we are all revenue officers: determining product value for executive stakeholders
TRANSCRIPT
As a product owner I want tounderstand my product’s value so that I can make informed roadmap decisions.
Finding product/market fit
Prioritizing the backlog
Communicating to executive stakeholders
We Are All Revenue Officers: Determining Product Value for Executive Stakeholdersgrahamkennedy.com
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8story points
Finding Product/Market Fit
3story points
Prioritizing the Backlog
2story points
Communicating to Executive Stakeholders
Here’s what’s on tap.
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10 outrageous ways to defend your strategy!#7 will leave your jaw dropped!
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OMG U
GUYZ
That’s me!
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We are all revenue officers.
grahamkennedy.com source: en.wikipedia.org/wiki/Chief_revenue_officer
product creation
pricing execution
advertising and
promotional effectiveness
delivery
pricing strategies
sales performance
distribution effectiveness
customer satisfaction
on Finding Product/Market Fit
We’ll find value in players markets
that no one else can see.
Moneyball
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Instead of competing with everyone everywhere,
find a market you can win. #noFOMO
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If two people buy the same product for the same reason but have no way they could reference each other,
they are not part of the same market.
Geoffrey Moore, Crossing the Chasm
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There’s still room for you.
grahamkennedy.com source: http://www.businessinsider.sg/salesforce-market-share-vs-oracle-sap-microsoft-2015-9
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Product Paula has been doing some research and thinks that there’s an opportunity to do something better for salespeople who sell and market wine. Their current pipeline management process is tedious and expensive.
Paula thinks she can not only save companies time and money but also help them generate more business through a Chrome
plugin and long-term vision of building a robust marketplace to connect growing businesses.
Paula is ready to determine if there’s a product/market fit.
Hello, Product Paula.
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Identify problems.
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Ugh, it’s so time consuming to track our pipeline. It costs thousands of dollars every month and it’s so error prone that we spend over one day a week
just fixing mistakes. I don’t even have enough time to find new customers or expand my product line. Even a simple solution will help!
frustrated prospects
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Co-innovate solutions.
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So, we think a Chrome plugin that seamlessly integrates into our existing workflow will cut 75% of
our admin time. Let’s start there.
optimistic prospects
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Validate the value proposition.Problems
- time consuming to
track our pipeline
- spend two days a
week just fixing
mistakes
Solutions- Chrome plugin
- seamless
integration with
pipeline software
Unique Value Proposition
- Integrates
seamlessly into
Existing workflow
Unfair Advantage- First of its kind marketplace
promotes early
adopters and
defensible moat
Customers- wine salespeople
Cost- 4 weeks x 2 developers
- $7,500 twitter campaign + $500 per month
Revenue- $10 per month per install
Metrics- 25% increase in
customer sales and
75% decrease in admin
in 45 days
- 45 paid installs in
45 days
Channels- 45-day twitter
campaign
- ongoing twitter
campaign
Product Business
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Tell a story.
grahamkennedy.comready-to-try prospects
We’ve been using the Chrome plugin for six months and it has been amazing. Now my assistant is working on my
sales team. She sells 25 Hello Kitty plush toys a week! That’s a 25% increase in sales and a 75% decrease in
overhead in just 45 days!
Every day I use the plugin to review my new sales orders. Then I generate a fast report to review yesterday’s numbers. Finally, I quickly update my prospects list. Then I get to selling!
Now I’m setting up for growth! My team is 100% sales
focused. Soon we will join Product Paula’s marketplace
and find new business!
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Ultimately, you should think of your Ideal Customer as the customer type that – over a clearly-defined time frame – you will dedicate Sales and Marketing Resources to acquire.
Lincoln Murphy, Sixteen Ventures
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Salesperson SanjayRole: Inside sales Location: Singapore Age: 34Industry: SaaS travel agency softwareTools: Laptop, Chrome, Gmail, misc. CRM, latest Android
Goals● Reduce sales cycle by 40% to 8 days● Increase MRR from $25,000 to $40,000
Frustrations● Spends 25% of time on sales administration● Current CRM is error prone
Create personas.
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Map the customer journey.
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Research Payment and Installation Ongoing
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Analyze the market.
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After reviewing my research, I’ve determined that there are about 400 potential customers and I want to win 200 of them in the 18 months.
There is fragmented competition, there are plenty of tech
savvy prospects, there is a long-term opportunity for distribution partners and there are several compelling related markets to target next.
I can see winning 2,000 customers in 48 months through b2b network effects alone.
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Simply put, a network effect occurs when a product or a service becomes more valuable to its users as more people use it.
Anu Hariharan, Andreessen Horowitz
If we have data, let’s look at data.
If all we have are opinions, let’s go with mine.
Jim Barksdale, ex-CEO of Netscape
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Focus on success metrics.
25%customer increase
in sales
75%customer decrease
in admin costs
45paid installs in 45 days
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Tactical Product Strategic business
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Measure engagement.
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churnred flags analysis
{1,4}conversion
market basket analysis
.91retention
T-test correlation
In real life, strategy is very straightforward.
You pick a general direction and implement like hell.
Jack Welch, ex-CEO of General Electric
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After 45 days, I’ll have spent $7,500 to acquire 45 customers.I want to win the market in 18 months.That is, I need to win 200 out of 400 available customers in my target market.
Build the pricing model.
Growth 6.5% Churn 2.75%
ARPA $10 Gross Margin 75%
Initial Marketing $500
Marketing Growth 2.5%
* All figures are monthly
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However it will take 4 years to get an LTV/CAC of 3.And 3 years to win the market.#damnSon
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Price it right. Or not.
10 in 10Try raising prices by 10% for every 10 customers.
1%Try capturing 1% of all
transactions processed.
15%15% should reject it
because of price.
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AskAsk how much they’ll
pay… then wait.
ObserveWatch competitors,
but don’t copy.
ExpandGive more options to
entice buying.
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Customers pay for value,not your costs.#remember75%and25%
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on Prioritizing the Backlog
The transmission was a '53.And the motor turned out to be a '73.And when we tried to put in the bolts,
all the holes were gone.
Johnny Cash, One Piece at a Time
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Themes, epics, stories, and tasks.Epics
Intra-quarterlyExecutive level
ThemesMulti-quarterly
Board level
TasksIntra-sprint
Individual level
StoriesMulti-sprintsTeam level
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I believe that if the Chrome plugin is easy to install
then salespeople will want to try it.
I’ll know I have succeeded when 15 customers have
processed 2 sales in 15 days.
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Deliver theminimal viable product.#measureAndLearn
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Get a user to reach 7 friends in 10 days.
Find the WOW! moment.
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Iterative execution is everything.
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Everyone has a planuntil they get punched
in the mouth.
Mike Tyson
on Communicating to Executive Stakeholders
The show doesn’t go on because it’s ready, it goes on because it’s 11:30.
Lorne Michaels, Saturday Night Live
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Trade certainty for flexibility.
Planning is guessing.
You go to war with the army you have.
Donald Rumsfeld, ex-Secretary of Defence
To Do WIP Done
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Socialize the task board.
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Report metrics.
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6%customer increase
in sales
Goal: 25%
82%customer decrease
in admin costs
Goal: 75%
19paid installs
Goal: 45 installs
Prove it.
Graham Kennedy, Speaker in Front of You Professional Curmudgeon
Lean Canvas
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Mic drop. Exit left.
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Silly Sagas ICPs Personas Journeys
Metrics Pricing Model RoadmapAnalysis Experiments
Working Software
