Early stages of the pipeline focus on getting awareness, thenleads. Leads are both nurtured and qualified ultimatelytransitioning from a centralized marketing organization to thefield where the potential customer is engaged. Ultimately, thebig difference between consumer and enterprise sales andmarketing is that there is not one decision maker – enterprisesales and marketing of imprecise, more expensive things is ateam sport.
talk to anybody sellingbusiness software. Even with a highly qualified lead the salesperson finds himself or herself in the roll of traffic cop (orswitchboard operator). Different constituencies within thebuying enterprise have questions that can only be answered bymembers of the selling enterprise (or customers that havealready purchased – the reference customer). Scheduling thephone calls, lunches, and web conferences is time consumingand further elongates the sales process.We’ll focus on a fewareas where marketing services have developed to improve salesproductivity
1st phase, triggered 30 minutes after the application was abandoned,reminded applicants to complete the process, provided a quicklink to the partially completed application, and encouragedapplicants to use phone support. 2nd phase, 1 week later, called the applicant’s attention to the company’svalue proposition and also offered a quick link to the incompleteapplication.
As an example consider the recent case where Facebooksimultaneously broadcast a soccer match in Spain for theSpanish Facebook community. Within 30 minutes of the gamestarting the video servers crashed. Why? Because once oneperson commented and his social graph saw the comment (andstarted watching the game) and another friend commented andanother, there were suddenly 100s of thousands of viewers. Think of doing the same thing with a telephone and you’ll beginto understand the potential of these social networks.
Marketing and sales in Cloud Computing
Ebru Gökalp Fatih Özlü10.11.2012
OUTLINE 1. MARKETING • Economics of Sales & Marketing • Traditional Sales & Marketing • E-Mail Marketing • Search Marketing • Social Media Marketing • Summary 2. SALES • Business Models • Contracts • SLA • Sales Compensation • Installed base sales10.11.2012
MARKETING PAST• Hiring Ad man TODAY• Ad Campaign Advent of Internet• Wall Street Journal & Rich Media• Short & Sweet Tagline 10.11.2012
Economics of Sales & Marketing• Significant investment in sales&marketing - %35• The explosive growth of web conferencing post September’11 10.11.2012
Sales is a Team Sport10.11.2012 CRMMore Efficient
E-Mail Marketing • Alternative To Direct Mail • Large Growth • Economics are so compelling Emailing to a list of 1000 people costs $5 versus over $500 to send out direct mail • # of characters in the subject line (keep <50 ) determines the effectiveness10.11.2012
E-Mail MarketingE-Loan StoryAn email program remind prospective borrowers to complete theirmortgage applications2 phases.• 1st phase, after 30 minutes• 2nd phase, 1 week laterreminded applicants to complete the process, provided a quick linkRESULT: 32% more applications were completed. 10.11.2012
Search Marketing• Improving the volume & quality of traffic to a Web site from search engines via search results is IMPORTANT• We click on natural search results more often than the ads 10.11.2012
Search MarketingADVICES FOR OPTIMIZING NATURAL SEARCHRESULT• Build a FAQ into your Web site to capitalize on potentialcustomers searching for reference or problem solving information• Blogs are great for generating traffic• Have your community create content• Work with a search engine savvy developer to make sure• the meta content of your Web pages is optimized 10.11.2012
Social Media Marketing If Facebook were a country it would be the worlds 3rd largest in terms of population, thats above the US. 845 million active users worldwide** Social networking now accounts for 22% of all time spent online in the US* FACEBOOK & TWITTER NEXT GENERATION TELEPHONE• Use hyper targeting to test new audiences• Use the social graph and knowledge e to create a more personalized online community.• Use social networks to market yourself as an individual to establish your brand. *http://en.wikipedia.org/wiki/Social_media 10.11.2012 **http://www.business2community.com/social-media/the-importance-of-integrating-social- media-marketing-0171531
Get Notorious• Be notorious - Dont send a note from "your company.” Reach out as an individual Name. Blogging is personal.• Use video - but not an overproduced one. No talking heads-show the product. Limit it to 30 seconds. Make me think: “Wow, thats impressive!”• Check out Digg - Look at the first few pages. See what formats are popular, and use those. (Top 10s, video, photo essays, controversy, "best ever’s, generally "this is so cool!"). 10.11.2012
Educate& SelectCloud service become more specialized and as the price point goesdown. The reason no sales person sold a TV is that most consumers of Plasma TVs did their research online. Selling will be replaced by education and selection. 10.11.2012
Summary• The Internet changes everything used to be a corporate tagline.• While communicating to people, whether they find you through search, email, or social networks, you still need marketing.• In the end, no matter how simple software, the act of matching customer needs and your offer remains the role of a quality marketing organization. 10.11.2012
SALES • Business Models: Traditional, Outsourcing, Hybrid, SaaS • Transform traditional models to others • Increase your existing sales force • Contracts • SLA • Sales Compensation • Installed base sales10.11.2012
Business ModelsTraditional: software is licensed Hybrid: The company alreadywith a one time up-front fee and has products, distributionsupport channels and sellings. The new SaaS: find a way to thing is services early getting money 10.11.2012 from customers or
Transforming Traditional Software SalesEvery model one software company worries aboutcannibalization, in case delivery of software over the cloud.If you adopt to model four, nothing changes, but a newdelivery optionDou you want to manage our software or do you want us tomanage our software?Do you want to pay for the software, hardware , thirty-partysoftware up-front or expense it over time? 10.11.2012
Example:Joe King On-demandADVICES FOR HOW TO SELL IN Joe King who led sales for Oracle OnMODEL FOUR Demand for 7 years and today is Group Vice-President of JDA’s On 1-Make sure you find a team of sales that have Demand Business has first-hand experince in selling both traditional software experience in how to sell when you products and services. are in model 4. 2-Organize the sales teams around the current delivery capabilities. Ensure the sales team provides a solution that your company has ability to deliver on time. Don’t sell the futures. 3-Train sell person (reps) to find customer challanges that can be solved by your company’s complete solution. Discuss underlying infrastructure that supports solution. 10.11.2012
Selling New Application Cloud ServicesModel six similar to Model one.Difference: the economics of sales process.• average selling price < up-front license feeBETTER THINGS:• Your software is always ready to be used or quicklyconfigured.• Deployed - no extra cost for the new customers. 10.11.2012
Example:Stratus ComputersTRADITIONAL SOFTWARECOMPANIES Vs NEW MODEL SIX Stratus Computer is aCOMPANIES. A model one software $250M / a year computer company offered to do a company. free 6 week discovery It is a big user of process and scheduled application cloud services: demo for 8 weeks later. Salesforce.com, But the CIO preferred to QuickArrow, Eloqua, go with model six Xactly, SpringCM, solution and deployed the Ceridian, Halogen, WebEx, whole system in 7 weeks. and Postini. Model Six needs 10.11.2012 more volume
Contracts • vary from model to model • Three inches thick • Negatioation %85 contract negotiation finished less than aIn Q1 of 2007, Model 6 yearcompanies signed 75 %55 contract negotiation finished less thanlarge outsourcing deals six monthswith a total amount of5.7B Euro %13 contract negotiation finished less than three months online click wrap agreements. Ex:Yahoo Terms of Service. The model 6 terms allows customers on pay month-to-month, so 10.11.2012 contracts can be terminated with 30 days
SLA• SLAs are heavily negotiated, Inmodel 3.• what uptime means or whatpenalties should be paid if the uptimeis not met?Penalties: it lead the company to takeattention to keep the system up andrunning all the day.(Blacbaud OnDemand contracts guarantee %99.9 )10.11.2012
Example:Oracle’s Nordstrom’s Guarantee • Service levels in availability, security, problem, change, and performance management were published and reported.If a customer was not satisfied with the service for any reason, theycould request a rebate of %20 percent each month, no questionsasked.So it guarantees the overall quality of the service and a leading wayto improve these services.It is suggested to provide and publish the service levels to yourcustomers. 10.11.2012
Sales CompensationGUIDELINES for sale compensation byCallidus Software •Keeping salespeople motivated is very 1-Keep your compensation challanging. plans straight forward. Many •What motivates one might companies come up with plans not motivate another with dozens of variables 2-Report regularly, •Sales compensation is a transparently. Reports crucial factor delivered to payees at right frequency , keeps motivation 3-Reward sales people for their work 10.11.2012
Installed Base Sales-focus on selling is to get Focus on learning aboutnew customer-on selling a product for the customers andlarge up-front money than personalize the offeringgetting revenue on amonthly or yearly period using that knowledge.Example: Computerarchitecture 10.11.2012
Pipelining Years ago, every instruction took 5 clock cycles to execute. As a result, 7 instruction would take 35 clock ticks. But some smart guys found an efficient way:10.11.2012 If you could seperate instruction execution into 5 stages, you can execute 7 instructions in 11 ticks with the same clock speed..
Marketing&Sales Pipeline •Our marketing&sales pipeline is no different than the traditional way of instruction execution. •We finish one deal before we start the next. •But indeed same principle can be applied to sales. •As an example (Model 4), Oracle applications are used more than 10 000 companies. For each cycle, learn more about the customer, and move customers from one stage to another stage. By providing more services, etc. And also in a more parallel fashion.10.11.2012