Post on 19-Aug-2015
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Lean LaunchPadSpring 2014
Recommendation Engine for Lead
GenerationLeading the wave towards Sales & Marketing 3.0
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Team
Mukesh Ranjan Designer• EW MBA 2015• PhD , CS – U. Cincinnati• Program Manager, Intel
Mohamad Charafeddine Picker• EW MBA 2015• PhD, Elec. Eng. – Stanford
U.• Principal Solutions
Architect, ASSIA Inc
Kartik Shah Hacker• EW MBA 2014• MS, CS – USC• Software Engineer,
Cisco
Swaroop SayeramHacker, Hustler• EW MBA 2015• MS, CS – U. Wisconsin - Madison• Group Product Manager, McAfee
Steve AdelmanManaging DirectorNexus Partners
Peter LeeVP, Bessemer Venture Partners
Mentors
Dheera Prabhakar HackerMIMS Student, UC Berkeley
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Inno
vatio
n
Time
Sales Automation: SalesforceMarketing Automation: Marketo, Eloqua,
Hubspot, Act-on
2.0 | DescriptiveWhat’s happening?
Vision | Sales & Marketing 3.0
CloudSlate,Infer, Mintigo,Lattice Engine,..
3.0 | PrescriptiveWhat to do?
Big Data Explosion
Cloud Computing
Large Scale Machine Learning
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• 102 Interviews in 10 weeks
• 62 Unique Companies
• 39 CEOs/Founders, CTOs,
(S)VPs, Directors
• 4 Interested in a paid
high-volume trial
• 1 Pilot
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Value Prop | Learning & Evolution
Database of companies and
installed technologies
Lead Management
and Scoring of Leads in the
Funnel
New Leads Recommendation
“Lookalikes” based on existing
customer base
Finding Influencers and
Decision Makers
Busines
s
15+ players in Lead Management
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MVP | Applied to McAfee Security productActual real dataMcAfee’s data is obfuscated
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Cust. Segments | Learning & Evolution
Sales Ops Dept
Demand Genwithin Marketing
Mid-market & including big companies with
specific product segments (like Cisco)
Sales Dept
Marketing Dept
for B2B focusing on mid-market & excluding big
oligopolies
Week 1
Week 10
Archetypes
in Appendix
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Channels | Evolution & Learning
Week 1
Own website
Sales partnering with marketing
automation companies
Week 3-10
Salesforce AppExchange
Marketo LaunchPoint
Eloqua AppCloud
Salesforce takes 15-25% Rev share.
Eloqua and Marketo channels are free – in order to attract adopters.
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Cust. Relationship | Learning
Network
Effect
Algorithm performance improves the more the customer uses it.
Performance also improves as other “similar” customers use CloudSlate –
CloudSlate owns the models and does clustering on its own customers to run parallel learning experiments Vs serial.
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Revenue & Pricing | Evolution & Learning
Revenue Strategy
Subscription
• Predictable budget forecast
Conversion based: End-to-
End• Unpredictable
budget forecast
• Complex
Conversion based: stage-
wise• Unpredictable
budget forecast
• Complex
Per Lead
• Low quality perception
Pricing Tactic
Con
vers
ion
R
ate
w/ CloudSl
ate
w/o CloudSla
te
CloudSlate Value
Add
30% Commission
to CloudSlateA
vg
. C
.A.C
($
)
w/ CloudSl
ate
w/o CloudSla
te
C.A.C Saving
Computed from backtesting on SalesForce data & Quarterly A/B Testing
Value-based dynamic pricing
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Partners & Data Suppliers | Evolution
Quality
Quantity
Source: Chiefmartec.com
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Partners & Data Suppliers | Learning
Data Suppliers (Content)
Algorithms Layer
Negotiation power now
Data Suppliers (Content) Algorithm
s Layer
Negotiation power in the future
Data will get more restricted or more expensive in
the future strategic plan to create our own data
(similar to Netflix’s content strategy).
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Activities & Resources | Learning
Algorithms
Data Sources
Delivery
Dat
a Sc
ient
ist
Machine Learning Eng
Des
igne
r
Phase I: High-Volume MVP in 3 months
Phase II: Salesforce AppExchange and Marketo LaunchPoint
Metrics that Matter
Annual Revenue per
Customer$50k-$120K
Annual COGS per Customer
$33K
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CloudSlate
Amplification
Factor
3x Y14x Y3
Annual Churn Rate
20% Initially10% Steady
State
LTV > $250k($50K gross
profit x 5 yrs)
C.A.C for CloudSlate
$5K(Salesforce) to $16K (Marketo)
(less in steady state)
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What’s Next?
We believe strongly there is real opportunity!
1. Develop high-volume prototype over the next 3 months
working closely with McAfee
2. Then, re-engage with the early adopter pipeline - Cisco,
Adaptive Insights, and Gainsight
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THANK YOU! Teaching Team
Ryan Jung
Mentors
Awesome Classmates!
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APPENDIX
Lookalike Modeling
Company: size, location,Vertical, Growth, etc.Professionals: Names, Titles, Dept, Email, Phone #
Company: Technologies used/installed , Products, Solutions, Patents, “About Us”, Full website content
Company: Financial health, Financialtrend, key events/triggersDemographics
Company: Social sentiment, news storiesProfessionals: What they said, liked, read, followed, attended, and their influence Klout
CustomerInterests &
Behavioral SignalsMechanics
Financials
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Existing Customer Base
Attributes Augmentation
Segmentation/Clustering
Archetypes Extraction
Discoveryof new
Leads w/ similar
ArchetypesAttributes
Bank of augmented leads
(Dynamic, constantly evolving)
Data supplied by our partners and key data
resources
New Look-alike
LeadsMarketing & Sales
Funnel
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High Level Overview
CloudSlate
Customer Archetypes
Account Manager
(B2B company)
SVP Marketing (B2B company)
Sr Dir Sales (B2B company)
Demand Gen Manager
(B2B company)
Pain
Quote
Pain Meter 5 4 3 4
User Buyer
Influencer
Decision Maker
Dave Jill Dan Susan
Cust. Segments | Archetypes
Most leads in the system are
useless
ROI from lead gen campaigns is
weak
Pressure to meet Sales target
Collects leads through laborious
methods, but Sales never seem to convert them
“Only 40% of the leads I close are provided by
Marketing. I have to hunt for the other 60%
myself”
“My marketing budget is just
$250K/quarter, and I can get
very little done with it”
“I don't want my sales reps
wasting their time chasing dead-ends”
“Difficult to satisfy Sales”
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Finance and Operations TimelineC
ash
Dev.
Channel
&
Cust
om
er
Financi
al
Year 1Q1 Q2 Q3 Q4
Year 2Q1 Q2 Q3 Q4
Year 3Q1 Q2 Q3 Q4
Seed $1M
Series A $3M
Amplification = 3x
Salesforce AppExchan
ge
Demographic, Tech Install Data
Marketo Launchpoi
nt
Behavioral, Business News &
Financial Data
Amplification = 3.5x Amplification = 4x
Jobs postsDevelop Tech Install
Database
Microsoft Dynamics, Oracle
CRM, WebsiteFirst 5
cust., $50k Rev
Next 10 cust., $500k
Rev
Next 25 cust., $1.5M+ Rev
Eloqua, Sugar CRM
Next 40 cust., $5M+ Rev; Profitable
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Why we chose the Lean LaunchPad
Not because it is easy, but because it is hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win…
Borrowed from John F. Kennedy “We Choose to go the Moon” speech in Sept 1962
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Week 1
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Week 2
27
Week 3
Week 4
Week 5
Week 6
Week 7
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Week 8
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Week 9
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Week 10