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The 5 Myths of Selling Hosted Services to SME Customers

Date post: 21-Jan-2015
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In the new world of business SME Customers seek simple solutions to their business problems. SMEs don't want technology they want the business benefits that your hosted services delivers. Educate them to find want they want and help them to self-qualify by matching their needs to your specific hosted services offers. Make it simple and easy for them to try and buy. Success tomorrow means moving today from being a Hosting Services Provider (HSP) to a Business Services Provider (BSP). Takeway: success awaits those who transition their value proposition from HSP to BSP.
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Page 1: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/squeakywheel/252715820

Page 2: The 5 Myths of Selling Hosted Services to SME Customers

Myth = unproven or false collective belief

www.flickr.com/photos/1suisse/3504595493

Page 3: The 5 Myths of Selling Hosted Services to SME Customers

3

Myth = unrecognised barrier to success

Page 4: The 5 Myths of Selling Hosted Services to SME Customers

Change your thinking

www.flickr.com/photos/oriol_gascon/2172565951

Page 5: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/miikka_skaffari/4632166297

Change your view point

Page 6: The 5 Myths of Selling Hosted Services to SME Customers
Page 7: The 5 Myths of Selling Hosted Services to SME Customers
Page 8: The 5 Myths of Selling Hosted Services to SME Customers

The 5 Myths: Myth 1. They will find us, if our offer is "good" enough

Myth 2. They know what they want and they want it for free

Myth 3. They understand and will love our offer

Myth 4. They will make a rational purchase decision - in our favor

Myth 5. We sell to Business, not Consumers

Page 9: The 5 Myths of Selling Hosted Services to SME Customers

Myth 1. They will find us, if our

offer is "good" enough

Page 10: The 5 Myths of Selling Hosted Services to SME Customers

10

The past

Page 11: The 5 Myths of Selling Hosted Services to SME Customers

The present

www.flickr.com/photos/nnova/3950714672

Page 12: The 5 Myths of Selling Hosted Services to SME Customers

The future

Page 13: The 5 Myths of Selling Hosted Services to SME Customers

> Be Findable / ‘Bingable’

Page 14: The 5 Myths of Selling Hosted Services to SME Customers

> Stand out from the crowd

Page 15: The 5 Myths of Selling Hosted Services to SME Customers

Put your customer at the

centre of everything you do

www.flickr.com/photos/nnova/2841741385

Page 16: The 5 Myths of Selling Hosted Services to SME Customers

Be findable / 'bingable’ What is your bing strategy?

1. Great Content

2. Get talked about

3. Build community

Page 17: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/katerha/4765332898

Myth 2. They know what they want

and they want it for free

Page 18: The 5 Myths of Selling Hosted Services to SME Customers

Example of Low Price Provider

Page 19: The 5 Myths of Selling Hosted Services to SME Customers
Page 20: The 5 Myths of Selling Hosted Services to SME Customers
Page 21: The 5 Myths of Selling Hosted Services to SME Customers

Question: Where do they

go for help?

www.flickr.com/photos/darkpatator/395215642

Page 22: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/katerha/4765332898

Educate your customers: Become a trusted resource for your customers

1. Use clear and simple customer language

2. Describe the problem being solved

3. Tell Client stories

Page 23: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/myklroventine/480909595

Myth 3. They understand

and love our offer

Page 24: The 5 Myths of Selling Hosted Services to SME Customers

Self-diagnosis

Page 25: The 5 Myths of Selling Hosted Services to SME Customers

Prescribe the solution

Page 26: The 5 Myths of Selling Hosted Services to SME Customers

Make it simple to take

Page 27: The 5 Myths of Selling Hosted Services to SME Customers

Simple enough for a 7 year

old child to understand

www.flickr.com/photos/toekneesan/3847444842

Page 28: The 5 Myths of Selling Hosted Services to SME Customers

Triplicate of choice

www.flickr.com/photos/xrrr/2321685873

Page 29: The 5 Myths of Selling Hosted Services to SME Customers

SPAM: (R = 0)

29

Persona-Based Website

Page 30: The 5 Myths of Selling Hosted Services to SME Customers

Persona-Based Website

Page 31: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/myklroventine/480909595

Lead your customers: Help them to self-qualify 1. Guide them through the self-

qualification process

2. Make it easy for them to find, try and buy

3. Triplicate of Choice

Page 32: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/purplemattfish/2896731898

Myth 4. They will make a rational

purchase decision - in our favor

Page 33: The 5 Myths of Selling Hosted Services to SME Customers

No, No, No, they won’t!

Page 34: The 5 Myths of Selling Hosted Services to SME Customers

What is rational for them?

www.flickr.com/photos/coreytempleton/3935005227

Page 35: The 5 Myths of Selling Hosted Services to SME Customers

Understand their needs (and wants)

Page 36: The 5 Myths of Selling Hosted Services to SME Customers

Sell to the right brain

Page 37: The 5 Myths of Selling Hosted Services to SME Customers

…and provide evidence

www.flickr.com/photos/presta/3532993072

Page 38: The 5 Myths of Selling Hosted Services to SME Customers

…. for the left brain

www.flickr.com/photos/stevenfettig/1390275600

Page 39: The 5 Myths of Selling Hosted Services to SME Customers

Justify and rationalise

their decision

Page 40: The 5 Myths of Selling Hosted Services to SME Customers

Together we can do more

+

+

You/Your company

Your Hosted Services

Page 41: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/purplemattfish/2896731898

Master your message: Business buyers buy on Pain Technical buyers buy on Features

1. Sell to the emotional brain

2. Make it relevant and credible

3. People buy because they feel understood

Page 42: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/katerha/4953529831

Myth 5. We sell to Business,

not Consumers

Page 43: The 5 Myths of Selling Hosted Services to SME Customers
Page 44: The 5 Myths of Selling Hosted Services to SME Customers
Page 45: The 5 Myths of Selling Hosted Services to SME Customers

WoM -> Virtual WoM

Page 46: The 5 Myths of Selling Hosted Services to SME Customers

“Victory in marketing doesn’t happen when you sell something, but when you

cultivate advocates for your

brand.” - Steve Knox, CEO of Tremors,

P&G’s Word of Mouth Business Unit

www.flickr.com/photos/hyku/4837236187

Page 47: The 5 Myths of Selling Hosted Services to SME Customers

Advocates are your

best influencers

Page 48: The 5 Myths of Selling Hosted Services to SME Customers

Influence is spread

through social media

Page 49: The 5 Myths of Selling Hosted Services to SME Customers

Let them choose

Page 50: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/katerha/4953529831

Create an insanely great Customer Experience: 1. Cultivate brand advocates

2. Multi-channel touch points

3. End 2 End CE thinking

Page 51: The 5 Myths of Selling Hosted Services to SME Customers

The 5 Myths: Myth 1. They will find us, if our offer is ‘good’ enough

Truth 1. Be findable / ‘bingable’

Myth 2. They know what they want and they want it for free

Truth 2. Educate your community

Myth 3. They understand and will love our offer

Truth 3. Lead your customers

Myth 4. They will make a rational purchase decision - in our favor

Truth 4. Master your message

Myth 5. We sell to Business, not Consumers

Truth 5. Create an insanely great Customer Experience

Page 52: The 5 Myths of Selling Hosted Services to SME Customers

Your future is bright

"I am the world's worst salesman, therefore I must make it easy for customers to buy.”

- F. W. Woolworth

Page 53: The 5 Myths of Selling Hosted Services to SME Customers

David Ednie President & CEO

SalesChannel Europe Ph: +33 676 60 09 25 (FRA) Ph: +61 415 94 51 57 (AUS)

Email: [email protected] Website: www.saleschannel-europe.com

Page 54: The 5 Myths of Selling Hosted Services to SME Customers

www.flickr.com/photos/myklroventine/4143699557

Action Plan: Start building your

SaaS future today

Page 55: The 5 Myths of Selling Hosted Services to SME Customers

It not a game of chance!

www.flickr.com/photos/kubina/185489325

Page 56: The 5 Myths of Selling Hosted Services to SME Customers

Unique Value Proposition

Page 57: The 5 Myths of Selling Hosted Services to SME Customers

Create a Value Innovation Curve

Page 58: The 5 Myths of Selling Hosted Services to SME Customers

Target key influencers

and customer groups

www.flickr.com/photos/superzelle/4608034587

Page 59: The 5 Myths of Selling Hosted Services to SME Customers

Messaging and positioning

Page 60: The 5 Myths of Selling Hosted Services to SME Customers

Search

Find

Qualify

Try

Buy

Activate

Manage

Up-sell

Support

Refer

GTM and Sales & Marketing Innovation Workshops

SaaS Sales Acceleration 2.0 Program

SalesChannel Europe Accelerating Time to Revenue

Page 61: The 5 Myths of Selling Hosted Services to SME Customers

8 Key Success Factors

Page 62: The 5 Myths of Selling Hosted Services to SME Customers

8 KSF’s in Actions

Level

Competitive

Differentiation Messaging & Positioning Packaging & Pricing Web-Driven Demand Generation

Online Customer

Experience

Direct/Indirect Sales

Process

Organizational

Effectiveness Focus & Behavior

5

(Optimized)

Provider has created true Blue

Ocean (aka uncontested market

space) by differentiating along a

unique axis that reaches beyond

current market boundaries and

existing demand

Vertical (e.g. Real Estate),

Horizontal specialization (e.g.

Finance), or other micro-market

specific positioning. User focus

groups or surveys are pro-actively

used to incorporate customer

feedback into product life-cycle.

Micro-market specific

packaging/bundling of service

with vertically focused add-ons.

Market research used to

understand customer price-point

sensitivities.

Micro-market sales sites for

specific vertical markets (e.g. real-

estate). Fully integrated PPC/SEO

and pro-active analysis of web-

analytics

Micro-market specific demand

generation campaigns with

integration across all forms of

demand generation (e.g. PPC,

Banner Ads, email, direct mail,

print)

Integrated up-sell and cross-sell

activities into customer "control

panel". Pro-active and ongoing

customer feedback management

(surveys of customer panels by

segment to assess overall

customer experience, satisfaction,

and future needs).

Vertical or micro-market focused

channel partners with lead flow

integrated into micro-marketing

campaigns. Channel partner

branded sales sites. Integration of

channel partner into knowledge

base, live chat, etc.

Organization is designed and

internally aligned for change.

Specific processes for continuous

improvement. Healthy balance of

management (stability) and

leadership (fostering change).

Target Market

Focused w/

Continuous

Improvement

4

(Competitive)

Provider has differentiated with a

vertical market focus with vertical

(or micro-market) specific add-on

capabilities/features.

Best Practice positioning based

on a well-defined messaging &

position framework (see

template). Customer centric

positioning that blends customer-

benefit as the solution for the

customer pain point/problem.

Some type of unique

differentiation of packaging or

pricing that sets the provider apart

of the reset of the pack.

Differentiated sub-sites and/or

landing pages aligned with best-

practice positioning of value

proposition according to

messaging & positioning

framework

Demand generation campaigns

drive to a specific sub-site or

landing page. All campaign

activities are well coordinated and

integrated. Pro-active PPC/SEO

campaign management with

periodic (e.g. bi-weekly)

refinement.

Integrated online knowledge-base

and live-chat for both sales

support and post-sales support.

Pro-active email communication

during first 30-60 days provides

training, tips, tricks, etc.

Integrated lead/opportunity flow

for channel partners. Mature

process for lead qualification and

routing of leads. Customer

segmentation and qualification

"drives" the opportunity

management. Willing to "walk

away" from bad opportunities.

Strong executive sponsorship for

improving existing offerings and

adding new value-added service

offerings. Proven organizational

agility and rapid time-to-market in

response to competitive threats.

Transition Phase -

Focused on

Competitive

Differentiation &

Discrete

Improvements

3

(Predictable)

Provider has differentiated from

the competition by bundling

additional services or capabilities

not offered by the competition.

Customer centric positioning with

Benefits (e.g. Anytime, Anywhere

access), then supporting benefits

points, then features as

appropriate. Consistent

application of messaging

throughout ALL collateral.

Small number (2-3) of different

customer/user "plans" that align

correctly with end-user or

customer personas. Value

differentiation between different

price plans is clear and

significant.

Best-practice site that allows

customers to 1) Search; 2) Find;

3) Self Qualify; 4) Try (Free Trial

where possible); 5) Make the

buying decision; 6) Buy; 7)

Activate. Web-site is the focal

point of the business.

Makes use of pro-active

PPC/SEO campaigns. All demand

generation activities lead to one

place -- the web-site.

Self-guided sales experience, self-

admin capabilities, no barriers to

sale via web, or phone. Easy

signup and activation.

Pro-active management of direct

sales, inside sales, and channel

partners. Focus on customer

segmentation and lead

qualification. Pro-active training.

Overlay sales team with deep

solution expertise supports all

channels.

Organizational alignment around

business objectives and customer

needs. Organizational ability to

repeatedly follow a relatively short

and defined life-cycle for the

successful introduction of new or

revised product offerings.

End-Customer

Focused & Service-

Driven

2

(Inhibited)

Provider's offering is functionaly

equivalent to that of other

providers, resulting in a "my

feature X beats your feature X"

competitive differentiation tactic,

but ultimately resulting in a price-

competitive sale.

Still product and feature centric

positioning with progress towards

customer-centric benefits

positioning. Typically a lack of

consistent application of

messaging across all channels

and collateral.

Competitive pricing and correct

packaging, but actively working to

eliminate other inhibitors (e.g.

contract minimums).

Customers can search, find, and

buy. Provider is actively working

to ensure that all of the

information required to make a

successful buying decision is on

the site and correctly presented,

eliminating any final inhibitors to

selling.

PPC/SEO and other demand

generation capabilities are

leveraged, but with some

inhibiting factors that limit their

effectiveness (e.g. mismatch

between PPC terms and landing

page positioning). Active progress

is being made to eliminate

remaining inhibitors

Self-guided signup, support,

and/or self-administration but

inhibited in some way -- e.g.

overly complex registration

process, complex activation.

Active progress is being made to

eliminate remaining inhibitors.

Direct Sales, indirect channels,

telesales, but with ineffective

processes for lead qualification

and routing of leads to "best

qualified" channel. Provider is

actively working to train sales and

revise processes to improve

effectiveness.

Good executive leadership in

place and committed to drive

change and improve business

performance by driving

improvements in accordance with

the "key success factors".

Transition Phase -

Focused on Initial

Change

1

(Ineffective)

Provider is offering the exact

same service offering as other

providers (perhaps based on third-

party technologies) with no

opportunity for true differentiation,

resulting in a Red Ocean in which

the only remaining competetive

differentiator is price.

Positioning is completely product

and feature centric. Positioning is

effective only for customers who

already know what they need and

are already familiar with the

specific application domain.

Typically characterized by

uncompetitive pricing, minimum

contract terms, minimum # of

users, confusing pricing, too many

tiers of service, multiple tiers

instead of "add-on" options.

Customers are unable to find

offering, presentation is

confusing, no online self-

subscription is available.

No PPC/SEO campaigns. Other

demand generation activities (e.g.

Print ads, direct mail, etc) do not

leverage the web-site.

No self-signup capability, direct

sales interaction required. No

offering self-administration.

Direct sales only. No pro-active

lead qualification. No customer

segmentation by size or industry.

Characterized by tendancy to

focus too far up-market. Long

sales cycles. Lack of "solution

specialist" capability results in

inability to overcome common ob

Ad-hoc organizational and

departmental behaviors with a

lack of internal alignment towards

achieving a common vision or

business objectives.

Product-Dependent

Focus & Ad-Hoc

Behavior

Mural's SaaS Key Success Factors ©

2

+ 6 m.

Level

Competitive

Differentiation Messaging & Positioning Packaging & Pricing Web-Driven Demand Generation

Online Customer

Experience

Direct/Indirect Sales

Process

Organizational

Effectiveness Focus & Behavior

5

(Optimized)

Provider has created true Blue

Ocean (aka uncontested market

space) by differentiating along a

unique axis that reaches beyond

current market boundaries and

existing demand

Vertical (e.g. Real Estate),

Horizontal specialization (e.g.

Finance), or other micro-market

specific positioning. User focus

groups or surveys are pro-actively

used to incorporate customer

feedback into product life-cycle.

Micro-market specific

packaging/bundling of service

with vertically focused add-ons.

Market research used to

understand customer price-point

sensitivities.

Micro-market sales sites for

specific vertical markets (e.g. real-

estate). Fully integrated PPC/SEO

and pro-active analysis of web-

analytics

Micro-market specific demand

generation campaigns with

integration across all forms of

demand generation (e.g. PPC,

Banner Ads, email, direct mail,

print)

Integrated up-sell and cross-sell

activities into customer "control

panel". Pro-active and ongoing

customer feedback management

(surveys of customer panels by

segment to assess overall

customer experience, satisfaction,

and future needs).

Vertical or micro-market focused

channel partners with lead flow

integrated into micro-marketing

campaigns. Channel partner

branded sales sites. Integration of

channel partner into knowledge

base, live chat, etc.

Organization is designed and

internally aligned for change.

Specific processes for continuous

improvement. Healthy balance of

management (stability) and

leadership (fostering change).

Target Market

Focused w/

Continuous

Improvement

4

(Competitive)

Provider has differentiated with a

vertical market focus with vertical

(or micro-market) specific add-on

capabilities/features.

Best Practice positioning based

on a well-defined messaging &

position framework (see

template). Customer centric

positioning that blends customer-

benefit as the solution for the

customer pain point/problem.

Some type of unique

differentiation of packaging or

pricing that sets the provider apart

of the reset of the pack.

Differentiated sub-sites and/or

landing pages aligned with best-

practice positioning of value

proposition according to

messaging & positioning

framework

Demand generation campaigns

drive to a specific sub-site or

landing page. All campaign

activities are well coordinated and

integrated. Pro-active PPC/SEO

campaign management with

periodic (e.g. bi-weekly)

refinement.

Integrated online knowledge-base

and live-chat for both sales

support and post-sales support.

Pro-active email communication

during first 30-60 days provides

training, tips, tricks, etc.

Integrated lead/opportunity flow

for channel partners. Mature

process for lead qualification and

routing of leads. Customer

segmentation and qualification

"drives" the opportunity

management. Willing to "walk

away" from bad opportunities.

Strong executive sponsorship for

improving existing offerings and

adding new value-added service

offerings. Proven organizational

agility and rapid time-to-market in

response to competitive threats.

Transition Phase -

Focused on

Competitive

Differentiation &

Discrete

Improvements

3

(Predictable)

Provider has differentiated from

the competition by bundling

additional services or capabilities

not offered by the competition.

Customer centric positioning with

Benefits (e.g. Anytime, Anywhere

access), then supporting benefits

points, then features as

appropriate. Consistent

application of messaging

throughout ALL collateral.

Small number (2-3) of different

customer/user "plans" that align

correctly with end-user or

customer personas. Value

differentiation between different

price plans is clear and

significant.

Best-practice site that allows

customers to 1) Search; 2) Find;

3) Self Qualify; 4) Try (Free Trial

where possible); 5) Make the

buying decision; 6) Buy; 7)

Activate. Web-site is the focal

point of the business.

Makes use of pro-active

PPC/SEO campaigns. All demand

generation activities lead to one

place -- the web-site.

Self-guided sales experience, self-

admin capabilities, no barriers to

sale via web, or phone. Easy

signup and activation.

Pro-active management of direct

sales, inside sales, and channel

partners. Focus on customer

segmentation and lead

qualification. Pro-active training.

Overlay sales team with deep

solution expertise supports all

channels.

Organizational alignment around

business objectives and customer

needs. Organizational ability to

repeatedly follow a relatively short

and defined life-cycle for the

successful introduction of new or

revised product offerings.

End-Customer

Focused & Service-

Driven

2

(Inhibited)

Provider's offering is functionaly

equivalent to that of other

providers, resulting in a "my

feature X beats your feature X"

competitive differentiation tactic,

but ultimately resulting in a price-

competitive sale.

Still product and feature centric

positioning with progress towards

customer-centric benefits

positioning. Typically a lack of

consistent application of

messaging across all channels

and collateral.

Competitive pricing and correct

packaging, but actively working to

eliminate other inhibitors (e.g.

contract minimums).

Customers can search, find, and

buy. Provider is actively working

to ensure that all of the

information required to make a

successful buying decision is on

the site and correctly presented,

eliminating any final inhibitors to

selling.

PPC/SEO and other demand

generation capabilities are

leveraged, but with some

inhibiting factors that limit their

effectiveness (e.g. mismatch

between PPC terms and landing

page positioning). Active progress

is being made to eliminate

remaining inhibitors

Self-guided signup, support,

and/or self-administration but

inhibited in some way -- e.g.

overly complex registration

process, complex activation.

Active progress is being made to

eliminate remaining inhibitors.

Direct Sales, indirect channels,

telesales, but with ineffective

processes for lead qualification

and routing of leads to "best

qualified" channel. Provider is

actively working to train sales and

revise processes to improve

effectiveness.

Good executive leadership in

place and committed to drive

change and improve business

performance by driving

improvements in accordance with

the "key success factors".

Transition Phase -

Focused on Initial

Change

1

(Ineffective)

Provider is offering the exact

same service offering as other

providers (perhaps based on third-

party technologies) with no

opportunity for true differentiation,

resulting in a Red Ocean in which

the only remaining competetive

differentiator is price.

Positioning is completely product

and feature centric. Positioning is

effective only for customers who

already know what they need and

are already familiar with the

specific application domain.

Typically characterized by

uncompetitive pricing, minimum

contract terms, minimum # of

users, confusing pricing, too many

tiers of service, multiple tiers

instead of "add-on" options.

Customers are unable to find

offering, presentation is

confusing, no online self-

subscription is available.

No PPC/SEO campaigns. Other

demand generation activities (e.g.

Print ads, direct mail, etc) do not

leverage the web-site.

No self-signup capability, direct

sales interaction required. No

offering self-administration.

Direct sales only. No pro-active

lead qualification. No customer

segmentation by size or industry.

Characterized by tendancy to

focus too far up-market. Long

sales cycles. Lack of "solution

specialist" capability results in

inability to overcome common ob

Ad-hoc organizational and

departmental behaviors with a

lack of internal alignment towards

achieving a common vision or

business objectives.

Product-Dependent

Focus & Ad-Hoc

Behavior

Mural's SaaS Key Success Factors ©

3

+ 12 m.

1. SaaS Business Acceleration 2.0 Workshop self-scoring snap shot of your business today

2. Identify key actions / improvements you can undertake for each KSF area

3. Implement actions / improvements giving priority to the Top 3 KSF areas for your business

4. Evaluate results based on changes made and update scoring on each KSF

5. Translate lessons-learned from one KSF area to another, share across the organisation

6. Repeat cycle, starting at 2 (above)

Level

Competitive

Differentiation Messaging & Positioning Packaging & Pricing Web-Driven Demand Generation

Online Customer

Experience

Direct/Indirect Sales

Process

Organizational

Effectiveness Focus & Behavior

5

(Optimized)

Provider has created true Blue

Ocean (aka uncontested market

space) by differentiating along a

unique axis that reaches beyond

current market boundaries and

existing demand

Vertical (e.g. Real Estate),

Horizontal specialization (e.g.

Finance), or other micro-market

specific positioning. User focus

groups or surveys are pro-actively

used to incorporate customer

feedback into product life-cycle.

Micro-market specific

packaging/bundling of service

with vertically focused add-ons.

Market research used to

understand customer price-point

sensitivities.

Micro-market sales sites for

specific vertical markets (e.g. real-

estate). Fully integrated PPC/SEO

and pro-active analysis of web-

analytics

Micro-market specific demand

generation campaigns with

integration across all forms of

demand generation (e.g. PPC,

Banner Ads, email, direct mail,

print)

Integrated up-sell and cross-sell

activities into customer "control

panel". Pro-active and ongoing

customer feedback management

(surveys of customer panels by

segment to assess overall

customer experience, satisfaction,

and future needs).

Vertical or micro-market focused

channel partners with lead flow

integrated into micro-marketing

campaigns. Channel partner

branded sales sites. Integration of

channel partner into knowledge

base, live chat, etc.

Organization is designed and

internally aligned for change.

Specific processes for continuous

improvement. Healthy balance of

management (stability) and

leadership (fostering change).

Target Market

Focused w/

Continuous

Improvement

4

(Competitive)

Provider has differentiated with a

vertical market focus with vertical

(or micro-market) specific add-on

capabilities/features.

Best Practice positioning based

on a well-defined messaging &

position framework (see

template). Customer centric

positioning that blends customer-

benefit as the solution for the

customer pain point/problem.

Some type of unique

differentiation of packaging or

pricing that sets the provider apart

of the reset of the pack.

Differentiated sub-sites and/or

landing pages aligned with best-

practice positioning of value

proposition according to

messaging & positioning

framework

Demand generation campaigns

drive to a specific sub-site or

landing page. All campaign

activities are well coordinated and

integrated. Pro-active PPC/SEO

campaign management with

periodic (e.g. bi-weekly)

refinement.

Integrated online knowledge-base

and live-chat for both sales

support and post-sales support.

Pro-active email communication

during first 30-60 days provides

training, tips, tricks, etc.

Integrated lead/opportunity flow

for channel partners. Mature

process for lead qualification and

routing of leads. Customer

segmentation and qualification

"drives" the opportunity

management. Willing to "walk

away" from bad opportunities.

Strong executive sponsorship for

improving existing offerings and

adding new value-added service

offerings. Proven organizational

agility and rapid time-to-market in

response to competitive threats.

Transition Phase -

Focused on

Competitive

Differentiation &

Discrete

Improvements

3

(Predictable)

Provider has differentiated from

the competition by bundling

additional services or capabilities

not offered by the competition.

Customer centric positioning with

Benefits (e.g. Anytime, Anywhere

access), then supporting benefits

points, then features as

appropriate. Consistent

application of messaging

throughout ALL collateral.

Small number (2-3) of different

customer/user "plans" that align

correctly with end-user or

customer personas. Value

differentiation between different

price plans is clear and

significant.

Best-practice site that allows

customers to 1) Search; 2) Find;

3) Self Qualify; 4) Try (Free Trial

where possible); 5) Make the

buying decision; 6) Buy; 7)

Activate. Web-site is the focal

point of the business.

Makes use of pro-active

PPC/SEO campaigns. All demand

generation activities lead to one

place -- the web-site.

Self-guided sales experience, self-

admin capabilities, no barriers to

sale via web, or phone. Easy

signup and activation.

Pro-active management of direct

sales, inside sales, and channel

partners. Focus on customer

segmentation and lead

qualification. Pro-active training.

Overlay sales team with deep

solution expertise supports all

channels.

Organizational alignment around

business objectives and customer

needs. Organizational ability to

repeatedly follow a relatively short

and defined life-cycle for the

successful introduction of new or

revised product offerings.

End-Customer

Focused & Service-

Driven

2

(Inhibited)

Provider's offering is functionaly

equivalent to that of other

providers, resulting in a "my

feature X beats your feature X"

competitive differentiation tactic,

but ultimately resulting in a price-

competitive sale.

Still product and feature centric

positioning with progress towards

customer-centric benefits

positioning. Typically a lack of

consistent application of

messaging across all channels

and collateral.

Competitive pricing and correct

packaging, but actively working to

eliminate other inhibitors (e.g.

contract minimums).

Customers can search, find, and

buy. Provider is actively working

to ensure that all of the

information required to make a

successful buying decision is on

the site and correctly presented,

eliminating any final inhibitors to

selling.

PPC/SEO and other demand

generation capabilities are

leveraged, but with some

inhibiting factors that limit their

effectiveness (e.g. mismatch

between PPC terms and landing

page positioning). Active progress

is being made to eliminate

remaining inhibitors

Self-guided signup, support,

and/or self-administration but

inhibited in some way -- e.g.

overly complex registration

process, complex activation.

Active progress is being made to

eliminate remaining inhibitors.

Direct Sales, indirect channels,

telesales, but with ineffective

processes for lead qualification

and routing of leads to "best

qualified" channel. Provider is

actively working to train sales and

revise processes to improve

effectiveness.

Good executive leadership in

place and committed to drive

change and improve business

performance by driving

improvements in accordance with

the "key success factors".

Transition Phase -

Focused on Initial

Change

1

(Ineffective)

Provider is offering the exact

same service offering as other

providers (perhaps based on third-

party technologies) with no

opportunity for true differentiation,

resulting in a Red Ocean in which

the only remaining competetive

differentiator is price.

Positioning is completely product

and feature centric. Positioning is

effective only for customers who

already know what they need and

are already familiar with the

specific application domain.

Typically characterized by

uncompetitive pricing, minimum

contract terms, minimum # of

users, confusing pricing, too many

tiers of service, multiple tiers

instead of "add-on" options.

Customers are unable to find

offering, presentation is

confusing, no online self-

subscription is available.

No PPC/SEO campaigns. Other

demand generation activities (e.g.

Print ads, direct mail, etc) do not

leverage the web-site.

No self-signup capability, direct

sales interaction required. No

offering self-administration.

Direct sales only. No pro-active

lead qualification. No customer

segmentation by size or industry.

Characterized by tendancy to

focus too far up-market. Long

sales cycles. Lack of "solution

specialist" capability results in

inability to overcome common ob

Ad-hoc organizational and

departmental behaviors with a

lack of internal alignment towards

achieving a common vision or

business objectives.

Product-Dependent

Focus & Ad-Hoc

Behavior

Mural's SaaS Key Success Factors ©

1

Today

Page 63: The 5 Myths of Selling Hosted Services to SME Customers

David Ednie President & CEO

SalesChannel Europe Ph: +33 676 60 09 25 (FRA) Ph: +61 415 94 51 57 (AUS)

Email: [email protected] Website: www.saleschannel-europe.com


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