VIEWS: 509 PAGES: 17 POSTED ON: 10/6/2008
How to design and implement an online marketing plan for acquiring users from multiple marketing channels, how to prioritize & mix channels based on stage of startup growth.
Marketing Plan For Web 2.0 Companies Get Predictable Startup Growth Sean Ellis Go To Market Advisor for Startups Email: firstname.lastname@example.org Blog: Startup-Marketing.com What to Take Away Discover who needs it and why Understand key metrics early Optimize business economics early Micro test channels Startup-Marketing.com Three Key Parts of the Plan 1) Situation Analysis: Discover Users & Metrics 2) Marketing Strategy: Sync across company 3) Projections: Budget, Team, Sales Startup-Marketing.com Situation Analysis: Check Assumptions Interview/survey prospects to validate or refine assumptions Problem Solutions Comparison Target Users with $ Startup-Marketing.com Situation Analysis: Key Metrics Most important metrics Allowable Acquisition Cost Other important metrics 1. 2. 3. 4. 5. 6. 7. Source data Visit-to-registration rate (Or visit to download rate) Registration-to-trial rate Trial-to-transaction rate Average transaction size Transactions per customer Months per subscriber Lifetime Value Allowable Acq. Cost Lifetime value must exceed acquisition cost Startup-Marketing.com Strategy: Get Free Users Early Free acquisition cost is definitely below the allowable acquisition cost Start early with free marketing channels 1. 2. SEO (self), blog, beta sites, etc. Develop viral features Early user flow essential for discovery and optimization. Startup-Marketing.com Strategy: Optimize Biz Economics Increase funnel conversion rates Visit-to-trials Trial-to-transaction Increase size and frequency of transactions Expands viable paid marketing options Reduces adoption barriers Increases allowable acquisition costs Startup-Marketing.com Strategy: Paid Channels after Optimization Test user acquisition channels most likely to have easy, positive ROI first (start with lowest hanging fruit) Test and optimize paid channels 1. PR: Great for “innovators” 2. Demand harvesting channels (great for “disruptors”) Create unique onramps for each usage and user type SEM, directories Get ideas by monitoring competitors and overall trends Widgets, webcasts, sponsorships, banners, radio, trade shows Startup-Marketing.com 3. Demand creation last (challenging and expensive) Strategy: Demand Creation Sequence • For demand creation, start with target that is motivated to try and buy solution as is • Synchronize targets with sales and product teams Target Message New feature Begin needed targeting Market Segment 1 Market Segment 2 Market Segment 3 Message 1 Message 2 Message 3 N/A Feature 1 Feature 2 Start Oct 2008 Start Feb 2009 Start May 2009 Startup-Marketing.com Strategy: Dave’s Recommended Channels Dave McClure has some great slides on acquisition channels worth revisiting. Startup-Marketing.com Dave’s Other Great Slide on Channels Projections: Planning Budget • Start Spending to Discover and Optimize – Start with many small test buys – Optimize or cut money losers • Later focus most budget on proven ROI campaigns But reserve at least 20% of budget for tests each month. Startup-Marketing.com Projections: Budget For Max ROI Spend During planning, agree with CEO on process for increasing budget and need for flexibility • Budget for highest realistic positive ROI spend – Spend below budget if not enough testing opportunities and scalability in proven channels – Scale beyond budget if proven channels can scale beyond current budget Startup-Marketing.com Projections: Hire for Faster Testing • Hire to improve speed and frequency of tests • Hire to fill bottlenecks that slow testing Early marketing roles to consider: 1. 2. 3. 4. 5. 6. Marketing Web Designer Copywriter Marketing Data Analyst Marketing Database Analyst SEM specialist Product Marketing Director Don’t try to hire someone to “figure things out” Startup-Marketing.com Projections: User/Sales Growth • Build initial user/sales growth projections based on planned budget and metric assumptions. – Initial projections are always inaccurate because no historical data to model. Predictable growth begins when 80% of budget focused on proven ROI campaigns Startup-Marketing.com Reminder: What to Take Away Discover who needs it and why Understand key metrics early Optimize business economics early Micro test channels Sean Ellis Go To Market Advisor for Startups Email: email@example.com Startup-Marketing.com Searching for Users: SEO as an Engine for Customer Acquisition Stephen Spencer, Netconcepts http://Netconcepts.com
"Sean Ellis: Creating & Implementing a Web 2.0 Marketing Plan"