shirman group saas-sales__marketing-marketingcampsv2012-slideshare
TRANSCRIPT
Selling and Marketing As-a-Service Products
Welcome to
Lilia Shirman, Managing Director, The Shirman Group
© 2012 The Shirman Group, Inc. All rights Reserved
In 2015 24% of all new business software purchases
will be of service-enabled software - IDC
© 2012 The Shirman Group, Inc. All rights Reserved
Today
• Is it a Product or a Service?• How can Marketing impact as-a-Service
metrics?
© 2012 The Shirman Group, Inc. All rights Reserved
Product
Delivery Mechanism
Unless you sell infrastructure as a service, the cloud is just a delivery mechanism.
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A reliable, secure, responsive, high performing delivery mechanism is table stakes.
© 2012 The Shirman Group, Inc. All rights Reserved
© 2012 The Shirman Group, Inc. All rights Reserved
You want some of THIS?
What market are you in?
What is your value?
Which audiences care?
What proof do you have?
You still need to decide
Product or Service?
Products Services Products as Services
Buy Process Evaluation Interaction Experience
Marketing Role
•Messaging•Brand awareness•Lead generation
•Relationship development
•Thought leadership•Referrals
•Scalable relationships•Usage insights•Offers•Word of mouth catalyst•Churn prevention•Partnership promotion
Sales Process Linear Circular Continuous
© 2012 The Shirman Group, Inc. All rights Reserved
Products Services Products as Services
Release Cadence Months or years Real-time Weeks or Days
Role of Consulting
• Planning• Deployment• Customization• Integration
Value delivery • Value design• Managed services• Proactive usage guidance • Drive adoption &
consumption• React to problems
Role of Support React to problems n/a
Education•Product
administration•Product usage•Development
Knowledge transferValue delivery
•Product administration•Product usage• Optimizing value
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Product or Service?
Product or Service?Neither
• Scalability• Repeatability• High Transaction Volume• Whole Experience• Loyalty• Adoption & Consumption
As-a-ServiceSuccess Factors
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How Can Marketing ImpactKey as-a-Service Metrics?
Conversion RateCustomer Acquisition Cost (CAC)Average Recurring Revenue (ARR)Churn RateLifetime Value (LTV)
Images from Forbes article by David Skok and from Chaotic Flow blog by Joel York © 2012 The Shirman Group, Inc. All rights Reserved
• Be easy to find• Send daily usage
suggestions and tips• Contact trial users• Focus on prospects who are
actively evaluating• Provide reason or means to
engage multiple users in a trial
• Connect evaluators with existing users in their network
First Experience First Sale
Increasing Conversion Rate
Free trial users still active on day 3 were 4X more likely to convert
Active trial users contacted by sales 70% more likely to buy
Evaluators who had 3 users joint account in 1st 3 days were 12x more likely to convert
Source: Totango
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Keeping CAC Low• Can you avoid high-touch
selling?• Can your product sell itself?• How are you influencing the
Buyer’s Journey• How many points of entry
are there?• Are you driving positive
word of mouth?• Can your partners’ products
sell yours?• Is your product inescapably
viral?
First Experience First Sale
Field Sales
Inside Sales
Internet Channel
$1.00 $0.90
$0.45
$0.75
Median CAC
Source: Pacific Crest SaaS Survey 2011
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Increasing Recurring Revenue
First Experience First Sale
Increase Adoption(Number of users)
Increase Consumption(Variety of services)
Increase Usage(Activity volume)
$0.93
$0.28$0.16
CAC by Sale Type
Source: Pacific Crest SaaS Survey 2011© 2012 The Shirman Group, Inc. All rights Reserved
Median Churn Rate*
5%
Decreasing Churn• Pre-sale readiness
evaluation • Business process / usage
analysis & guidance• Customer Success Officer
– assist with adoption and value
• Proactive support for infrequent users
• Simple pricing and billing• Opportunity for feature
requests and input
Source: Totango
Most cancellations were preceded by a period of non-use
*Source: Pacific Crest SaaS Survey 2011© 2012 The Shirman Group, Inc. All rights Reserved
Increasing LTV More
Analytics-based Best Practice Consulting
Insight / Data Mining
Usage Intelligence & Process Enhancement
Private Labeling
Premium Infrastructure(Security, SLAs, Dedicated )
Advertising / Affiliate Sales
First Experience First Sale
Increase Adoption(Number of users)
Increase Consumption(Variety of services)
Increase Usage(Activity volume)
Architect product with long-term revenue possibilities in mind
© 2012 The Shirman Group, Inc. All rights Reserved
Value StoriesAudiencesIndustriesSolutions
Integrated MarketingChannel Enablement
Alliances
Content StructurePeople
DEVELOP ACTIONABLE
STRATEGY
PLAN & EXECUTE
GO-TO-MARKETCREATE CUSTOMER
RELEVANCE
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We believe real innovators are “tech-knowlegists” who create technology that matters to businesses and people
Resources
• Consumption Economics by J.B. Wood • ForEntrepreneurs.com blog – David Skok
http://www.forentrepreneurs.com/• Chaotic-Flow.com blog by Joel York
http://chaotic-flow.com/ (Guide to SaaS Metrics)
© 2012 The Shirman Group, Inc. All rights Reserved
Web: www.ShirmanGroup.com
Email: [email protected]
Blog: www.RevenueOrchard.com
Twitter: B2BGuru
Available on Amazon.com at http://amzn.to/RC5Xjm or at the 42 Rules Publisher page: http://42rules.com/book/42-rules-for-growing-enterprise-revenue/ MarketingCamp Discount: ADD12
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