S&M for SaaS


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Some of the Sales and Marketing practices for SaaS and other digital solutions

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S&M for SaaS

  1. 1. Sales & Marketing for Software as a Service Solutions Alok Verma [email_address]
  2. 2. Agenda <ul><li>Sales & Marketing Expenses of SaaS leaders </li></ul><ul><li>Sales Force Strategies </li></ul><ul><ul><li>Stages of Sales Force Growth </li></ul></ul><ul><ul><li>Preferred Structure – Hunters and Farmers </li></ul></ul><ul><ul><li>SaaS Metrics to Track </li></ul></ul><ul><li>Marketing Strategies </li></ul><ul><ul><li>It’s Not JUST About Product Features </li></ul></ul><ul><ul><li>Marketing Methodologies for Building Relationship & Trust </li></ul></ul><ul><ul><li>Guerilla Marketing Tactics </li></ul></ul><ul><li>References and Other SaaS Resources </li></ul>
  3. 3. Sales & Marketing Expense of SaaS Companies
  4. 4. Sales Force Strategies for SaaS Solutions
  5. 5. Stages of Sales Force Growth Early Stage <ul><li>Unstructured Sales model </li></ul><ul><li>Salesmen not limited to regions, products, or customer verticals </li></ul><ul><li>Focus on identifying top performing sales people </li></ul>Mid-Stage <ul><li>Mid-grade sales reps with little software experience  high-grade sales reps with more software experience </li></ul><ul><li>Enterprise grade sales approach </li></ul>Growth Stage <ul><li>Established recurring revenue base </li></ul><ul><li>Add optimum sales structure </li></ul><ul><li>Segments: new product sales, renewal teams, geography-specific </li></ul>
  6. 6. Preferred Structure – Hunters and Farmers <ul><li>Generates Leads </li></ul><ul><li>Creates frameworks for initial </li></ul><ul><li>sales </li></ul><ul><li>Incentivized to create new </li></ul><ul><li>businesses </li></ul><ul><li>Gets higher commission on </li></ul><ul><li>the initial sale </li></ul><ul><li>Liaison to the customer </li></ul><ul><li>Builds relationship for future </li></ul><ul><li>up-sell or cross-sell </li></ul><ul><li>opportunities </li></ul><ul><li>Incentivized/Gets sales </li></ul><ul><li>commission on renewals </li></ul><ul><li>cross-sell, or up-sell </li></ul>Farmers – the Sales Cultivators
  7. 7. SaaS Metrics to Track CMRR Committed monthly Recurring Revenue Churn Also Retention Rate Average Deal Size Average Revenue Per Client Time To Close Time from Prospect to Customter Close Rate %-age In Trial to Customers CAC Ratio (Magic Number) Time to payback acquisition cost CAC Ratio (Q409) = [GM(Q409)-GM(Q309)]*4 / Sales & Marketing Costs (Q309) Software to Services Ratio For low margin products Largest Customer % Measures risk of key account loss Customer Lifetime Value CtM Cost to Maintain customer instances
  8. 8. Marketing Strategies for SaaS Solutions
  9. 9. It’s not JUST about Product Features <ul><li>Promote Entire customer experience: </li></ul><ul><ul><ul><li>Ease of use </li></ul></ul></ul><ul><ul><ul><li>Speed of deployment </li></ul></ul></ul><ul><ul><ul><li>Ease of purchase </li></ul></ul></ul><ul><ul><ul><li>Support </li></ul></ul></ul><ul><ul><ul><li>Stream of past and </li></ul></ul></ul><ul><ul><ul><li>future deliverables </li></ul></ul></ul><ul><ul><ul><li>Sell the Promise </li></ul></ul></ul><ul><ul><ul><ul><li>SaaS is like a magazine subscription -- customer is paying based on the expectation of valuable content over the life of subscription </li></ul></ul></ul></ul>
  10. 10. Marketing for Building Relationship and Trust Create online communities where customers can share their experiences Show association with other customers; Referrals; Case Studies, etc. Show your track record of success; Share product roadmap Build an engaging brand focusing on values that people like to be associated with Keep existing customers informed; Treat them as new customers Keep customers invested in your success; Create customer advisory boards
  11. 11. Guerilla Marketing Tactics Attend Conferences; Tell your company’s story; Explain how your product solves clients problems Newsletters/Email campaigns with industry news, new features in your product, new free offerings, etc. Use PR firms to write about the key pain points in your industry; and position your product as the best solutions for these issues Co-marketing/ commission-based programs with other solutions clients use Create resource center on your website with white papers, ROI tools, etc; Capture visitor data Produce Webinars to generate leads; Use timely topics; Delivered by industry leaders
  12. 12. References and Other SaaS Resources <ul><li>http://www.sandhill.com/opinion/index.php </li></ul><ul><li>http://www.thinkstrategies.com/blog/ </li></ul><ul><li>http://www.saasblogs.com/ </li></ul><ul><li>http://alexbarnett.net/blog/default.aspx </li></ul><ul><li>http://www.saasmarketingstrategy.com/ </li></ul><ul><li>http://blog.sciodev.com/ </li></ul><ul><li>http://buildingsaas.typepad.com/blog/ </li></ul><ul><li>http://blogs.zdnet.com/SAAS/ </li></ul><ul><li>http://dealarchitect.typepad.com/ </li></ul><ul><li>http://smoothspan.wordpress.com/ </li></ul><ul><li>http://www.zoliblog.com/category/saas/ </li></ul>