Market Testing, The Agile Way

The Market Sprint

@explorics

Aggressive Market Testing

@exploricswww.explorics.co

m

@briangladsteinbg@explorics.com

better market testing

time to release first

product

cost to create first product

we’re spending less time we’re spending less time getting to know our getting to know our

customercustomer

involve the

user!

involve the

user!

but what about the buyer?

what you want to avoid

6 12 18 24 30 36

first release

expanded

features

major pivot

1 major pivot

2

traction… finally

stagnation

Use

rs /

Revenu

e

Time In Business

lean startup / customer development

Customer Discovery– Stop selling, start listening– Test your hypothesis

Customer Validation– Develop a repeatable sales

process– Only earlyvangelists are crazy

enough to buy

Steven Blank

Eric Ries

Market Sprint

=

what the market sprint is

the market sprint

Process for quickly and inexpensively testing & validating go-to-market strategy

•Demand-driven•Risk-reducing•Evidence-based•Monetization-focused

start with demand.

deliver what

people want.

Market Sprints are demand-driven

finding demand vs. creating demand

start with your biggest unknown. figure it out. then

move on.

Market Sprints are risk-reducing

Market Sprints are evidence-based

research testingresearch testing

get outside. get dirty.get outside. get dirty.

there is a big difference there is a big difference between “would you buy” and between “would you buy” and

“will you buy”“will you buy”

there is a big difference there is a big difference between “would you buy” and between “would you buy” and

“will you buy”“will you buy”

Market Sprints are monetization-focused

how the market sprint works

we developed the market sprint concept

based on agile

(review market observations)

repeatable demand gen engine (at limited scale)

Program artifacts

3. Execute IterateAnalyze

4. Next Highest Risk

1. Assess & Plan

2. Design a Test

The Market Sprint Process

phase 1: assessing your market & planning your sprint

3 variables, 3 unknowns

Target Customer

& Pain Point

Channel & Message

Compelling Offer

one variable is your anchor

hold it steady throughout the sprint

one variable is your pushpin

doesn’t need to be optimal, just good enough

you iterate on the last variable

change parameters, run experiments, gather results

examples: 4-8 week sprints

Anchor Pushpin IterateTarget:

HR reps at small & mid-sized companies

Channel:Google Adwords

Offer:Range of

engagement programs &

trials

Channel:Telemarketing

Offer:Meeting with in-house thought

leadership

Target:Who at target

companies bites, why?

Target:Data analysts

Offer:Downloadable

software

Channel:Various

communities & online ad platforms

the sprint

map

Targ

et C

usto

mer

Pain

Poi

nt

Channel

Message

Conversion

Offer

Interest tracking progress & demonstrating results

ANCHOR

PUSHPIN

ITERATE

discovering your targetsegment analysis

market sizing

buyer/user personas

discovering your channelchannel map

credit to B2B Lead Blog

elevator pitch

funnel analysis

discovering your offer

competitive & landscape analysis

conversation roadmap

credit to Corporate Visions, Inc.

preparing the sprint

map

Targ

et C

usto

mer

Pain

Poi

nt

Channel

Message

Conversion

Offer

Interest

ANCHOR

PUSHPIN

ITERATE

Gen Counsel

Sales/Mktg

Execs

ProdMgrs

Telemktg

Meeting

phase 2:designing the test

define an experience, starting with demand

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identify risks concentrate on the biggest

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not enough search volume

not enough search volume

poor conversion

poor conversion

lacks credibility –

people don’t

download

lacks credibility –

people don’t

download

instructions too

difficult

instructions too

difficult

registration

cancelled

registration

cancelled

eliminate complexity everywhere else

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Landing Page

Instructions

Forum

WEBWEB

focus herefocus here

don’t need a download yet…

just need to know if they click the

link

don’t need a download yet…

just need to know if they click the

link

“we’re almost ready to launch” page, engage on forum anyway

“we’re almost ready to launch” page, engage on forum anyway

maximum flexibilityminimum cost

• track in salesforce.com

• conduct a transaction

• create documents, landing pages, graphics

• acquire a list

• 50%+ conversion

• No angry users!

• 50%+ conversion

• No angry users!

vaporware, bait & switchin the name of learning

know exactly what you are going to measure, what

success means

phase 3:executing, iterating, and analyzing

preparing the sprint

map

Targ

et C

usto

mer

Pain

Poi

nt

Channel

Message

Conversion

Offer

Interest

ANCHOR

PUSHPIN

ITERATE

Gen Counsel

Sales/Mktg

Execs

ProdMgrs

Telemktg

Meeting

toss stuff out that

isn’t working

Targ

et C

usto

mer

Pain

Poi

nt

Channel

Message

Conversion

Offer

Interest

ANCHOR

PUSHPIN

ITERATE

Gen Counsel

Sales/Mktg

Execs

ProdMgrs

Telemktg

Meeting

not reachable

no urgen

cy

advance stuff that

is working

Targ

et C

usto

mer

Pain

Poi

nt

Channel

Message

Conversion

Offer

Interest

ANCHOR

PUSHPIN

ITERATE

Gen Counsel

Sales/Mktg

Execs

ProdMgrs

Telemktg

Meeting

revenue recovery

build connectio

ns

Targ

et C

usto

mer

Pain

Poi

nt

Channel

Message

Conversion

Offer

Interest

ANCHOR

PUSHPIN

ITERATE

Gen Counsel

Sales/Mktg

Execs

ProdMgrs

Telemktg

Meeting

revenue recovery

10-25% more $

converge on

conversion

Targ

et C

usto

mer

Pain

Poi

nt

Channel

Message

Conversion

Offer

Interest

ANCHOR

PUSHPIN

ITERATE

Gen Counsel

Sales/Mktg

Execs

ProdMgrs

Telemktg

Meeting

revenue recovery

10-25% more $

rev assess-

ment

DRIVE LEADS!

Targ

et C

usto

mer

Pain

Poi

nt

Channel

Message

Conversion

Offer

Interest

ANCHOR

PUSHPIN

ITERATE

Gen Counsel

Sales/Mktg

Execs

ProdMgrs

Telemktg

Meeting

revenue recovery

10-25% more $

rev assess-

ment

leads

phase 4:go after your next biggest risk

identify risks concentrate on the biggest

one

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Download Install

Landing Page

Register

Instructions

Forum

WEBWEB

DESKTOPDESKTOP

not enough search volume

not enough search volume

lacks credibility –

people don’t

download

lacks credibility –

people don’t

download

instructions too

difficult

instructions too

difficult

registration

cancelled

registration

cancelled

usually, switch

pushpin &

iteration

Targ

et C

usto

mer

Pain

Poi

nt

Channel

Message

Conversion

Offer

Interest

ANCHOR

ITERATE

PUSHPIN

ProdMgrs

Telemktg

revenue recovery

10-25% more $

Meeting

custom report

SaaS product

some lessons learned

don’t be don’t be afraid to go afraid to go out on a out on a limblimb

• people won’t flame you publiclypeople won’t flame you publicly• people won’t be pissed at people won’t be pissed at

shortcomingsshortcomings• people won’t challenge your messagepeople won’t challenge your message• people won’t REMEMBER!people won’t REMEMBER!

you you don’t don’t

have far have far to fallto fall

set expectations

Leads come late.

Help people understand you are building an

engine.

Otherwise they will only look for leads.

use the expertise of use the expertise of partnerspartners

– SEOSEO– PPCPPC– EmailEmail– Copy writing / Copy writing /

editingediting– Marketing Marketing

automationautomation– TelemarketingTelemarketing– Indirect marketingIndirect marketing– BloggingBlogging– Social mediaSocial media– PR / PR 2.0PR / PR 2.0– Influencer relationsInfluencer relations

choosing partnerschoosing partners

make sure they make sure they can support you can support you with:with:•tight test cyclestight test cycles•rapid changesrapid changes•communicationcommunication•metrics, analysismetrics, analysis

Thank you!

Questions?Feel free to reach out.

@briangladstein – bg@explorics.comwww.explorics.com