Traversing the Traction Gap
Page 23
While the Traction Gap Institute is founded and funded by Wildcat Venture Partners, anyone can join and attend any TGI event at no cost.
So, even if you aren’t a Wildcat portfolio company and may not know Geoffrey Moore or a Wildcat general partner, as a member of the Traction Gap Institute, you still have access to key industry leaders, hacks, and a network of entrepreneurs and consultants off whom you can bounce ideas and from whom you can learn to implement Traction Gap principles.
My partners and I sincerely hope you found this book to be helpful and that you will use and refer to it often, and that it helps you to successfully traverse your way across the Traction Gap.
If you discover new hacks or have other comments you’d like to share with other startups, we’d welcome your input. You can reach us at traction@wildcat.vc.
Good luck. Now get out there; work smart, work hard, and change the world.
Bruce Cleveland
& the Wildcat Venture Partners Team
To download a Traction Gap Framework reference sheet that includes all important Traction Gap metrics discussed in this book, visit www.tractiongap.com.
APPENDIX
The following is an example of a Messaging Matrix I originally developed for GreenFig. Although some of the messaging and positioning has changed since I initially created it, the content I developed should serve as an example for you to write your own Messaging Matrix.
Writing this document is not a job to be delegated to a marketing person; it is fundamental to the startup’s market-engineering process. Accordingly, while someone may be assigned to make the initial draft, the ideas, words, terms, etc., need to come from the CEO and/or founder and the founding members of the team.
Once the team has completed the Messaging Matrix, everyone in the company should be required to read and internalize it. Failure to do so can lead to branding and positioning issues for the entire startup. If market feedback leads you to change your positioning and messaging, then those changes must be reflected back and captured in this document and then recirculated to every member of the startup.
Messaging Matrix: GreenFig
Our company is
(Strategic descriptor)
GreenFig is a microeducation company offering microdegrees in applied business science, including: customer success, finance, marketing, product, sales, service, and support.
GreenFig provides a hybrid training platform that combines live, interactive online and on-premise team-based learning with real-time, hands-on instruction from industry experts to deliver job-ready talent in less than 200 hours.
For
(Target customer)
Higher-ed students augmenting traditional academic programs
Veterans
Professionals in career transition
Lifetime learners seeking new skills and market relevance
Why
(Compelling reason to buy)
To help people achieve and maintain the skills they need to be “job-ready” in the digital economy.
Technology/product
(Name and category)
The first GreenFig course in Digital Marketing Science will be offered during the 2017 fall semester, with virtual and physical cohorts.
That
(Key benefits)
Provides:
Job-ready talent with micro degrees in applied business science in less than 200 hours
Accelerated experiential learning from a hybrid training delivery model—using live, interactive online and on-premise team-based learning
Hands-on, real-time business application software instruction from industry experts
Work experience gained through real-world projects mentored by industry experts
High-demand certifications from industry-leading business application software providers
Selective application process biased toward people who are motivated to learn
Intimate collaboration and networking between students, instructors, and industry experts
Unlike
(Primary competitor)
GreenFig is laser-focused on developing job-ready talent in applied business science. Unlike its competitors, GreenFig’s hybrid training platform provides live, interactive online and on-premise team-based learning to accelerate proficiency and job-readiness. GreenFig’s competitors do not provide an integrated and comprehensive learning experience, certifications from key business software providers, nor are they hyper-focused on delivering job-ready business science professionals.
General Assembly, Udacity, and Coursera are all primarily focused on technical topics, “operational mechanics,” and specialization vs. the comprehensive and integrated learning experience needed to acquire proficiency in “the science” of a business function.
This is why we use the word “science” in all the names of our courses. This is also why we are calling our students “business scientists.” We use the word “applied”—because we are focused on how our students can “apply” what they’ve learned to drive business and industry vs. “research” science.
Offering
(Strategic advantage)
A hybrid training platform that combines live, interactive online and offline team-based learning with real-time, hands-on instruction in business application software from industry experts that delivers job-ready talent in less than 200 hours. The GreenFig microdegree program includes certifications from industry-leading business application software providers such as Marketo, Google, and others.
Tagline
(For press release)
A Microeducation Company Offering Microdegrees in Applied Business Science: Preparing People for Jobs in the Digital Economy
Boilerplate
(For press release)
GreenFig is a microeducation company offering microdegrees in applied business science, including: customer success, finance, marketing, product, sales, service, and support. GreenFig’s hybrid training delivery model combines live, interactive online and offline team-based learning with real-time, hands-on business application software instruction from industry experts. A microdegree program from GreenFig includes practical work experience from business projects where industry mentors help students apply their newly acquired skills. GreenFig’s microdegrees can be achieved in less than 200 hours and, when completed, students can be confident that they possess the subject matter proficiency and basic work experience industry demands. GreenFig is currently headquartered in Bend, Oregon and delivers its programs across the US using the GreenFig Education Broadcasting Network. To learn more about GreenFig’s applied business science program, visit www.greenfig.net.
Competitive Landscape:
Creating the Market
Key competitors
Online/alternative education providers—Coursera, General Assembly, Udacity, Udemy. These companies aren’t really competitors, per se. They are simply alternative forms of education.
Target strategic partners and alliances
We made an announcement with Marketo on April 24 and 25, 2017. If asked, we can accurately state that “we are in discussions with other industry-leading business application software providers to deliver other applied business science courses.”
Market trends and other impacts/changing dynamics
The current educational system is challenged to provide adequate training for the digital economy—jobs that require skills using business application software.
Traditional Education. Most traditional education programs are not well suited to provide the hands-on and work-related experience students need to master business application software and business science. Industry requirements and business applications change so rapidly that by the time a new curriculum is peer-reviewed and approved, it is already out of date—and few university professors have current industry experien
ce or are skilled in the use of business application software.
Market trends and other impacts/changing dynamics
(cont.)
Online Education Programs. Most online programs are focused on technical subjects, lack real-time, interactive hands-on business application software instruction, and lack business science training, and few offer the real-world work experience companies and government organizations require for even the most basic, entry-level positions.
Application Software Companies. Application software providers are not in a position to easily address the issue, as one vendor can seldom provide all the necessary functionality for a specific business function. In almost every case, each business function requires a number of application software products from various providers.
Corporate Training. Due to the rapid pace of change and competition, most employers do not have the luxury of time or the resources to internally train new workers how to use business application software; many current employees are not up to speed with these new applications. Companies are seeking employees already skilled in these operational functions and business applications.
Data and research
Universities
In the fall of 2016, there were 20.6M students attending US colleges and universities. (Source: NCES Fast Facts—
https://nces.ed.gov/fastfacts/display.asp?id=372)
Assume 10% penetration = 2M students
Assume $3,000 per student
TAM = $6B
Universities and colleges receiving state and federal funding/aid are coming under increasing pressure to demonstrate that their students are getting jobs.
(Source: https://www.newamerica.org/education-policy/
edcentral/hold-colleges-accountable-for-jobs/#)
More importantly, parents of students attending the non-Tier 1 Universities (e.g., those that aren’t Ivy League schools) are increasingly demanding to know what the ROI is from a degree from a particular academic institution.
Veterans
Each year, there are 250,000 veterans returning to the civilian world
(source: http://www.economist.com/blogs/
democracyinamerica/2014/11/veterans-day). Many are challenged to apply their military experience to civilian positions.
Assume that the last 4 years’ of veterans returning to civilian world are most likely to be interested in at least 1 business science program.
250,000/year * 4 years = 1M
Assume 10% penetration = 100,000
Assume $3,000 per veteran (veterans can use GI Bill to defray most of this expense)
TAM = $300M
Data and research
(cont.)
Transitioning Workers
86% of US workers are seeking a career change
(source: http://fortune.com/2014/08/05/job-search-career-change/)
In Jan 2017, there were 123M full-time workers in the US.
(source: https://www.statista.com/statistics/
192361/unadjusted-monthly-number-of-full-time-employees-in-the-us/)
86% of 123M = 106M
Assume just 1% interested in 1 business science program
Other Considerations: Identifying Key Differentiators
GreenFig
Udacity
Coursera
Business
model
Selective application process $ per course
Open to anyone with $ to pay
Open to anyone with $ to pay
Market
category
Microeducation—a hybrid of classroom, online, and on-premise learning
Online Education
Online Education
Customers
Higher-ed students, veterans, lifelong learners, professionals in transition (workers returning to the workforce after prolonged absence, underemployed and unemployed workers)
Value proposition
1. Job-ready in less than 200 hours.
2. Certificates from industry-leading business application software providers
3. Real-time delivery and hands-on instruction from industry experts
4. Focus on “business science,” not just the operational mechanics of how to use a product
Job listings from partners
Prepares you for the jobs of tomorrow
3 months / 120 hours
University developed courses
6 courses (1 course / month) (8–10 hours / week) = TOTAL: 240 hrs
Pricing
$2,500—students currently enrolled in an accredited program, vets, unemployed workers, and workers making under $35,000 per year.
$3,800—workers currently employed making more than $35,000 per year
$999—Digital Marketing Nanodegree
7-day free trial
$474 each specialization
Digital Marketing Specialization
This specialization explores several aspects of the new digital marketing environment, including topics such as digital marketing analytics, search engine optimization, social media marketing, and 3D printing.
Core product / service
Microdegrees in applied business science—definitionally, a microdegree includes a formal certificate from industry-leading business application software providers
Nanodegrees, primarily STEM related
Arts and Humanities, Business, Computer Science, Data Science, Life Science, Math & Logic, Personal Development, Physical Science & Engineering, Social Science, Language Learning
Features
Live, online/physical instruction and hands-on training combined, with online testing, and real-world project with a real company leading to a microdegree that includes a micro certificate from industry-leading business application software providers. Industry seeks people who possess demonstrated proficiency with real business application software along with relevant work experience.
Primarily time-shifted (pre-recorded) with very little real-time instructor training and interaction, projects are relatively simplistic and provide little interaction with a real company. Certification comes from Udacity, not industry-leading business application software providers. Few companies are seeking people with Udacity nanodegrees.
Primarily time-shifted (pre-recorded) with very little real-time instructor training and interaction, Projects are relatively simplistic and provide little interaction with a real company. Certification comes from Coursera, not industry-leading business application software providers. Few companies are seeking people with Coursera degrees.
Project is case study with Grainger.
Customer benefits
Job-readiness in less than 200 hours
New knowledge and potentially new skills
New knowledge and potentially new skills
Top 3 corporate messages
1. Less than 200 hours to proficiency
2. Certification from industry-leading business application software providers
3. Job-readiness
Learn new skills on your own time at your own pace
Learn new skills on your own time at your own pace
Corporate Story: GreenFig
Corporate Name
GreenFig, Inc.
Founded
March, 2017
Headquarters
Bend, Oregon
Other offices
San Mateo, California
Employees
Cari Baldwin—initial employee at founding of company
Financing
Series Seed
Investors
Wildcat Venture Partners
Founders
Bruce Cleveland (Founder), Cari Baldwin (Cofounder)
Story
Each session featured classroom instruction for 5 weeks, 6 hours per day, 4 days per week. The instruction included hands-on application software training by industry experts. For the final 3 weeks, teams of students were formed to develop real marketing campaigns for actual companies. The teams competed against one another and presented their outcomes to an independent panel of industry experts, who acted as judges. The winning team was awarded the president’s trophy, and team members were entitled to place this achievement onto their LinkedIn profile. This competition drove teams to perform their very best.
After completing the program, the majority of the students seeking a marketing role found positions in industry. This was accomplished in less than 1 year from the students completing the program.
Here are two links that help explain the program and its results:
Video: http://www.bendpoly.com/
video-post/bendpoly-program-video-overview/
Article: http://www.bendsource.com/bend/
training-the-future-workforce/Content?oid=2609069
Based upon BendPoly’s success, the BendPoly cofounder decided to create GreenFig to scale the program nationally.
Something Interesting
Angles we discussed:
US politicians, academia, and industry leaders are currently placing a tremendous emphasis on technical training, coding, and other STEM programs. Yet less than 6.5% of the jobs in the US are STEM-related. In addition, the vast majority of people are simply neither interested nor well suited for highly technical degrees and jobs.