100
Digital Marketing Strategy Workshop
Digital Marketing Strategy Workshop
• Chief Transformation Officer, Neural Impact
• 30 year marketing executive (Simply Acctg (Sage), Pivotal CRM, ATI Technologies, Epicor ERP/Vantage Point)
• Professor Marketing & Behavioral Science
• Advisor to Microsoft Partners and ISVs aroundthe globe
• Creator: CRM Product Category
Sharka ChobotChief Transformation Officer
Your Workshop Objectives
AgendaDay 1
Marketing Foundation & Strategy
Topic Key Discussion Points
Introduction, Objectives • Workshop objectives
Revenue Profiling • Revenue profile exercise
Customer Acquisition and Sales
Process Review
• Mapping of your current sales process and lead conversion
Cloud Competitive
Differentiation
• Competitor review and differentiation development
• Identify key competitors in target vertical segment
• Competitive mapping
• Determine primary competitive differentiators
Vertical Go to Market Strategy • Current markets assessment
• Target vertical prioritization
• Segment profiling
Emotional Messaging
Framework (EMF) Development
• Emotional trigger industry analysis
• Prioritization of emotional triggers
• Core decision making pain identification
LUNCH
Persona Development • Why persona based development
• Customer empathy maps
• Uncovering primary needs and pains
Persona Empathy Maps • Why, How and What Empathy Map Development
New Differentiated
Recurring Services Definition
• Services brainstorm
• Onboarding packages, remote
AgendaDay 2
DAY TWO – Digital Emotional MarketingPricing Approaches and Strategies • Review of current services and pricing approach
• Various pricing strategies, approaches and trade-offs
Industry Solution Packages Definition • Determining how best to bundle offerings project services, training support, etc.
• Determine 3 core industry solution packages
LUNCH
Marketing Objectives & Measurement • Digital marketing objectives
• Conversion measurement definition
Tribal Engagement • Review of website tribal messaging and resonance
Persona Messaging • Engagement content strategy - WHAT HOW WHY
• Marketing asset mapping
Pain Messaging • Stimulating desire – ways to leverage fear, create loss and risk
• Unveiling compelling prospect pain vs benefit based messaging
Emotional Engagement Triggers • Contrast imagery brainstorm
• Appealing to 3 learning styles – videos
• Simplicity vs Complexity – Landing, videos, messaging and design
Website Headline Re-Writing • Persuasion & novelty – curiosity, questioning
Maximizing Visual Stimulus • Landing page, use of video motion, effective imagery, design
Reciprocity and Value Exchange (Ve) • Converting the Curious - Getting Action – ways to use scarcity, loss
Building Trust and Credibility • Proving your claims - Evidence that works and doesn’t
• Proof mapping matrix
• Develop influencer plan
Nurture Content Calendar Definition • Development of a 12 month “theme” calendar for marketing content development
Next steps and implementation • Summary - Key take aways
• Next steps
Workshop Resources:
http://neuralimpact.ca/isv2017/
Global Stats
Cloud application services (SaaS]), grew
21.7% in 2016
What’s your growth?
Source: Bessemer State of Cloud 2015, Point Nine News - See more at: http://www.valuecoders.com/blog/technology-and-apps/trends-saas-industry-2016/#sthash.MNTKQf7x.dpuf
Cloud Market Success
• Perpetual to Recurring
• One off Proposal to Repetitive Packages
• Time and Materials to Fixed Package
• High Touch to Low Touch
• Long Sales Cycle to Short
• Demoing Features to Business Process Slides
• High Cost to Low Cost
• Product Knowledge to Industry
• High Transaction to Low
• Upfront to Ongoing
• Geographic Territories to Vertical
• On Premise to Cloud
• Custom to Out of the Box
• Product to Solution
• Technology expertise to Industry domain expertise
• Local to Global
• Horizontal to Vertical
• Logical to Emotional
• Traditional to Digital
• Cap ex to Op ex
• IT Buyer to Business Buyer
Marketing Strategy
Product and Services Mix
Packaging and Pricing Strategy
Sales Process
Partner Profile - Customer Acquisition Capability
Partner Profile - Solution Maturity
Go to Market StrategyDirect Partner Channel
What’s Your Growth Strategy?
Current Product New Product
Current Market
Further Market Penetration
ProductDevelopment
New Market
Market Development
Diversification
“
Current Challenges? Opportunities?
Opportunities? Challenges?
Results?Financial Customer
Innovation People
SalesMarketing
Domestic vs Global
On Prem vs Cloud Revenue
Revenue Composition
Total Revenue
License
Project Services
Support & Maintenance Services (on
prem)
What’s your Recurring Revenue Mix Today?
Microsoft Solutions
ERPCustomer
Engagement Solution
Office 365 PowerBI
Non Strategic Project Services
Data Migration Deployment Integration Configuration Customization
Reactive Managed Services
Help Desk On Demand Training
Commoditization
One Time 80%???Time & MaterialsNot Repeatable
Recurring 20%???
Cloud Sales Motion
Core Defensible Differentiation
VERTICAL
✓ Manufacturing
✓ Distribution
✓ Retail
✓ Services Industries
✓ Public Sector
✓ Financial Services
Expertise in a specific business function or workload, across industries(i.e. Compliance, security, event management, online recruitment , etc.
How do you Differentiate Now?
1.
2.
3.
That’s what they ALL SAY!!! NOT a Compelling, Defensible, Unique Competitive Differentiation Strategy
✓We have a industry solution for your company”
Partner Value Proposition
The customer was really impressed with Microsoft
Dynamics, but decided to choose a product from the competition because certain specific features
or industry functionality were missing.
Your customer has started using a new release and upgrading
your customization is proving to be a nightmare.
To be able to sell Microsoft Dynamics into a specific industry
requires modifications, but software development is not
your core business.
Add competitive power to your business and join the AXtension
partner community!
Create or extend your own winning vertical solution with
AXtension and boost your business!
Customer Value Proposition
Why Differentiate?
Why Differentiate?-Commodities
-Higher margins-Lower selling costs
-Less price competition-Less discounting -Reduced churn
-Higher business valuation
>3 Industries (service)
20%
50%
80%
1 Industry (disrupt)
1-3 Industries (teach)
Industry Partner Win Rates
Progression of economic valueD
iffe
ren
tiat
ion
PriceLow
High
High
Experience
Services
Products
Commodity
Customer Relevance
Price and Gilmore, 2011
Industry IP
Domain Expertise
Higher Margins
IP?
Progression of value
Retrieved: June 18, http://www.pricegain.com/en/2015/11/26/how-to-price-water/
0.003 €/liter 1.30 €/liter 2.25 €/liter 2 000 €/liter
Cost plus Market Pricing Price Differentiation Value based Pricing
Product Driven to Industry Solution Driven
Industry Solution Focus
Vertical 1 Vertical 2 Vertical 3
We know about this industry & their unique challenges better than competitors do.
We have IP we have developed specifically to meet the needs of this industry. This is something others would not easily know how to do.
Our team members have worked in this vertical industry and/or have years of industry specific domain knowledge.
We have proven and quantifiable results that have been gained by our customers in this industry.
We have won awards, spoken at conferences or are belong to industry related associations or organizations.
Through delivering services we have gained unique industry workflow and process expertise and knowledge.
We have a large number of clients in this industry.
Value Proposition?
Low Price
Better Product
Easier, more Convenient
Customer Relationship, Dependency
Partners Need to Re-Define their Value Proposition
How do you solve customers’ problems or improve their situation (relevancy)?
What specific benefits do you deliver (quantified value)?
What do you offer that your competitors don’t?
What are you the best at – core competency?
Why should customers buy?
Competitive Map
Exercise: Map YOUR Competitors on Multiple Factors
Pivotal Map
Microsoft
Enterprise
Oracle
Small Bus
ArumBrock
Siebel
Act
MaximizerMail
Goldmine
Competitive MappingFactor US
We’ve been in business 25 years …. Done lots of implementations.
1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
Specializes in providing Microsoft Dynamics –ERP CRM BI
1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
Experienced technical experts – great people 1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
Proximity – local 1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
Great service, happy customers 1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
1 Low2 Medium3 High
studies…are you part of an industry association
Exercise: Competitive Differentiation Map
AREA of DIFFEENTIATION INDUSTRY PRIMARY COMPETITOR COMPARSON
Industry business knowledge & expertise (problems you have helped solve)
Education – student recruitment problemsRetirement issues Training and onboarding issues Weak alumni relations and tracking
Unique industry workflow and process knowledge
Registration and enrollment issuesDemand forecasting Grant management and trackingFaculty and classroom scheduling
Team industry experience & expertise One of our staff was an IT manager at a university
Client industry clusters We have 5 universities and colleges as customers
Proof of success in the industry We have 5 case studies, we won the education industry technology solution provider award of the year
IP we have developed We have integrated with the top selling enrollment management system and Camtasia for dynamic lectures, we have integrated with CATME a team student performance evaluation software app. We integrate with research grant management and tracking software. We have created a number of reports to track student
Exercise: Points of Similarity, Points of Difference
Factor
Price Same/Different
Superior quality of product?
Quality of services?
Unique product features, functionality?
Breadth of services?
Rapid delivery?
Customization?
Visual dashboards?
Training of staff?
Processes used?
Is it a Segment?
• Their needs require and justify a distinct offering?
• Reached through different channels?
• Require different relationships?
• Substantially different profitabilities?
• Willing to pay for different aspects of the offering?
A
B
C
Segmentation MethodsSegmentation Method Sample Segments
Geographic Continent: North America, Asia, Europe, AfricaWithin U.S.: Pacific, mountain, central, south, mid-Atlantic, northeast
Demographic Age, gender, income
Psychographic Lifestyle, self-concept, self-values
Benefits Convenience, economy, prestige
Behavioral Product usage, loyalty
Segment 1
Segment 2
Segment 3
Segment Exercise
SEGMENT ATTRACTIVENESS
Big Enough -Substantial
Reachable with Your Message,
Identifiable
Have a High Need -
Responsive
Have $ to Spend -
Profitable
Highly Disrupted
Highly Competitive
Market Shake Up – New entrants,
consolidation, growing Tier
2
Technology as a
Differentiator
Assess if it is a good “cloud market”
Changing industry regulations
• Highly regulated
• Compliance requirements
• High risk industry
Changing buyer behavior
• Increase in desire for self service
• Demands to offer better service
• Customer experience as a differentiator
Technology viewed as a competitive differentiator
• Dropping margins
• Increasing costs
• Inefficient processes
Highly competitive environment
• Industry consolidation
• Dropping barriers to entry
• Large number of new emerging players
• Significant internal obstacles to growth
Good Cloud Market Segment
High level of industry disruption
“Branding is the promises you make...
Your brand comes from
the promises you keep.”– K. Zhivago, 2004
Moving along the IP Staircase Offering Differentiation
COMPLEXITY/COST
Labeled bundles
Turnkey functional
infrastructure
Packaged
extensions
Full vertical
solutions
POTENTIAL ISV PARTNERING
DIF
FER
EN
TIA
TIO
N/V
ALU
E
Dynamic 365
Azure
Office 365
Power BI
Current Offering + Stack
Own Repeatable IP
OptimizeSpecific Function
Full Vertical Solution
Test & PivotIndustry Specific
Marketing
Build Low Risk
Minimum Viable
Product
Identify Vertical
Emotional Triggers &
Business Pain
Lean Cloud Solution Design ProcessSolution
Management
Product Design: Don’t ASSUMEGo Out to the Tribe
Emotional
Reliable
Pretty Much Usable
Basic Functionality
What is in the MVP?
Emotional
Reliable
Pretty Much Usable
Basic Functionality
Current IP Fit Gap
Repeatable
Current Vertical IP
Core Emotional
Broken Business
Processes
New Cloud Product
↑ New Prod. Development ↑ New Equipment Sales
↑ Labor Costs ↓ Differentiation
↑ Warranty Periods ↑ Field Service Contracts
↑ Cost of Sale ↓ Profitability
↑ Capital investments ↑ Automation Investments
↑ New Services Offerings ↑ Technology Investments
↑ Penalties ↑ Skills Training
↑ Receivables ↑
↓ ↓
↓ ↓
MacroeconomicMacro level economic shifts.
• Rapid industrialization of 3rd world
• Cost of energy increasing
• Cost of labour increasing
• Unpredictable commodity prices
• Mining & Construction sectors fluctuating
• Automotive sector rebounding
• Fracking , Oil & Gas industries strong
• Emerging Economies : Brazil, Russia, India and China still growing
• Public sector infr. projects flat
• Renewable energy projects (solar, wind)drive demand
Regulatory
Anticipated or legislated changes
• EPA Wastewater treatment
• OSHA/Dept. of Labor – increasing workplacesafety regulations
• Clean Air Solvents and Lubricants
• Focus on Explosion Proof Compliance
Industry ConsolidationMerger and acquisition activity
• Expand geographic reach, expandcustomer base and entering new lines ofbusiness and primary M&A drivers
Product/Service Commoditization
Inability to differentiate basedon product or service offering.
• Extremely difficult to differentiate
Competitive BehaviorChanges in competitor behaviour/new entrants.
BRICs producing lower cost machines(no regulatory constraints, lower energy prices,lower labor costs, China & Mexico)High labor content cost advantages
Customer Demand/Behavior ShiftsChanges in Customer Behavior
• Personalization & Customization – customer driven configurations & packages (product + service offerings)
• Demand for improved service
• Asset management (EAM) and flexible
• Manufacturing is also expected to drive factory-enterprise integration, significant potential for automation and customized service solutions in industrial applications
Manufacturing Market Forces
© Neural Impact Inc. 2016
Threats/Impedimentsto Growth
Example: Discrete Manufacturing
Maintenance strategy that provides early detection of asset defects and conditions that lead to defects
Predictive Maintenance Management (PdM)
Copyright © The Economist Newspaper Limited 2016. All rights reserved.
Whiteboard Facilitation (IEM)
Industry Driver
Macroeconomic:• US emerging from recession• Growth in heavy industry• Increasing energy costs• Higher labour costs
Regulatory:• EPA:• Clean air/CO2 emissions• Green landfill• Green Lubricants• OSHA & Dept. of Labor
Competitive• Lower prices• Commoditization of non-
specialized products
Customer• Consumer driven
product configurations (personalization)
• Increasing demand for improved service
• Increasing Dealer expectations
Impacts
Partner Exercise: Emotional Messaging Framework
As a result of <industry drivers > we <trigger event> which is impacting our <key operating metrics>. We struggle with <business challenge> because of our inability to <operational limitation>. This issue would be resolved if we could <new capability>. © Neural Impact Inc. 2016
© Neural Impact Inc. 2016
Emotional Messaging
Framework
5 Core Emotional Triggers
WHAT
Persona’s help you create the right product.
HOWWHY
Persona Profiling
John SmithGender: MaleTitle: VP Manufacturing
Goals: Help grow the company and retire.
Worries about: • Competitors operating more efficiently • Afraid of failure and looking bad• Concerned about risk & liability• Frustrated by inefficiencies• Hates wasting time and money
Needs: • More control • More information • More automation of routine processes
Age: 40-55Status: Wife & 2 KidsLives in good neighbourhoodEducated Values his personal timeStruggles with work life balance
Persona Definition
Buying Behavior
Purchase Urgency
Information Needed
What’s Most Important
Involvement in Decision
Psychographics
Activities Lifestyle Personality Values
Demographics
Age Gender Income Marital Stats
Exercise: Why PersonaEmpathy
WHY Persona Driven Dashboard
MAP: Current Services by REVENUE TYPEONE TIME
Exercise: New Strategic Services Opportunity Brainstorm
Non Strategic Project Services
Data Migration Integration Configuration Customization Deployment
Value Add Services
Help Desk/Support Services Online Training &
Self paced Learning
High Value Professional Services
Strategy Advisory
Business /Project Risk Assessment
Business Case Expansion/Val
idation
Cloud Readiness
Assessment & Transformatio
n
Business Impact
Workshop
Vision & Scope
Definition, & Design
High Value Vertical Strategic Professional Services
Reporting & Analytics
CRM - Social Monitoring
Sentiment analysis
Optimization Services
Benchmarking Service
Commoditization
Differentiation
One time Recurring
How to Monetize
Shift from Time & Materials to Packaged Solutions
Fallacy: High Utilization is Good
Uncertainty
Confident Decision
One Fixed
Out of the Box Price
is NOT an OPTION!!!
Trust & Transparency
Emotional vs logical
Pricing Models
1. Perpetual License – upfront, for life
2. Consumption – usage based on criteria, pay as you go
3. Tiered – scalable, pay based on levels criteria
4. Freemium– capacity, feature, time, use case
Plan and pricingCenter Stage
Lite edition
$29/MO
Standard edition
$99/MO
Premium edition
$159/MO
Most Popular
Perfect for Ideal for growing Designed for
99, 95
Retrieved May Retrieved June 2017 https://rnd-solutions.net/devops-services/
Primacy numbers
$475 $537$349
Competitive Packages:Salesforce
Persona Packaging & Pricing
Exercise: Who are your 3 Target Offerings for?
Springboard
Exercise: Package up your Services
http://thenextweb.com/google/2013/02/21/google-debuts-four-tiered-247-support-for-its-cloud-platform-services-prices-start-at-0-to-400-per-month/
Add Ons
http://www.powerobjects.com/powerpacks/powermap/
Value-add Content
Exercise: Create Your 3 Package Offerings
NetSuite
NetSuite
OneWorld Pricing
Starting from:
$499.00/month
31% Year-over-Year Increase in Q4 Revenue of $206.2 Million
Exercise: Three Industry Solution Packages
Pricing Psychology
$515 $626 $867
•© 2016 Microsoft
Proposal Presentation
What ‘landed’ today?
