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E245 Demand Creation

E245 Demand Creation. Ann Miura-Ko January 2011. Agenda. Demand Creation Definition Direct customer relationship Indirect customer relationship Metrics and Experimentation. value proposition. key activities. customer relationships. key partners. customer segments. cost structure.

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E245 Demand Creation

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  1. E245 Demand Creation Ann Miura-Ko January 2011

  2. Agenda • Demand Creation Definition • Direct customer relationship • Indirect customer relationship • Metrics and Experimentation

  3. value proposition key activities customer relationships key partners customer segments cost structure revenue streams key resources channels 3 images by JAM

  4. Test Hypotheses: • Demand Creation • Test Hypotheses: • Problem • Customer • User • Payer Agile Development • Test Hypotheses: • Product • Market Type • Competitive • Test Hypotheses: • Channel • (Customer) • (Problem) Customer Development Team • Test Hypotheses: • Channel • Test Hypotheses: • Size of Opportunity/Market • Validate Business Model • Test Hypotheses: • Pricing Model / Pricing

  5. CUSTOMER RELATIONSHIPS what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?

  6. Demand Creation • How will customers segments hear about your product? • How does market type impact my strategy? • How much will it cost to acquire a customer using these strategies?

  7. Market Type How does market type influence demand creation? Market Type determines: • Rate of customer adoption • Sales and Marketing strategies • Cash requirements

  8. Demand Creation by Market Type • Create, drive demand into your sales channel Existing • Educate the market about what’s changed • Drive demand into your sales channel Resegmented • Educate the market • Identify and drive early adopters into your sales channels New

  9. Who needs to hear about you? End User Suppliers Influencer / Recommender Channels Economic Buyer Government Decision Maker Partners

  10. PayingCustomers $ Demand Creation Feeds the Sales Funnel Demand Creation Acquisition

  11. Agenda • Demand Creation Definition • Direct customer relationship • Indirect customer relationship • Metrics and Experimentation

  12. Getting Free Users Demand Creation • SEO (without consultants) • Blogging / Sharable content • Social Media / Gaming Mechanics • Communities • Proven viral coefficient > 1 NOTE: “Viral” isn’t a strategy, it’s a product feature you either have or you don’t

  13. Paid Channels • PR • Demand Capture • SEM • “Free” products (e.g. widgets) • Biz Dev • Affiliate Marketing • Market Education • Webinars • Email marketing • Trade Shows • Analyst Reports • Direct Sales • TV / Radio Demand Creation

  14. How many come through the first step? • How much does that cost? • What is the conversion between each level? • How much in revenues can you get out of each acquired customer?

  15. Agenda • Demand Creation Definition • Direct customer relationship • Indirect customer relationship • Metrics and Experimentation

  16. Example: Healthcare

  17. Healthcare – system requirements Payer • Approval of product category • Compelling clinical benefits and cost reduction • Product approval • Manufacturing approval • Quality control process approval FDA

  18. Healthcare & Marketing • Free samples • Professional papers • Speeches by leading academics and influential doctors • Leading institution as reference customer • Conference presentation • Continuing medical education Product Champions • Restrictions on user generated content • Adverse event postings • Off label use postings • Restrictions on direct selling to doctors FDA

  19. Critical questions • What are critical regulations and approval processes that need to happen prior to launch of product? • Industry • Federal / State • Are there regulations on marketing efforts as well? • Who influences the purchasing decision and how can they become an ally? • What is required to be endorsed?

  20. Agenda • Demand Creation Definition • Direct customer relationship • Indirect customer relationship • Metrics and Experimentation

  21. How much do you have to spend here To get one customer here PayingCustomers $ Customer Acquisition Cost Demand Creation Acquisition

  22. Leads The Sales FunnelEnterprise Software PayingCustomers Qualified Lead First Sales Call Demonstration Proposal Feasibility Purchase Order $

  23. Other Sales Funnels • What does your funnel look like? • How long does each part of the funnel take? • What % converts between each section? Visit Sign Up Activate Upgrade 1. Informational Meeting Trial Contract Negotiation Signed Contract 2.

  24. Cost of Customer Acquisition Calculation David Skok

  25. Cost of Customer Acquisition Calculation

  26. Demand Creation Pivot

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