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Saa s sales and marketing lilia shirman_marketngcamp-for web

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Saa s sales and marketing lilia shirman_marketngcamp-for web

  1. 1. Welcome to Selling and Marketing As-a-Service Products Lilia Shirman, Managing Director, The Shirman Group Leave your card if you’d like a copy of the presentation and notes from today’s discussion
  2. 2. A Message from our Sponsor... DEVELOP Content ACTIONABLE Structure STRATEGY People Value Stories Integrated Marketing CREATE CUSTOMER PLAN & EXECUTE Audiences Channel Enablement RELEVANCE Industries GO-TO-MARKET Alliances Solutions© 2012 The Shirman Group, Inc. All rights Reserved
  3. 3. 2015In24%of all new business software purchaseswill be of service-enabled software - IDC
  4. 4. Today• Is it a Product or a Service?• How can Marketing impact as-a-Service metrics?
  5. 5. ProductDeliveryMechanism
  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?© 2009 The Shirman Group, Inc. All rights Reserved
  7. 7. Product or Service? Products as Products Services ServicesBuy Process Evaluation Interaction Experience •Scalable relationships • Messaging •Relationship •Usage insightsMarketing • Brand awareness development •OffersRole • Lead generation •Thought leadership •Word of mouth •Referrals catalystSales 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? 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?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 First Sale Experience • Send daily usage suggestions and tips • Contact trial usersFree trial users still active on day 3 were 4X • Focus on prospects whomore likely to convert are actively evaluatingActive trial users contacted by sales 70% • Provide reason or meansmore likely to buy to engage multiple usersEvaluators who had 3 users joint account in a trialin 1st 3 days were 12x more likely to convertSource: Totango
  12. 12. Keeping CAC Low • Can you avoid high- First Experience First Sale touch selling? • Can your product sell itself? • How many points of Median CAC entry are there? $1.00 $0.90 • Can your partners’ $0.75 $0.45 products sell yours? • Is your product inescapably viral? Field Sales Inside Sales Internet ChannelSource: Pacific Crest SaaS Survey 2011
  13. 13. Increasing Recurring Revenue Increase Adoption (Number of users) First Increase Consumption First SaleExperience (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
  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 inputSource: Totango*Source: Pacific Crest SaaS Survey 2011
  15. 15. Increasing LTV More Premium Infrastructure (Security, SLAs, Dedicated ) Increase Adoption (Number of users) Analytics-based Best Practice Consulting First Increase Consumption First Sale Experience (Variety of services) Usage Intelligence & Process Enhancement Increase Usage (Activity volume) Insight / Data MiningArchitect product with Private Labelinglong-term revenuepossibilities in mind Advertising / Affiliate Sales
  16. 16. Resources• Consumption Economics by J.B. Wood• ForEntrepreneurs.com blog – David Skok• Chaotic-Flow.com blog - Joel York – Guide to SaaS Metrics
  17. 17. Web: www.ShirmanGroup.com Email: lilia@ShirmanGroup.com Blog: www.RevenueOrchard.com Twitter: B2BGuruAvailable on Amazon.com orat http://42rules.com/book/42-rules-for-growing-enterprise-revenue/MarketingCamp Discount: ADD12

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