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Douglas Johnson Marketing Director, Parallels Converting Clients to Customers Marketing to Clients Visiting Your Website
Agenda ,[object Object],[object Object],[object Object],[object Object],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, email marketing, and search engine optimization tools to help you measure your success.
Hosting Trends and Opportunities Market Trend Key Players Parallels 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.
Marketing Bell Curve “ 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” Visionaries Geeks Early Adopters Conservatives Pragmatists Skeptics Mainstream Market ($$) Unknown
SaaS and a ZDnet Talkback ,[object Object],“ Master Joe” says …  First of all, since when is the SaaS thing such a big deal? I have to be honest. I would prefer desktop applications, over a web-based productivity suite, any day of the week. I prefer to have FULL control over my applications, and to know exactly what they are doing, what information is being transmitted to and from them, and who can see that information.  … Question: Master Joe is a ___. a) Early Adopter c) Conservative b) Pragmatist d) Skeptic
Question: What will Master Joe Click? ,[object Object],[object Object],Secure  Hosted  CRM Free trials, 5 layers of server security Uptime metrics and SLA www.secureCRM.com
Yahoo Finance –Web Hosting ,[object Object],CAMBRIDGE, Mass - Despite a long-term future marked by commoditization, enterprise spending on Web 2.0 technologies will surge over the next five years, growing 43 percent each year to reach $4.6 billion globally by 2013, according to a new report by Forrester Research, Inc. The five-year Forrester forecast includes a breakdown of future business spending on technologies such as social networking, RSS, blogs, wikis, mashups, podcasting, and widgets, as well as an analysis of enterprise Web 2.0 spending across North America, Europe, and Asia Pacific.  Forrester believes that Web 2.0 technologies represent a fundamentally new way to connect with customers and prospects and harness the collaborative power of employees. Large enterprises such as General Motors, McDonald’s, Northwestern Mutual Life Insurance, and Wells Fargo have all made heavy use of these tools, and 56 percent of North American and European enterprises consider Web 2.0 to be a priority in 2008 according to a recent Forrester survey.
Where We Are Today? Visionaries Geeks Early Adopters Shared Web Hosting VPS Hosting Dedicated Hosting Domain Registration Webmail ,[object Object],[object Object],[object Object],Conservatives Pragmatists Skeptics Mainstream Market ($$) Unknown
Your Target Market - SMBs ,[object Object],[object Object],[object Object],[object Object],Poor Earnings (Profits) 20 Effective Business Use of the Internet 61 Ability to Cost-Effectively Advertize 34 Locating Qualified Employees 3 Federal Taxes 2 Cost of Health Insurance 1 4% 8% 12% 29% 46% Keeping Up with New Technology 22% 48% 26% 0% 4% Not Enough Growth 0% 12% 16% 36% 36% Losing Customers to Competition 31% 38% 15% 8% 8% Finding New Customers 5 4 3 2 1 (1 = least difficult, 5 = most difficult)
What Distinguishes You? ,[object Object],[object Object],“ _________ 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? ,[object Object]
SMBs willing to Pay $1,700 per Website ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Marketing to Pragmatists & Conservatives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Conservatives Pragmatists ,[object Object],[object Object],[object Object]
Add-On Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Bundle It Add It On Email Marketing Fax to Email CMS wikis Blogs Forums Photo  Gallery Shared Calendar File Archiving Shopping Cart Data Backup
Add-On Examples ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Where Can We Go Tomorrow? Visionaries Geeks Early Adopters Shared Web Hosting VPS Hosting Dedicated Hosting Domain Registration Webmail Conservatives Pragmatists Skeptics Mainstream Market ($$) Unknown Mobile Web Creation/Hosting Virtual Desktop VPS with legal software suite Web Hosting in Minneapolis Hosted Applications
Path to Winning High Value Customers Paying Clients Low Value Clients Internally Hosted Businesses High Value  Clients Leads / Prospects Trial Participants ,[object Object],[object Object],[object Object],[object Object],Actions to Take What to Track How to Track ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What Will Attract a Customer?
What will attract customer: Message
What will attract a customer: Placement ,[object Object],[object Object],[object Object]
What will attract a customer: Placement ,[object Object]
Tracking Your Success ,[object Object],[object Object],[object Object]
Tracking Your Success – other metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Converting Trials to Paying Clients Paying Clients Low Value Clients Internally Hosted Businesses High Value  Clients Leads / Prospects Trial Participants ,[object Object],[object Object],[object Object],[object Object],Actions to Take What to Track How to Track ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Email Marketing ,[object Object],Timing* Goal Email Title ,[object Object],* Email program should identify whether person has enrolled or cancelled before sending an email Thank user, see if they will (1) respond to a price offering or (2) complete a survey 35 days Account Expired Reminder that account will be terminated, enrollment link 29 days Expiration In 1 Day Inform that trial is ending, prominently place enrollment link 23 days Trial Expiring Ensure prospect is using trial, describe benefits to explore 7 days Checking In Welcome letter – describe where to get help and describe benefits  0 days Welcome Letter
Email Examples ,[object Object],[object Object],[object Object]
Email – Integrated Inside Your Control Panel ,[object Object],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.
Email Marketing – How Are You Doing? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],send email email delivered (90-95%) email opened (20-40%) link clicked (2-4%)
Blogging and Forums ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Converting Trials to Paying Clients Paying Clients Low Value Clients Internally Hosted Businesses High Value  Clients Leads / Prospects Trial Participants ,[object Object],[object Object],[object Object],[object Object],Actions to Take What to Track How to Track ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conversion Rates ,[object Object],[object Object],[object Object],[object Object],[object Object],* source: MarketingExperiments.com
Survey Software ,[object Object]
Importance of Continuous Contact ,[object Object],[object Object],[object Object]
Converting Low Value Clients to High Value Paying Clients Low Value Clients Internally Hosted Businesses High Value  Clients Leads / Prospects Trial Participants ,[object Object],[object Object],[object Object],[object Object],Actions to Take What to Track How to Track ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
80% of Your Clients are Not Valuable ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SaaS – The Track to Higher Hosting Revenue Customer Needs  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 E-mail (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 Web Presence Email E-commerce Collaboration Application Mgmt Revenue Opportunity (SMB: 20 Users/Month) $10 $100 $1,000
Adding Additional Services ,[object Object],[object Object],Customizable Box Add marketing messages. News Window Display news and special vendor offers. Email Campaigns Trigger emails based on service renewals or other mechanism. Include link to online store.
Thank you ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Contact Details : Doug Johnson 703-995-6221 [email_address]

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Parallels Hosting Products

  • 1. Douglas Johnson Marketing Director, Parallels Converting Clients to Customers Marketing to Clients Visiting Your Website
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  • 3. Hosting Trends and Opportunities Market Trend Key Players Parallels 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. Marketing Bell Curve “ 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” Visionaries Geeks Early Adopters Conservatives Pragmatists Skeptics Mainstream Market ($$) Unknown
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  • 15. Where Can We Go Tomorrow? Visionaries Geeks Early Adopters Shared Web Hosting VPS Hosting Dedicated Hosting Domain Registration Webmail Conservatives Pragmatists Skeptics Mainstream Market ($$) Unknown Mobile Web Creation/Hosting Virtual Desktop VPS with legal software suite Web Hosting in Minneapolis Hosted Applications
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  • 17. What Will Attract a Customer?
  • 18. What will attract customer: Message
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  • 35. SaaS – The Track to Higher Hosting Revenue Customer Needs 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 E-mail (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 Web Presence Email E-commerce Collaboration Application Mgmt Revenue Opportunity (SMB: 20 Users/Month) $10 $100 $1,000
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Hinweis der Redaktion

  1. Early Adopters – will buy because it’s new – don’t need other’s endorsement – leaders who prefer the bleeding edge of technology Pragmatists – will only buy products when other pragmatists are doing so – introduce chasm concept Conservatives – will buy once pragmatists are happy with it Skeptics – cannot predict their behavior – may never buy it 2001 Leading Hosting Providers Exodus Sprint Intel Online Services HostPro DellHost
  2. http://talkback.zdnet.com/5208-11406-0.html?forumID=1&threadID=46562&messageID=864007&start=-9980 Answer: C – technology conservative (not necessarily his political stance)
  3. As tempting as it is to run an ad that says “secure hosted CRM” click here. Joe will still not click it because he will not search for it. If he does click it, he will waste your sales person’s time.
  4. http://biz.yahoo.com/bw/080421/20080421005095.html?.v=1 continues: “Software firms can make money selling enterprise Web 2.0 software, but it will not be an easy road to hundred-million-dollar run rates,” said Forrester Research Analyst G. Oliver Young. “The market for enterprise Web 2.0 tools will be defined by commoditization, eroding prices, and incorporation into enterprise collaboration software over the next five years. It will eventually disappear into the fabric of the enterprise, despite the major effects the technology will have on how businesses market their products and optimize their workforces.” Is market closed: for massive web hosting – yes, but you can define your own space and win. Answer: definitely main street – major firms adopted it, multiple uses, commoditization
  5. http://www.nfib.com/object/2752737.html (survey date: 2001) http://www.seedsofgrowth.com/files/Survey_Results.pdf (survey date Fall 2005) This is not surprising – because in 2001, the market was in the early-adopter stage – remember those days?
  6. Answer: 9 IT infrastructure provider markets: startup, SMB, and mid-sized businesses scalable hosting award-winning managed and self-managed co-location state-of-the-art datacenters many North American cities ultra-fast network
  7. http://www.seedsofgrowth.com/small-businesses-main-problem-they-need-more-customers willing to spend $1,700 per site … $1,100 average at a well known competitor
  8. Website Pros & Web.com merged in June 2007 They send a Paper Fulfillment kit when done creating the site! http://www.businessseek.biz/article-directory/article-435.html get web analytics test things target market
  9. Plesk application pack $25/server/month retail (discounts for partners) Acronis cost: $10 - $40 / server / month SmarterMail cost: $300 (50 domains/250 users) to $674 (unlimited)
  10. Issue: who are we trying to attract? Early Adopter, Pragmatist, or Conservative?
  11. +1 marketing Should GoDaddy have a franchise model?
  12. Note: “Parellels” was #32 on the keyword search with 32 searches in a week
  13. JangoMail Pricing: PRICING $30 - $3,200 / month for 1,000 – 616,000 emails $0.03 - $0.005 per email depending on volume
  14. Note – Clicks on partner newsletter were 4X higher than the general newsletter. http://www.campaignmonitor.com/blog/archives/2007/01/all_about_email_open_rates.html
  15. http://www.marketingexperiments.com/improving-website-conversion/free-trial-offers.html