RapNet Symposium 2014: How inbound marketing is disrupting everything.
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Transcript of RapNet Symposium 2014: How inbound marketing is disrupting everything.
How inbound marketing is disrupting everything.
Sam Mallikarjunan
RapNet Symposium 2014
Sam
@MallikarjunanHead of Marketing & Growth
@HubSpot
Labs
We live in the
most interesting
period in the
history of
business.
We live in an era of big bang
disruptive innovation.
Knowledge is power. And the balance
of power between companies and
consumers has shifted dramatically.
What is Inbound Marketing?
Frequent Blogging Is Critical72% of eCommerce businesses that saw ROI from Inbound Marketing blog at least once a week, and people who blog are 155% more likely to see ROI from Inbound Marketing.
Instead of interruptingexperiences people love…
Inbound Marketing is…
Inbound marketing focuses on creating them.
“We don’t make money when
we sell things. We make money
when we help customers make
purchase decisions.”
Educational Content Leads To More Spending
Are you owning your customers?
Inbound marketing channels cost less
than any outbound marketing channel
Source: State of Inbound Marketing, HubSpot, 2012
Inbound Marketing is taking over B2B & B2CDoes your company do inbound marketing?”
Educational Content Leads To Higher ROI
C ustomer Centricity
A lot of people talk the talk…
*Source: HubSpot’s 2013 State of Inbound Marketing Report
You can’t call yourself a “customer centric” company if your customer isn’t the center of your universe.
#INBOUND2013
#INBOUND2013
OH NO! He’s gonna make us do math!
Yep. I’m not here because I was the cool kid in class.
Marketing $$$
Sales Revenue
We naturally operate
using ratios
Marketing $$$ Sales
Revenue
Ratios help us determine leverage
Marketing $$$
Sales Revenue
What do we do with this
information?
Marketing $$$ Customer
Revenue
What kinds of customers do
you want?
Exclusionary Buyer
Personas
Service
Demanders
Revenue
Reversers
Promotion
Maximizers
Spending
Limiters*
Narrative vs. Algorithmic Personas
Narrative Buyer Personas
Uses psychographic dimensions
to create experiences that attract
and influence
Algorithmic Buyer Personas
Uses automated numeric
correlations to predict
behavioral responses
“I’m spending a bunch of money on marketing, and
I’m making more money than I’m spending back.”
The Old Economics Model
Expense Yearly Amount
PPC $500,000
SEO Firm $60,000
Content Writing $120,000
“I’m spending $X money on marketing, and I’m
making $Y in sales per channel.”
The New(er) Economics Model
“I spend $W to acquire customer of persona X from source Y,
and they spend an average of $Z with me over their lifetime.”
Growth Startup Economics Model
Customer centricity creates leverage.
Time to Payback
This value analysis reaches
all the way back to marketing
This value analysis reaches
all the way back to marketing
Research PhaseMarketers are not just building a contact
list, they’re generating predictable future
sales revenue that they can analyze.
𝐶
𝐷∗ 𝑉
C = # of new customers,
D = # of downloads,
V = Average LTV
Starbucks has an AOV of ~$6*
How Much Would You Spend?
*
*Source: KissMetrics
Customer Centric Companies See Higher ROICompanies that saw ROI by company focus
Customer LTV Is A Profitable FocusCompanies that saw ROI by LTV focus rating
THANK YOU
I made an unforgiveable error and forgot business cards.
So tweet me
@Mallikarjunan
if you want to connect.
* Special Bonus Content
Solve For The Customer
Solve for LTV
Word of Mouth?
There’s a math for that.
So easy, pretty, and simple to understand, ain’t it?
The Conventional LinearBuying Process
It’s not an end-state
It’s an infinite loop
A Grand Unified Theory of eCommerce
A Grand Unified Theory of eCommerce
A Grand Unified Theory of eCommerce
Price competition
isn’t working
anymore – there’s
always someone
willing to
make less money
than me.
More marketers are adopting
pre-transactional conversions
Marketers Aren’t Measuring60% of ecommerce marketers don’t know their abandoned cart rate
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