Class 5 / 12

March 3, 2014

Jen van der Meer | jd1159 at nyu dot edu

Josh Knowles | chasing at spaceship dot com

LEAN LAUNCHPAD AT NYU ITP

Rockets Sketches borrowed from Harry Allen Design

6:00 – 6:30: Working through Customer Relationships and Partnerships

6:30 – 7:00 Guest Speaker Travis Hardman

7:00 – 7:15 Break

7:15 – 8:15 Teams Present

8:15 – 8:30 Dev Planning w. Josh

8:30 – 8:55 Guest Speaker John Bachir

TODAY:

.

WE ARE HERE

1/27Business ModelsCustomer DevelopmentUX Tools Intro

2/3Value PropositionUX Tools, Frameworks

2/10Customer SegmentsResearch Tools

2/17President’s Day

2/24Revenue StreamsDistributionProduct Definition

3/3Customer RelationshipsPartners,Product Development

3/10 Resources, Activities, Costs,Product Development

3/17Spring Break

3/24Customer DevelopmentProduct Development

3/31Customer DevelopmentProduct Development

4/7Customer DevelopmentProduct Development

4/14Customer DevelopmentProduct Development

4/21Product MVP

4/28Lessons Learned

What are the 3 components?

Get

Keep

Grow

(The most important hypothesis)

CUSTOMER RELATIONSHIPS

What’s their role

Who are they

How do they buy

What matters

What pain is being solved for them

CUSTOMER ARCHETEYPES

CUSTOMER RELATIONSHIPS: DIGITAL

CUSTOMER RELATIONSHIPS: PHYSICAL VS DIGITAL

STRATEGY + TACTICS

Physical Digital

GET Strategy: Awareness, interest, Consideration, Purchase

Tactics: Earned Media, paid media, online tools

Strategy: Acquire, activate

Tactics: Websites, appstores, search, email, blogs viral social nets, reviews, pr, free trials, home/landing page, webinars

KEEP Strategy: Interact, Retain

Tactics: Loyalty programs, product updates, customer surveys, customer check-in calls

Strategy: Interact, retain

Tactics: Customization, user groups, blogs, online help, product tips, bulletins, outreach, affiliates

GROW Strategy: New revenue, referrals

Tactics: upsell, cross sell, referrals, unbundling

Strategy: New revenue, referrals

Tactics: upgrades, contests, reorders, refer friends, upsell, cross sell

THE VIRAL LOOP

How much will it cost us to get an “activated” customer?

“CAC” is cost of all of your sales and marketing expenses over a given period of time, divided by the number of customers acquired in that window.

Why this is valuable – test different tactics against each other, and understand how to create a customer acquisition system with you at the help of the inputs.

CUSTOMER ACQUISITION

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.

THE MAGIC ACCELERATOR: THE VIRAL LOOP

Lean Analytics, Alistair Croll, Benjamin Yoskovitz

SAAS CUSTOMER LIFECYCLE

14

Strategic alliances

– Social media software and WPP, Omnicom, Publicis

Joint new business development efforts

– Intel inside, Retail co-ops

Co-opetition

– Industry week (adweek, fashion week)

Key supplier relationships

– Historical relationship between Microsoft, Dell, and

PARTNERS

Hypothesis to get:

Acquisition

Activation

What is your hypothesis to keep:

Outreach

Events

Loyalty

Product updates

What is your hypothesis to grow:

Upsell

Cross-sell

Next-sell

Referrals

WHAT WILL YOU TEST?

17

WHAT CAME BEFORE STEVE AND ERIC

FOR NEXT WEEK3/3/14

.

NEXT WEEK PREP:

Watch Lecture on Activities, Resources and Costs

Read: Business Model Generation 226-261.

Presentation:

· Cover slide

· Latest version Business Model Canvas with changes marked

· Results of last week’s experiments. What passed, what failed, what did you learn?

· Proposals for next week’s experiments. What constitutes a pass/fail signal for each?

NEXT: CANVAS REVIEW AND FEEDBACK

APPENDIX

Jen van der Meer, Adjunct Professor at ITP since 2008 ITP courses + workshops: Bodies and Buildings, Products Tell Their Stories, ITP VC Pitchfest, . Currently: Luminary Labs, Angel Investor, Health Data Challenges, Judge for startup competitions, + SVA PoD

Josh Knowles, ITP ’0715+ years as an independent developer/consultant, working with numerous brands and start-up clients (currently under the aegis of Frescher-Southern, Ltd.)

ITP TEACHING TEAM

STUDENT TEAMSTeam Name School

Cognitive Toy Box Lindsey Jones Stern

Tammy Kwan Stern

Hsiang Huang Stern

Alternative Monuments Rodrigo Derteano ITP

Maximo Sica ITP

Ajejandro Puentes ITP

Alon Chitayat ITP

NYBL Sam Slover ITP

Shilpan Bhagat ITP

Max Ma ITP

DiscoverEd Sergio Majluf ITP

Su Hyun Kim ITP

Christina Yugai Stern

Yuliya Parshina Kottas ITP

Advanced Expression Rose Meacham ITP

MENTORS + TEAMS

Tom Igoe @tigoeITP, Arduino, Making Things Talk, NYU ITP Pitchfest

Alternative Monuments

Julie Berkun Fajgenbaum @julieFStern Adjunct Professor, Former VP Amex Open, now startup co-founder

NYBL

Michael Levitz @michael_levitzITP grad, R/GA, Lean

DiscoverED

Sarah Krasley @sarahkrasleyAutodesk, Sustainability, Berkeley

Advanced Expression

Chris Milne @greedo1000IDEO, Toy Lab, Stanford, LEGO

Cognitive Toy Box