The launch of the product is only the starting point, and bringing value to the user is the end.
Editor’s note: This article is from WeChat public account “Note Man” (ID :Notesman), author Cai Yong | Former HP Vice President of Marketing, founder of Silicon Valley Sales Research Institute.
Content Source: October 19-20, 2019, in the 2019 Product Manager Conference·Shanghai Station Conference hosted by the Product Manager and Starter College, former HP Vice President of Marketing, Silicon Valley Sales Cai Yong, the founder of the institute, gave a wonderful sharing entitled “Silicon Valley Blueprint: How to Drive Product-Driven Growth”. As a partner, Note Man is reviewed and approved by the organizer and the speaker.
Before you invite me to read, think about it:
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Doing growth, why is it so difficult?
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How to use product-driven scale growth?
The topic I shared today is how to use products to drive large-scale growth. I have two core ideas:
First, the ultimate goal of the product person is not PMF (Product/Market Fit, the product meets market demand), but the revenue of the product.
Only doing PMF You are only focusing on the 0 to 1 process. The CEO has to plan for a longer term when designing the product. It is not completed from 0 to 1, and there is still a long way to go.
The logic is pushed back. When you are doing 0 to 1, you need to do more advances. Think about how to go after 1 to 100. The end of the road is the revenue of the entire company’s products, rather than the end of the product.
Second, the difficulty of growing from 0 to 1 is much smaller than from 1 to 100.
First, how to achieve large-scale growth?
1. Recognition of advances
A product runs through, this is from 0 to 1, so how can business revenue be from 1 to 100? Everyone needs to be aware of the amount of advance.
A lot of people will think that I have a large number of orders this month and this quarter, the rate of winning orders has risen a lot, the cycle has been shortened a lot, the customers are not strongly applying for discounts, and suddenly there is a very smooth feeling, should it be financing? And then the volume has increased.
If that’s the case, it’s too easy. When I communicated with many CEOs, they asked me to consult and let me do the design volume next year, but it was not that simple.
2. Be good at using the company’s high growth stage
From 1 to 100, you need a top-level design process. After 0 to 1, it has been able to increase the amount to 100, which is a misunderstanding.
If you are doing to B business, you must understand that revenue has been stumbling. When the revenue is good, there is a learning mechanism in the whole organization; when the revenue is not good, there is also a learning mechanism.
But in fact, many companies don’t have this learning mechanism. When they run well, they don’t know why. When they run poorly, they don’t know how to summarize them.
If you are in this state and you zoom in on the overall increase, your revenue will become stumbling, the average growth rate will fall, and the risk will become very large.
When many companies are doing growth consultation, I will tell them to cherish the stage of high growth, because when companies and products are growing at a high level, it is the best time to make changes and transformations.
A lot of people think that my revenue has doubled last year. I am doing very well and I don’t have to make any changes. In fact, the more you go at this time, the more you go, the more you need to invest resources to make some changes.
BecauseOnce your data falls, the revenue will be less, and everyone will start to blame each other. It will be very difficult to make changes again.
3. Scaled Growth Design
We have to give ourselves a buffer phase in the process from 1 to 100. We need a design. The design of this phase is called the top-level design of scale growth.
The top-level design for scale growth is from PMF to GTM Fit. As the name implies, GTM is Go to market (how products go to market).
The launch of the product is not the end of the product. The product manager needs to ensure that the value of the product after it is delivered can be passed to the user in order to obtain the return of the market.
Before realizing large-scale growth, there must be a design phase to complete the top-level design of the appropriate scale growth. If there is no such stage, and the mode is not running, it will directly invest resources to grow. This is a very risky thing.
Scale growth needs to match the maturity of the organization. The maturity depends on the efficiency of the entire organization and the quality of the people.
Second, how to get through the large-scale growth of product-driven?
1.Strategy
The company is the integration of product commercialization, how to commercialize it? From the strategic point of view, there are two points: product drive, product and sales two-wheel drive.
1 The core of product drivers is customer driven
Once you get to the PMF (product market match point), you have the first seed customers. The first customer is a subset of your target customers. Perhaps the original target customer group has a total of 4 groups of ABCD, and finally there are more B groups, then you have to analyze what is the pain point of the B group.
First analyze the customer, then optimize and evolve the product so that the entire funnel can run.
This funnel is a funnel we use, not a traditional sales funnel. Traditionally, the sales funnel is an inverted triangle. The funnel of the inverted triangle was invented by the Americans and has been used for hundreds of years. It is a relatively outdated method.
Now do business management, we use a bow-shaped funnel, the traditional sales funnel on the left, from the clues to the closing of the order (the end of the transaction); the right is the old customer, how to maintain, how to renew and so on.
The funnel of this bow, not only the SaaS (software as a service) model, but also the company of B can be used as a tool for thinking about business and management.
The core of the product driver is the customer’s needs. The customer’s needs are from the customer’s research and find out what kind of problem you solved, and then strengthen this part, the product can sell better.
To do this, first find the right customer from the existing customer group; secondly, enlarge the pain points that need to be solved for this pair of customers, let it become your fans, generate a referral; finally, form a virus Spread.
2 Products and sales of two-wheel drive
Many To B companies tend to make heavy products and lack C-side products. For example, Yi Qiaoxiu, they are doing the To B product of the C-end, the C-end grows very well, and the B-end is very poor.
Some of the B-sides are doing very well, and the products are very heavy, but the cost of getting customers is high, the cycle is long, and the cost is very high. If you have a fast-growing To C product as a pull engine before you make a To B product, you can lower your customer acquisition cost cycle and solve the customer problem.
2. Landing
1 Integrated Business Management
The company provides the same set of resources to address the pain points at different customer levels, which is not right. Because the pain points are different, the design process and play should not be the same.
A typical company may have three different levels of customers: large customers, medium customers, and small customers.
Small customers are more C-side product customers; Chinese customers are generally from the market to the customer to the sales, and finally to the customer’s successful normal customers; large customers are generally introduced through the transfer of customers.
This typicalThe company needs integrated management, and it must be managed in accordance with the system. How to manage? The first step is to define each stage.
2 definition
What is a clue?
What is a business opportunity?
What is the final order?
What is a valid business opportunity definition for sales?
You can recall that in the course of the company’s operation, are these standards defined?
If it is To B’s company, everyone will have two hours together, and may not know what the other party is saying, because everyone’s definition is completely different. To solve this problem, we must unify the definition of indicators.
3 system
The whole company needs to be transformed whether it is doing market, doing content marketing, or doing offline meetings, online meetings, and unification needs to be implemented. There is a standard output and transformation at each step.
4 benchmark
Please follow the price of your customers and the different levels to do the benchmarking. Where are the strengths and weaknesses of the company to be found after the benchmark? How to further enlarge the strengths? How to correct the weak items?
After the benchmarking analysis, the company’s annual goals can be broken down into small goals, and then the small targets are placed on the head of a responsible person to let them be responsible.
Four, large-scale growth methodology
We talked about the need for top-level design for large-scale growth, so what should we pay attention to in terms of system construction and data definition? It is the underlying business methodology of integrated management.
1. Grab the key moments and find the core points
The core point is not how you go to the end of the order, how to make it into your customer, but how big the funnel in front of you, how good the quality, the user can survive on your platform, then Become your loyal customer and be willing to do word-of-mouth publicity for you.
If our funnel is such a bow, the definition of each step, the conversion rate of each step, the cycle of each step, multiplying your customer price is a very systematic thing.
In the process of To B, there are seven or eight core points to pay attention to. For example, when we finally negotiate, we are not really going to do a negotiation with the customer. Our purpose is to close the order, so that you and the customer The benefits have a corresponding.
Assuming he wants some discounts, we can say “OK, but you have to give me something, you want to be my model client, orYou are coming to stand for me and so on. “Once you have this concept of exchange, he will ask for something next time, such as a discount, and he will think about what we are looking for.
A point like this is called a key moment, which is the point to optimize. Everyone needs to have a bow idea, find these key nodes in their work, and optimize the key nodes to increase the overall conversion rate by N times.
2. Composite effects
For example, suppose your company has only four steps: expect customers to MQL, MQL to SQL, SQL to win.
Look at this average (above), the first step is 30%, the second step is 20%, the third step is 20%, and the fourth step is 10%. Each step can be optimized.
Because they are a multiplier relationship, the previous increase of 10% can affect the entire 10%. The latter person is 10%, 1.1×1.1 is 1.21, and together they are 21% growth.
Strong operations can help you make the most of growth, rather than traditional financing, a lot of resigning, a lot of people looking for customers, and a lot of marketing advertising. Your ability has not been built before investing a lot of resources, in fact, large-scale growth can not be done.
The premise of saving money is that your internal strength, operational level, and core competence are strong enough to truly go further on this road.
Thank you all!