1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

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HOW TO GET 1K CUSTOMERS Sunday, August 11, 13 Cost of Customer Acquisition LTV Must be at least three times of CAC

description

Sales Hacking: Sales, Drugs and Remote Teams - by Paul DeJoe Learn how to get your 1st 1000 paying customers and run a remote SALES team. As a startup founder, there's no bigger challenge than how to acquire customers. Paul DeJoe shares his detailed, step-by-step process on how to get customers for your business. This interactive, step-by-step guide isn’t some high level courseware or general sales tips; but a comprehensive, real-world process for implementing a successful customer acquisition strategy. You can implement the steps within this guide right now to: Understanding Who Your Customers Are - Paul takes you through his methodology of developing comprehensive customer portfolios and how to turn them into evangelists. How To Master Your Messaging - Get the basics of copywriting, effective headlines, and how to create findable and shareable content. Increase Retention And Paid Conversion - Paul covers how to develop Key Pivotal Indicators, define a sales event trail, and a referral system to get users on board faster. Interactive Content - Dozens of expert insight directly from Paul to help you get the most out of each step; authentic documents used by Paul many times over; and the benefits of the Accel.io platform to interact with others using the same guide! Don't fall into the "build it and they will come" trap - make getting your first customers simpler with this comprehensive process Paul has refined and used over his past 3 startups. FREE DOWNLOAD: Beginner's Guide to Sales: https://itunes.apple.com/us/book/the-beginners-guide-to-sales/id645775469?mt=11 About Paul DeJoe: Paul is the CEO of Ecquire, software for lead management. He serves as the Entrepreneur in Residence at Fairbridge Venture Partners, has been featured in the Wall St. Journal, Business Insider, Forbes, Inc., is a Mentor for the Thiel Fellowship, and advisor to 4 startups. He has built three different startups from idea to sustainability and beyond.

Transcript of 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

Page 1: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

H O W T O G E T1K CUSTOMERS

Sunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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PRODUCTSunday, August 11, 13

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WHY YOU’LLFAIL

Sunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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PRODUCT MARKET FIT

THE MARKETYOU

Sunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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In a terrible market, you can have the best product in the world and an absolutely killer team, and it doesn't matter -- you're going to fail.

-MARK ANDREESENSunday, August 11, 13Product that can satisfy the market.

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Even if you aren't the smartest person around, and your product is kind of ugly and broken, you can still be very successful, if you just build the right product.

Humility and Pay Attention

-PAUL BUCHHEITSunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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CAC ≠ 3x LTV

COST OF CUSTOMER ACQUISITION

Sunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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CAC ≠ 3x LTV

LIFETIME VALUE

Sunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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ONE QUESTION QUALIFICATION

YOUR SOLUTION THEIR PROBLEM

Sunday, August 11, 13 One question qualification- Should be about the biggest pain point your product solves.  If they have it then you've qualified them as well.  Qualification is the most important step in the process.

(use the same build you did for the latest ecquire slide where the two circles move in to overlap.  The two circles would be just a question mark and maybe an icon for qualification)

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ONE QUESTION QUALIFICATION

QUALIFIED

Sunday, August 11, 13 One question qualification- Should be about the biggest pain point your product solves.  If they have it then you've qualified them as well.  Qualification is the most important step in the process.

(use the same build you did for the latest ecquire slide where the two circles move in to overlap.  The two circles would be just a question mark and maybe an icon for qualification)

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1. AHA

AHA MOMENT

2. EARLY

3. OFTEN

Sunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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AARRR

ACQUISITION ACTIVATION

RETENTIONREFERRALREVENUE

Sunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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VIRALLYSunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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7 in 10

KSunday, August 11, 13

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VIRAL COEFFICIENT

# of new customers that each existing customer is able to successfully convert

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

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VIRAL COEFFICIENT

# of new customers that each existing customer is able to successfully convert

10 Initial customers at time 0

10 number of invites set out by each new customer

Conv% 20% Conversion rate of invites into customers.

k = 2

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

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CYCLE TIME

How long it takes for a new customer to come to your site and get a friend to try your application.

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

Page 18: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

CYCLE TIME

How long it takes for a new customer to come to your site and get a friend to try your application.

Custs(t) = Custs(0) * (K ^ (t/ct +1) - 1) / (K-1)

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

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CYCLE TIME

The most important factor to increasing growth is not the Viral Coefficient, but the Viral Cycle Time (ct) which should be made as short as possible. This will have a dramatic effect on growth.

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

Page 20: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

CYCLE TIMESunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

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CYCLE TIME

Custs(t) = Custs(0) * (K ^ (t/ct +1) - 1) / (K-1)

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

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CYCLE TIME

Custs(t) = Custs(0) * (K ^ (t/ct +1) - 1) / (K-1)

Custs(t) = 10 * (2 ^ (20/2 +1) - 1) / (2-1)

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

Page 23: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

CYCLE TIME

Custs(t) = Custs(0) * (K ^ (t/ct +1) - 1) / (K-1)

Custs(t) = 10 * (2 ^ (20/2 +1) - 1) / (2-1)

Custs(t) = 20,470

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

Page 24: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

CYCLE TIME

Custs(t) = Custs(0) * (K ^ (t/ct +1) - 1) / (K-1)

Custs(t) = 10 * (2 ^ (20/2 +1) - 1) / (2-1)

Custs(t) = 20,470

Custs(t) = 10 * (2 ^ (20/1 +1) - 1) / (2-1)

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

Page 25: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

CYCLE TIME

Custs(t) = Custs(0) * (K ^ (t/ct +1) - 1) / (K-1)

Custs(t) = 10 * (2 ^ (20/2 +1) - 1) / (2-1)

Custs(t) = 20,470

Custs(t) = 10 * (2 ^ (20/1 +1) - 1) / (2-1)

Custs(t) = 20,971,510

Sunday, August 11, 13Creating your feedback loopNPS graph (Look for an image of NPS) also use Mixpanel and Kissmetrics logo

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EVANGELISTSSunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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100 EVANGELISTSSunday, August 11, 13Building your evangelist list  where do you find them.  If getting 1,000 customers is a milestone, the one before that is the right way to build 100 evangelists.

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Sunday, August 11, 13placesIn conversation - This is what you're searching for on feed burner and twitter (Twitter advanced search Image of CRM sucks), (LinkedIn search of job title)

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NET PROMOTER SCORE

DETRACTORS

PASSIVES

PROMOTERS

Sunday, August 11, 13

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NET PROMOTER SCORE

DETRACTORS

PASSIVES

PROMOTERS

Sunday, August 11, 13

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MANAGING EXPECTATIONSSunday, August 11, 133 concentric circles (the circles are defined by expectations you set with them)

(Have 3 circles that are overlapping from small to big)

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MANAGING EXPECTATIONS

EVANGELISTSWATCH THEM USE YOUR PRODUCT

REFER ?

CONFIRM YOU’RE SOLVING A PROBLEM

DON’T TRUST THEM

Sunday, August 11, 133 concentric circles (the circles are defined by expectations you set with them)

(Have 3 circles that are overlapping from small to big)

Page 33: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

MANAGING EXPECTATIONS

EVANGELISTS

INDUSTRY EXPERTS

WATCH THEM USE YOUR PRODUCT

REFER ?

CONFIRM YOU’RE SOLVING A PROBLEM

DON’T TRUST THEM

YOUR CUSTOMERS LISTEN TO THEM

Sunday, August 11, 133 concentric circles (the circles are defined by expectations you set with them)

(Have 3 circles that are overlapping from small to big)

Page 34: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

MANAGING EXPECTATIONS

EVANGELISTS

INDUSTRY EXPERTS

PRESS

WATCH THEM USE YOUR PRODUCT

REFER ?

CONFIRM YOU’RE SOLVING A PROBLEM

DON’T TRUST THEM

5 ENTERPRISES WITH DATA

YOUR CUSTOMERS LISTEN TO THEM

Sunday, August 11, 133 concentric circles (the circles are defined by expectations you set with them)

(Have 3 circles that are overlapping from small to big)

Page 35: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

ENTERPRISESunday, August 11, 13Cost of Customer Acquisition LTV Must be at least three times of CAC

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HIGH RISK & HIGH REWARDSunday, August 11, 13Industries that attract the best sales professionals

BioPharma, Energy, Finance because this is the industry with the highest risk and highest reward for using or not using their prouct. 

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BIG PHARMA ENERGY FINANCE

HIGH RISK & HIGH REWARDSunday, August 11, 13Industries that attract the best sales professionals

BioPharma, Energy, Finance because this is the industry with the highest risk and highest reward for using or not using their prouct. 

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RESEARCH

Sunday, August 11, 13

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Sunday, August 11, 13Sample Email or 2 minute conversation(Im gonna recreate this sample email in the picture here: http://www.quora.com/Sales/How-do-you-write-a-good-sales-email/answer/Paul-DeJoe-2?__snids__=152080350&__nsrc__=1

When you get a chance to meet your target customer or partner, you cannot miss the opportunity. A successful pitch to get your target customer excited to use your product never takes more than 2 minutes and is fact based from research. It takes on the following cadence:

1. Personal Icebreaker

2. Fact based evidence and about your product and their company to show the highest risk for not using your product and the highest reward for using the product.

3. The Ask

If you do not know the components of number 2, then you haven't done enough research. Here's an example of what it would sound like if I wanted Box to use our product and I had the opportunity to meet Aaron Levie, the CEO of Box, at a party:

The below exchange is just an example of what an optimal delivery would sound like, it the exchange or information is not factual in any way

Hey Aaron, how's it going? My name's Paul DeJoe, Dan Martell said we should meet. Yeah he's actually invested in our next round. Oh and Mike in Corporate Dev at Box uses our product, Ecquire. Ecquire's a productivity service that captures and automates the entry of data to Salesforce.

Do you have 2 minutes I wanted to ask you a few things?

You guys use Salesforce and have about 60 biz dev reps now right with an initiative to get to 160k businesses by the end of the year which is roughly 60M in new business right? So on an industry average, 90% of the reports your VPs are making decisions from are incorrect which will cost you 9M annually. The reps are also losing 20% of their week entering this data instead of selling so it your losing out on 12M in new business. We fix both of these problems immediately for $9/seat. We guarantee 100% data compliance, accuracy, credible reports and more VPs are making decisions based on manual data being entered in SalesForce. Can I come by to show you a demo? If you like it we can roll out a controlled pilot for 10 reps over a month.

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1

2

3

4

5

digestible format

the ice breaker

research and data

targeted solution

ask

Sunday, August 11, 13Sample Email or 2 minute conversation(Im gonna recreate this sample email in the picture here: http://www.quora.com/Sales/How-do-you-write-a-good-sales-email/answer/Paul-DeJoe-2?__snids__=152080350&__nsrc__=1

When you get a chance to meet your target customer or partner, you cannot miss the opportunity. A successful pitch to get your target customer excited to use your product never takes more than 2 minutes and is fact based from research. It takes on the following cadence:

1. Personal Icebreaker

2. Fact based evidence and about your product and their company to show the highest risk for not using your product and the highest reward for using the product.

3. The Ask

If you do not know the components of number 2, then you haven't done enough research. Here's an example of what it would sound like if I wanted Box to use our product and I had the opportunity to meet Aaron Levie, the CEO of Box, at a party:

The below exchange is just an example of what an optimal delivery would sound like, it the exchange or information is not factual in any way

Hey Aaron, how's it going? My name's Paul DeJoe, Dan Martell said we should meet. Yeah he's actually invested in our next round. Oh and Mike in Corporate Dev at Box uses our product, Ecquire. Ecquire's a productivity service that captures and automates the entry of data to Salesforce.

Do you have 2 minutes I wanted to ask you a few things?

You guys use Salesforce and have about 60 biz dev reps now right with an initiative to get to 160k businesses by the end of the year which is roughly 60M in new business right? So on an industry average, 90% of the reports your VPs are making decisions from are incorrect which will cost you 9M annually. The reps are also losing 20% of their week entering this data instead of selling so it your losing out on 12M in new business. We fix both of these problems immediately for $9/seat. We guarantee 100% data compliance, accuracy, credible reports and more VPs are making decisions based on manual data being entered in SalesForce. Can I come by to show you a demo? If you like it we can roll out a controlled pilot for 10 reps over a month.

Page 41: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

Hey Aaron, how's it going? My name's Paul DeJoe, Dan Martell said we should meet. Yeah he's actually invested in our next round. Oh and Mike in Corporate Dev at Box uses our product, Ecquire. Ecquire's a productivity service that captures and automates the entry of data to Salesforce.

You guys use Salesforce and have about 60 biz dev reps now right with an initiative to get to 160k businesses by the end of the year which is roughly 60M in new business right?

90% of the reports your VPs are making cost $9M annually

Reps are also losing 20% costing $12M in new business.

ECQUIRE Fixes that how

Demo? Pilot?

Sunday, August 11, 13

Page 42: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

Hey Aaron, how's it going? My name's Paul DeJoe, Dan Martell said we should meet. Yeah he's actually invested in our next round. Oh and Mike in Corporate Dev at Box uses our product, Ecquire. Ecquire's a productivity service that captures and automates the entry of data to Salesforce.

You guys use Salesforce and have about 60 biz dev reps now right with an initiative to get to 160k businesses by the end of the year which is roughly 60M in new business right?

90% of the reports your VPs are making cost $9M annually

Reps are also losing 20% costing $12M in new business.

ECQUIRE Fixes that how

Demo? Pilot?

2

3

4

5Sunday, August 11, 13

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Sunday, August 11, 13The JuryCircles showing CEO, CTO, CFO, Manager, End User

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CEO CTO CFO MANAGER END USER

Sunday, August 11, 13The JuryCircles showing CEO, CTO, CFO, Manager, End User

Page 45: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

Sunday, August 11, 13

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H O W T O G E T1K CUSTOMERS

Sunday, August 11, 13

Page 47: 1k Customers Paul Dejoe Igniters meetup @vorkspace 9th sept 2013 Hackerdojo Mountain View

Resourceshttp://www.forentrepreneurs.com/startup-killer/

http://www.forentrepreneurs.com/lessons-learnt-viral-marketing/

http://accel.io/g/how-to-get-your-first-1000-customers/33/

https://www.youtube.com/watch?v=raIUQP71SBU

http://www.ecquire.com/blog/100-days-to-complete-sales-automation/

http://www.ecquire.com/blog/social-media-sales-funnel/

http://blog.kissmetrics.com/how-to-calculate-lifetime-value/?wide=1

Sunday, August 11, 13