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  • Early Adopters – will buy because it’s new – don’t need other’s endorsement – leaders who prefer the bleeding edge of technology Pragmatists – will only buy products when other pragmatists are doing so – introduce chasm concept Conservatives – will buy once pragmatists are happy with it Skeptics – cannot predict their behavior – may never buy it 2001 Leading Hosting Providers Exodus Sprint Intel Online Services HostPro DellHost
  • http://talkback.zdnet.com/5208-11406-0.html?forumID=1&threadID=46562&messageID=864007&start=-9980 Answer: C – technology conservative (not necessarily his political stance)
  • As tempting as it is to run an ad that says “secure hosted CRM” click here. Joe will still not click it because he will not search for it. If he does click it, he will waste your sales person’s time.
  • http://biz.yahoo.com/bw/080421/20080421005095.html?.v=1 continues: “Software firms can make money selling enterprise Web 2.0 software, but it will not be an easy road to hundred-million-dollar run rates,” said Forrester Research Analyst G. Oliver Young. “The market for enterprise Web 2.0 tools will be defined by commoditization, eroding prices, and incorporation into enterprise collaboration software over the next five years. It will eventually disappear into the fabric of the enterprise, despite the major effects the technology will have on how businesses market their products and optimize their workforces.” Is market closed: for massive web hosting – yes, but you can define your own space and win. Answer: definitely main street – major firms adopted it, multiple uses, commoditization
  • http://www.nfib.com/object/2752737.html (survey date: 2001) http://www.seedsofgrowth.com/files/Survey_Results.pdf (survey date Fall 2005) This is not surprising – because in 2001, the market was in the early-adopter stage – remember those days?
  • Answer: 9 IT infrastructure provider markets: startup, SMB, and mid-sized businesses scalable hosting award-winning managed and self-managed co-location state-of-the-art datacenters many North American cities ultra-fast network
  • http://www.seedsofgrowth.com/small-businesses-main-problem-they-need-more-customers willing to spend $1,700 per site … $1,100 average at a well known competitor
  • Website Pros & Web.com merged in June 2007 They send a Paper Fulfillment kit when done creating the site! http://www.businessseek.biz/article-directory/article-435.html get web analytics test things target market
  • Plesk application pack $25/server/month retail (discounts for partners) Acronis cost: $10 - $40 / server / month SmarterMail cost: $300 (50 domains/250 users) to $674 (unlimited)
  • Issue: who are we trying to attract? Early Adopter, Pragmatist, or Conservative?
  • +1 marketing Should GoDaddy have a franchise model?
  • Note: “Parellels” was #32 on the keyword search with 32 searches in a week
  • JangoMail Pricing: PRICING $30 - $3,200 / month for 1,000 – 616,000 emails $0.03 - $0.005 per email depending on volume
  • Note – Clicks on partner newsletter were 4X higher than the general newsletter. http://www.campaignmonitor.com/blog/archives/2007/01/all_about_email_open_rates.html
  • http://www.marketingexperiments.com/improving-website-conversion/free-trial-offers.html

Parallels Hosting Products Parallels Hosting Products Presentation Transcript

  • Douglas Johnson Marketing Director, Parallels Converting Clients to Customers Marketing to Clients Visiting Your Website
  • Agenda
    • Hosting Marketing
    • Website Marketing
    • Measuring Your Success
    • Converting Low Value Clients to High Value Clients
    This session examines the marketing of hosted services. In recent years, many services such as shared hosting have transitioned from the early adopter to the pragmatist stage of client adoption. Other services, such as SaaS are at the beginning of their adoption cycle and will soon provide lucrative sales rewards to companies who are positioned correctly. This session will link marketing theories to concrete actions which you can take to position your company. The discussion will include an overview of web analytics, email marketing, and search engine optimization tools to help you measure your success.
  • Hosting Trends and Opportunities Market Trend Key Players Parallels Driven Opportunities 16% Growth per year is expected through 2011 Parallels helps optimize your computing resources to minimize your costs and maximize up-selling and revenue. Applications increase average revenue per client Parallels SaaS standards, virtualization, and automation tools help providers offer more applications at a lower cost. Big Companies have entered the hosting market Parallels provides software which allows you to compete with the big players. Flexible APIs mean you can be faster to market. Virtualization is improving hosting efficiency Integrated automation and virtualization products provide an improved hosting infrastructure and customer services. Windows Apps provide revenue opportunities Parallels helps you launch Exchange, SharePoint, and CRM to provide high revenue services.
  • Marketing Bell Curve “ The Chasm” Source: “Crossing the Chasm” and “Inside the Tornado” by Geoffrey Moore Goal: Be the market leader when a product or solution “crosses the chasm” Visionaries Geeks Early Adopters Conservatives Pragmatists Skeptics Mainstream Market ($$) Unknown
  • SaaS and a ZDnet Talkback
    • April 14 Article : Salesforce and Google team to conquer the enterprise
    “ Master Joe” says … First of all, since when is the SaaS thing such a big deal? I have to be honest. I would prefer desktop applications, over a web-based productivity suite, any day of the week. I prefer to have FULL control over my applications, and to know exactly what they are doing, what information is being transmitted to and from them, and who can see that information. … Question: Master Joe is a ___. a) Early Adopter c) Conservative b) Pragmatist d) Skeptic
  • Question: What will Master Joe Click?
    • Answer: nothing – he would not search in the first place
    • … and if he did, he would just waste your salesperson’s time.
    Secure Hosted CRM Free trials, 5 layers of server security Uptime metrics and SLA www.secureCRM.com
  • Yahoo Finance –Web Hosting
    • Question: Where is web hosting in the product marketing cycle?
    CAMBRIDGE, Mass - Despite a long-term future marked by commoditization, enterprise spending on Web 2.0 technologies will surge over the next five years, growing 43 percent each year to reach $4.6 billion globally by 2013, according to a new report by Forrester Research, Inc. The five-year Forrester forecast includes a breakdown of future business spending on technologies such as social networking, RSS, blogs, wikis, mashups, podcasting, and widgets, as well as an analysis of enterprise Web 2.0 spending across North America, Europe, and Asia Pacific. Forrester believes that Web 2.0 technologies represent a fundamentally new way to connect with customers and prospects and harness the collaborative power of employees. Large enterprises such as General Motors, McDonald’s, Northwestern Mutual Life Insurance, and Wells Fargo have all made heavy use of these tools, and 56 percent of North American and European enterprises consider Web 2.0 to be a priority in 2008 according to a recent Forrester survey.
  • Where We Are Today? Visionaries Geeks Early Adopters Shared Web Hosting VPS Hosting Dedicated Hosting Domain Registration Webmail
    • Are you marketing to Pragmatists and Conservatives?
    • Pragmatists: buy based on ROI, ensure that the product/service will help their business, only buy if other pragmatists have purchased, buy leading brand
    • Conservatives: skeptical of technology, require ease-of-use, buy commodity products and shop for the best value
    Conservatives Pragmatists Skeptics Mainstream Market ($$) Unknown
  • Your Target Market - SMBs
    • Question: What are SMB Problems and Concerns?
      • Study by NIFB (National Federation of Independent Business), 2001
    • How Difficult Are Their Problems?
      • Survey by Zeryn of Small Business in Service Areas, 2005
    Poor Earnings (Profits) 20 Effective Business Use of the Internet 61 Ability to Cost-Effectively Advertize 34 Locating Qualified Employees 3 Federal Taxes 2 Cost of Health Insurance 1 4% 8% 12% 29% 46% Keeping Up with New Technology 22% 48% 26% 0% 4% Not Enough Growth 0% 12% 16% 36% 36% Losing Customers to Competition 31% 38% 15% 8% 8% Finding New Customers 5 4 3 2 1 (1 = least difficult, 5 = most difficult)
  • What Distinguishes You?
    • People can remember 1-2 things about your company.
    • Do you know what those are?
    “ _________ is a leading IT infrastructure provider to startups and small to mid-size businesses, delivering highly scalable hosting solutions that allow customers to focus on the possibilities of the Internet, not the problems. We provide award-winning Managed, Self-Managed, and Co-location hosting services through __ state-of-the-art data centers in __ cities across North America connected together by our ultra-fast network.” Question: How many things are people being asked to remember in the positioning statement below?
    • Different branding for different messages
  • SMBs willing to Pay $1,700 per Website
    • Why?
      • Sales
      • Customers
      • Revenue
    • How?
      • Most SMBs do not want to build their own website, no matter how easy
    • $1,700, Really?
      • $500 for basic site
      • $200 add a form
      • $300 add database integration
      • $250 add Flash and animations
      • $300 add counters – blogs – wikis - and other APS applications
      • $300 add SEO and other services
  • Marketing to Pragmatists & Conservatives
    • Conservatives buy – but they buy differently from Early Adopters
    • Observe Messages
    • No mention of disk space
    • No guy standing in front of a datacenter
    • “ we do everything for you”
    • “ affordable”
    Conservatives Pragmatists
    • Observe Price
    • $300 setup fee
    • $90 - $100 / month
  • Add-On Services
    • If you cannot sell it, bundle it!
      • How do SMBs buy services?
      • Is each decision painful?
    • SMBs like easy decisions
      • Easy: Silver, Gold, or Platinum
      • Hard: Amount of disk space, 20 individual applications, memory, etc.
    • What should I bundle?
    Bundle It Add It On Email Marketing Fax to Email CMS wikis Blogs Forums Photo Gallery Shared Calendar File Archiving Shopping Cart Data Backup
  • Add-On Examples
    • Plesk Application Pack
      • Click-n-Build – bundles applications in plans for additional $1, $6, $16 per month per user
    • Managed Backups with Acronis
      • Redplaid provides “Managed Data Backups” as part of a $180/month with a dedicated server package
    • Collaboration (SmarterMail, Open-Xchange Exchange)
      • Contacts, calendaring, mobile mail, anti-spam, anti-virus – sell at $3-$12/month/user
    • More
      • Many ISVs might be sitting right next to you with solutions that can increase your revenue per customer and your profit margins
  • Where Can We Go Tomorrow? Visionaries Geeks Early Adopters Shared Web Hosting VPS Hosting Dedicated Hosting Domain Registration Webmail Conservatives Pragmatists Skeptics Mainstream Market ($$) Unknown Mobile Web Creation/Hosting Virtual Desktop VPS with legal software suite Web Hosting in Minneapolis Hosted Applications
  • Path to Winning High Value Customers Paying Clients Low Value Clients Internally Hosted Businesses High Value Clients Leads / Prospects Trial Participants
    • Search Engine Optimization
    • Advertising
    • Partnerships
    • Webinars
    Actions to Take What to Track How to Track
    • Site visits
    • Time per visit
    • Pages viewed
    • Navigation paths
    • Abandonment, exit
    • Web analytics
    • Newsletters
    • Mailings
    • Forums
    • Blogs
    • Open rates
    • Click through rates
    • Forum and blog logins and posts
    • Email marketing software
    • Blog and forum reports
    • Sales Contact
    • User Conferences
    • Loyalty Programs
    • Surveys
    • Conversion rates
    • Survey responses
    • CRM software
    • Survey tools
    • Partner Programs
    • Revenue growth
    • Churn rate
    • Financial accounting software
  • What Will Attract a Customer?
  • What will attract customer: Message
  • What will attract a customer: Placement
    • Heatmap – technique to see where eyeballs move on a webpage.
      • Webpage example
      • Google example
  • What will attract a customer: Placement
    • Clickmap
  • Tracking Your Success
    • Use Clickmap to place popular items in prominent locations
    • Caution: are the clicks customers?
    • Caution: are popularly clicked items helping you sell?
  • Tracking Your Success – other metrics
    • Web analytics provides much more than clickmaps:
      • Page views
      • Single page visits
      • Average page time
      • Referring domains
      • Keywords
      • Browser type/size
    • Caution
      • Web analytics does not always know “bad” traffic from good
      • see security.gov.sa, and I had to cut off some of the others
  • Converting Trials to Paying Clients Paying Clients Low Value Clients Internally Hosted Businesses High Value Clients Leads / Prospects Trial Participants
    • Search Engine Optimization
    • Advertising
    • Partnerships
    • Webinars
    Actions to Take What to Track How to Track
    • Site visits
    • Time per visit
    • Pages viewed
    • Navigation paths
    • Abandonment, exit
    • Web analytics
    • Newsletters
    • Mailings
    • Forums
    • Blogs
    • Open rates
    • Click through rates
    • Forum and blog logins and posts
    • Email marketing software
    • Blog and forum reports
    • Sales Contact
    • User Conferences
    • Loyalty Programs
    • Surveys
    • Conversion rates
    • Survey responses
    • CRM software
    • Survey tools
    • Partner Programs
    • Revenue growth
    • Churn rate
    • Financial accounting software
  • Email Marketing
    • When a client provides an email address to download a 30-day trial … some follow up is required …
    Timing* Goal Email Title
    • Sample programs and re-brandable letters are available for Parallels Automation customers
    * Email program should identify whether person has enrolled or cancelled before sending an email Thank user, see if they will (1) respond to a price offering or (2) complete a survey 35 days Account Expired Reminder that account will be terminated, enrollment link 29 days Expiration In 1 Day Inform that trial is ending, prominently place enrollment link 23 days Trial Expiring Ensure prospect is using trial, describe benefits to explore 7 days Checking In Welcome letter – describe where to get help and describe benefits 0 days Welcome Letter
  • Email Examples
    • JangoMail
    • ExactTarget
    • Pricing: $0.004 - $0.03 per email, depending on volume
  • Email – Integrated Inside Your Control Panel
    • Parallels Automation Promotions and Campaigns (price: $0.00)
    Step 1: Create Promotion Define prices, timing, applicable plans, and resources. Step 2: Create Correspondence Define delivery options, database fields, and format. Step 3: Schedule Delivery Define automated message delivery and conditions. Step 4: Measure Results Retrieve reports describing your campaigns.
  • Email Marketing – How Are You Doing?
    • Deliverables
      • 90% - 95% of email should be delivered, bounces involve people leaving companies, signing up with incorrect address, etc.
    • Typical Open Rates
      • 20% - 40% for opt-in email
      • Highest for niche topics, small lists
      • Lowest for large lists with less personal relationships, newsletters
      • Most measurements based on downloading an image
    • Click Rates
      • 10% of the people who open an email, will click a link
    • How to Improve
      • Subject line is critical
      • Notice what appears in standard preview pane
      • Measuring clicks can reduce the number of clicks!
      • Send relevant and targeted information
    send email email delivered (90-95%) email opened (20-40%) link clicked (2-4%)
  • Blogging and Forums
    • Encourage registered trial members to participate in your blog or seek help on your forums.
    • Do not under-estimate the cost of maintaining them
      • Not talking about hosting or maintaining
      • Am talking about the cost of maintaining an active forum
    • Keep clients separate from prospects
      • Clients need a place to go to escape the world wide web
  • Converting Trials to Paying Clients Paying Clients Low Value Clients Internally Hosted Businesses High Value Clients Leads / Prospects Trial Participants
    • Search Engine Optimization
    • Advertising
    • Partnerships
    • Webinars
    Actions to Take What to Track How to Track
    • Site visits
    • Time per visit
    • Pages viewed
    • Navigation paths
    • Abandonment, exit
    • Web analytics
    • Newsletters
    • Mailings
    • Forums
    • Blogs
    • Open rates
    • Click through rates
    • Forum and blog logins and posts
    • Email marketing software
    • Blog and forum reports
    • Sales Contact
    • User Conferences
    • Surveys
    • Conversion rates
    • Survey responses
    • CRM software
    • Survey tools
    • Loyalty Programs
    • SaaS Offerings
    • Revenue growth
    • Churn rate
    • Financial accounting software
  • Conversion Rates
    • Getting Trials is Important
    • Converting Trials to Paying Clients is More Important
    • Typical conversion rate for free trial: 50-70%*
    • Typical conversion rate for automatic enroll: 60-70%
    • What is happening to prevent conversion?
    * source: MarketingExperiments.com
  • Survey Software
    • Send clients a survey – Parallels did a SaaS survey to learn more about what you want.
  • Importance of Continuous Contact
    • If people cannot enroll immediately, you will lose them
    • Almost 90% of people took action within 1 day of visiting a website.
    • Purchase decision relies on constant contact
  • Converting Low Value Clients to High Value Paying Clients Low Value Clients Internally Hosted Businesses High Value Clients Leads / Prospects Trial Participants
    • Search Engine Optimization
    • Advertising
    • Partnerships
    • Webinars
    Actions to Take What to Track How to Track
    • Site visits
    • Time per visit
    • Pages viewed
    • Navigation paths
    • Abandonment, exit
    • Web analytics
    • Newsletters
    • Mailings
    • Forums
    • Blogs
    • Open rates
    • Click through rates
    • Forum and blog logins and posts
    • Email marketing software
    • Blog and forum reports
    • Sales Contact
    • User Conferences
    • Surveys
    • Conversion rates
    • Survey responses
    • CRM software
    • Survey tools
    • Loyalty Programs
    • SaaS Offerings
    • Revenue growth
    • Churn rate
    • Financial accounting software
  • 80% of Your Clients are Not Valuable
    • Why?
      • They are struggling businesses?
      • They don’t really need your services?
      • Your are not following up and selling them more services?
    • If you are not selling them more services, then you need to understand their pain points and continuously market new services
      • Give surveys
      • Institute loyalty and partnership programs
      • Invite your users to Parallels Summit!
  • SaaS – The Track to Higher Hosting Revenue Customer Needs Domain Registration $1-$3 Shared Static Web Hosting $3-$10 Shared Dynamic Web , DB, Apps $5-$20 Virtual Private Servers $15-$100 Dedicated & Managed Server $100-$500 Business-Class E-mail (i.e. Hosted Exchange) $150-$300 Add Business Collaboration (i.e. SharePoint, LCS, VoIP) $200-$500 Advanced Apps (CRM, ERP, vertical) $250-$1500+ Infrastructure SaaS Web Presence Email E-commerce Collaboration Application Mgmt Revenue Opportunity (SMB: 20 Users/Month) $10 $100 $1,000
  • Adding Additional Services
    • Integrated Billing and Provisioning is the key to selling clients more services
    • Parallels Automation maximizes up-selling
    Customizable Box Add marketing messages. News Window Display news and special vendor offers. Email Campaigns Trigger emails based on service renewals or other mechanism. Include link to online store.
  • Thank you
    • Key Points
      • Identify your audience, market frequently, pick a niche and win
    • How Parallels Can Help
      • Parallels Automation includes up-sale capabilities
      • Parallels Business Automation includes integrated marketing campaigns
      • SaaS initiatives and the APS Standard deliver ready-to-use applications that already work with your Parallels control panels
    Contact Details : Doug Johnson 703-995-6221 [email_address]