This document discusses how sales processes need to evolve to meet the expectations of "Generation Cloud" customers who expect frictionless access to resources through the cloud. It outlines the key elements of a frictionless sale as having no contact, no contracts, and no complexity. Some benefits of frictionless sales include paying only for what you need through hourly billing, savings over time as prices decrease, and easier upsells allowing for fast growth. While measurement and analytics are still important, frictionless sales processes focus more on immediate customer experience than long sales cycles and contracts.

1. Frictionless Sales: Selling to Generation Cloud
Treb Ryan

2. Limitless
Resources
Ubiquitous
Access
Sharing &
Collaboration
Immediate
Availability
Mobile and
BYOD
Generation Cloud = New Expectations

3. But sales hasn’t evolved since the mainframe

4. Until the Last Few Years
Hourly
Commitments
Monthly
Commitments
1 year contracts
2000
2004
2005
2007
2008
2009
2010

5. Elements of a Frictionless Sale
The 3 NoCo’s

6. No Contact
No contact
People who use the cloud
like to buy in the cloud

7. No Contact
No contract
Hourly Billing is a simple proposition.
Customers will continue to use a service they like.

8. No Contact
No complexity
Your core value proposition should be simple.
Complexity should be grown into.

9. Benefits of a Frictionless Buy

10. Frictionless Ops Benefits
Pay for What you Need
Savings over Time
Improve Operations

11. Pay for What you Need: Burstability – Every Day
Almost every application
has a sine wave of usage
By modifying the available
capacity throughout the day
you can reduce costs by as
much as 40%

12. Pay for What you Need: Don’t Pay Until You Start
Traditional Sales
Buy Date
Frictionless Sales Buy
and Launch Date are the
Same
6 months of deprecation alone can kill the cost on a project

13. Save over Time
Immediately Take Price Breaks
Your Costs go Down Immediately at Prices Go Down!

14. Better Operations DevOps needs frictionless Operations
DevOps has the potential to transform IT the way that Agile has transformed
development, but it and Agile methodology needs a frictionless infrasctructure.

15. Benefits of a Frictionless Sale

16. Low Price = Low Risk
Hourly
Price
20¢
Yearly
Price
YYYY
$1752

17. Fast Decisions
Jan
28
Change Your Sales Cycle to Days not Months

18. Easy Up Sells = Fast Growth
Spin Up
Compute
Resource
Usage
Increasing?
Measure
Usage
With frictionless sales –
flow charts can spend money

19. Reduced Competition = Price Stability
The Thirteen Scariest Things in IT –
The End of the Quarter
eWeek Magazine
Existing customers put far less pressure
on pricing than new business

20. The
Power
of
Measurement
Sample
CAC
RaAo
Site Visitors
12000
Signup Per Visitor (1/150)
80
% Active per Signup (33%)
12 month avg. revenue
($1000 per month avg.)
25
GM%
Gross Profit Per Active Customer
$12,000
60%
$7,200
Brand Mktg. Per Visitor
$4.00
Direct Mktg. Per Visitor
$5.00
Sales Cost Per Visitor
$2.00
Visitor Acquisition Cost
Customer Acquisition Cost
CAC Ratio
$11
$4950
.69
• Direct
Cost
• Immediate
Feedback
• Focus
on
MarkeAng
• Metrics
over
Sales
• ProbabiliAes
• Customer
AcquisiAon
Cost
RaAo
27
January
2014
20

21. Tealium
Takes
Those
Metrics
to
the
Next
Level
• MulA-­‐Vendor
Tag
Mgt.
• Dev,QA,
Prod
• End
to
End
• Full
ReporAng
• GamificaAon
Tealium
has
improved
tracking
of
buyers
by
over
50%
27
January
2014
21

22. Sales + Contracts: Still Absolutely Necessary
Up-sell complex items
Lock-in pricing
Exchange Discounts for commitments
Create long-term relationships

23. To
experience
a
fricAonless
sale,
visit:
hVp://www.dimensiondata.com/cloud