turning an elephant

andrew malcolm

svp marketing

@EverMalc or LinkedIN:malcolmandrew

svp marketing, Evernote

vp product marketing mobility, HP

head of marketing, Skype

investor, Silver Lake Partners

angel/advisor: Atheer, Vave, Clinithink

Stanford MBA

Harvard BA

who am i?

none of these is a particularly good reason to listen to me

instead, listen for three things

frameworks to structure problems

pattern recognition that saves time

network of others to ask for help

how much does monetization matter?

0%

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Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13

10-year stock price indexed

Nintendo

Wii sells 11m units and

passes Xbox

how much does monetization matter?

0%

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800%

Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13

10-year stock price indexed

Nintendo

Comcast

what’s the product?

what’s the product?

Connectivity?

Phone?

App?

Operating System?

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2009

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was Skype a good product? good business?

minute growth: Skype vs. telcos

• what happens

when more

and more

people are on

Skype?

• 2B min per

day; more than

30% of

international

calling

Source: Telegeography

+

Telcos

Telcos

Only

we forgot phase 2

great companies think about a system

value proposition differentiation

innovation agenda monetization model

target customer

how do we solve it

better than

anyone else?

what problem do

we solve?

where must we

continue to invent

new experiences?

who has that problem?

are they a good

customer?why will they pay

us?

how have we done this at Evernote?

we were called the first dead unicorn

• Burning $5M per month

• No major product

releases in 2 years

• Hard goods marketplace

18 months later, we’ve …

seen our 200Mth registered user

passed 7B notes taken

doubled the number of paying users

achieved cash flow positive operations

launched redesigns of iOS and WIN apps

won an AOTP Mobility award at CES

moved 3 petabytes of data to the Google Cloud

how? we thought about our system

Source: Splunk RFP, Simon-Kucher evaluation

Determine fit & appeal of usage-based metrics for freemium / paid fencing

Utilize customer research to optimize tier levels & price levels for new lineup

Develop and execute pilot (geographic or promotional) to de-risk transition

Forecast impact on total users, free-to-paid conversion, and financials

what’s next?

Personal, 20%

Professional, 15%

Both, 65%

Sales

great products vs. great businesses

great products … great businesses

… that their users pay forsolve a problem1

target a user … who can decide to buy2

have a way to pay … give a reason to pay3

are unique … are sticky4

stay ahead of the competition … get farther ahead5

thank you

@EverMalc or LinkedIN:malcolmandrew