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Traction Notes
The document discusses various traction channels that can be tested and utilized to help drive growth for a startup. It recommends focusing 50% of time on traction development and testing channels in parallel through "middle ring tests" that each cost under $150 before focusing resources on top-performing "inner ring" channels. Specific strategies are provided for channels like targeting blogs, publicity, unconventional PR, search engine marketing, social/display ads, and more to test cost-effectively and gather customer feedback early in product development.
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Traction Notes
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- 3. Consider all channels •Founders pursue traction channels they are most familiar with. • Leads to crowding • Most under-utilized channels are most promising • It’s hard to predict which will work • Only running tests can help
- 4. 19 Channels Direct SalesExisting networks Search Engine Marketing Publicity Social and Display ads Unconventional PR Search Engine Optimization Offline ads Content marketing Viral marketing Targeting blogs Trade shows Email marketing/Webinars Offline events Business development/Partnerships Community building Engineering as marketing Speaking Engagements Affiliate programs
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- 6. 50 percent rule •Focus 50% of time on traction development • Marketo had 14k leads before product launch via content marketing – blogs that discussed issues and solutions
- 7. 3 phases inproduct development • Phase I – making something people want • Lots of leaks in marketing, inefficiency • Focus on getting product and PMF right • Phase II – marketing something people want • Fine tune positioning and marketing message • Phase III – Scaling business • Try to dominate and profit
- 8. Set traction goals •Set goal for each phase of product dev and scaling • Keep it quantitative • Keep re-evaluating from time to time
- 9. Bullseye • Outer ring– What’s possible oThink of one idea for each channel • Middle ring – What’s probable oRun test in parallel oCost of customer acquisition oHow many customers are available oAre the customers the right kind of customers • Inner ring – What’s working oFocus on one core channel oUncover strategies and master it
- 10. Why bullseye? • Structured •Tells you to focus on all strategies • Successful companies focus on underutilized strategies • Get best ideas quickly and cheaply
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- 12. Middle ring test Focuson – • How much it costs to acquire customers • Is the volume big enough • Are they the right customers you want • Spend max $150 per channel • Total spending < $1000 per month.
- 13. Inner ring testsexamples • for targeting blogs, oWhich blogs to target, oWhat content to push oCall to Action • SEM oKeywords oDemographics oLanding pages
- 14. Saturation – Constantlyoptimize • Every channel keeps getting saturated • Keep iterating with middle ring tests even when executing the inner right tests
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- 16. Traction goal • Lookingfor growth or profit • How many customers for next funding • Things will go not as predicted, keep re-evaluating and re-setting path
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- 18. Key strategies • Runtests on small blogs – discover blogs from youtube, google, twitter, delicious • Sponsor blogs esp personal blogs. • Build unique offers • Mint.com used it to get 50k users from 600 blogs
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- 20. What journalists like •Milestones: raising money, launching a new product, breaking a usage barrier, PR stunt, big partnership or special industry report. • Bundle small news items into one big item • Exclusive content, new launches • Emotional stories • Build relationship with reporters • Focus on right smaller sites
- 21. Sharing news • Submitstory to link-sharing • Share it on social networks • Email to influencers • Ping it to blogs
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- 23. Key strategies • Dosomething big, cheap, fun and original • Be awesome to your customers and good things follow • Prepare for failure, might not work
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- 25. Key strategies • Usesearch engine ads to test product positioning and messaging • Measure conversions so you can test SEM variables against profitability • Use longer keywords- long tail keywords, cheaper and can be profitable • Pay close attention to your ad quality scores
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- 27. Key strategies • Contactsmall sites for display ads. Use it for phase 1 • Use social ads to build awareness of products and create demand • Create compelling social content
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- 29. Key strategies • Runcheap tests by first targeting local markets • Seek out remnant ad inventory for highest discounts • Use unique cords and web addresses to track effectiveness
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- 31. • Moz beginnersguide to SEO Fat headed keywords • Try to find keywords such that even if you capture 10% of the volume you get a sizable business • Determine the competitiveness - use Open site explorer. If the competitor already ranks high, it is tough to crack it. • Fat head strategy = significant amount of unique content Long tail keywords • Since it is difficult for the startups to rank higher in the fat headed keywords, its better to bundle together multiple long tail keywords.
- 32. Key strategies • Findsearch terms that have enough search volume to move the needle • Generate long tail landing pages by using cheap freelancers • Focus on how to build links
- 33. Type of content •Publicity PR articles • Product • Content marketing • Widgets • Target people who will share content like reports – images, slideshows, infographics
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- 35. Unbounce • Worked onthe blog from the beginning • team relied heavily on social media - where they would ping the influencers on twitter to get some feedback. • answer on Quora • free infographics and e-books to the mailing list • biggest problem in content marketing - writers block - write about the customers problem • having a strong company blog can impact - seo, publicity, email marketing, targeting blogs, community building, offline events, existing platforms, and business development
- 36. Key strategies • Dedicate6 months • Do things that wont scale – contact influencers, industry leaders, ask them to share • Produce in-depth posts you cant find anywhere else
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- 38. Key strategies • activatinga customer • vero and customer.io to automate emails • write friendly emails • email marketing for retaining customers • reminders, reports and information of how you have been using and deriving value from the product • email marketing for revenue • send special emails for customers nearing their plan limits
- 39. Key strategies • Personalizeyour email marketing • Build list of prospective customers • Setup automated emails • Optimize A/B
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- 41. Key strategies K =i * conversion ratio • build viral loop into the product • shorten viral cycle time • look for viral pockets - there are certain users who will do things to make it viral • keep on testing
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- 43. Key strategies • Createstand alone low friction websites • look internally for site and tool ideas • make them as simple as possible
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- 45. Key strategies • partneringwith businesses so that both benefit • Create pipeline of leads • Focus on meeting core metrics – don’t get distracted at all • Partners - Standard, JV, Supply, Licensing, • Think strategically
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- 47. SPIN selling Situation questions- Begin • Ask only 2 questions – how many employees? How is your org structures? Problem questions - Understand • Ask few or 2 – Are you happy currently? What problems are you facing? Implication questions – Scare them • Are the problems hurting your productivity, revenue or employee happiness? Need payoff question – Your solution Will our solution help? What impact will it create? Whom will it help?
- 48. Key strategies • Don’trule out cold calling • Build a repeatable sales model • Get buyer to comment to time lines • Try to understand their common problems • Your first customer is important – progressive, helpful, involved it helping you build your product.
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- 50. Key strategies • Useexisting affiliate network • Get 20 affiliate members - show them demos, train them • Keep the payouts simple • Make your customers as your affiliates • Commission Junction (CJ), Clickbank, Affiliate.com, PepperJan, ShareASale, adknowledge,LinkShare, MobAff, Neverbluw, Clickbooth, Retail me not.
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- 52. Key strategies • Figureout where the potential customers hang out • Create a feature to fill gap for that platforms users • Focus on new and untapped platforms • App stores, g2 crowd, Chrome plugins stores • Use ads to list higher in app store –get better visibility and more organic downloads
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- 54. Key strategies • Schedulemeetings and dinners ahead of time • Investigate the efficacy of shows before committing – visit one year before, talk to previous exhibitors • Have an inbound and outbound strategy for your booth • Set clear goals – press, investors, major customers • Write down all events in your industry- evaluate each event. • Proactively set meetings - vendors, competitors, partners, bloggers, editors • Put up good booth, large banners, give discounts, giveaways like bags
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- 56. Key strategies • Launchat a conference • Test this channel – attend or host mini conferences • Throw a party after the event • Good for enterprise with long sales cycles. • Start with Small local events, meetup groups
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- 58. Key strategies • Youare doing a favour to organizers by presenting • Submit authoritative proposals far in advance • Organizers look for timing, topic and credibility • Audience wants to know Why you? What can you offer? • Story sells – What, why , how you got there? • Call to action – signup to mailing list to get slides, offers • Record videos- reuse it • Network after talk, engage, etc
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- 60. Key strategies • Stackoverflow used this • Cultivate and empower evangelists - Use linkedin , google groups and other forums where people hang out. • Set high quality standards from the start – It’s challenging • Bootstrap of an existing audience – from complimentary communities online or offline events
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- 62. Targeting blogs Contact 10niche blogs and get the to review your product. Give offer for their audience(tshirts,etc ). Or Pay them and run ads $100/month. Publicity Contact 5 relevant local reporters and get them to write to about you. Local stories flavor. Get contact from twitter Unconventional PR Random contest or funny video (Dollar shave club), Use facebook, twitter ads to promote
- 63. SEM Try Bing adsare way cheaper to experiment on, cheaper, big expansive keywords Social display ads Try Fb twitter ads against groups and handles Offline ads Advertise on some local podcast, few ads on local paper
- 64. SEO Create content richpages, Put it in footer of home page. Run fat head keywords ads Content marketing Company blog – one blog per month. Post on twitter, reddit. Double down if it makes sense. Email marketing Contact 10 email newsletters. Ask them to run ads. Ask people to download content for giving email.
- 65. Viral loop Build viralloop in your product. Uber code/dropbox code sharing Engineering tool Make simple tool, easy to use like calculator. Travel policy generator Business dev Reach out to 3 companies in 2 categories – HRMS/expense management. Strike one deal atleast
- 66. Sales List 20 localcustomers. Get warm intros. Use SPIN approach. Affiliate program Contact relevant major affiliate network. Recruit 20 affiliates to sell. Contact existing customers – get them to sell. Existing platforms Check marketplaces, criaglists, g2 crowd – get listed
- 67. Trade shows List alltrade shows for next year. Go attend, see if it makes sense to sponsor Offline events Put one day mini-conference with local speakers. Host it at college, restaurant, etc Speaking engagements Contact 3 local meetup groups. Present your company as a personal story Community building Join 3 online forums, engage on 20 threads each. Create your own community and seed members from those forums.