Inbound Sales & MarketingFuel Your Startup’s Growth
Sam Mallikarjunan
@HubSpotSam @Mallikarjunan
People‘s behaviors have changed. They‘re tuning out traditional marketing tactics.
586%91%
44%200M
The old marketing playbook is
Skips TV ads
Unsubscribe to email
On the Do Not Call List
Of direct mail is never opened
BR O KEN
StockbrokersSlightly ahead you have
You have car salesmenOn the low end
And Lawyers
And Lobbyists
6
In the middle, you have usSales & Marketing
“We had another great month that doesn't happen without you. Thanks for building trust and credibility with our prospects before we engage with them - makes every conversation a pleasure rather than a fight :)” – email from a VP of Sales to his marketing team
In order to attract customers,
marketers have to provide them with something
they love.
DefinitionInbound Marketing Is a holistic, data-driven approach to marketing that attracts individuals to your brand and converts them into lasting customers.
Cold CallingCold Emails (SPAM)
Interruptive AdsMarketer - Centric
TraditionalSEO
BloggingAttraction
Customer - Centric
InboundVS
What Makes Inbound Different?
Can you out-help
your competitors?
(helping is hard!)
Attract
BlogKeywords
Social Media
Convert
FormsCalls-to-actionLanding Pages
Close
EmailSignals
Workflows
Delight
EventsSocial Inbox
Smart Content
How does inbound marketing work?
Visitors Leads Customers PromotersStrangers
“We don’t make money when we sell things. We make money when we help customers make purchase decisions.” – Jeff Bezos
It wasn’t
Alwaysthis way.
Technology adoption Lifecycle
Innovators Early Adopters Early Majority Late Majority
10%
40% 48%
1%
Laggards
1%
“The Chasm”Area under the curve represents number of customers
historyWe live in the one of the most
of commerce.
interesting periods in the
We live in an era of big bang disruptive innovation.
Rogers Market segments
Innovators Early Adopters Early Majority Late Majority Laggards
Trial usersVastMajority
Big bangMarket segments
20
new within the last decade
1000 are >70%
of businesses on the US Fortune
Just Because Your CompanyHas survivedThe last 100
years
doesn’t mean it will survive the next ten.
Mass extinction brings opportunities for new species to flourish.
No one wants a ¼ inch drill bit.They want a ¼
inch hole.
The company that bestsolves for the customer wins.
27
“Okay, I’m excited enough -- so what
can I do about this?"
Your extendable core is the job you do for customers that a competitor couldn’t replicate
without adopting the same cost-structure.
An Extendable Core Insulates You From Disruption
“Inbound marketing is a business model innovation based on the fact that it’s more economically efficient to create an experience that attracts consumers than it is to interrupt someone else’s.”
Inbound marketing creates an extendable core that insulates you from disruption.
… or helps you disrupt others.
Inbound Marketing is hard.
It’s not all sunshine and rainbows.
(It’s pretty hard to justify, too.)$$
You can’t improve what you can’t measure.
Marketing is half of the acquisition equation
“We spent $1000 and got 500 website visits”
CoCA: $400
CoLA: $40
CoVA: $25% Visit-to-lead
10% Lead-to-customer
Measure everything.
57%Worked Percentage
0% 100%
33%
50%
Unworked eCommerce Leads
55%Average Last Attempt #
0
3
Average Attempts Per Hi/Med SAL
6
9
4.94 26%Sum of Probability Adjusted Recognized MMR in USD (Thousands)
0.00
12.60
Current Month Sales Forecast
16.80
25.20
6.64
You're generating leads but is sales working them? Sales is creating opportunities, but how deeply are they working them?
Someone can copy your exact business model and outgrow you just by measuring better.
The Old Marketing Math Model
$ 6000
$ 50,000
$ 60,000
PPC
SEO Firm
Content
WritingExpense
Yearly Amount“I’m spending a bunch of
money on marketing, and I’m making more money than I’m spending back.”
“I spend $W to acquire customer of persona X from source Y, and they spend an average of $Z with me over their lifetime.”
Customer Centric Economics Model
Starbucks has an AOV of ~$6*
Using the AOV:COTA model, to get a 3:1 ratio a Starbucks marketer would spend ~$2 to acquire that $6 transaction.
$14,099Avarage LTV
How Much Would You Spend?
*
*Source: KissMetrics
Inbound marketing is a business model innovation based on the fact that it’s more economically efficient to create an experience that attracts consumers than it is to interrupt someone else’s.
A Business Model
A Better Business Model
COCA
COCA
COCA
CLTV
CLTV
CLTV
CLTV
CLTV
CLTV
$1 in, $2 out.
$2 in, $12 out.
A Scalable Business ModelCOCA CLTV
CLTV
$2 in, $4 out. Faster growth.
COCA
COCA
CLTV
Cost Of Customer Acquisition
CLTV
CLTV
CLTV
CLTV
CLTV
CLTV
CLTV
CLTV
CLTV
CLTV
Customer Life Time Value
Customer centricity creates competitive leverage
Time
Investment Period
PaybackPeriod
ProfitPeriod
Time to Payback
Self funding point Break even point
Disc
ount
ed ca
sh
Max Cash Consumed
So easy, pretty, and simple to understand, ain’t it?
The Conventional LinearBuying Process
I'm just in the neighborhood and dropped in to browse
I urgently need to buy a black sweater.
Awareness Consideration Purchase
46
It’s not an end-stateIt’s an infinite loop
Awareness
Interest
Desire
Action
Reinforcement
How Real People Really Buy
How Real People Really Buy
How Real People Really Buy
How Real People Really Buy
The marketing activities and tools to this point add up to the Cost Of Customer Acquisition
Now the focus shifts to increasing the customer’s Life Time Value
How Real People Really Buy
How Real People Really Buy
How Real People Really Buy
Everyone goes through this process
Key Takeaway: Compete in the Research Phase
Yes. I downloaded their eBook.Yes. They helped me make a decision.Yes. I bought from them.
And yes.She saidYes.
This new age of marketing is the beginning of something truly remarkable, and your relationship with your customers will never be the same.
Thank You!