Market Testing, The Agile Way The Market Sprint @explorics Aggressive Market Testing
Jan 28, 2015
Market Testing, The Agile Way
The Market Sprint
@explorics
Aggressive Market Testing
better market testing
time to release first
product
cost to create first product
we’re spending less time we’re spending less time getting to know our getting to know our
customercustomer
involve the
user!
involve the
user!
but what about the buyer?
what you want to avoid
6 12 18 24 30 36
first release
expanded
features
major pivot
1 major pivot
2
traction… finally
stagnation
Use
rs /
Revenu
e
Time In Business
lean startup / customer development
Customer Discovery– Stop selling, start listening– Test your hypothesis
Customer Validation– Develop a repeatable sales
process– Only earlyvangelists are crazy
enough to buy
Steven Blank
Eric Ries
Market Sprint
=
what the market sprint is
the market sprint
Process for quickly and inexpensively testing & validating go-to-market strategy
•Demand-driven•Risk-reducing•Evidence-based•Monetization-focused
start with demand.
deliver what
people want.
Market Sprints are demand-driven
finding demand vs. creating demand
start with your biggest unknown. figure it out. then
move on.
Market Sprints are risk-reducing
Market Sprints are evidence-based
research testingresearch testing
get outside. get dirty.get outside. get dirty.
there is a big difference there is a big difference between “would you buy” and between “would you buy” and
“will you buy”“will you buy”
there is a big difference there is a big difference between “would you buy” and between “would you buy” and
“will you buy”“will you buy”
Market Sprints are monetization-focused
how the market sprint works
we developed the market sprint concept
based on agile
(review market observations)
repeatable demand gen engine (at limited scale)
Program artifacts
3. Execute IterateAnalyze
4. Next Highest Risk
1. Assess & Plan
2. Design a Test
The Market Sprint Process
phase 1: assessing your market & planning your sprint
3 variables, 3 unknowns
Target Customer
& Pain Point
Channel & Message
Compelling Offer
one variable is your anchor
hold it steady throughout the sprint
one variable is your pushpin
doesn’t need to be optimal, just good enough
you iterate on the last variable
change parameters, run experiments, gather results
examples: 4-8 week sprints
Anchor Pushpin IterateTarget:
HR reps at small & mid-sized companies
Channel:Google Adwords
Offer:Range of
engagement programs &
trials
Channel:Telemarketing
Offer:Meeting with in-house thought
leadership
Target:Who at target
companies bites, why?
Target:Data analysts
Offer:Downloadable
software
Channel:Various
communities & online ad platforms
the sprint
map
Targ
et C
usto
mer
Pain
Poi
nt
Channel
Message
Conversion
Offer
Interest tracking progress & demonstrating results
ANCHOR
PUSHPIN
ITERATE
discovering your targetsegment analysis
market sizing
buyer/user personas
discovering your channelchannel map
credit to B2B Lead Blog
elevator pitch
funnel analysis
discovering your offer
competitive & landscape analysis
conversation roadmap
credit to Corporate Visions, Inc.
preparing the sprint
map
Targ
et C
usto
mer
Pain
Poi
nt
Channel
Message
Conversion
Offer
Interest
ANCHOR
PUSHPIN
ITERATE
Gen Counsel
Sales/Mktg
Execs
ProdMgrs
Telemktg
Meeting
phase 2:designing the test
define an experience, starting with demand
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not enough search volume
not enough search volume
poor conversion
poor conversion
lacks credibility –
people don’t
download
lacks credibility –
people don’t
download
instructions too
difficult
instructions too
difficult
registration
cancelled
registration
cancelled
eliminate complexity everywhere else
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Landing Page
Instructions
Forum
WEBWEB
focus herefocus here
don’t need a download yet…
just need to know if they click the
link
don’t need a download yet…
just need to know if they click the
link
“we’re almost ready to launch” page, engage on forum anyway
“we’re almost ready to launch” page, engage on forum anyway
maximum flexibilityminimum cost
• track in salesforce.com
• conduct a transaction
• create documents, landing pages, graphics
• acquire a list
• 50%+ conversion
• No angry users!
• 50%+ conversion
• No angry users!
vaporware, bait & switchin the name of learning
know exactly what you are going to measure, what
success means
phase 3:executing, iterating, and analyzing
preparing the sprint
map
Targ
et C
usto
mer
Pain
Poi
nt
Channel
Message
Conversion
Offer
Interest
ANCHOR
PUSHPIN
ITERATE
Gen Counsel
Sales/Mktg
Execs
ProdMgrs
Telemktg
Meeting
toss stuff out that
isn’t working
Targ
et C
usto
mer
Pain
Poi
nt
Channel
Message
Conversion
Offer
Interest
ANCHOR
PUSHPIN
ITERATE
Gen Counsel
Sales/Mktg
Execs
ProdMgrs
Telemktg
Meeting
not reachable
no urgen
cy
advance stuff that
is working
Targ
et C
usto
mer
Pain
Poi
nt
Channel
Message
Conversion
Offer
Interest
ANCHOR
PUSHPIN
ITERATE
Gen Counsel
Sales/Mktg
Execs
ProdMgrs
Telemktg
Meeting
revenue recovery
build connectio
ns
Targ
et C
usto
mer
Pain
Poi
nt
Channel
Message
Conversion
Offer
Interest
ANCHOR
PUSHPIN
ITERATE
Gen Counsel
Sales/Mktg
Execs
ProdMgrs
Telemktg
Meeting
revenue recovery
10-25% more $
converge on
conversion
Targ
et C
usto
mer
Pain
Poi
nt
Channel
Message
Conversion
Offer
Interest
ANCHOR
PUSHPIN
ITERATE
Gen Counsel
Sales/Mktg
Execs
ProdMgrs
Telemktg
Meeting
revenue recovery
10-25% more $
rev assess-
ment
DRIVE LEADS!
Targ
et C
usto
mer
Pain
Poi
nt
Channel
Message
Conversion
Offer
Interest
ANCHOR
PUSHPIN
ITERATE
Gen Counsel
Sales/Mktg
Execs
ProdMgrs
Telemktg
Meeting
revenue recovery
10-25% more $
rev assess-
ment
leads
phase 4:go after your next biggest risk
identify risks concentrate on the biggest
one
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Landing Page
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Instructions
Forum
WEBWEB
DESKTOPDESKTOP
not enough search volume
not enough search volume
lacks credibility –
people don’t
download
lacks credibility –
people don’t
download
instructions too
difficult
instructions too
difficult
registration
cancelled
registration
cancelled
usually, switch
pushpin &
iteration
Targ
et C
usto
mer
Pain
Poi
nt
Channel
Message
Conversion
Offer
Interest
ANCHOR
ITERATE
PUSHPIN
ProdMgrs
Telemktg
revenue recovery
10-25% more $
Meeting
custom report
SaaS product
some lessons learned
don’t be don’t be afraid to go afraid to go out on a out on a limblimb
• people won’t flame you publiclypeople won’t flame you publicly• people won’t be pissed at people won’t be pissed at
shortcomingsshortcomings• people won’t challenge your messagepeople won’t challenge your message• people won’t REMEMBER!people won’t REMEMBER!
you you don’t don’t
have far have far to fallto fall
set expectations
Leads come late.
Help people understand you are building an
engine.
Otherwise they will only look for leads.
use the expertise of use the expertise of partnerspartners
– SEOSEO– PPCPPC– EmailEmail– Copy writing / Copy writing /
editingediting– Marketing Marketing
automationautomation– TelemarketingTelemarketing– Indirect marketingIndirect marketing– BloggingBlogging– Social mediaSocial media– PR / PR 2.0PR / PR 2.0– Influencer relationsInfluencer relations
choosing partnerschoosing partners
make sure they make sure they can support you can support you with:with:•tight test cyclestight test cycles•rapid changesrapid changes•communicationcommunication•metrics, analysismetrics, analysis