Category Archives: High-Tech Marketing

Posted On February 22nd, 2017 by Crowded Ocean

Two-word descriptions you’ve probably never heard before

Barista robots: an automated coffee shop called CafeX in San Francisco (of course) is now using robots as baristas.

Artisanal infographics: the always popular, chart- and icon-heavy infographic is a popular marketing tools for brands around the globe. But instead of using data visualization tools or highend graphic design software to create them, some designers are pursuing the hand-crafted look. In other words, don’t throw out that napkin that captured your original genius. It might just work as an “artisanal infographic”

Live chilling: the new way to hang out for the so-called Generation Z, ages early teens to early 20’s, is using live chat applications (Facebook Messenger, etc.) to communicate with a group of friends without ever leaving the house.

Posted On January 30th, 2017 by Crowded Ocean

We use new words, the best words in Silicon Valley

The frightful five: That’s the behemoth tech giants that dominate globally: Amazon, Apple, Facebook, Alphabet (Google) and Microsoft.Screen Shot 2017-01-29 at 6.32.53 PM

Mini-IPO: When a hot robot startup raised a small amount of money, and from an uncommon source, it was called a mini IPO.

“The Pipeline Effect” When companies put women on boards, more women make it into leadership roles at that company.

Phygital: a blend of physical and digital marketing has been dubbed “phygital” and (puhleeze) let’s see if this one sticks.

“The adjacent possible” A new mathematical model that describes how innovation arises is described in an article published January 13, 2017 in The Technology Review as “The adjacent possible is all those things—ideas, words, songs, molecules, genomes, technologies and so on—that are one step away from what actually exists. It connects the actual realization of a particular phenomenon and the space of unexplored possibilities.”

 

Posted On January 24th, 2017 by Crowded Ocean

Walking in Another’s Shoes: Sales/Marketing Integration

Sales and Marketing may not be from Mars and Venus—or descended from the Hatfield and McCoys—but they aren’t natural allies, either. Sales carries the burden of a quota, screen-shot-2017-01-23-at-7-22-38-pmand when that quota isn’t attained, Sales will sometimes look for someone to blame. Maybe it’s the product (we’ve over-promised performance, ease of use or implementation, or we’ve mistakenly omitted key features), but more often it’s Marketing (our messaging is wrong; our claims are unsupported on the website; we don’t have enough leads—and the ones we do have are for shit).Screen Shot 2015-02-23 at 5.27.57 PM

Without sounding too much like Dr. Phil, the solution to this gap is ‘empathy.’ And the CEO has to steer Marketing towards being the one to take the first step in building an integrated sales and marketing plan. An easy first step is to have every person in Marketing listen in on an Inside Sales call. Or better yet, move their desk to the middle of the Inside Sales bullpen so that they can let these calls wash over them, even if they’re only hearing half of the conversation. And, when geography and budgets permit, have everyone in the company—nerds included—go out on a sales call.

Insist Upon Weekly Sales & Marketing Meetings

The next step is organizational: have someone from Marketing sit in on the weekly Sales meetings. Or better yet, have a regular meeting between the Sales and Marketing principals, with representatives from the lower ranks of each department participating and presenting (and listening) where appropriate. Make the content of that meeting both qualitative and quantitative. What can Sales report, fresh from their latest customer interactions and pitches, and what does the data-driven Marketing team report?

Once Marketing takes the initiative, it’s up to Sales to reciprocate. Sales needs to recognize how important, for example, reference accounts are—for the website, for PR (you can’t do a launch without customers that the press and analysts can contact) and for sales collateral (case studies). And if referenceable accounts aren’t part of a sales person’s quota and goals, they should be.

Screen Shot 2015-02-10 at 9.04.47 PMMeasuring the Cost of Customer Acquisition

Thanks to digital marketing systems like marketing automation tools, CRM, as well as a myriad of website tracking tools that help measure conversions of inbound traffic to your website , Marketing can now see both the quality of the leads it generates and what Sales is doing with them. This kind of collaboration between Marketing and Sales, fostered and modeled by the CEO, will enable your startup to answer the essential question: “what is the customer acquisition cost?”

Understanding Marketing Contribution to Sales

We’ve never met a startup that has modeled Marketing contribution to Sales. Startup CEOs will say instead that they want their Sales team to be much more productive, and that they want those productivity gains to be derived in part by having the right marketing programs and content to build market awareness for their company and customer preference for their solution.

Does all of this mean that the lion will suddenly lie down with the lamb? Nope. But it gives each party a solid understanding of the other’s jobs and pressures, which is a great start.

Posted On January 17th, 2017 by Crowded Ocean

Delegation: a much-needed startup CEO skill

Most startup CEOs are like those guys you know who built their own house: they have a wide range of impressive skills and an accompanying high level of confidence. screen-shot-2017-01-16-at-9-37-22-pmWhich can make them great founders and lousy leaders at the same time.

One of the hardest skills for a startup CEO to acquire is the ability to delegate. And it’s understandable why it’s problematic. When it’s your company and you’ve done everything at the start—perhaps including writing the initial website—it’s tough to watch someone with less knowledge about the company or technology try to do something that you could do more quickly, and probably, better.

But the inability to delegate is a one-way ticket to dual destinations: failure (for your company) and the fun house (for you). The key is: how to learn to delegate without seeing your product or company degrade during the process.

Applying “Successive Approximation” as a Training Tactic

The key is the old psychology term: ‘successive approximation’. If it’s a task that can be shared, do it the first time with your successor. Then do a little less the next time and the time after that, until the little bird can fly on its own. If it can’t be shared, then monitor it more tightly (daily, if necessary) so that it doesn’t get too far off track.

Many startups with a great idea or early market success stall out because of their inability to scale. Sometimes it’s the product/technology that can’t scale—or the ability of Sales and Product to support wider success. But just as often, it can be due to the inability of your talent to scale. Which means you never learned that most critical management skill: delegation

 

 

Posted On January 10th, 2017 by Crowded Ocean

Market traction and market momentum: are they the same?

Successful VC investors are famous for wielding the power of their intuition or gut instinct when assessing a startup founder or her company before making an investment. That little challengesvoice that speaks to the VC investor about a hot opportunity is also informed by due diligence on the market size, team and growth.

A company on the move…

A startup that can demonstrate market momentum is a positive sign for investors. But, market momentum is generally largely qualitative. It’s that quality of a company “on the move” that’s largely unsupported by any graphs on charts but is still an indicator of market opportunity.

Market traction = market adoption

Market traction, on the other hand, is quantitative and it’s based upon real indicators of growth and market adoption.

Angel List co-founder Naval Ravikant describes market traction as “quantitative evidence of market demand.” In other words, do customers want your product? When it comes to an early-stage company, VC investors will take a measure of a company’s traction using private market data that go beyond publicly available info like the track record of the team, market size and financing rounds.

Quantitative evidence of market demand

In the absence of traditional metrics like average deal size and the true cost of customer acquisition, non-traditional measurements like share of voice, website traffic and social media growth and engagement do shape market traction of an early-stage company. Take note, startup founders! A focus on growing social media engagement can favorably affect the perception of your brand, but also of your market traction.

book-cover-largeOf course, quantitative growth and trends do count. Growth in average deal size, for example, is an early meaningful signal of market traction. Showing that you understand the sales cycle of your business and that it is shrinking is another meaningful early signal of market traction.

Bottom line, demonstrating market traction is the way to de-risk the idea of “more” (investment, hiring, partnerships, office expansion, etc.) for your stakeholders and investors. You can always celebrate market momentum, but what matters more is measuring market traction.

 

Posted On December 6th, 2016 by Crowded Ocean

Building your startup: start with the press release

A VC partner whom we greatly respect, and who shared some valuable lessons that we incorporated into our book (that’s The Ultimate Startup Guide—which we’re shamelessly thinkingstrategpromoting here—due out Jan 23) approached us a while back with an interesting proposal. In conversations with him about past shared clients, we talked about what it takes to get founders’ attention—to really make them commit to what they’re all about and translate that essence into the core positioning of their company. And we all agreed that it was the press release. Powerpoint can be changed, whiteboards are too vague. But seeing your company, product and news and the claims behind them in a legal-looking doc—that seems to get the attention.

Company building by press release

So this VC told us that, for his next company, he wants us to come in and do our regular workshop. But, unlike most of our engagements, where we come in 3-4 months before the company (or product) launch, he wanted to do the workshop at the company’s founding. Then based on what we heard in the workshop, we were to write (with the involvement of the team) the press release for the new company and its product. And then he wanted his team to work to make the claims and promises in the press release a reality.

Screen Shot 2016-08-12 at 8.04.28 PMExpand a tactic of PR firms and web design firms

It turns out that this is a tried-and-true planning practice already employed by many public relations firms and web design firms. PR firms will ask the management team during the message planning phase to identify the key headlines and takeaways for the reader of targeted media that you want to compel to cover your news. This exercise can help focus everyone on simplifying your message and making it consistent while also identifying different approaches or angles to your story.

Web design firms typically have an input session where they will ask the management team to identify the key takeaways of a visitor to your future website. They are looking for words, tone, attitude and treatments. And some of this is the “same stuff” that writing that press release early will help identify and make consistent across your marketing tool set.

Posted On November 29th, 2016 by Crowded Ocean

Why would a startup hire an inside sales rep a year before product availability?

We’ve seen two successful enterprise startup teams hire inside sales reps during their stealth phase, early in the life of the company. moneySo early, in fact, that the hire preceded the general availability of product by more than a year. And the ISR was not even related to a board member or cofounder! So, why hire so early?

Two reasons.

Early traction

First, the ISR helped extend the reach and productivity of the startup team by cold-calling potential early-adopters while using the name and bona fides of the founders and investors. The ISR worked off of a list of friends-and-family targets and helped hunt critical early customers. As the mantra of company building goes, rapidly building the MVP product with fast iteration of core features that are based upon customer testing and feedback is the shortest path to establishing product/market fit. In this model, the ISR served as an indispensible wingman of the founders whose credentials are part of why the lone-survivorstartup was funded in the first place and why an early-adopter customer would take a chance on an unproven product and company.

In reality, the ISR runs an early focus group

Second, because the ISR is on the front lines of pitching the company every day by phone and email to would-be customers, they serve as a test bed or focus group of value propositions, terminology and product names. One of our past startup clients, for example, formed a three-person ISR team who A/B tested email subject lines that they used to set meetings in the year prior to the official beta release of their cloud service. The ISR team tabulated their findings which became useful data for us to consider when we worked to nail down product positioning.

So, consider the value of adding a strong Inside Sales Rep before launch to help extend the influence of the founders, accelerate sales and help test your positioning and messaging.

Posted On November 15th, 2016 by Crowded Ocean

November edition of fascinating new Silicon Valley jargon

USB condom: a device that blocks the risk of hacking or the transfer of computer viruses when a mobile device is plugged into a public USB port for power or recharging.Screen Shot 2015-01-13 at 9.33.38 AM

“Lights out” factories: a factory that is so completely automated it needs no interior illumination.

Fake news problem: this is a problem that Facebook is grappling with in the wake of their inability to filter out false information that’s posted as “news” on their website today.

Posted On October 18th, 2016 by Crowded Ocean

Is “momentum” part of the secret sauce of startup success?

When a startup team is heading into launch, ‘momentum’ can be that intangible ingredient that helps fill in gaps in execution, blurs missteps and invigorates a team that is flagging from staff shortages, high expectations and competitive pressures.

moneySuccess, according to the “Yoda of Silicon Valley”, Sam Altman, CEO of startup accelerator Y Combinator is:

something like idea times product times execution times team times luck, where luck is a random number between zero and ten thousand.”

In other words, who the hell knows. Or, if someone did know the secret to a winning startup, there’d be an algorithm for that.

This recent article in the New York Times contrasts the rising “mojo” of social media favorite Snap (the channel formerly known as Snapchat) to the tumbling fame (and valuation) of Twitter. Not too long ago (before we moved to a new slugfest) it was Google vs. Yahoo or Slack vs. Hipchat. The point that matters is that momentum can be a powerful force that helps accelerate success in startup teams.

So how do you foster momentum across your team? From our vantage point as CMO guns-for-hire, teams with momentum share a few basic attributes that are always modeled by the founders. These may not be all of the steps to momentum, but they are our top favorites:

  • Goal setting: Everyone on the team knows what the company goals are and how their own job goals support those goals.
  • Accountability: Maybe it’s an individual or maybe it’s a team but there’s an owner for every deliverable and it’s understood across the organization, from top to bottom.
  • No excuses: When mistakes are made, they are acknowledged and the team pulls together to fix them and move on. No finger pointing. No blame.
  • No assholes: When there’s a new-hire who’s a bad fit, culturally, or who brings a toxic style to the office, they never last long. Mistakes in hiring happen, unfortunately. But life is too short to tolerate them.

 

Posted On October 11th, 2016 by Crowded Ocean

More new words: the October edition, part two

Glass cliff: according to The New York Times, it’s the theory that holds that women are often placed in positions of power when the situation is dire, men are uninterested and the likelihood of success is low.

Screen Shot 2015-05-19 at 9.01.45 AMSharenting: the practice of online sharing of parenting, including the posting of children at very early ages, shapes the identity (and privacy) of children and that digital identity can follow a child into adulthood.

Behavior design: a principle of software design that coaxes us into adopting new behaviors or habits, as in rewarding the poster of a photo on Facebook with instant “likes”.

Conversational computing: the new market category of consumer and computing products popularized by Siri, Alexa and Echo, are artificially intelligent devices.