business 101.1 class 6 nyu itp
TRANSCRIPT
Business 101.1A class in business. And entrepreneurship.
Fall 2016NYU ITP
October 24, 2016
Josh KnowlesJen van der Meer
Extra love from Tom IgoeAnd the Leslie E-Lab
Syllabus Map
START + Form
Teams
Business Models
Customer Development
How to Interview Value
+ The Purpose of Business
ValuesMotivation
TeamCustomer
Relationships+ Channels
AnalyticsKey Resources
Activities Partners Biggest Vision
Analyze Test
The Money
Plan MVP
Turning Insights Into
Features
More MVP
How small, How big?
Launch MVP
Lessons Learned
Go/No Go?
Sketch Paper Prototype
Oz Test
Smallest MVP
Tech Architecture
Customer relationships
Story telling
Team lightning rounds
Customer channels
Midpoint: running a test
Customer Relationships
Channels
oz test
CUSTOMER RELATIONSHIPS
CUSTOMER RELATIONSHIPS
Customer Segments
Customer Relationships
Value PropositionKey ActivitiesPartners
Key Resources
Customer Channels
RevenuesCosts
CUSTOMER RELATIONSHIPS AND CHANNELS
RELATIONSHIPS
WHY DO WE BUILD RELATIONSHIPS?
▸ get
▸ keep
▸ grow
▸ and let the mismatched ones find another company
THE FUNNEL
OLD SCHOOL FUNNELS
THE FUNNEL
THE NEW SCHOOL BOWTIE FUNNEL
=here are the formulas
CAC < LTV BY 3 OR MORE
NPS > 8
K VALUE
CAC < LTV BY 3 OR MORE
COST OF CUSTOMER ACQUISITION LIFETIME VALUE
LIFETIME VALUE: PREDICTION OF LIFETIME PROFIT OVER TIME
CITIBANK?
NYU?
AT&T?
SPOTIFY?
COST OF CUSTOMER ACQUISITION
CAC < LTV BY 3 OR MORE
NET PROMOTER SCORE (NPS) IS A PROXY
WOULD YOU REFER US TO A FRIEND
The viral co-efficient: the average number of invitations sent by each existing user times the conversion rate of invitation to new USErs.
The viral coefficient is referred to as the K value.
THE MAGIC ACCELERATOR: THE VIRAL LOOP
THE VIRAL COEFFICIENT = LOVE
THE MAGIC ACCELERATOR: THE VIRAL LOOP
TEST VALUE BEFORE YOU BEGIN MAKING
HOW DID THEY TEST
HOW WILL YOU TEST?
TEAM ROUNDS
STORYTELLING
STORY TELLING
3 STORIES TO TELL?
STORY TELLING
STORIES TO TELL
TESTING
WHAT ARE WE DOING?
▸ Testing getting to midterms in 2 weeks
▸ What are your core hypotheses
▸ What tests do you want to run
▸ What do you believe to be true
▸ What story are you writing
CUSTOMER CHANNELS
WHAT ARE CHANNELS
CHANNELS
▸ Channels describe all your customer interfaces through which you reach your customer segments, communicate with them and through which you deliver your value propositions.
WHICH CHANNEL?
FIRST EASY DECISIONS: WHERE TO SELL, WHERE TO MARKET?
COMPLEX SELLING AND MARKETING DECISIONS
OMNICHANNEL WORLD
Targeting blogs (get written up) Publicity / PR Unconventional PR Search engine marketing Online ads (social, display, blogs) Offline ads Search engine optimization Content marketing Email (build your own list) Referral marketing Engineering marketing (microsites, widgets) Affiliate Programs Educational marketing (webinars) Existing platforms (app store, FB) Trade shows Offline events Speaking engagements Community building
Direct sales through web Direct sales through mobile Sales through app store Sales through messaging apps In game or in app purchases Direct sales on the dark web Direct sales on virtual reality
PHYSICAL SALES TRACTION CHANNELS DIGITAL SALES
Direct sales through salesforce OEM Systems Integrator Dealer Deliver through owned retail Distribute to retailer Mail order Value added resellers Sell to distributor Aggregator Pop up shop
Other
TESTING TO LEARN YOUR ADVANTAGE
TRACTION
▸ Traction: quantitative evidence of customer demand. - Naval Ravikant
▸ “many startups experimented with multiple channels until they found the ones that worked”
▸ most founders pick the channel with which they are already familiar
▸ “it’s hard to predict a traction channel that will work best” - Gabriel Weinberg and Justin Mares
TRACTION CHANNEL TEST
Sprint 1 Sprint 2 Sprint 3Twitter ads xEarned PR
Facebook ads x xTrade Show xFlyers
Drip email x xEvents
Speaking
Content x
NEXT TIME
MIDWAY PREP
RUN A TEST
▸ Test your value proposition.
▸ “We believe”
▸ How will you test?
▸ What channel will you test?
END
