/03/16/how-to-estimate-market-size/

5. Real Goal: Make sure
this is worth your time!
(and your investors money)
#CMULean

6. Sample: NoWait
#CMULean

7. $185 B
300,000
locations
the table service market.
10%Fine Dining
Reservation

8. $185 B
300,000
locations
casual dining.
OpenTable for
Casual Dining
Casual Dining
Walk-in

9. Innovators Early
Adopters
Early Majority Late Majority Laggards
Modified Source: http://www.slideshare.net/rstrad1/berkeley-digital-media-conference
Technology Adoption
Life Cycle
#CMULean#CMULean

10. Market Types
B2B: used & purchased by businesses
B2C: used & purchased by consumers
B2B2C: sold to business to acquire a
consumer
#CMULean

11. Innovators Early
Adopters
Early Majority Late Majority Laggards
Modified Source: http://www.slideshare.net/rstrad1/berkeley-digital-media-conference
Technology Adoption
Life Cycle
B2B: Pragmatists
B2C: Engagers
#CMULean

12. Replicable Customer
Acquisition
SalesMarketing
A: Acquisition where / what
channels do users come from?
A: Activation what % have a
"happy" initial experience?
R: Retention do they come back
& re-visit over time?
R: Referral do they like it enough
to tell their friends?
R: Revenue can you monetize any
of this behavior
P: Process understanding the
critical activities and stages to
activate an account
P: Pipeline measuring number of
accounts at each stage and
likelihood of closing
S: SPIN a methodology for asking
questions along 4 steps
Situation Problem Implication
& Need-payoff#CMULean

13. http://www.youtube.com/watch?v=irjgfW0BIrw&noredirect=1
#CMULean

14. #CMULean
http://www.flickr.com/photos/22017131@N05/5307153813/

15. http://www.flickr.com/photos/500hats/577630651/
#CMULean

16. Replicable Customer
Acquisition
SalesMarketing
A: Acquisition where / what
channels do users come from?
A: Activation what % have a
"happy" initial experience?
R: Retention do they come back
& re-visit over time?
R: Referral do they like it enough
to tell their friends?
R: Revenue can you monetize any
of this behavior
P: Process understanding the
critical activities and stages to
activate an account
P: Pipeline measuring number of
accounts at each stage and
likelihood of closing
S: SPIN a methodology for asking
questions along 4 steps
Situation Problem Implication
& Need-payoff#CMULean

17. Sales Process
• Predictable
• Scalable
• Automated
• Clearly defined “levers” you can pull
• Instrumented with great metrics
• Cost Optimized
#CMULean

18. Sales Funnel
• Process should drive to
defined stages
• Measurable Location
#CMULean
Qualified Opp
Proposal Sent
Verbal Commitment
30%
60%
80%
Sample

19. Tools
• Salesforce.com (or another CRM)
• HubSpot
• Mailchimp (or another ESP)
#CMULean

20. S.P.I.N Selling
S: Situation Questions
facts about buyers
existing situation
P: Problem Questions
focus on the PAIN
I: Implication Questions
effects of the problem
N: Need-Payoff
Questions getting BUYER
to state the benefit
#CMULean

21. CEO Must OWN
Customer Relationships
until scaleable!
#CMULean