Health Tech Distribution

Health 2.0 - Silicon ValleyPaul Willard, Atlassian CMO • 12/18/2012

• Playbook from NextCard – Consumer Credit• Groundhog Day Career

• Business Banking

• Consumer Banking

• Consumer Price Promotion

• Health Tech

Serial Industry Disrupter

1.Those that have been disrupted by software

2.Those that haven’t ... yet

2 Types of Industries

Google AnalyticsKISS metricsOptimizely

Visual Website Optimizer

Confluence

AgileGreenHopper

AWSRackSpace

GitMercurial

Wordpress

AgnosticDisruptionToolkit

+ Scalable distribution model

JoomlaDrupal

Bitbucket

JIRA

Bamboo Jenkins

• Press• Communities• Refer-a-friend• Search• Email• App stores• Affiliates• Display

Scalable Distribution Methods

Awareness

Consideration

Conversion

Loyalty

Advocacy

• Startups need technology, product, and distribution

• Many fail on distribution• Myth:

If you build it, they will come

• Fact:The best distribution won

Don’t Ignore Distribution

• Most ideas will not work• Don’t invest too much in

any one idea – no epic fails• Plan to fail - fast, cheap

Learn to Fail, Don’t Fail to Learn

Simplify - Only 2 Charts

Month

Cus

tom

ers

Life

time

Valu

e ($

)

Acquisition Exponential Cohort Curves

Months as Customer

• Test quick, cheap, and dirty• Released vs polished

• Front end flexibility

• Standardize reporting

• Model LTV quickly• Never stop what is working,

be incremental & relentless

Feedback Loops

• Hypothesis Testing Equation• Myth: A vs B, best one wins

• Reality: Look at distribution, segmentation, learn about the market, and dream up C

A/B Testing - A Practical Guide

• 12 month break even• Conservative

• Estimating is ok

• Virality

• Model LTV for each channel or even campaign

How much should I spend?

Life

time

Valu

e ($

)

Allowable

Months as Customer

Health Tech DistributionHealth 2.0 - Silicon ValleyPaul Willard, Atlassian CMO • 12/18/2012

Questions?

• Conversion = Desire - Friction• Hypothesis Testing Equation

Myth: A vs B, best one wins

Reality: Look at distribution, segmentation, learn about the market, and dream up C

A/B Testing - A Practical Guide

• Behavioral design:• Cialdini’s book - Influence• Dan Ariely• Nir Ayal’s Desire Engine -

NirAndFar.com• Examples

• Headlines• An authentic solution• Ask customer what they want

Desire

• UX testing useful for friction• Minimize ambiguity through

good design• Speed

• Call to action - placement, color, shape

• Grouping, contrast, IA

Friction

• Get your market hooked• Their fix = problem solved

• Eliminate all friction

• Test conversion to “fix”• Qualitative methods

Product as Designer Drug

• Do not A/B test your core repeat usage product• UX testing to show problems

• Offer beta - to a subpop

• Test newsletters, cross-sell/up-sell messaging, tutorials, first time user flows, etc

• Find twitchy measures of success

Cohorts

Life

time

Valu

e ($

)

Test impact on LTV

Months as Customer