On Target 2014, Michael Eckhardt, Chasm Institute
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Transcript of On Target 2014, Michael Eckhardt, Chasm Institute
Update: 03/13/14
1 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Global Thought Leadership. Proven Impact.
Key Question for C-Level Execs and Sales & Marketing Directors:
What Concepts and Tools Will Drive Your B2B Growth in 2014-2015 ?
Michael Eckhardt Managing Director
Chasm Institute Palo Alto, California
Update: 03/13/14
2 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Update: 03/13/14
2 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
3 Key Themes:
Content Marketing
Pipeline Marketing
Marketing Automation
Update: 03/13/14 3 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
1991
1995 2001
2006
----------- Our 2 Newest Books for 2014 -----------
Crossing The Chasm 3.0 Escape Velocity
Chasm Institute expertise in B2B market success is based on: • Michael Eckhardt’s 500+ engagements with tech-based clients • our 6 best-selling strategy books by Chairman Geoffrey Moore • our 15 yrs of Thought Leadership on accelerating B2B results
Update: 03/13/14 4 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Michael Eckhardt – Managing Director & Senior Workshop Leader at Chasm Institute, is a veteran of Hewlett-Packard, Pepsico, and Price Waterhouse.
An MBA graduate of Harvard Business School and Wall Street Journal Award winner, Michael Eckhardt is a recognized expert in strategic B2B marketing & high-tech market success. He provides clients: in Silicon Valley, the US, and Europe / Asia-Pacific with strategy workshops & practical marketing tools
for gaining (+ sustaining) leadership positions in highly-competitive markets
Michael Eckhardt has worked with over 90 technology-based businesses in 19 countries. Founded in 1993, our clients include: Intel, Cisco, Adobe, HP, AT&T Wireless, SAP, Agilent Technologies, Micron, LMC Data Systems, NetApp, Autodesk, Plantronics, Mentor Graphics, and other high-tech leaders.
His 3 primary areas of focus are: target market success, predicting customer reaction to new product intro’s, and driving profitable growth.
Michael Eckhardt and his Chasm Institute senior team have worked on market strategy for winning products, services and solutions in North America and worldwide. Geoffrey Moore is Chairman Emeritus of Chasm Institute, and Eckhardt has edited + contributed to several of Moore’s best selling high-tech strategy books, including the newest 2014 version of the best-selling B2B marketing best-seller, Crossing The Chasm.
Chasm Institute provides these advanced workshops to executives + teams:
“Driving Go-to-Market Results ” “B2B Market Strategy Success ” “Crossing The Chasm” “Inside The Tornado ”
... for more information please click on: www.chasminstitute.com
New Disruptive Innovation What Makes High-Tech Marketing Different?
• High Risk • Unproven products and promises • Incompatible and incomplete infrastructure • Social resistance to change
• Low Data • No product history • No company track record • No best practices
Update: 03/13/14
5 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Technology Adoption Life Cycle The Challenge Facing Every Disruptive Innovation
Update: 03/13/14 6 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Technology Adoption Life Cycle The Challenge Facing Every Disruptive Innovation
Update: 03/13/14 7 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The Technology Adoption Life Cycle The Challenge Facing Every Disruptive Innovation
Update: 03/13/14 8 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Innovators - Technology Enthusiasts
Willing to help. Have no money.
Update: 03/13/14 9 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Early Adopters - The Visionaries
Willing to fund. Have big plans.
Update: 03/13/14 10 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Early Majority - Pragmatists
On the fence. Will go with the herd.
Update: 03/13/14 11 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Late Majority - Conservatives
Deer in the headlights. Need help.
Update: 03/13/14
12 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Laggards - Skeptics
Not on your side.
Update: 03/13/14 13 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
How High-Tech Markets Develop The Technology Adoption Life Cycle
CHASM
EARLY MARKET
TORNADO
BOWLING ALLEY
MAIN STREET
Update: 03/13/14 14 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Life-Cycle Metrics that Matter Tracking Performance Relative to the Chasm
• Early Market • One or more flagship customers making big-bet commitments
• In the Chasm • Cannot support yet another big-bet commitment • Pragmatists still holding back from entering the market
• Taking the Beachhead • Nailed a high-pain segment-specific use case • Getting strong word-of-mouth support within target segment
• In the Bowling Alley • Additional use cases coming on board, viral in adjacent segments
• Inside the Tornado • Horizontal “killer app” -- hyper-growth in the category
• On Main Street • Hyper-growth subsides – pecking order established • Customers seek sustaining innovation going forward
Update: 03/13/14 15 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Crossing the Chasm Two Key Principles
• Target a “beachhead” segment • Highly focused approach to “rekindling the flame” • Segment with an intractable problem, not solvable by conventional means • Process owner is under pressure to find a solution • Pragmatists are willing to consider disruptive approach
• Commit to provide the “whole product” • Bring all the ingredients with you • Complete solution to the intractable problem • Typically involves products and services from partners and allies • Lead vendor takes responsibility for ensuring customer success
Update: 03/13/14 16 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Crossing the Chasm What’s New? End User IT! • Digital Services
• Light to deploy, focus on user experience • The Lean Start-Up • Minimum viable product, rapid agile learning • In consumer use cases, leap to the tornado
• Critical Success Factors: The Four Gears • Acquire • Engage • Convert • Enlist
Update: 03/13/14
17 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
ENLIST ACQUIRE
ENGAGE CONVERT
Starter Motor
+ = Virality o = Retention
- = Churn
Tipping Point for B2B Markets The Four Gears Model
Performance Gear
Performance Gear
Power Gear
Power Gear
Update: 03/13/14
18 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Four-Gears Metrics that Matter Tracking Performance Relative to the Tornado
• Acquire • Rate of gaining new users
• Engage
• Average length, depth, and frequency of user engagement
• Convert • Percentage of total users that participate in business model
• Enlist
+ Virality (New customers coming from existing customers – high NPS) - Churn (Existing customer defecting – “de-enlisting” – low NPS)
Update: 03/13/14 19 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Slowest Gear Theory
• Thesis • Prior to the tornado • At any given point in time • One of the four gears is slowing the other three down
• Actions Required
• Identify the slowest gear • Focus everyone on speeding it up • Maintain attention on the other three gears • Repeat every quarter until • The tornado happens • Or you run out of gas
Update: 03/13/14 20 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Crossing the Chasm What’s Not New? Enterprise IT! • Taking the Enterprise Digital
• Heavy to deploy, focus on end-to-end systems • Crossing the Chasm • Minimum viable whole product (add partners and allies) • Bowling alley strategy
• Critical Success Factors • Pre-chasm
─ Breakthrough projects with top-tier customers • Post-chasm
─ High value use cases with compelling reasons to buy
Update: 03/13/14 21 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
1. Target Customer
2. Compelling Reason to Buy
3. Whole Product
4. Partners & Allies
5. Sales Channel
6. Pricing
7. Competition
8. Positioning
9. Next Target
Key sponsor
Complete solution
Manages sales & fulfillment complexity
Legitimate alternatives
Next growth segment
Key motive
Fill in the gaps
Maps to all the above
Core differentiation
Target Market Initiative Framework A Checklist for Crossing the Chasm Planning
Update: 03/13/14 22 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Target Customer Compelling Reason to Buy
Whole Product Partners & Allies
Sales Channel Pricing
Competition Positioning
Next Target Customer
Visionary business executive Dramatic competitive advantage
Application focus, differentiated BPR and SI service providers
Direct sales Value-based, gain motivated
Category vs. category Technology-based leadership
Another visionary in a different industry
This playbook is about creating budget
Before the Chasm
Update: 03/13/14 23 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Target Customer Compelling Reason to Buy
Whole Product Partners & Allies
Sales Channel Pricing
Competition Positioning
Next Target Customer
Pragmatist function manager Fix a problem business process
Application focus, standardized Recruited for specific whole product
Direct sales transitioning to VARs Value-based, pain motivated
Market vs. market Segment leadership
Adjacent segment
This playbook is about redirecting budget
Crossing the Chasm
Update: 03/13/14 24 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
The New Examples
• Salesforce • VMware • Aruba • Lithium • Rocket Fuel • Infusionsoft • Mozilla • Box • Workday
Target Market Target Market
Whole Product Whole Product
Partners & Allies Partners & Allies Partners & Allies
Positioning Positioning
Update: 03/13/14 25 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Update: 03/13/14 26 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
1991
1995 2001
2006
----------- Our 2 Newest Books for 2014 -----------
Crossing The Chasm 3.0 Escape Velocity
Chasm Institute workshops + consulting are based on : • Michael Eckhardt’s 500+ engagements with tech-based clients • our 6 best-selling strategy books by Chairman Geoffrey Moore • our 15 yrs of Thought Leadership on accelerating B2B success
Update: 03/13/14 27 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
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Chasm Institute Copyright Notice
• Copyright © 2014, Chasm Institute LLC. All rights reserved. • This presentation is provided to you solely for informational
purposes and does not constitute conveyance of any intellectual property rights.
• Chasm Institute LLC has created materials, methodologies and practices that are proprietary. All intellectual property associated with these works and any derivative works that come as a result of any Client engagement shall remain the property of Chasm Institute LLC.
• This presentation may not be reproduced or redistributed, in whole or in part, without the prior consent of Chasm Institute LLC.
Update: 03/13/14 28 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.
www.chasminstitute.com
Thank You
Michael Eckhardt Managing Director
Chasm Institute Palo Alto, California
Update: 03/13/14 29 © 2014 Chasm Institute Contact: Angela Martinez [email protected]
All rights reserved. Contents may not be reproduced in any form without prior written permission.