BD Leverage For Growth An Le Trinity Ventures March 2014 From the Bay Area and Back 2014 2013 •  EIR Menlo Park •  VP of BD, acquired by MSFT SF 2011 2009 2007 2005 2001 1997 •  Director of BD SF •  Consultant SF •  MBA Boston •  Technical Sales Engineer •  Product MarkePng •  BDM Santa Clara Munich Chicago Dot Com Bust •  BSEE, Signals & Systems Stanford Mortgage Crisis Maturity of Company"
BD Goals Evolve As You Grow Revenue
Lead Gen
Distribution
Awareness
Ease of Partnering"
BD as a growth lever from the start Building the ecosystem DistribuPon Ubiquity Lead Gen Revenue Scaling the results DistribuPon 0 850 >2k Ubiquity Lead Gen 5-­‐10% Revenue 15-­‐20% >30k >80k 7M
Users
BD to drive engagement at growth 5 Million Enterprise Users 4M
Users
3M
Users
2M
Users
1M
Users
4 months"
6 months"
18 months"
9 months"
12 months"
Building an ecosystem ›
Through third party applicaPon integraPons, Yammer becomes the de facto standard social layer across the enterprise applicaPons know and use CMS CRM HR ERP OTHER Solving the engagement problem Yammer Connect Users with 2 or more integraDons were ~20% more acDvely engaged on a weekly basis Rapid Usage Growth •  Over 200,000 users have acPvated an app New Users (K) 52% 54% 10x Q1 2012 (Jan- Q2 2012 (Apr- Q3 2012 (July- Q4 2012 (OctMar)"
Jun)"
Sep)"
Dec)"
Greater than 50% quarter on quarter growth of new users enabling third party integraPons on the Yammer PlaZorm since launch. •  Over 9,000 companies are using an app •  Over 700,000 acPviPes wri]en to Yammer •  Over 13 million posts fetched from Yammer Delivering Beyond Virality + Change Management •  New enterprises •  New regions •  < 10% deals BD Tool Box 1 2 Channel Programs Co-­‐markeDng 3 4 Product IntegraDon 5 Feature Enhancement M&A Co-­‐MarkePng 1 Co-­‐
markeDng •  Campaign based or loose annual contracts: •  Joint PR •  Mutual website presence •  Joint promoPons to mutual customer bases Pros •  Easy to set up •  Broad reach Cons •  Easy to disengage and will lose value without ongoing emphasis •  Difficult to measure Typical Rev Share •  0% Examples •  Branded partner relaPonships where both customer sets will be targeted Co-­‐MarkePng Examples Joint PR Website presence Email campaigns Newsle]ers Event talks Webinars White papers Meetups Joint customer tesPmonials •  PromoPonal campaigns •
•
•
•
•
•
•
•
•
Channel Programs 2 Channel Programs •  Affiliate Program •  Go to market through a consultancy or systems integrator partner who owns the customer relaPonship Pros •  Large set up possible partner targets •  Extended geographic reach, customer contacts Cons •  High overhead and people management costs •  Vefng and choosing right partners can be tricky Typical Rev Share •  10-­‐20% Examples •  Loosely affiliated referral program •  Tightly integrated SI relaPonships to deliver customizaPon to product Channel Program Examples Product IntegraPon 3 Product IntegraDon •  Product integraPon usually involving SSO, sharing of perPnent customer data via API, and UX/UI integraPon points Pros •  Very sPcky relaPonships once integraPon is completed •  FricPonless usage by joint customers Cons •  API & technical support required •  High cost of change •  Customer ownership may be in quesPon Typical Rev Share •  15-­‐30% Examples •  AWS AMIs •  Heroku Add-­‐Ons Product IntegraPon Examples Feature Enhancement 4 Feature Enhancement •  White labeled use of your product as a feature of another product and vice versa •  “Powered by” branded feature enhancement Pros •  Very sPcky relaPonships once integraPon is completed •  Immediate access to all customers, no opt-­‐in requirements Cons •  API & technical support required •  High cost of change •  Limited, if any, access to customers for upgrades depending on branding relaPonship Typical Rev Share •  Pay by usage or enterprise license agreement Examples •  Crocodoc for document viewing •  Bit.ly for link shortening Feature Enhancement Examples M&A 5 M&A •  AcquisiPon of another company for purposes of feature enhancements, tangenPal products, large sets of customers or talent Pros •  Once completed, full control •  Expands opPons of build vs buy •  More quickly achieve goals than through organic growth Cons •  Costly •  A]riPon of both customers and employees •  Post merger integraPon issues Typical Rev Share •  None Examples •  OneDrum for real-­‐Pme, collaboraPve ediPng of Microsom documents Maturity of Company"
BD Goals Evolve As You Grow M&A for scale > Maximize revenue through established channels > Revenue
M&A"
Drive BD leads through your sales process > Gain ubiquity in your market > ConPnue to build out your partner ecosystem > Lead Gen
Feature Enhancement"
Build customer tracPon quickly > Distribution
Establish your core set of partners > Product Integration / Feature Enhancement"
Affiliate Program"
Awareness
Co-marketing"
Ease of Partnering"
Recap •  BD tools can work in combinaPon and in parallel depending on your goals and your resource constraints •  Your BD goals will change as you grow •  Measure to your goals •  Support your team Thank you!