1.1 scaling a cloud services brokerage 021114

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Scaling a Cloud Services Brokerage by Building a "Lean" Customer Acquisition Engine

Through 2015, the Cloud Services Brokerage will represent the single largest revenue growth opportunity in cloud computing, according to researchers at Gartner, who coined the phrase. In order to exploit that opportunity, CSBs must redefine their approach to customer acquisition to scale their businesses rapidly and cost-effectively. This session will describe an approach for modeling the financial impact of the CSB business model in terms of recurring revenue, deal profitability and customer acquisition cost. It will then describe a "lean" customer acquisition strategy that replaces the traditional and expensive product-centric sales approach with a more solutions-centric inbound marketing approach. Attendees will be provided with modeling tools they can use for their own business planning as well as best practices for building a lean customer acquisition engine.

SPEAKER:
Dave Zwicker, Partners and Co-founder, CSPexcellence

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1.1 scaling a cloud services brokerage 021114

  1. 1. Underwritten by
  2. 2. Presenter Dave Zwicker Partner & Co-Founder CSBexcellence www.CSBexcellence.com @csbexcellence
  3. 3. Intro and Agenda • • • • • • • • Quick Market Update IT Channel Transformation Defining Your CSB Business Model Differentiating Your CSB Business Scaling Your CSB Business (Profitably) “Lean” Customer Acquisition Ensuring Business Alignment Resources, Questions & Comments
  4. 4. Quick Market Update
  5. 5. IT Channel Transformation VAR/Agent MSP Outsourced IT Staff In-House IT Staff OPEX SAVINGS Sells Products & Services CSB Outsourced IT Staff CAPEX SAVINGS Remotely Manages IT Manages the Cloud Business Model Attributes: Business Model Attributes: Business Model Attributes:  Efficient Product Sales Engine  Sells the Value of Services  Sells the Value of Solutions  Provides Break-Fix Support  Manages On-Premise IT  Adds Value to Commodity Cloud  Earns Margin & Commissions  Earns Margin on MSP Services  Earns Margin on Blended Service One-Time Revenue Recurring Revenue (Premise) Recurring Revenue (Cloud)
  6. 6. Differentiating Your CSB Business • 277,713 channel partners globally* – 244,905 VARs – 20,981 MSPs – 11,827 Cloud Hosters • • • • What is your business model? What are your core competencies? What are your target markets? What are your cloud solutions? – Hosted Apps & Services – Managed & Professional Services – Business Outcomes * Data Compiled by AMI Partners
  7. 7. Defining Your CSB Business Model Cloud Services Collaboration & UC Business Strategy CSB Growth Plan Cloud Solutions Portfolio Sales & Marketing Metrics Target Markets Mobility & BYOD SaaS-based Business Apps Cloud Service Broker Reseller Virtual Infrastructure Enterprise Mid-Market Integrator Information Security Hoster Aggregator Business Continuity Hybrid IT Managed & Professional Services SMB Market
  8. 8. Scaling Your CSB Business (Profitably) Measure the Metrics That Matter • Average Deal Value • Deal Volume • OTR Value • Deals/Month • MRR Value • Close Rate • GM Value • Cycle Time • Cost of Acquisition • Funnel Metrics • Sales Expenses • Lead Volume • Marketing Expenses • Cost/Lead • Ratio to Deal Value • Conversion Rate
  9. 9. “LEAN” Customer Acquisition Customer Acquisition Cost Comparison Recurring Revenue Traditional Breakeven Lean Breakeven Traditional Sales & Marketing Lean Sales & Marketing Wasted Profits Months to Recover Customer Acquisition Cost
  10. 10. “LEAN” Customer Acquisition Traditional Sales & Marketing Audience Outbound Marketing Not Targeted Outside Sales Expensive Customer Acquisition Cost Sales-Driven Customer Acquisition Lean Sales & Marketing Inbound Marketing Audience Awareness Highly Targeted Consideration Inside Sales Decision Marketing-Driven Customer Acquisition Purchase Low Customer Acquisition Cost
  11. 11. What is Inbound Marketing? SEO Many Disciplines Working Together Site Conversion Rate Leads Website Content Lead Nurturing Social Media To Produce Quality Leads
  12. 12. An Inbound Marketing Engine SEO Fuels Your Funnel Site Conversion Rate Leads Website Content Lead Nurturing Social Media And Drives Growth!
  13. 13. Fueling Your Sales Funnel The Buyer’s Journey: Website Visitors Generates Traffic to Your Website Realize a Problem or Need Perform Research Establish Buying Criteria Select a Vendor Solution More Satisfied Buyers Inbound Marketing: Top of Funnel Suspects Middle of Funnel Prospects Bottom of Funnel Opportunities Customers Converts Website Visitors into Suspects Converts Suspects into Prospects Converts Prospects into Sales Opportunities Scalable Customer Acquisition
  14. 14. Ensuring Business Alignment Growth Plan Create a Scalable Business Model Execute Against That Model Average deal size? Monthly deal volume? Deal Economics Funnel Metrics Average deal value? Cost of customer acquisition?
  15. 15. Create a Cloud Business Growth Plan
  16. 16. Build High Value Cloud Solutions
  17. 17. Align Business Goals & Funnel Metrics
  18. 18. Inbound Marketing Assessment Provided by:
  19. 19. Online Business Resource Center
  20. 20. Resources For Attendees  CSB Business Modeling Tools (Give me your business card – I will email today) – Business Growth Modeling Tool – Portfolio Planning Modeling Tool – Funnel Metrics Modeling Tool FREE Inbound Marketing Assessment – Visit www.csbexcellence.com  CSBcommunity.com Online Resource Center – Visit www.csbcommunity.com
  21. 21. Contact Dave Zwicker Partner & Co-Founder CSBexcellence dave@csbexcellence.com @csbexcellence

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