module 10 - marketing best practices_publicview.pdf

7/30/2019 Module 10 - Marketing Best Practices_Publicview.pdf

1/21


2/21

Best Practices for Marketing

& Sales of SaaS ProductsName

Title

Organization


3/21

Agenda

Key Success Factors for SaaS Best Practices in Action Selling Hosted

Exchange to Existing POP Email

Customers Best Practices in Action Using the

Web to Attract New Customers

Working with Service Providers Q & A


4/21

Based on Experience and > 100 BDS

Workshops

Service Providers who are performing poorly are doing sofor a number of different possible reasons:

Poor Product Messaging

Packaging & Pricing that Created an Artificial Barrier to Sale

Lack of Competitive Differentiation A Web-Site that Lacked All of the Required Information

A Customer Buying or Implementation Experience that was Painful

Demand Generation Activities that were mis-aligned with the target

customer

Direct/Indirect Sales Teams with No Effective Integration with ProductManagement/Marketing

Lack of Ownership / Accountability within the company or a lack of

willingness to improve the offering iteratively


5/21

By Comparison

Successful Providers have common characteristics

Customer-centric Messaging & Positioning

Packaging & Pricing aligned with User Personas and No

Artificial Barriers to Sale

Real Competitive Differentiation

A Web-Site that Allowed Customers to Self-Qualify and Take

Action

A Positive Customer Experience

Integrated and Aligned Demand Generation Campaigns Integrated Sales Teams

Agile Organizations willing to take an Iterative Approach

And were at least Functional in each of these areas


6/21

The methodology for assessing SaaS Provider

maturity with respect to 8 key Success

Factors:

Messaging & Positioning

Packaging & Pricing Competitive Differentiation

Web-Driven Business Model

Demand Generation

Online Customer Experience

Direct/Indirect Sales Processes

Organizational Effectiveness

5

4

3

2

1

Assessing SaaS Provider Maturity

Ineffective

Inhibited

Predictable

Competitive

Optimized


7/21

Assessing SaaS Provider

Maturity Each maturity level within

the framework has afocus or theme

Solution Focused with

Continuous Improvement

Target Market (or segment)

Focused

Customer (Needs & Benefit)

Focused & Service Driven

Benefit Focused

Product-Dependent Focus

and Ad-Hoc Behavior

5

43

21


8/21

8

The Mural KSFs in Action1. Take the Mural KSFs and refine

them based on the type ofprovider (pure play, hosters,

telcos) and specific

environment.

2. Implement changes against

each KSF based on the

providers current targetcustomer (SMB, Enterprise,

Consumer) and product

portfolio.

3. Evaluate product additions and

updates to fill gaps and enhance

differentiation in the market.

4. Translate lessons-learned from

the current target customer to

alternate markets/customers

and channels.

Level

Competitive

D if fe re nt ia ti on M es sa gi ng & P o si ti on in g P ac ka gi ng & P r i ci ng W eb -D ri ve n D em an d G en er at io n

Online Customer

Experience

Direct/Indirect Sales

Process

Organizational

Ef fe ct ive n es s F o cu s &Be h av ior

5

(Optimized)

Providerhas createdtrue Blue

Ocean(aka uncontestedmarketspace)by differentiatingalonga

uniqueaxis that reachesbeyond

current market boundariesand

existingdemand

Vertical (e.g. Real Estate),

Horizontal specialization(e.g.Finance), orother micro-market

specificpositioning. Userfocus

groupsor surveysare pro-actively

usedto incorporatecustomer

feedbackinto product life-cycle.

Micro-market specific

packaging/bundlingof servicewithvertically focusedadd-ons.

Market researchused to

understandcustomerprice-point

sensitivities.

Micro-market salessitesfor

specificvertical markets(e.g. real-estate). FullyintegratedPPC/SEO

andpro-active analysisof web-

analytics

Micro-market specificdemand

generationcampaignswithintegrationacrossall formsof

demandgeneration(e.g. PPC,

BannerAds, email, direct mail,

print)

Integratedup-sell andcross-sell

activitiesintocustomer "controlpanel". Pro-activeand ongoing

customerfeedbackmanagement

(surveysof customerpanels by

segment toassess overall

customerexperience, satisfaction,

andfutureneeds).

Vertical ormicro-market focused

channel partnerswithlead flowintegratedintomicro-marketing

campaigns. Channel partner

brandedsalessites. Integrationof

channel partnerintoknowledge

base, livechat, etc.

Organizationis designedand

internallyalignedfor change.Specificprocesses forcontinuous

improvement. Healthybalance of

management (stability)and

leadership(fosteringchange).

TargetMarket

Focused w/

ContinuousImprovement

4(Competitive)

Providerhas differentiatedwitha

vertical market focuswith vertical

(ormicro-market) specificadd-on

capabilities/features.

Best Practicepositioningbased

ona well-definedmessaging&

positionframework(see

template). Customercentric

positioningthat blendscustomer-

benefit asthe solutionfor the

customerpain point/problem.

Sometypeof unique

differentiationof packagingor

pricingthat setstheprov iderapart

of thereset of thepack.

Differentiatedsub-sitesand/or

landingpagesaligned withbest-

practicepositioningof value

propositionaccordingto

messaging& positioning

framework

Demandgenerationcampaigns

drivetoaspecif icsub-siteor

landingpage. All campaign

activitiesare well coordinatedand

integrated. Pro-activePPC/SEO

campaignmanagement with

periodic(e.g. bi-weekly)

refinement.

Integratedonlineknowledge-base

andlive-chat forbothsales

support andpost-salessupport.

Pro-activeemail communication

duringfirst 30-60days provides

training, tips, tricks, etc.

Integratedlead/opportunityflow

forchannel partners. Mature

processfor leadqualificationand

routingof leads. Customer

segmentationandqualification

"drives" theopportunity

management. Willingto"walk

away" from badopportunities.

Strongexecutive sponsorshipfor

improvingexisting offeringsand

addingnew value-addedservice

offerings. Provenorganizational

agilityand rapidtime-to-market in

responseto competitivethreats.

TransitionPhase -

Focused on

CompetitiveDifferentiation&

Discrete

Improvements

3

(Predictable)

Providerhas differentiatedfrom

thecompetitionby bundling

additional servicesor capabilities

not offeredby thecompetition.

Customercentricpositioning with

Benefits(e.g. Anytime, Anywhere

access), thensupportingbenefits

points, thenfeatures as

appropriate. Consistent

applicationof messaging

throughout ALLcollateral.

Small number(2-3)of different

customer/user"plans" that align

correctlywith end-useror

customerpersonas. Value

differentiationbetweendifferent

priceplansisclearand

significant.

Best-practicesitethat allows

customersto1) Search; 2)Find;

3)Self Qualify; 4)Try (FreeTrial

wherepossible); 5)Makethe

buyingdecision; 6)Buy; 7)

Activate. Web-siteisthe focal

point of thebusiness.

Makesuse of pro-active

PPC/SEO campaigns. All demand

generationactivitieslead toone

place-- theweb-site.

Self-guidedsalesexperience, self-

admincapabilities, nobarriers to

salevia web, orphone. Easy

signupandactivation.

Pro-activemanagement of direct

sales, insidesales, andchannel

partners. Focuson customer

segmentationandlead

qualification. Pro-activetraining.

Overlaysales team withdeep

solutionexpertisesupports all

channels.

Organizational alignment around

businessobjectives andcustomer

needs. Organizational abilityto

repeatedlyfollowa relativelyshort

anddefined life-cyclefor the

successful introductionof newor

revisedproduct offerings.

End-Customer

Focused &Service-

Driven

2

(Inhibited)

Provider'soffering isfunctionaly

equivalent tothat of other

providers, resultingin a"my

featureXbeats yourfeature X"

competitivedifferentiationtactic,

but ultimatelyresultingin aprice-

competitivesale.

Still product andfeaturecentric

positioningwithprogress towards

customer-centricbenefits

positioning. Typicallya lackof

consistent applicationof

messagingacross all channels

andcollateral.

Competitivepricingand correct

packaging, but activelyworking to

eliminateotherinhibitors (e.g.

contract minimums).

Customerscansearch, find, and

buy. Provideris activelyworking

toensure that all of the

informationrequiredto makea

successful buyingdecisionis on

thesiteand correctlypresented,

eliminatinganyfinal inhibitorsto

selling.

PPC/SEO andotherdemand

generationcapabilitiesare

leveraged, but withsome

inhibitingfactorsthat limit their

effectiveness(e.g. mismatch

betweenPPCterms andlanding

pagepositioning). Activeprogress

isbeing madeto eliminate

remaininginhibitors

Self-guidedsignup, support,

and/orself-administrationbut

inhibitedinsomeway--e.g.

overlycomplex registration

process, complex activation.

Activeprogress isbeing madeto

eliminateremaininginhibitors.

Direct Sales, indirect channels,

telesales, but withineffective

processesfor leadqualification

androutingof leadsto"best

qualified" channel. Provideris

act ivelyworkingtot rainsalesand

reviseprocesses toimprove

effectiveness.

Goodexecutive leadershipin

placeand committedtodrive

changeand improvebusiness

performanceby driving

improvementsin accordancewith

the"key successfactors".

TransitionPhase -

Focused on Initial

Change

1(Ineffective)

Provideris offeringtheexact

sameservice offeringasother

providers(perhaps basedon third-

partytechnologies)with no

opportunityfortrue differentiation,

resultinginaRedOceaninwhich

theonly remainingcompetetive

differentiatorisprice.

Positioningiscompletely product

andfeaturec entric. Positioningis

effectiveonly forcustomerswho

alreadyknow what theyneed and

arealready familiarwiththe

specificapplicationdomain.

Typicallycharacterized by

uncompetitivepricing, minimum

contract terms, minimum #of

users, confusingpricing, toomany

tiersof service, multipletiers

insteadof "add-on" options.

Customersareunable tofind

offering, presentationis

confusing, noonlineself-

subscriptionisav ailable.

NoPPC/SEO campaigns. Other

demandgenerationactivities (e.g.

Print ads, direct mail, etc)do not

leveragethe web-site.

Noself-signupcapability, direct

salesinteractionrequired. No

offeringself-administration.

Direct salesonly. Nopro-active

leadqualification. Nocustomer

segmentationbysize orindustry.

Characterizedby tendancyto

focustoo farup-market. Long

salescycles. Lackof "solution

specialist" capabilityresults in

inabilitytoov ercomecommonob

Ad-hocorganizational and

departmental behaviorswith a

lackof internal alignment towards

achievingacommonvisionor

businessobjectives.

Product-DependentFocus&Ad-Hoc

Behavior

Mural's SaaS KeySuccess Factors

Level

Competitive

D if fe re nt ia ti on M es sa gi ng & P o si ti on in g P ac ka gi ng & P r i ci ng W eb -D ri ve n D em an d G en er at io n

Online Customer

Experience


Process

Organizational

Ef fe ct ive n es s F oc us &Be ha vio r

5(Optimized)

Providerhas createdtrueBlue

Ocean(aka uncontestedmarket

space)by differentiatingalonga



existingdemand


Horizontal specialization(e.g.

Finance), orother micro-market

specificpositioning. Userfocus


usedtoincorporate customer

feedbackintoproduct life-cycle.


packaging/bundlingof service

withvertically focusedadd-ons.



sensitivities.

Micro-market salessitesfor

specificvertical markets(e.g. real-

estate). FullyintegratedPPC/SEO


analytics

Micro-market specificdemand

generationcampaignswith

integrationacrossall formsof



print)


activitiesintocustomer "control

panel". Pro-activeand ongoing

customerfeedbackmanagement




andfutureneeds).


channel partnerswithlead flow

integratedintomicro-marketing





Organizationisdesigned and

internallyalignedfor change.

Specificprocessesfor continuous

improvement. Healthybalance of



TargetMarket

Focused w/Continuous

Improvement

4

(Competitive)


vertical market focuswithvertical

(ormicro-market) specificadd-on




positionframework(see



benefit asthesolution forthe

customerpainpoint/problem.

Sometypeof unique


pricingthat setstheprovider apart







framework


drivetoaspecif icsub-siteor





periodic(e.g. bi-weekly)

refinement.


andlive-chat forbothsales





Integratedlead/opportunityflow






management. Willingto"walk


Strongexecutivesponsorship for

improvingexistingofferings and

addingnewvalue-added service


agilityandrapid time-to-market in

responsetocompetitive threats.

TransitionPhase -Focused on

Competitive

Differentiation&Discrete

Improvements

3

(Predictable)





Customercentricpositioning with









correctlywith end-useror




significant.




wherepossible); 5)Makethe







place-- theweb-site.




signupandactiv ation.



partners. Focusoncustomer

segmentationandlead


Overlaysales team withdeep


channels.


businessobjectivesand customer

needs. Organizational abilityto

repeatedlyfollowa relativelyshort

anddefinedlife-cycle forthe



End-Customer

Focused &Service-

Driven

2

(Inhibited)

Provider'sofferingis functionaly


providers, resultingina "my

featureXbeats yourfeatureX"


but ultimatelyresultingin aprice-

competitivesale.



customer-centricbenefits

positioning. Typicallya lackof


messagingacrossall channels

andcollateral.

Competitivepricingand correct

packaging, but activelyworkingto


contract minimums).


buy. Provideris activelyworking



successful buyingdecisionis on

thesite andcorrectly presented,

eliminatinganyfinal inhibitorsto

selling.








isbeing madetoeliminate

remaininginhibitors



inhibitedinsomeway--e.g.

overlycomplex registration









activelyworking totrain salesand


effectiveness.


placeand committedtodrive

changeandimprove business

performancebydriv ing

improvementsinaccordance with

the"keysuccess factors".

TransitionPhase -

Focused on Initial

Change

1(Ineffective)

Provideris offeringtheexact

sameservice offeringas other

providers(perhaps basedonthird-

partytechnologies)with no

opportunityfortrue differentiation,

result inginaRedOceaninwhich




andfeaturecentric. Positioningis

effectiveonly forcustomerswho

alreadyknowwhat theyneedand


specificapplicationdomain.

Typicallycharacterized by









subscriptionis available.





Noself-signupcapability, direct

salesinteractionrequired. No




segmentationbysize orindustry.

Characterizedbytendancy to

focustoofar up-market. Long

salescycles. Lackof "solution

specialist" capabilityresults in

inabilitytoov ercomecommonob

Ad-hocorganizational and


lackof internal alignment towards


businessobjectives.


Behavior


Level

Competitive

D if fe re nt ia ti on M es sa gi ng & P o si ti on in g P ac ka gi ng & P r ic in g W eb -D ri ve n D em an d Ge ne ra ti on

Online Customer

Experience


Process

Organizational

Ef fe ct ive n es s F oc us & Be ha vio r

5

(Optimized)

Providerhas createdtrue Blue

Ocean(aka uncontestedmarket

space)by differentiatingalong a



existingdemand


Horizontal specialization(e.g.

Finance), orother micro-market

specific positioning. Userfocus


usedto incorporatecustomer

feedback intoproduct life-cycle.


packaging/bundlingof service

withvertically focusedadd-ons.



sensitivities.

Micro-market salessites for

specific vertical markets(e.g. real-

estate). Fully integratedPPC/SEO


analytics

Micro-market specific demand

generationcampaignswith

integrationacrossall formsof



print)


activitiesinto customer"control

panel". Pro-activeand ongoing

customerfeedback management




andfuture needs).


channel partnerswith leadflow

integratedintomicro-marketing





Organizationis designedand

internally alignedfor change.

Specific processesfor continuous

improvement. Healthy balanceof



TargetMarketFocused w/

Continuous

Improvement

4

(Competitive)


vertical market focuswith vertical

(ormicro-market) specific add-on




positionframework (see



benefit asthe solutionfor the

customerpain point/problem.

Sometypeof unique


pricingthat setsthe providerapart







framework


driveto aspecific sub-siteor





periodic (e.g. bi-weekly)

refinement.


andlive-chat forboth sales





Integratedlead/opportunity flow






management. Willingto "walk


Strongexecutive sponsorshipfor

improvingexisting offeringsand

addingnewv alue-addedservice


agility andrapidtime-to-market in

responseto competitivethreats.

TransitionPhase -

Focused on

Competitive

Differentiation&Discrete

Improvements

3

(Predictable)





Customercentric positioningwith









correctly withend-user or




significant.




wherepossible); 5)Make the







place--theweb-site.




signupand activation.



partners. Focuson customer

segmentationandlead


Overlay salesteam withdeep


channels.


businessobjectives andcustomer

needs. Organizational ability to

repeatedly followarelatively short

anddefinedlife-cy clefor the



End-Customer

Focused & Service-

Driven

2

(Inhibited)

Provider'soffering isfunctionaly


providers, resultingin a"my

featureXbeats yourfeature X"


but ultimately resultingin aprice-

competitivesale.



customer-centric benefits

positioning. Typically alack of


messagingacross all channels

andcollateral.

Competitivepricing andcorrect

packaging, but actively workingto


contract minimums).


buy. Providerisactively working



successful buyingdecision ison

thesiteand correctly presented,

eliminatingany final inhibitorsto

selling.








isbeing madeto eliminate

remaininginhibitors



inhibitedin someway --e.g.

overly complex registration









actively workingto trainsalesand


effectiveness.


placeandcommit tedtodrive

changeand improvebusiness

performanceby driving

improvementsin accordancewith

the"key successfactors".

TransitionPhase -

Focused on Initial

Change

1

(Ineffective)

Provideris offeringthe exact

sameservice offeringas other

providers(perhaps basedon third-

party technologies)with no

opportunity fortruedifferentiation,

result inginaRedOceaninwhich




andfeaturec entric. Positioningis

effectiveonly forcustomers who

already knowwhat they needand


specific applicationdomain.

Typically characterizedby









subscriptionisav ailable.





Noself-signup capability, direct

salesinteractionr equired. No




segmentationby sizeor industry.

Characterizedby tendancy to

focustoo farup-market. Long

salescycles. Lack of "solution

specialist" capability resultsin

inability toovercome commonob

Ad-hoc organizational and


lack of internal alignment towards


businessobjectives.


Behavior


2

+ 6 mo.

3+ 12 mo.

1

BDS


9/21

Best Practices in Action

Selling Hosted Exchange toExisting POP Email

Customers


10/21

Background

Many Service Providers have a POP Email base that is eithercost neutral or worse

Many have tried simple campaigns to leverage this base and

failed

Common approach that demonstrates being doomed from day 1:

Send 1 email blast to current base, sending customers to a

web site for product or generic toll-free phone number

Measure conversion on backend

Whats wrong with this?

Our experience has shown us that the KSFs must be appliedin parallel

Customers respond best to multi-impression selling and

consistency between online and offline channels


11/21

Up-Sell Campaign Process

Customer is contacted Free trial offered

Trial Offer

Customer accepts 60-day free trial initiated

Trial Accepted

Customer offered activation assistance Remote PC management offered

Remote PC management offered Customer accepts by visitingmicro-site: Outlook 2003 configured and OWA introduced

Trial Activation

Weekly tips sent to customer Offers advice on making the

most of the trial

E-mail Tips

Customer called after 30 days Asked if customer is happy with trial

Offers tips and assistance

Trial Check-up

Customer called after 60 days Offered full MAPI service Sale closedTrial Closure


12/21

Results and Learnings at Large EMEA

SPResults

Roughly 25-30% of all contacted companies accept

the free trial

The conversion rate from trial to customer is now

80%

Giving a total up-sell success rate of close to 20%!

Improvements along the way:

Telesales now remotely help the customer set up

Outlook etc. Improvements to tools (telesales script, tip emails,

etc.)


13/21

Best Practices in Action

Using the Web to AttractNew Customers


14/21

Backgrounder on the Web-Driven Business Model

In a global survey, 39% of new customers that purchase onlineoriginated from a web search on a leading search engine (e.g.Google, Live.com, Ask.com)

Approximately 40-50% of the new customers in any given month forthe top pure-play Providers are referred from existing customers

When responding to word-of-mouth recommendations, prospectsmost often begin with the web site of the Service Provider

When actively engaged to help individual service providers torenovate their online web and marketing efforts, that often resulted ina significant boost in offline sales

Conclusion understanding how to leverage the web (paid search,natural search, web-based sales methods) to attract, influence andclose new customers is absolutely critical in the SaaS era


15/21

Common Approach to Web-Driven Marketing

Approach

Several hundred paid search termsdirected to main site and product

pages

Typical Results

3 Cost-per-Click (CPC) (forpurpose of example only)

1% Click-Through-Rate (CTR)

1-3% Call-to-Action (CTA)

Cost-per-Trial of100 -300

Trial-to-Paying Conversion Rate of

3-5%

Cost-per-Acquisition (CPA) of

2,000 -10,000

Main Web

Page

Prod 1-C

Prod 1-B

Prod 1-A

Paid & NaturalSearch

Prod 2-C

Prod 2-B

Prod 2-A

Product 1Page

Product 2Page


16/21

Better Approach to Web-Driven Marketing

Approach

Several thousand paid search termsdirected to:

Product Detail Pages

Product Pages

Main site

Typical Results

1.5 Cost-per-Click (CPC) (forpurpose of example only)



Cost-per-Trial of30 -50

Trial-to-Paying Conversion Rate of3-5%

Cost-per-Acquisition (CPA) of600

-1,667

Improvement over previous

approach of 300-500%

Main WebPage

Prod 1-C

Prod 1-B

Prod 1-A


Prod 2-C

Prod 2-B

Prod 2-A

Product 1Page

Product 2Page


17/21

Best Approach to Web-Driven Marketing Approach

Several thousand paid search termsdirected to:

Micro-Sites (e.g. setup-email-on-my-phone.com)

Product Detail Pages

Product Pages

Main site

Typical Results 1 Cost-per-Click (CPC) (for purpose ofexample only)



Cost-per-Trial of6.67 -10

Trial-to-Paying Conversion Rate of 3-

5% Cost-per-Acquisition (CPA) of133 -333

Improvement over previous approach of400-500%

Potential Trial-to-Paying ConversionRates as high as 6-8% with the rightproduct creates potential for

decreasing CPA an additional 50%

Main WebPage

Prod 1-C

Prod 1-B

Prod 1-A


Prod 2-C

Prod 2-B

Prod 2-A

Product 1Page

Product 2Page

Microsite 3

Microsite 2

Microsite 1


18/21

Working With Service Providers

B i D i S i (BDS)


19/21

Business Design Sessions (BDS)

& Follow-On Engagements

BDS

An executive-level business workshop to gainunderstanding of global best practices, identify gaps

in current execution and action plans to address

them

Pre-BDS discovery process via survey and phone

2-day BDS workshop delivered by Mural on site at

service provider Mural works with a service provider to create a

high-level action plan to align with global best

practices

Follow-Up Engagements

Mural has developed simple follow-on engagements

for most common actions

Designed to have a quick impact (30, 60, 90 day)

Examples: redesign web site, design and execute

paid and natural search marketing campaigns, sales

training and management

The BDS was very valuable

and gave us a clearperspective on ways that wecould improve our success withHosted Exchange. Based onthe action plan that wedeveloped with Mural Venturesduring the BDS, wereengineered our web site inless than 45 days. Since therollout of the new web site ourmonthly growth rate for onlinesales has doubled.

Wenceslao Garca Arias,Director of Operations, Acens


20/21

Mural Background

Mural Ventures is a Microsoft partner that works with service providers toexecute activities that significantly grow sales of hosted applications andservices

Mural team comprised of executives that have built many of the topperforming hosted application providers in the world

Mural, in partnership with Microsoft, developed a Business Development

Session (BDS) program for global service provider executives to sharelearnings and best practices (research and real-life based) on deliveringsoftware-based services to the marketplace.

Mural has delivered more than 100 Business Development Sessions inthe past 12 months

Mural is currently engaged in post-BDS projects with ~20 serviceproviders

Mural has an active venture capacity designed to allow us to co-investwith their service provider partners to bring differentiated SaaS offerings tomarket (e.g. BT Workspace).


21/21

Questions & AnswersAlex Hawkinson, CEO

[email protected]

+1 703 403 2281

Rick Flood, Director, EMEA

[email protected]

+44 (0) 7887 644 774

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