digital velocity 2014: "leveraging technology to create 'frictionless sales'"

Frictionless Sales: Selling to Generation Cloud

Treb Ryan

Generation Cloud = New Expectations

Limitless Resources

Sharing & Collaboration

Mobile and BYOD

Immediate Availability

Ubiquitous Access

But sales hasn’t evolved since the mainframe

Until the Last Few Years

2000 2004 2005 2007 2008 2009 2010

1 year contracts

Monthly Commitments

Hourly Commitments

Elements of a Frictionless Sale The 3 NoCo’s

No Contact

People who use the cloud like to buy in the cloud

No contact

No Contact

Hourly Billing is a simple proposition. Customers will continue to use a service they like.

No contract

No Contact

Your core value proposition should be simple. Complexity should be grown into.

No complexity

Benefits of a Frictionless Buy

Frictionless Ops Benefits

Pay for What you Need

Savings over Time

Improve Operations

Pay for What you Need: Burstability – Every Day

Almost every application has a sine wave of usage

By modifying the available capacity throughout the day you can reduce costs by as much as 40%

Pay for What you Need: Don’t Pay Until You Start

Traditional Sales Buy Date

Frictionless Sales Buy and Launch Date are the

Same

6 months of deprecation alone can kill the cost on a project

Save over Time Immediately Take Price Breaks

Your Costs go Down Immediately at Prices Go Down!

Better Operations DevOps needs frictionless Operations

DevOps has the potential to transform IT the way that Agile has transformed development, but it and Agile methodology needs a frictionless infrasctructure.

Benefits of a Frictionless Sale

Low Price = Low Risk

Hourly Price

20¢ $1752

YYYY Yearly Price

Fast Decisions

28 Jan

Change Your Sales Cycle to Days not Months

Easy Up Sells = Fast Growth

Spin Up Compute Resource

Measure Usage

Usage Increasing?

With frictionless sales – flow charts can spend money

Reduced Competition = Price Stability

The Thirteen Scariest Things in IT – The End of the Quarter eWeek Magazine

Existing customers put far less pressure on pricing than new business

20  27  January  2014  

The  Power  of  Measurement  

•  Direct  Cost  •  Immediate  

Feedback  •  Focus  on  

MarkeAng    •  Metrics  over  

Sales    •  ProbabiliAes  •  Customer  

AcquisiAon      Cost  RaAo  

Site Visitors 12000 Signup Per Visitor (1/150) 80 % Active per Signup (33%) 25 12 month avg. revenue ($1000 per month avg.) $12,000 GM% 60% Gross Profit Per Active Customer $7,200 Brand Mktg. Per Visitor $4.00 Direct Mktg. Per Visitor $5.00 Sales Cost Per Visitor $2.00 Visitor Acquisition Cost $11 Customer Acquisition Cost $4950 CAC Ratio .69

Sample  CAC  RaAo  

21  27  January  2014  

Tealium  Takes  Those  Metrics  to  the  Next  Level  •  MulA-­‐Vendor  Tag  Mgt.  

•  Dev,QA,  Prod  •  End  to  End  •  Full  ReporAng  •  GamificaAon  

Tealium  has  improved  tracking  of  buyers  by  over  50%  

Sales + Contracts: Still Absolutely Necessary

Up-sell complex items

Exchange Discounts for commitments

Create long-term relationships

Lock-in pricing

To  experience  a  fricAonless  sale,  visit:    hVp://www.dimensiondata.com/cloud