VALIDATION30 Weeks

Customer Relationships and Channels3.25.2016

We Are Here

1:1s

Personas and Value

PropsHow to

InterviewValues and

Vision

Relationships Channels +

First Test

Partners Activities and

Resources

The Money Revenues and Cost

Business Model Story

Lessons Learned

3.28

3.22 3.23 3.24 3.25

3.29 3.30 3.31 4.1

Each Day for the Next Week:

What are your core hypotheses?

What tests do you want to run?

What do you believe will be true?

Today’s Lecture + Workshops

• Relationships

• Channels

• Let’s think about a test

Customer Relationships

Customer RelationshipsKEY PARTNERS

KEY ACTIVITIES

VALUE PROPOSITION

CUSTOMER RELATIONSHIPS

CUSTOMER SEGMENTS

KEY RESOURCES

CHANNELS

COST STRUCTURE

REVENUE STREAMS

STRATEGYZER + OSTERWALDER BUSINESS MODEL CANVAS

EarCre CapCre

Customer RelationshipsWhat are the main goals of customer relationships?

Get

Keep

Grow

(And let the mismatched ones go)

The FUNNEL(s)

Customer Relationships

CAC Vs. LTV

VC shorthand / gibberish for: does it cost you less to get customers than all the money you are going to get from that customer? And by how much?

CAC vs. LTV

Customer Acquisition Cost

Lifetime Value

The magic accelerator: The Viral Loop

The viral co-efficient: the average number of invitations sent by each existing user times the conversion rate of invitation to new user. The viral coefficient is referred to as the K value.

CAC vs. LTV

Lean Analytics, Alistair Croll, Benjamin Yoskovitz

SAAS CUSTOMER LIFECYCLE

Earn ReferralCreate Value Capture ValueCreate Interest

Test value before you even begin making your product

Where to Start:

Jen van der Meer Reason Street Revenue Steps

ReferralActivation ConversionAcquisition

Where to Start:

Jen van der Meer Reason Street Revenue Steps

Customer 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.

Channels

First Easy Decision

Channel

Pro

duct

Physical

Phy

sica

l

Bits/Virtual

Channels: More Complex NowPhysical Sales Digital Sales

Direct sales through salesforce OEM Systems Integrator DealerDistributetoretailerValueaddedresellersSelltodistributorAggregatorOther

Direct sales through web Direct sales through mobile Direct sales through mobile Sales through app store In game or in app purchases Direct sales on the dark web Direct sales on virtual reality

Targeting blogs (get written up)Publicity / PRUnconventional PRSearch engine marketing Online ads (social, display, blogs)Offline ads Search engine optimizationContent marketingEmail (build your own list)Referral marketing Engineering marketing (microsites, widgets)Affiliate ProgramsEducational marketing (webinars)Existing platforms (app store, FB)Trade showsOffline eventsSpeaking engagements Community building

Traction Channels

Testing to Learn Your Advantage 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 ChannelsMarketing Channels Sprint 1 Sprint 2 Sprint 3

Targeting blogs (get written up)Publicity / PR xUnconventional PRSearch engine marketing xOnline ads (social, display, blogs) xOffline ads

Search engine optimizationContent marketing

Email (build your own list) x x xReferral marketing xEngineering marketing Affiliate ProgramsEducational marketing (webinars) xExisting platforms (app store, FB)Trade shows

Offline eventsSpeaking engagements xCommunity building

Each Day for the Next Week:

What are your core hypotheses?

What tests do you want to run?

What do you believe will be true?