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May 19-20 l Washington, DC l Omni Shoreham Douglas Johnson Marketing Director, Parallels Converting Clients to Customers Marketing to Clients Visiting.

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Presentation on theme: "May 19-20 l Washington, DC l Omni Shoreham Douglas Johnson Marketing Director, Parallels Converting Clients to Customers Marketing to Clients Visiting."— Presentation transcript:

1 May l Washington, DC l Omni Shoreham Douglas Johnson Marketing Director, Parallels Converting Clients to Customers Marketing to Clients Visiting Your Website

2 Parallels Service Provider Solutions 2 Agenda Hosting Marketing Website Marketing Measuring Your Success Converting Low Value Clients to High Value Clients This session examines the marketing of hosted services. In recent years, many services such as shared hosting have transitioned from the early adopter to the pragmatist stage of client adoption. Other services, such as SaaS are at the beginning of their adoption cycle and will soon provide lucrative sales rewards to companies who are positioned correctly. This session will link marketing theories to concrete actions which you can take to position your company. The discussion will include an overview of web analytics, marketing, and search engine optimization tools to help you measure your success.

3 Parallels Service Provider Solutions 3 Hosting Trends and Opportunities Market TrendKey PlayersParallels Driven Opportunities 16% Growth per year is expected through 2011 Parallels helps optimize your computing resources to minimize your costs and maximize up-selling and revenue. Applications increase average revenue per client Parallels SaaS standards, virtualization, and automation tools help providers offer more applications at a lower cost. Big Companies have entered the hosting market Parallels provides software which allows you to compete with the big players. Flexible APIs mean you can be faster to market. Virtualization is improving hosting efficiency Integrated automation and virtualization products provide an improved hosting infrastructure and customer services. Windows Apps provide revenue opportunities Parallels helps you launch Exchange, SharePoint, and CRM to provide high revenue services.

4 Parallels Service Provider Solutions 4 Marketing Bell Curve Visionaries Geeks Early Adopters ConservativesPragmatistsSkeptics Mainstream Market ($$)Unknown “The Chasm” Source: “Crossing the Chasm” and “Inside the Tornado” by Geoffrey Moore Goal: Be the market leader when a product or solution “crosses the chasm”

5 Parallels Service Provider Solutions 5 SaaS and a ZDnet Talkback April 14 Article: Salesforce and Google team to conquer the enterprise “Master Joe” says … First of all, since when is the SaaS thing such a big deal? I have to be honest. I would prefer desktop applications, over a web-based productivity suite, any day of the week. I prefer to have FULL control over my applications, and to know exactly what they are doing, what information is being transmitted to and from them, and who can see that information. … Question: Master Joe is a ___. a) Early Adopterc) Conservative b) Pragmatistd) Skeptic

6 Parallels Service Provider Solutions 6 Secure Hosted CRM Free trials, 5 layers of server security Uptime metrics and SLA Question: What will Master Joe Click? Answer: nothing – he would not search in the first place … and if he did, he would just waste your salesperson’s time.

7 Parallels Service Provider Solutions 7 Yahoo Finance –Web Hosting CAMBRIDGE, Mass - Despite a long-term future marked by commoditization, enterprise spending on Web 2.0 technologies will surge over the next five years, growing 43 percent each year to reach $4.6 billion globally by 2013, according to a new report by Forrester Research, Inc. The five-year Forrester forecast includes a breakdown of future business spending on technologies such as social networking, RSS, blogs, wikis, mashups, podcasting, and widgets, as well as an analysis of enterprise Web 2.0 spending across North America, Europe, and Asia Pacific. Forrester believes that Web 2.0 technologies represent a fundamentally new way to connect with customers and prospects and harness the collaborative power of employees. Large enterprises such as General Motors, McDonald’s, Northwestern Mutual Life Insurance, and Wells Fargo have all made heavy use of these tools, and 56 percent of North American and European enterprises consider Web 2.0 to be a priority in 2008 according to a recent Forrester survey. Question: Where is web hosting in the product marketing cycle?

8 Parallels Service Provider Solutions 8 Where We Are Today? Visionaries Geeks Early Adopters ConservativesPragmatistsSkeptics Mainstream Market ($$)Unknown Shared Web Hosting VPS Hosting Dedicated Hosting Domain Registration Webmail Are you marketing to Pragmatists and Conservatives? Pragmatists: buy based on ROI, ensure that the product/service will help their business, only buy if other pragmatists have purchased, buy leading brand Conservatives: skeptical of technology, require ease-of-use, buy commodity products and shop for the best value

9 Parallels Service Provider Solutions 9 Your Target Market - SMBs Question: What are SMB Problems and Concerns? –Study by NIFB (National Federation of Independent Business), Cost of Health Insurance 2Federal Taxes 3Locating Qualified Employees 20Poor Earnings (Profits) 34Ability to Cost-Effectively Advertize 61Effective Business Use of the Internet How Difficult Are Their Problems? –Survey by Zeryn of Small Business in Service Areas, 2005 (1 = least difficult, 5 = most difficult) Finding New Customers8% 15%38%31% Losing Customers to Competition36% 16%12%0% Not Enough Growth4%0%26%48%22% Keeping Up with New Technology46%29%12%8%4%

10 Parallels Service Provider Solutions 10 What Distinguishes You? People can remember 1-2 things about your company. Do you know what those are? “_________ is a leading IT infrastructure provider to startups and small to mid-size businesses, delivering highly scalable hosting solutions that allow customers to focus on the possibilities of the Internet, not the problems. We provide award-winning Managed, Self-Managed, and Co-location hosting services through __ state-of-the-art data centers in __ cities across North America connected together by our ultra-fast network.” Question: How many things are people being asked to remember in the positioning statement below? Different branding for different messages

11 Parallels Service Provider Solutions 11 SMBs willing to Pay $1,700 per Website Why? –Sales –Customers –Revenue How? –Most SMBs do not want to build their own website, no matter how easy $1,700, Really? –$500 for basic site –$200 add a form –$300 add database integration –$250 add Flash and animations –$300 add counters – blogs – wikis - and other APS applications –$300 add SEO and other services

12 Parallels Service Provider Solutions 12 Marketing to Pragmatists & Conservatives Conservatives buy – but they buy differently from Early Adopters Observe Messages No mention of disk space No guy standing in front of a datacenter “we do everything for you” “affordable” ConservativesPragmatists Observe Price $300 setup fee $90 - $100 / month

13 Parallels Service Provider Solutions 13 Add-On Services If you cannot sell it, bundle it! –How do SMBs buy services? –Is each decision painful? SMBs like easy decisions –Easy: Silver, Gold, or Platinum –Hard: Amount of disk space, 20 individual applications, memory, etc. What should I bundle? Bundle ItAdd It On Marketing Fax to CMS wikis Blogs Forums Photo Gallery Shared Calendar File Archiving Shopping Cart Data Backup

14 Parallels Service Provider Solutions 14 Add-On Examples Plesk Application Pack –Click-n-Build – bundles applications in plans for additional $1, $6, $16 per month per user Managed Backups with Acronis –Redplaid provides “Managed Data Backups” as part of a $180/month with a dedicated server package Collaboration (SmarterMail, Open-Xchange Exchange) –Contacts, calendaring, mobile mail, anti-spam, anti-virus – sell at $3- $12/month/user More –Many ISVs might be sitting right next to you with solutions that can increase your revenue per customer and your profit margins

15 Parallels Service Provider Solutions 15 Where Can We Go Tomorrow? Visionaries Geeks Early Adopters ConservativesPragmatistsSkeptics Mainstream Market ($$)Unknown Shared Web Hosting VPS Hosting Dedicated Hosting Domain Registration Mobile Web Creation/Hosting Virtual Desktop VPS with legal software suite Webmail Web Hosting in Minneapolis Hosted Applications

16 Parallels Service Provider Solutions 16 Path to Winning High Value Customers Paying Clients Low Value Clients Internally Hosted Businesses High Value Clients Leads / Prospects Trial Participants Search Engine Optimization Advertising Partnerships Webinars Actions to TakeWhat to TrackHow to Track Site visits Time per visit Pages viewed Navigation paths Abandonment, exit Web analytics Newsletters Mailings Forums Blogs Open rates Click through rates Forum and blog logins and posts marketing software Blog and forum reports Sales Contact User Conferences Loyalty Programs Surveys Conversion rates Survey responses CRM software Survey tools Partner ProgramsRevenue growth Churn rate Financial accounting software

17 Parallels Service Provider Solutions 17 What Will Attract a Customer?

18 Parallels Service Provider Solutions 18 What will attract customer: Message

19 Parallels Service Provider Solutions 19 What will attract a customer: Placement Heatmap – technique to see where eyeballs move on a webpage. –Webpage example –Google example

20 Parallels Service Provider Solutions 20 What will attract a customer: Placement Clickmap

21 Parallels Service Provider Solutions 21 Tracking Your Success Use Clickmap to place popular items in prominent locations Caution: are the clicks customers? Caution: are popularly clicked items helping you sell?

22 Parallels Service Provider Solutions 22 Tracking Your Success – other metrics Web analytics provides much more than clickmaps: –Page views –Single page visits –Average page time –Referring domains –Keywords –Browser type/size Caution –Web analytics does not always know “bad” traffic from good –see security.gov.sa, and I had to cut off some of the others

23 Parallels Service Provider Solutions 23 Converting Trials to Paying Clients Paying Clients Low Value Clients Internally Hosted Businesses High Value Clients Leads / Prospects Trial Participants Search Engine Optimization Advertising Partnerships Webinars Actions to TakeWhat to TrackHow to Track Site visits Time per visit Pages viewed Navigation paths Abandonment, exit Web analytics Newsletters Mailings Forums Blogs Open rates Click through rates Forum and blog logins and posts marketing software Blog and forum reports Sales Contact User Conferences Loyalty Programs Surveys Conversion rates Survey responses CRM software Survey tools Partner ProgramsRevenue growth Churn rate Financial accounting software

24 Parallels Service Provider Solutions 24 Marketing When a client provides an address to download a 30-day trial … some follow up is required … Timing*Goal Title Welcome Letter0 daysWelcome letter – describe where to get help and describe benefits Checking In7 daysEnsure prospect is using trial, describe benefits to explore Trial Expiring23 daysInform that trial is ending, prominently place enrollment link Expiration In 1 Day29 daysReminder that account will be terminated, enrollment link Account Expired35 daysThank user, see if they will (1) respond to a price offering or (2) complete a survey Sample programs and re-brandable letters are available for Parallels Automation customers * program should identify whether person has enrolled or cancelled before sending an

25 Parallels Service Provider Solutions 25 Examples JangoMail ExactTarget Pricing: $ $0.03 per , depending on volume

26 Parallels Service Provider Solutions 26 – Integrated Inside Your Control Panel Parallels Automation Promotions and Campaigns (price: $0.00) Step 1: Create Promotion Define prices, timing, applicable plans, and resources. Step 2: Create Correspondence Define delivery options, database fields, and format. Step 3: Schedule Delivery Define automated message delivery and conditions. Step 4: Measure Results Retrieve reports describing your campaigns.

27 Parallels Service Provider Solutions 27 Marketing – How Are You Doing? Deliverables –90% - 95% of should be delivered, bounces involve people leaving companies, signing up with incorrect address, etc. Typical Open Rates –20% - 40% for opt-in –Highest for niche topics, small lists –Lowest for large lists with less personal relationships, newsletters –Most measurements based on downloading an image Click Rates –10% of the people who open an , will click a link How to Improve –Subject line is critical –Notice what appears in standard preview pane –Measuring clicks can reduce the number of clicks! –Send relevant and targeted information send delivered (90-95%) opened (20-40%) link clicked (2-4%)

28 Parallels Service Provider Solutions 28 Blogging and Forums Encourage registered trial members to participate in your blog or seek help on your forums. Do not under-estimate the cost of maintaining them –Not talking about hosting or maintaining –Am talking about the cost of maintaining an active forum Keep clients separate from prospects –Clients need a place to go to escape the world wide web

29 Parallels Service Provider Solutions 29 Converting Trials to Paying Clients Paying Clients Low Value Clients Internally Hosted Businesses High Value Clients Leads / Prospects Trial Participants Search Engine Optimization Advertising Partnerships Webinars Actions to TakeWhat to TrackHow to Track Site visits Time per visit Pages viewed Navigation paths Abandonment, exit Web analytics Newsletters Mailings Forums Blogs Open rates Click through rates Forum and blog logins and posts marketing software Blog and forum reports Sales Contact User Conferences Surveys Conversion rates Survey responses CRM software Survey tools Loyalty Programs SaaS Offerings Revenue growth Churn rate Financial accounting software

30 Parallels Service Provider Solutions 30 Conversion Rates Getting Trials is Important Converting Trials to Paying Clients is More Important Typical conversion rate for free trial: 50-70%* Typical conversion rate for automatic enroll: 60-70% What is happening to prevent conversion? * source: MarketingExperiments.com

31 Parallels Service Provider Solutions 31 Survey Software Send clients a survey – Parallels did a SaaS survey to learn more about what you want.

32 Parallels Service Provider Solutions 32 Importance of Continuous Contact If people cannot enroll immediately, you will lose them Almost 90% of people took action within 1 day of visiting a website. Purchase decision relies on constant contact

33 Parallels Service Provider Solutions 33 Converting Low Value Clients to High Value Paying Clients Low Value Clients Internally Hosted Businesses High Value Clients Leads / Prospects Trial Participants Search Engine Optimization Advertising Partnerships Webinars Actions to TakeWhat to TrackHow to Track Site visits Time per visit Pages viewed Navigation paths Abandonment, exit Web analytics Newsletters Mailings Forums Blogs Open rates Click through rates Forum and blog logins and posts marketing software Blog and forum reports Sales Contact User Conferences Surveys Conversion rates Survey responses CRM software Survey tools Loyalty Programs SaaS Offerings Revenue growth Churn rate Financial accounting software

34 Parallels Service Provider Solutions 34 80% of Your Clients are Not Valuable Why? –They are struggling businesses? –They don’t really need your services? –Your are not following up and selling them more services? If you are not selling them more services, then you need to understand their pain points and continuously market new services –Give surveys –Institute loyalty and partnership programs –Invite your users to Parallels Summit!

35 Parallels Service Provider Solutions 35 SaaS – The Track to Higher Hosting Revenue Customer Needs Web Presence E-commerceCollaboration Application Mgmt Revenue Opportunity (SMB: 20 Users/Month) $10 $100 $1,000 Domain Registration $1-$3 Shared Static Web Hosting $3-$10 Shared Dynamic Web, DB, Apps $5-$20 Virtual Private Servers $15-$100 Dedicated & Managed Server $100-$500 Business-Class (i.e. Hosted Exchange) $150-$300 Add Business Collaboration (i.e. SharePoint, LCS, VoIP) $200-$500 Advanced Apps (CRM, ERP, vertical) $250-$1500+ Infrastructure SaaS

36 Parallels Service Provider Solutions 36 Adding Additional Services Integrated Billing and Provisioning is the key to selling clients more services Parallels Automation maximizes up-selling Customizable Box Add marketing messages. News Window Display news and special vendor offers. Campaigns Trigger s based on service renewals or other mechanism. Include link to online store.

37 Parallels Service Provider Solutions 37 Thank you Key Points –Identify your audience, market frequently, pick a niche and win How Parallels Can Help –Parallels Automation includes up-sale capabilities –Parallels Business Automation includes integrated marketing campaigns –SaaS initiatives and the APS Standard deliver ready-to-use applications that already work with your Parallels control panels Contact Details: Doug Johnson


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