Shirman group saas-sales__marketing-marketingcampsv2012-slideshare

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Shirman group saas-sales__marketing-marketingcampsv2012-slideshare

  1. 1. Welcome to Selling and Marketing As-a-Service Products Lilia Shirman, Managing Director, The Shirman Group© 2012 The Shirman Group, Inc. All rights Reserved
  2. 2. 2015 In 24% of all new business software purchases will be of service-enabled software - IDC© 2012 The Shirman Group, Inc. All rights Reserved
  3. 3. Today • Is it a Product or a Service? • How can Marketing impact as-a-Service metrics?© 2012 The Shirman Group, Inc. All rights Reserved
  4. 4. Unless you sell infrastructure as a service, the cloud is just a delivery mechanism. Product Delivery Mechanism© 2012 The Shirman Group, Inc. All rights Reserved
  5. 5. A reliable, secure, responsive, high performing delivery mechanism is table stakes.© 2012 The Shirman Group, Inc. All rights Reserved
  6. 6. You still need to decide What market are you in? You want some of THIS? What is your value? Which audiences care? What proof do you have?© 2012 The Shirman Group, Inc. All rights Reserved
  7. 7. Product or Service? Products Services Products as ServicesBuy Process Evaluation Interaction Experience •Scalable relationships • Messaging •Relationship •Usage insightsMarketing • Brand awareness development •OffersRole • Lead generation •Thought leadership •Word of mouth catalyst •Referrals •Churn prevention •Partnership promotionSales Process Linear Circular Continuous© 2012 The Shirman Group, Inc. All rights Reserved
  8. 8. Product or Service? Products Services Products as ServicesRelease Months or years Real-time Weeks or DaysCadence • Planning • Value designRole of • Deployment • Managed services Value deliveryConsulting • Customization • Proactive usage guidance • Integration • Drive adoption &Role of consumption React to problems n/a • React to problemsSupport • Product • Product administration administration Knowledge transferEducation • Product usage • Product usage Value delivery • Optimizing value • Development© 2012 The Shirman Group, Inc. All rights Reserved
  9. 9. Product or Service? Neither As-a-Service • Scalability Success • Repeatability Factors • High Transaction Volume • Whole Experience • Loyalty • Adoption & Consumption© 2012 The Shirman Group, Inc. All rights Reserved
  10. 10. Conversion Rate Customer Acquisition Cost (CAC) Average Recurring Revenue (ARR) Churn Rate Lifetime Value (LTV) How Can Marketing Impact Key as-a-Service Metrics?© 2012 The Shirman Group, Inc. All rights Reserved Images from Forbes article by David Skok and from Chaotic Flow blog by Joel York
  11. 11. Increasing Conversion Rate First • Be easy to find Experience First Sale • Send daily usage suggestions and tips • Contact trial users • Focus on prospects who are actively evaluating Free trial users still active on day 3 were 4X • Provide reason or means more likely to convert to engage multiple users in Active trial users contacted by sales 70% a trial more likely to buy • Connect evaluators with Evaluators who had 3 users joint account existing users in their in 1st 3 days were 12x more likely to convert network Source: Totango© 2012 The Shirman Group, Inc. All rights Reserved
  12. 12. Keeping CAC Low • Can you avoid high-touch First selling? First Sale Experience • Can your product sell itself? • How are you influencing the Buyer’s Journey • How many points of entry Median CAC are there? $1.00 • Are you driving positive $0.90 $0.75 word of mouth? $0.45 • Can your partners’ products sell yours? Field Sales Inside Sales Internet Channel • Is your product inescapably viral? Source: Pacific Crest SaaS Survey 2011© 2012 The Shirman Group, Inc. All rights Reserved
  13. 13. Increasing Recurring Revenue Increase Adoption (Number of users) First Increase Consumption First Sale Experience (Variety of services) Increase Usage (Activity volume) CAC by Sale Type $0.93 $0.28 $0.16 New ACV from New Customer Upsell to Existing Customer Renewals Source: Pacific Crest SaaS Survey 2011© 2012 The Shirman Group, Inc. All rights Reserved
  14. 14. Decreasing Churn Median Churn Rate* • Pre-sale readiness evaluation 5% • Business process / usage analysis & guidance • Customer Success Officer Most cancellations were preceded by – assist with adoption a period of non-use and value • Proactive support for infrequent users • Simple pricing and billing • Opportunity for feature requests and input Source: Totango© 2012 The Shirman Group, Inc. All rights Reserved *Source: Pacific Crest SaaS Survey 2011
  15. 15. Increasing LTV More Premium Infrastructure (Security, SLAs, Dedicated ) Increase Adoption Analytics-based Best (Number of users) Practice Consulting First Increase Consumption First Sale Usage Intelligence & Experience (Variety of services) Process Enhancement Increase Usage (Activity volume) Insight / Data Mining Architect product with Private Labeling long-term revenue possibilities in mind Advertising / Affiliate Sales© 2012 The Shirman Group, Inc. All rights Reserved
  16. 16. DEVELOP ACTIONABLE STRATEGY Content Structure People CREATE CUSTOMER PLAN & EXECUTE RELEVANCE GO-TO-MARKET Value Stories Integrated Marketing Audiences Channel Enablement Industries Alliances Solutions We believe real innovators are “tech-knowlegists” who create technology that matters to businesses and people© 2012 The Shirman Group, Inc. All rights Reserved
  17. 17. 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
  18. 18. Web: www.ShirmanGroup.com Email: lilia@ShirmanGroup.com 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© 2012 The Shirman Group, Inc. All rights Reserved

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