Magpie: Developing and Using Buyer Personas

Frank V. Cespedes

Teaching Note | HBS Case Collection | August 2018

Magpie: Developing and Using Buyer Personas

Abstract

Teaching Note for HBS No. 818-013. Magpie is a startup with a platform that allows publishers to natively tag the products discussed in their content and thus allows consumers to purchase those products without needing to leave that publisher’s web page. A key aspect of the venture’s business model is to leverage the content and influence of publishers (i.e., those who provide content in the fashion product categories initially targeted by Magpie). The founders have developed four publisher personas and must decide on priorities among these buyer personas and the implications for messaging, media, and other aspects of marketing to each group. “Buying Journey” and “Buyer Persona” are currently popular terms for a perennial requirement of effective marketing: understanding who buys, why, and how among a venture’s potential customer groups. The teaching note discusses the process for creating buying personas in an early-stage venture; the go-to-market implications that flow from focus on a given persona; and the uses, misuses, and inherent limitations of qualitative constructs like Buying Journey and Buyer Persona in allocating resources.

Keywords: social media; buying process; Marketing; Sales; Distribution Channels; Segmentation; Entrepreneurship; Consumer Products Industry; Fashion Industry; United States;

Language: English

Format: Print

12 pages

Purchase

Citation:

Cespedes, Frank V. "Magpie: Developing and Using Buyer Personas." Harvard Business School Teaching Note 819-027, August 2018.

Common advice in sales is to provide insights to customers during sales calls. But this advice generally stays at the level of “tell people something they don’t already know” and results in sales conversations littered with many irrelevant factoids. This article provides examples of how salespeople develop and deliver resonant insights in customer conversations and why the framing of insights depends upon to whom they are talking and when in the sales cycle.

Most research and training in sales focus on acquiring new customers. But winning back previous customers is increasingly important: mergers, choice in supply chains, and uncertainty about trade wars mean that B2B customers are constantly re-evaluating relationships with suppliers and making changes. Meanwhile, large buyers account, on average, for over 25% of revenues at publicly traded firms, up from 10% in the 1980s. This article discusses how and why the process for reacquiring lost customers requires a different approach than acquiring new ones and illustrates the process and its implications via a case example.

Fred Shilmover and Sam Clemens prepared for their fourth quarter board meeting. They were excited to have scaled their software startup, InsightSquared, to $2 million in revenue and secured an $8 million round of venture capital. However, they disagreed on the path ahead, specifically on the sales and marketing plan. Shilmover preferred a sales-centric approach to growth while Clemens preferred a marketing-centric one. Which strategy was optimal for their venture’s next phase of growth?

Faculty & Research

Magpie: Developing and Using Buyer Personas

Abstract

Citation:

About the Author

More from the Author