by Stephen Goodman, Director, Cambridge Office and Partner

1. Why CMOs need to adopt Growth Hacking
B2B Camp
Microsoft NERD, Cambridge, MA
September 29th, 2012
Stephen Goodman
Director, Cambridge Office and Partner
@ViewfromMadrone
Stephen Goodman
Confidential and Proprietary
September 2012

2. Complexity of Marketing
Disruption of Digital Channels
September 29 , 2012 th
Growth Hacking
September, 2012 Stephen Goodman / Confidential and Proprietary 2

3. Growth hacking reflects the continuous integration
of technology into the art of marketing
Growth hacking
is a marketing approach that combines
technical methods, data-centric and
analytical problem solving, and marketing
expertise to cultivate customer acquisition
and retention in rapidly evolving digital
channels
September, 2012 Stephen Goodman / Confidential and Proprietary 3

4. Today’s hacking ethos embraces creativity,
continuous problem solving and
analytical iteration.
September, 2012 Stephen Goodman / Confidential and Proprietary 4

5. Growth Hacking
Growth through
building, not breaking,
marketing.
September, 2012 Stephen Goodman / Confidential and Proprietary 5

6. The CMO is under tremendous pressure
“Traditional marketing - including advertising, public relations,
branding and corporate communications - is dead”
“Why CMOs Should Get Used to Less Control”
“CMO will Spend More on IT Than the CIO”
“79% of CMOs expect high to very high
level of complexity in their roles”
“CMO is under growing pressure to keep
pace with rapidly changing digital media
and globalisation.”
September, 2012 Stephen Goodman / Confidential and Proprietary 6

7. Growth Complicated by Constant Disruption
¨ Influencer and Socially-Driven Buyer’s Behavior
¨ Escalating Customer Channels
¨ New Buyer’s Journey
¨ Expectation of Anywhere All-the-time Access
¨ Evolution of Marketing Technology is Not Slowing
¨ Customers Now Grow Brand
September, 2012 Stephen Goodman / Confidential and Proprietary 7

8. And it is only going
to get more
complicated
September, 2012 Stephen Goodman / Confidential and Proprietary 8

9. Buying Now Occurs on Escalating Numbers of
Digital Channels
Gaming Social Apps Payment
Mobile Commerce Video
¨ Emerging digital platform technologies enable a
direct path to the customer.
¨ Businesses can now add specialized digital, social,
mobile and ecommerce functionality, content or
experience to their customer channel.
September, 2012 Stephen Goodman / Confidential and Proprietary 9

10. … Very Technical Digital Platforms
Gaming Social Apps Payment
Mobile Commerce Video
APIs Native Apps
3GP
HTML5
SSL
OpenID Connect
Oauth 2.0
September, 2012 Stephen Goodman / Confidential and Proprietary 10

11. Marketers must appeal to
customers wherever and
however they want to
interact with your brand.
Digital techniques enable
this to happen with
unprecedented ease.
September, 2012 Stephen Goodman / Confidential and Proprietary 11

12. API Case: Billions of Customer Touch Points
September, 2012 Stephen Goodman / Confidential and Proprietary Source: ProgrammableWeb 12

13. Brands
Using
APIs
September, 2012 Stephen Goodman / Confidential and Proprietary 13

14. B2B
Brands
Using
APIs
September, 2012 Stephen Goodman / Confidential and Proprietary 14

15. Marketing Teams are Struggling
“We get a lot of complaints [from Boeing] about implementing our
APIs. We don’t have big teams doing trouble shooting or education
on our API offerings…” Boeing’s marketing needs “dedicated
engineering and consulting resources to take advantage of various
APIs.” – Senior Sales Executive at Google
“My background is really communications… it is just not an area
that I’m familiar with.” – Executive in CMO’s office
“…they still test by showing the C-boss multiple trade booths
options. A/B testing, landing pages, HTML5 video is not part of their
marketing analysis, no less optimizing customer channels” – Senior
Agency Executive to Global B2B Company
September, 2012 Stephen Goodman / Confidential and Proprietary 15

16. Channels are going to be disrupted again…
and again
“In the past when a customer would interact with a business, the customer
had to go to the business’ context. With mobile devices, we’re seeing
customers bring their own context with them. So the merchant has to start
entering the customer’s space.” - Andy Raskin, Mashery
September, 2012 Stephen Goodman / Confidential and Proprietary Source: ProgrammableWeb 16

17. Growth hacking tackles the digital complexity
§ Data and Analytics
§ Test, Iterate, Measure, Repeat
§ Programming
§ A/B Testing, landing page analysis, social integration
§ Security, Open Graph, Mobile User Agent
§ Channel & funnel optimization
§ Inbound Marketing, CRM and MobileRM
September, 2012 Stephen Goodman / Confidential and Proprietary 17

18. Yes, Programming
September, 2012 Stephen Goodman / Confidential and Proprietary 18

19. Programming strategy drives company
strategy
¨ LuLu publishing, printing and distribution: 1.1 million
titles, 200 countries
¨ In order to grow global distribution channels, LuLu
made their API strategy a business strategy:
“The API for LuLu is not an engineering initiative. With LuLu,
this is a company-wide initiative. Everybody in the company
is focusing on our APIs. We care about our API strategy.”
– Ryan Bloom, VP of Product Development
September, 2012 Stephen Goodman / Confidential and Proprietary 19

20. Launch a new B2B service to millions
¨ 1+ Million small business running online payroll
¨ $3.9 Billion in Revenue
¨ Twilio API build was “unprecedented time to
market.” Built over a weekend, resulted in:
Launching an easy-to-use service ensuring “the experience for
customers was paramount.”
• Enhanced existing product with “must-have” security
• New customer acquisition and revenue streams
September, 2012 Stephen Goodman / Confidential and Proprietary Source: Twilio 20

21. But it is still Marketing!
• Grow customer acquisition and retention
• Broaden reach into niche or large
communities
• Maintain a meaningful online presences
• Contribute to revenue
• Manage emerging digital channel portfolio -
mobile, social, video, payment, and others
September, 2012 Stephen Goodman / Confidential and Proprietary 21

22. Stephen Goodman
Director, Cambridge Office and Partner
stepheng@nexuspartners.com
+1.415.684.8513
@ViewfromMadrone
Stephen Goodman
Confidential and Proprietary
September 2012