product marketing
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Walnut raised $15 million in Series A funding, led by Eight Roads Ventures, to continue developing its sales experience platform.
Founders Yoav Vilner and Danni Friedland started the company in July 2020. Vilner told TechCrunch that while at a previous company, he was building a category called technology marketing in Israel. He realized that company sales people often ran into problems when it was time to demonstrate their product — the product would break, or they would have to ask another department to open something or add a feature, none of which happened instantaneously, Vilner added.
He and Friedland’s answer to that problem is a no-code platform for teams to create customized product demonstrations quickly, be able to integrate them into their sales and marketing processes and then generate insights from the demos.
Walnut engagement example. Image Credits: Walnut
“We let the sales and marketing teams replicate the SaaS product in our cloud environment, which is disconnected from the back end,” Vilner explained. “They can create a storyline to fit their customer and the demonstration, and then following the demo, sales leaders can get insight on what was good or bad. It encourages the sharing of knowledge and what story worked best for which kind of company.”
The company’s latest round gives it $21 million raised to date, and follows a $6 million seed round that included NFX, A Capital, Liquid2 Ventures and Graph Ventures, Vilner said.
Walnut serves over 60 business-to-business clients, including Adobe, NetApp, Varonis and People AI. In addition to Tel Aviv, the company has offices in New York and London.
Vilner intends to use the new funding to grow the team across the U.S, Europe and Israel and continue developing its technology and platform, including tools to embed demos into a website for product-led growth. He also expects to double the team of 25 over the next year.
Eyal Rabinovich, an investor at Eight Roads Ventures, said his brother is a Walnut customer, and the company fits with one of the firm’s theses around broad vertically integrated brands in SaaS and deep technology.
Rabinovich was tracking the sales enablement space for a while and said many companies claim to provide something unique, but it is usually workflow and processes. In Walnut’s case, it is solving something at the core of sales.
“They make everything measurable, and the ‘holy grail’ is conversion, and even just 1% conversion could mean millions of dollars,” he added. “Every company we spoke to wanted to use this product. Customers were telling us they closed the sales cycle within two weeks.”
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Traditional MBA programs can be costly, lengthy and often lack the application of real-world skills. Meanwhile, big global brands and companies who need product managers to grow their businesses can’t sit around waiting for people to graduate. And the edtech space hasn’t traditionally catered to this sector.
This is perhaps why Product School says it has secured $25 million in growth equity investment from growth fund Leeds Illuminate (subject to regulatory approval) to accelerate its product and partnerships with client companies.
The growth funding for the company comes after bootstrapping since 2014, in large part because product managers (PMs) are no longer needed just inside tech companies but have become sought after across almost virtually all industries.
Product School provides certificates for individuals as well as team training, and says it has experienced an upwelling of business since COVID switched so many companies into digital ones. It also now counts Google, Facebook, Netflix, Airbnb, PayPal, Uber and Amazon amongst its customers.
“Product managers have an outsized role in driving digital transformation and innovation across all sectors,” said Susan Cates, managing partner of Leeds Illuminate. “Having built the largest community of PMs in the world validates Product School’s certification as the industry standard for the market and positions the company at the forefront of upskilling top-notch talent for global organizations.”
Carlos Gonzalez de Villaumbrosia, CEO and founder of Product School, who started the company after moving from Spain, said: “There has never been a better time in history to build digital products and Product School is excited to unlock value for product teams across the globe to help define the future. Our company was founded on the basis that traditional degrees and MBA programs simply don’t equip PMs with the real-world skills they require on the job.”
Product School has also produced the The Product Book, The Proddy Awards and ProductCon.
Its main competitor is MindTheProduct, a community and training platform, which has also boostrapped.
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Sendlane, a San Diego-based multichannel marketing automation platform, announced Thursday it raised $20 million in Series A funding.
Five Elms Capital and others invested in the round to give Sendlane total funding of $23 million since the company was founded in 2018.
Though the company officially started three years ago, co-founder and CEO Jimmy Kim told TechCrunch he began working on the idea back in 2013 with two other co-founders.
They were all email marketers in different lines of business, but had some common ground in that they were all using email tools they didn’t like. The ones they did like came with too big of a price tag for a small business, Kim said. They set out to build their own email marketing automation platform for customers that wanted to do more than email campaigns and newsletters.
When two other companies Kim was involved in exited in 2017, he decided to put both feet into Sendlane to build it into a system that maximized revenue based on insights and integrations.
In late 2018, the company attracted seed funding from Zing Capital and decided in 2019 to pivot into e-commerce. “Based on our personal backgrounds and looking at the customers we worked with, we realized that is what we did best,” Kim said.
Today, more than 1,700 e-commerce companies use Sendlane’s platform to convert more than 100 points of their customers’ data — abandoned carts, which products sell the best and which marketing channel is working — into engaging communications aimed at driving customer loyalty. The company said it can increase revenue for customers between 20% and 40% on average.
The company itself is growing 100% year over year and seeing over $7 million in annual recurring revenue. It currently has 54 employees right now, and Kim expects to be at around 90 by the end of the year and 150 by the end of 2022. Sendlane currently has more than 20 open roles, he said.
That current and potential growth was a driver for Kim to go after the Series A funding. He said Sendlane became profitable last year, which is why it has not raised a lot of money so far. However, as the rapid adoption of e-commerce continues, Kim wants to be ready for the next wave of competition coming in, which he expects in the next year.
He considers companies like ActiveCampaign and Klaviyo to be in line with Sendlane, but says his company’s differentiator is customer service, boasting short wait times and chats that answer questions in less than 15 seconds.
He is also ready to go after the next vision, which is to unify data and insights to create meaningful interactions between customers and retailers.
“We want to start carving out a new space,” Kim added. “We have a ton of new products coming out in the next 12 to 18 months and want to be the single source for customer journey data insights that provides flexibility for your business to grow.”
Two upcoming tools include Audiences, which will unify customer data and provide insights, and an SMS product for two-way communications and enabled campaign-level sending.
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“Who should my first marketing hire be?”
This is (by far) the most common question I’ve received since starting as Fuel’s CMO, and for good reason. Your first marketer will have an outsized impact on team dynamics as well as the overall strategic direction of the brand, product and company.
The nature of the marketing function has expanded significantly over the past two decades. So much so that when founders ask this question, it immediately prompts multiple new ones: Should I hire a brand or growth marketer? An offline or an online marketer? A scientific or a creative marketer?
Once upon a time, the number of marketing channels was fairly limited, which meant the function itself fit into a neater, tighter box. The number of ways to reach customers has since grown exponentially, as has the scope of the marketing role. Today’s startups require at least four broad functions under the umbrella of “marketing,” each with its own array of subfunctions.
The reality is that anyone who excels across all marketing functions is a unicorn and nearly impossible to find.
Here’s a sample of the marketing functions at a typical early-stage startup:
Brand marketing: Brand strategy, positioning, naming, messaging, visual identity, experiential, events, community.
Product marketing: UX copy, website, email marketing, customer research and segmentation, pricing.
Communications: PR and media relations, content marketing, social media, thought leadership, influencer.
Growth marketing: Direct response paid acquisition, funnel optimization, retention, lifecycle, engagement, reporting and attribution, word of mouth, referral, SEO, partnerships.
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As you can imagine, that’s a lot for one person to manage, let alone be an expert in. What’s more, the skill set and experience required to excel in growth marketing is quite different from the skill set required to succeed in brand marketing. The reality is that anyone who excels across all marketing functions is a unicorn and nearly impossible to find.
Unless you’re lucky enough to nab that unicorn, your first hire should be a generalist who can tend to the full stack of the marketing function, learn what they don’t know, and roll up their sleeves to get things done. Someone smart, savvy and super scrappy who understands how to experiment across marketing channels until they find the right mix.
But this utility player should also bring deeper expertise in one of the big marketing functions: brand, product, communications or growth. Before making this key hire, you need to figure out which marketing priorities are most urgent and, consequently, which marketing “persona” is most appropriate for your business at the earliest stages.
To figure out which skill set you need most in-house, consider these five questions:
If you’ve done some marketing experimentation previously, have there been any bright spots? Which channels are proving the most efficient from a customer acquisition, conversion, retention, engagement, whatever your key KPI is, perspective? If you find a promising area, find a candidate that has expertise in it. For example, if you are seeing good results with Instagram ads, hiring a candidate who has expertise in growth marketing makes sense.
If you don’t have much data from channel testing, consider how your target customers are currently finding competitive products or services. At TaskRabbit, we knew from early customer research that clients were finding help with home services either through recommendations from friends or by asking Google (i.e., SEO and SEM).
So, that was a natural place for us to start. Our focus from a resource and staffing perspective in the early days was on growth marketing — driving more word of mouth, plus optimizing our SEO and SEM.
How competitive is the category you’re playing in? Are there dominant players with strong brands? Do these brands have endless marketing budgets? Are CACs exorbitant because well-capitalized competitors are outbidding each other? If so, you might want to focus on building an exceptional brand and product/customer experience.
That means disseminating a unique story through organic channels (word of mouth, PR, influencers and organic social media). A brand marketer or someone with deep PR and communications experience makes sense in this scenario.
Another aspect to consider is the skills the founder(s) — or other members of the founding/early team — bring to the table. If a founder has a strong vision for the brand and extensive experience building brands, then focus less on a brand marketing hire and rather supplement the branding skill set with another marketing priority (i.e., product marketing). Likewise, if a founder has a strong vision for the brand but no one on the team knows how to build one, that’s a skill gap that your first marketing hire should fill.
Trust building has become an increasingly important aspect for brands as customers become more and more discerning. But trust building tends to be more critical in certain areas than others: New, nascent industries or markets, sectors with a lot of human interaction (services businesses, dating platforms, etc.), industries that are fundamentally changing consumer behavior (ride-sharing in its earliest days), or industries where the stakes or cost is relatively high (luxury goods).
If trust building is critical, consider a branding expert who understands how to build trust and credibility, and build an experience that consumers are passionate about. This person will likely have deep expertise in PR and brand building, as these channels tend to inspire the most trust among consumers.
Once you’ve answered these five questions, you should have a pretty good idea of the type of marketing experience you want. But just how much experience should that person have? I typically recommend that seed-stage founders look for senior manager or director-level candidates at midsized companies.
At this experience level (six to 10 years), these candidates’ salaries tend to be more in line with a young company’s budget. Moreover, at this stage of their career, they tend to be both strategic and tactical. This means they can level up and think strategically about the business and the marketing function, but they are also happy to get their hands dirty and execute — actually dive into the Facebook platform and create ads, plan and host an event, or pitch a journalist.
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Search engine optimization, PR, paid marketing, emails, social — marketing and communications is crowded with techniques, channels, solutions and acronyms. It’s little wonder that many startups strapped for time and money find defining and executing a sustainable marketing campaign a daunting prospect.
The sheer number of options makes it difficult to determine an effective approach, and my view is that this complexity often obscures the obvious answer: A startup’s best marketing asset is its story. The knowledge and expertise of its team, together with the why and the how of its offering provides the most compelling content.
Leveraging this material with best practice techniques enables any startup, no matter how limited its budget, to run an effective marketing campaign.
Many startups make the mistake of choosing systems and employing procedures to solve the immediate needs of the department that requires them.
I know this approach works, because this is exactly what I did with my co-founder Alex Feiglstorfer when we set up Storyblok. To be clear, we are developers not marketers. However, our previous experience building CMS systems taught us that the main driver of organic engagement for most businesses was customer conversations around content.
Specifically, sharing experiences, expertise and what we learned. We had committed nearly all of our available cash to developing our product, so we knew that the only way to market Storyblok was to do it all ourselves.
As a result, we focused solely on problem-solving content. This took the form of tutorials on web development and opinion pieces on headless CMS and other topics within our areas of expertise. The trick was that what we published wasn’t made just for marketing, it was based on our own internal documentation of problems we encountered as we developed our product. In essence, we were “learning in public.” Through this approach we were able to acquire thousands of customers in our first year.
Retelling this story isn’t to blow my own trumpet, it’s to make clear that you don’t have to be a marketer by training or commit a huge amount of time and resources to successfully market your startup. So, how do you get started?
Although there’s no one-size-fits-all approach to how you organize your startup’s marketing function, there are some basic principles that apply in nearly every situation. A recent survey of 400+ executives from CMS Wire helpfully identified the following factors as the “top digital customer experience challenges” for businesses:
Challenges two to four are the pitfalls that we can focus on avoiding. They are directly related to how a startup produces, organizes and distributes its content.
With regard to the siloing of systems and fragmentation of customer data, the overriding goal is to ensure all your systems are integrated and speak to one another. In practice, this means that the data gathered in different departments — whether its feedback from sales, engagement on your website, customer service responses or product development information — is collected in a uniform and methodical manner and is readily accessible across the business.
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There’s no shortage of commentary around the chief marketing officer title these days, and certainly no lack of opinions about the role’s responsibilities and meaning within a company. There’s a reason for that. CMO is the shortest tenured C-suite role — the average tenure of a CMO is the lowest of all C-suite titles at 3.5 years.
CMOs either produce the numbers or we find another job.
That’s because the chief marketing officer’s role is increasingly complex. Qualifications require broad, strategic thinking while also maintaining tactical acumen across several functions. There’s a big disparity in what companies expect from CMOs. Some want a strategist with an eye for go-to-market planning, while others want a focus on close alignment with sales in addition to brand awareness, content strategy and lead generation.
Still other companies want their CMO to emphasize product marketing and management. Ask 10 CMOs how they define their role and you’ll get 10 different answers.
So, I’m sharing my honest, straight from the mouth of a tenured CMO take on what the role actually means, plus the key attributes of today’s modern CMO.
Hat tip to “The Lego Movie” for this analogy. Today’s marketing executives must bring functions and teams together. From sales and marketing alignment to product and everything in between, chief marketers are the connective tissue between every function. Driving alignment between these functions is table stakes.
Same goes for people teams and culture — I’ve experienced an increase in CMOs serving as the linchpin of a company’s culture. My CEO lives by the famous phrase “culture eats strategy for breakfast” and driving culture alignment now sits squarely on marketing’s shoulders.
Ah, demand generation. Driving new opportunity creation will continue to be a top priority for CMOs, of course. I’m not sharing anything new here, but the stakes are higher. CMOs either produce the numbers or we find another job. Doesn’t get any more straightforward than that. But, simply generating leads to check a box doesn’t cut it in board rooms anymore.
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The tidal wave of growth is upon us — an unprecedented economic boom that will manifest later this year, bringing significant investments, acquisitions and customer growth. But most tech companies and startups are not adequately prepared to capitalize on the opportunity that lies ahead.
Here’s how marketing in tech will shift — and what you need to know to reach more customers and accelerate growth in 2021.
First and foremost, differentiation is going to be imperative. It’s already hard enough to stand out and get noticed, and it’s about to get much more difficult as new companies emerge and investments and budgets balloon in the latter half of the year. Virtually all major companies are increasing budgets to pre-pandemic levels, but will delay those investments until the second half of the year. This will result in an increased intensity of competition that will drown out any undifferentiated players.
The second half of 2021 will bring incredible growth, the likes of which we haven’t seen in a long time.
Additionally, tech companies need to be mindful not to ignore the most important part of the ecosystem: people. Technology will only take you so far, and it’s not going to be enough to survive the competition. Marketing is about people, including your customers, team, partners, investors and the broader community.
Understanding who your people are and how you can use their help to build a strong foundation and drive exponential growth is essential.
Tactically, the most successful tech companies will embrace video and experimentation in their marketing — two components that will catapult them ahead of the competition.
Ignoring these predictions, backed by empirical evidence, will be detrimental and devastating. Fasten your seatbelts: 2021 is going to be a turbocharged year of growth opportunities for marketing in tech.
The explosion of tech companies and startups seeking to be the next big thing isn’t over yet. However, many of them are indistinguishable from each other and lack a compelling value proposition. Just one look at the websites of new and existing tech companies will reveal a proliferation of buzzwords and conceptual illustrations, leaving them all looking and sounding alike.
The tech companies that succeed are those that embrace one of the fundamentals of effective marketing — positioning.
In the ’80s, Al Ries and Jack Trout published “Positioning: The Battle For Your Mind” and coined the term, which documented the best-known approach to standing out in a noisy marketplace. As the market heats up, companies will realize the need to sharpen their positioning and dial in their focus to break through the noise.
To get attention and build traction, companies need to establish a position they can own. The mashup method — “Netflix but for coding lessons” — is not real positioning; it’s simply a lazy gimmick.
It is imperative to identify who your ideal customer is and not just who could use your product. Focusing on a segment of the market rather than the whole is, perhaps counterintuitively, the most effective approach to capturing the larger market.
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Old-school approaches to marketing were often described as “spray and pray.” Marketers would launch a massive campaign in as many places as possible and hope that something worked.
More customers would show up, so it would appear that something had in fact worked.
But nobody could be sure exactly what that something was.
When we can’t predict what will have an impact, we need campaigns that cover all the bases, and those campaigns are consequently huge. They take a long time to create, are expensive to launch and come chock full of risk.
If a spray-and-pray campaign is a total failure (and we don’t have to go far to find examples of those), it’s quite possible an entire year’s worth of marketing budget has just been wasted.
Instead, marketers need to take a page from lean product development and begin creating Minimum Viable Campaigns (MVCs). Rather than wait until a massive multichannel launch is perfect, we can incrementally release a series of smaller, targeted, data-driven campaigns.
Over time these MVCs coalesce to look and act much like a Big Bang-style campaign from the spray-and-pray days, but they’ve done so in a much more data-driven and less risky way.
Just as with a Minimum Viable Product (MVP), it can be easy to misunderstand the real definition of an MVC. It’s not something thrown together with no regard for brand standards or strategic goals, and it’s not a blind guess.
Instead, a good MVC represents the smallest amount of well-designed work that could still achieve some of the campaign’s goals. Before we have any chance of figuring out what that looks like, we need to know the ultimate goal of the bigger campaign or initiative. If we don’t know this, we can’t possibly measure the effectiveness of the MVC.
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