"Inbound" Sales and Marketing - Fuel Your Startup's Growth

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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

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

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

40% 48%

Laggards

“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

new within the last decade

1000 are >70%

of businesses on the US Fortune

Just Because Your CompanyHas survivedThe last 100

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.

“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%

Unworked eCommerce Leads

55%Average Last Attempt #

Average Attempts Per Hi/Med SAL

4.94 26%Sum of Probability Adjusted Recognized MMR in USD (Thousands)

Current Month Sales Forecast

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

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

$1 in, $2 out.

$2 in, $12 out.

A Scalable Business ModelCOCA CLTV

$2 in, $4 out. Faster growth.

Cost Of Customer Acquisition

Customer Life Time Value

Customer centricity creates competitive leverage

Investment Period

PaybackPeriod

ProfitPeriod

Time to Payback

Self funding point Break even point

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

It’s not an end-stateIt’s an infinite loop

Awareness

Interest

Desire

Action

Reinforcement

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

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!