Startup Guide

2013 Edition

The

SHARE FREELY

Building a Better World Through Entrepreneurship

RYAN ALLIS With Ellen Daly
CEO of Connect.com
More slides at www.startupguide.com

STARTUPGUIDE.COM

CUSTOMER ACQUISITION

Entrepreneurship

519

COM 520 .8% STARTUPGUIDE.124.241 3.194 20.8% 100% 1.400 16.CUSTOMER ACQUISITION BUILD A CONVERSION FUNNEL BUILD A REAL-TIME CONVERSION FUNNEL TO TRACK RESULTS MONTHLY UNIQUE VISITORS MONTHLY FREE USER SIGNUPS MONTHLY NEW PAYING CUSTOMERS 1.

400 $1.000.241 3.COM MARCH 2017 20.11 521 .40 $294.CUSTOMER ACQUISITION BUILD A CONVERSION FUNNEL TRACK USER ACQUISITION COST AND CUSTOMER ACQUISITION COST EXAMPLE: NEW USERS ACQUIRED NEW CUSTOMERS ACQUIRED SPENT ON ADVERTISING COST PER NEW USER COST PER NEW CUSTOMER STARTUPGUIDE.000 $49.

COM 522 .CUSTOMER ACQUISITION CALCULATE CAC IF You don’t KNOW YOUR CUSTOMER ACQUISITION COST it’s really DIFFICULT TO ACQUIRE CUSTOMERS STARTUPGUIDE.

COM .CUSTOMER ACQUISITION CALCULATE CUSTOMER LTV IF You don’t KNOW YOUR CUSTOMER LIFE TIME VALUE (LTV) It’s hard to scale Customer acquisition 523 STARTUPGUIDE.

CUSTOMER ACQUISITION CALCULATE CUSTOMER LTV At icontact we acquired 1.000 paying customers For our email & social marketing SERVICE From 2006-2012 STARTUPGUIDE.1 million TRIAL users And 70.COM 524 .

CUSTOMER ACQUISITION EXAMPLE: CALCULATE LTV ROUGH EXAMPLE OF WHAT YOU CAN SPEND TO ACQUIRE A NEW RECURRING CUSTOMER Monthly Revenue Recurring Customer $50 Average Customer Life 48 Months Lifetime VALUE (LTV) $2400 (50 x 48) What You Can Spend to Acquire a New Customer Up to $800 (1/3rd of LTV) STARTUPGUIDE.COM 525 .

CUSTOMER ACQUISITION EXAMPLE 2: CALCULATE LTV An EXAMPLE OF WHAT YOU CAN SPEND TO ACQUIRE A Non-recurring CUSTOMER Average Number Average of Purchases Purchase Price Within 3 Years NonRECURRING Customer $50 6 3 Year Revenue Estimate $300 (50 x 6) What You Can Spend to Acquire a New Customer Up to $100 (1/3rd of 300) STARTUPGUIDE.COM 526 .

CUSTOMER ACQUISITION SCALE YOUR AD BUDGET SCIENTIFICALLY SCALE YOUR AD BUDGET SCIENTIFICALLY BY TRACKING LEAD ACQUSITION COST & CONVERSION RATE BY ADVERTISING CHANNEL STARTUPGUIDE.COM 527 .

CUSTOMER ACQUISITION TEST NEW CHANNELS 10%-15% of your MONTHLY Advertising budget Should be spent on TESTING NEW CHANNELS STARTUPGUIDE.COM 528 .

CITYSEARCH. YAHOO.CUSTOMER ACQUISITION ONLINE MARKETING CHANNELS ONLINE MARKETING CHANNELS SEO – GOOGLE.GOOGLE Adwords / BING ADCENTER SOCIAL PRESENCE – FACEBOoK.COM 529 . BING PPC . youTUBE SOCIAL ADS – FACEBOOK. TWITTER. Youtube ADS SOCIAL NETWORK INVITE SYSTEMs – AKA ‘GROWTH HACKING’ DISPLAY – BANNER ADVERTISING AFFILIATES – CJ & LINKSHARE Review SITES – YELP. GOOGLE LOCAL DAILY DEALS – GROUPon & LIVING SOCIAL EMAIL FOLLOWUP – iCOntact & MAILCHIMP STARTUPGUIDE. TWITTER.

COM 530 .CUSTOMER ACQUISITION GROWTH HACKING GROWTH HACKING IS USING VIRAL NETWORK EFFECTS TO INCREASE USER ACQUISITION AND ALLOWING YOUR USERS To EASILY INVITE THEIR FRIENDS ON SOCIAL NETWORKS STARTUPGUIDE.

COM 531 .CUSTOMER ACQUISITION OFFLINE MARKETING CHANNELS OFFLINE MARKETING CHANNELS TELEVISION PRINT ADVERTISING RADIO YELLOW PAGES DIRECT MAIL TRADESHOWS EVENT SPONSORSHIPS BILLBOARDS CAMPUS REPS STARTUPGUIDE.

CUSTOMER ACQUISITION TEST ALL CHANNELS THE KEY IS TO TEST ALL OF THE CHANNELS AND TRACK THE ACTUAL RESULTS FROM EACH ONE STARTUPGUIDE.COM 532 .

CUSTOMER ACQUISITION KEYS TO SUCCESS WITH MARKETING THE 6 KEYs TO SUCEESS WITH MARKETING ARE 1.  6. CREATIVE.  5.  4.  3.COM .  2. AND FUNNEL PROCESSES GREAT STORYTELLING 533 STARTUPGUIDE.  AMAZING WORD OF MOUTH FROM A GREAT PRODUCT KNOWING THE LIFETIME VALUE OF A CUSTOMER A TRACKING SYSTEM THAT CAN TELL YOU COST PER LEAD PER CHANNEL A TRACKING SYSTEM THAT CAN TELL YOU CONVERSION RATE PER CHANNEL CONSTANT TESTING OF NEW CHANNELS.

  OPEN UP MORE RETAIL LOCATIONS 9.  GET MORE AFFILIATES/DISTRIBUTORS 7.  OPEN UP MORE SALES OFFICES 8.  TEST NEW ADVERTISING CHANNELS SCIENTIFICALLY 4.  CREATE A PREMIUM VERSION OF YOUR PRODUCt 5.  HIRE SOMEONE TO SELL MORE TO EXISTING CUSTOMERS 12.  HIRE MORE SALES PEOPLE 11.  TEST DOUBLING YOUR PRICE AND SEE WHAT HAPPENS 6.  BUILD ADDITIONAL PRODUCTS 10.  DETERMINE WHAT YOU CAN PAY PER NEW CUSTOMER 3.  CALCULATE COST PER LEAD & COnVERSION RATE BY CHANNEL 2.  RAISe CAPITAL AND EXPAND YOUR ADVERTISING 534 STARTUPGUIDE.CUSTOMER ACQUISITION INCREASING Customer ACQUISITION TO INCREASE CUSTOMER ACQUISITION 1.COM .

CUSTOMER ACQUISITION ACQUIRING CUSTOMERS A business is not a business UNTIL IS HAS PAYING CUSTOMERS STARTUPGUIDE.COM 535 .

COM 536 .CUSTOMER ACQUISITION WHAT IS A BRAND? A BRAND IS SIMPLY THE AGGREGATEd SUM TOTAL OF EVERY Human BEING’S EXPERIENCE WITH YOUR COMPANY & PRODUCTs STARTUPGUIDE.

CUSTOMER ACQUISITION WHAT IS MARKETING? MARKETING IS ENSURING THAT THE RIGHT PEOPLE HAVE HEARD THE RIGHT THINGS ABOUT YOUR PRODUCT AND ORGANIZATION STARTUPGUIDE.COM 537 .

CUSTOMER ACQUISITION WHAT IS GOOD MARKETING? GOOD MARKETING IS JUST GOOD STORYTELLING ACROSS MULTIPLE MEDIA IN A TRACKABLE AND FINANCIALLY SCALABLE MANNER STARTUPGUIDE.COM 538 .

COM A LIFETIME EVANGELIZER. ACCOUNT MANAGEMENT IS TURNING A CUSTOMER INTO STARTUPGUIDE. 539 .CUSTOMER ACQUISITION MARKETING vs. SALES IS TURNING THE LEAD INTO A CUSTOMER. SALES MARKETING IS GENERATING AN INTERESTED LEAD.

CUSTOMER ACQUISITION BUILD A GREAT PRODUCT IN TODAY’s WORLD MARKETING STARTS WITH PRODUCT DEVELOPMENT 540 STARTUPGUIDE.COM .

CUSTOMER ACQUISITION MARKET A GREAT PRODUCT YOU Can’T SUCCEED FOR LONG MARKETING A BAD PRODUCT STARTUPGUIDE.COM 541 .

COM 542 .CUSTOMER ACQUISITION STOP MARKETING A BAD PRODUCT SO IF You’re marketing A BAD PRODUCT STOP STARTUPGUIDE.

COM 543 .CUSTOMER ACQUISITION ONLY BUILD GREAT PRODUCTS AND PUT YOUR FUNDS INTO BUILDING A GREAT PRODUCT STARTUPGUIDE.

COM 544 .CUSTOMER ACQUISITION STORYTELLING AS MARKETING THEN WHEN YOU HAVE A GREAT PRODUCT START STORYTELLING STARTUPGUIDE.

com .Startup Guide 2013 Edition The SHARE FREELY Building a Better World Through Entrepreneurship RYAN ALLIS With Ellen Daly CEO of Connect.startupguide.com More slides at www.

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