JCK Talks 2015: Will you survive?

Will you survive?What you can do to grow in a world of new technologies

Sam Mallikarjunan

Sam @Mallikarjunan

Head of Marketing & Growth

@HubSpot Labs

(Don’t lie)

How does inbound marketing work?

Can you out-help your competitors?

(helping is hard!)

“We don’t make money when we sell things. We make money when we help customers make purchase decisions.” – Jeff Bezos

We live in the one of the most interesting periods in the history of commerce.

Disruptor Disruptee

Personal computers Mainframe and mini computers

Mini mills Integrated steel mills

Cellular phones Fixed line telephony

Community colleges Four-year colleges

Discount retailers Full-service department stores

Retail medical clinics

Phonographs

Traditional doctor’s offices

Pianos

Some examples of disruptive innovation include:

Examples of Disruptive Innovations

The Kodak Moment Went Bankrupt

Kodak Went Bankrupt

Not a disruptive innovation

A disruptive innovation

1877• Edison

invents the phonograph

1905• 400,000

pianos produced

1914

• $56M

1919• $158M

1944• Steinway

produces caskets with excess wood

We are at the very beginning of the greatest global transformation of our lives.

We live in an era of big bang disruptive innovation.

Just because your company has survived the last 100 years doesn’t mean it will survive the next ten.

>70% of businesses on the Fortune 1000 are new within the last decade.

“May you live in interesting times.”

We are in a mass extinction of businesses.

Diamonds may be forever, but the way they’re sold isn’t.

Imagine a world where eCommerce delivers in 30 minutes or less.

Imagine a world where every home has a 3D Printer.

“Our customers want to try the jewelry on before they buy it.”

Not possible now doesn’t mean

Anytime you can say “I’m safe because my customer needs…” you’ve identified a job-to-be-done.

No one wants a ¼ inch drill bit.

They want a ¼ inch hole.

The company that bestsolves for the customer

wins.

Disruptors are coming for you.

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 creates an extendable core that insulates you from disruption.

It’s not all sunshine and rainbows.

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.

You can’t improve what you can’t measure.(It’s pretty hard to justify,

too.)

“I’m spending a bunch of money on

marketing, and I’m making more money

than I’m spending back.”

The Old Marketing Math Model

Expense Yearly Amount

PPC $50,000

SEO Firm $6,000

Content Writing

$60,000

Measure everything.

• “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.

How Much Would You Spend?

*

*Source: KissMetrics

Customer centricity creates competitive leverage

Time to Payback

So easy, pretty, and simple to understand, ain’t it?

The Conventional LinearBuying Process

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

A Grand Unified Theory of eCommerce

A Grand Unified Theory of eCommerce

A Grand Unified Theory of eCommerce

A Grand Unified Theory of eCommerce

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

A Grand Unified Theory of eCommerce

A Grand Unified Theory of eCommerce

A Grand Unified Theory of eCommerce

Everyone goes through this process

Key Takeaway: Compete in the Research Phase

C = # of new customers, D = # of downloads, V = Average LTV

Yes. I downloaded their eBook.Yes. They helped me make a decision.Yes. I bought from them.

And yes. She said yes.

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!