Leads Recommendation Engine, leading the wave for Prescriptive Sales and Marketing 3.0 -- Lean LaunchPad course by Steve Blank Spring 2014

1. 1
Lean LaunchPad
Spring 2014
Recommendation Engine
for Lead Generation
Leading the wave towards Sales & Marketing 3.0

2. 2
Team
Mukesh Ranjan
Designer
• EW MBA 2015
• PhD , CS – U. Cincinnati
• Program Manager, Intel
Mohamad Charafeddine
Picker
• EW MBA 2015
• PhD, Elec. Eng. – Stanford U.
• Principal Solutions Architect,
ASSIA Inc
Kartik Shah
Hacker
• EW MBA 2014
• MS, CS – USC
• Software Engineer,
Cisco
Swaroop Sayeram
Hacker, Hustler
• EW MBA 2015
• MS, CS – U. Wisconsin - Madison
• Group Product Manager, McAfee
Steve Adelman
Managing Director
Nexus Partners
Peter Lee
VP, Bessemer
Venture Partners
Mentors
Dheera Prabhakar
Hacker
MIMS Student, UC Berkeley

4. Innovation
Time
Sales Automation: Salesforce
Marketing Automation: Marketo, Eloqua,
Hubspot, Act-on
2.0 | Descriptive
What’s happening?
Vision | Sales & Marketing 3.0
4
CloudSlate,
Infer, Mintigo,
Lattice Engine,..
3.0 | Prescriptive
What to do?
Big Data Explosion
Cloud Computing
Large Scale
Machine Learning

5. 5
• 102 Interviews in 10 weeks
• 62 Unique Companies
• 39 CEOs/Founders, CTOs,
(S)VPs, Directors
• 4 Interested in a paid
high-volume trial
• 1 Pilot

6. Value Prop | Learning & Evolution
6
Database of
companies and
installed
technologies
Lead Management
and Scoring of
Leads in the
Funnel
New Leads
Recommendation
“Lookalikes” based on
existing customer base
Finding Influencers
and Decision
Makers
15+ players in
Lead Management

7. 7
MVP | Applied to McAfee Security
product
Actual real data McAfee’s data is obfuscated

8. Cust. Segments | Learning & Evolution
8
SalesOps
Dept
Demand Gen
within Marketing
Mid-market & including big
companies with specific product
segments (like Cisco)
Sales
Dept
Marketing
Dept
for B2B focusing on mid-market
& excluding big oligopolies
Week 1
Week 10
Archetypes
in Appendix

9. Channels | Evolution & Learning
9
Week 1
Own website
Sales partnering with
marketing automation
companies
Week 3-10
SalesforceAppExchange
Marketo LaunchPoint
EloquaAppCloud
Salesforce takes 15-25% Rev share.
Eloqua and Marketo channels are free – in order to
attract adopters.

10. 10
Cust. Relationship | Learning
Network
Effect
Algorithm performance improves
the more the customer uses it.
Performance also improves as other
“similar” customers use CloudSlate –
CloudSlate owns the models and
does clustering on its own customers
to run parallel learning experiments
Vs serial.

11. 11
Revenue & Pricing | Evolution & Learning
Revenue Strategy
Subscription
• Predictable
budget forecast
Conversion based:
End-to-End
• Unpredictable
budget forecast
• Complex
Conversion based:
stage-wise
• Unpredictable
budget forecast
• Complex
Per Lead
• Low quality
perception
PricingTactic
ConversionRate
w/
CloudSlate
w/o
CloudSlate
CloudSlate
ValueAdd 30% Commission
to CloudSlate
Avg.C.A.C($)
w/
CloudSlate
w/o
CloudSlate
C.A.C
Saving
Computed from backtesting on
SalesForce data & QuarterlyA/BTesting
Value-based dynamic pricing

12. 12
Partners & Data Suppliers | Evolution
Quality
Quantity
Source:Chiefmartec.com

13. 13
Partners & Data Suppliers | Learning
Data Suppliers
(Content)
Algorithms
Layer
Negotiation power now
Data Suppliers
(Content)
Algorithms
Layer
Negotiation power in the future
Data will get more restricted or more expensive in the future
strategic plan to create our own data
(similar to Netflix’s content strategy).

14. Activities & Resources | Learning
14
Algorithms
Data Sources
Delivery
Phase I:
High-Volume MVP
in 3 months
Phase II:
SalesforceAppExchange
and Marketo LaunchPoint

15. Metrics that Matter
Annual
Revenue per
Customer
$50k-$120K
Annual
COGS per
Customer
$33K
15
CloudSlate
Amplificatio
n Factor
3x Y1
4x Y3
Annual
Churn Rate
20% Initially
10% Steady
State
LTV
> $250k
($50K gross
profit x 5 yrs)
C.A.C
for CloudSlate
$5K(Salesforce) to
$16K (Marketo)
(less in steady state)

16. What’s Next?
We believe strongly there is real opportunity!
1. Develop high-volume prototype over the next 3 months working closely
with McAfee
2. Then, re-engage with the early adopter pipeline - Cisco,Adaptive
Insights, and Gainsight
16

17. THANK YOU!
Teaching Team
Ryan Jung
Mentors
Awesome Classmates!
17

18. APPENDIX
18

19. Lookalike Modeling
Company: size, location,
Vertical, Growth, etc.
Professionals: Names,
Titles, Dept, Email, Phone #
Company: Technologies
used/installed , Products,
Solutions, Patents, “About Us”,
Full website content
Company: Financial health,
Financial
trend, key events/triggers
Company: Social
sentiment, news stories
Professionals: What they
said, liked, read, followed, at
tended, and their influence
Klout
Customer
19

20. Existing Customer Base
Attributes
Augmentation
Segmentation/
Clustering
Archetypes
Extraction
Discovery
of new Leads
w/ similar
Archetypes
Attributes
Bank of augmented leads
(Dynamic, constantly
evolving)
Data supplied by our partners
and key data resources
New
Look-alike
Leads
Marketing & Sales
Funnel
20

21. High Level Overview
21
Cloud
Slate

22. Customer Archetypes
Account
Manager
(B2B company)
SVP Marketing
(B2B company)
Sr Dir Sales
(B2B company)
Demand Gen
Manager
(B2B company)
Pain
Quote
Pain Meter 5 4 3 4
User Buyer Influencer Decision Maker
Dave Jill Dan Susan
Cust. Segments | Archetypes
Most leads in
the system are
useless
ROI from lead
gen campaigns is
weak
Pressure to meet
Sales target
Collects leads
through laborious
methods, but Sales
never seem to
convert them
“Only 40% of
the leads I close
are provided by
Marketing. I
have to hunt for
the other 60%
myself”
“My marketing
budget is just
$250K/quarter,
and I can get
very little done
with it”
“I don't want
my sales reps
wasting their
time chasing
dead-ends”
“Difficult to satisfy
Sales”

23. Finance and Operations TimelineCashDev.
Channel&
Customer
Financial
Year 1
Q1 Q2 Q3 Q4
Year 2
Q1 Q2 Q3 Q4
Year 3
Q1 Q2 Q3 Q4
Seed $1M
Series A $3M
Amplification = 3x
Salesforce
AppExchange
Demographic,Tech
Install Data
Marketo
Launchpoint
Behavioral, Business
News & Financial Data
Amplification = 3.5x Amplification = 4x
Jobs posts DevelopTech Install Database
Microsoft Dynamics,
Oracle CRM,Website
First 5
cust., $50k
Rev
Next 10 cust.,
$500k Rev
Next 25
cust., $1.5M+ Rev
Eloqua, SugarCRM
Next 40 cust., $5M+ Rev;
Profitable
23

24. Why we chose the Lean LaunchPad
24
Not because it is easy, but because it is hard, because that goal will serve to
organize and measure the best of our energies and skills, because that challenge is
one that we are willing to accept, one we are unwilling to postpone, and one
which we intend to win…
Borrowed from John F. Kennedy
“We Choose to go the Moon”
speech in Sept 1962

25. 25
Week 1

26. 26
Week 2

27. Week 3
27

28. Week 4

29. Week 5

30. Week 6

31. Week 7

32. 32
Week 8

33. 33
Week 9

34. 34
Week 10