The document discusses strategies for converting low-value hosting clients into high-value customers by marketing additional services. It recommends continuously marketing to clients through email, forums, blogs and surveys to promote add-on services like collaboration tools, applications, and infrastructure-as-a-service offerings which can significantly increase revenue per client. Measuring marketing campaigns and conversions is key to optimizing efforts to up-sell existing clients.
1. Douglas Johnson Marketing Director, Parallels Converting Clients to Customers Marketing to Clients Visiting Your Website
2.
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 ($$) Unknown
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15. Where Can We Go Tomorrow? Visionaries Geeks Early Adopters Shared Web Hosting VPS Hosting Dedicated Hosting Domain Registration Webmail Conservatives Pragmatists Skeptics Mainstream Market ($$) Unknown Mobile Web Creation/Hosting Virtual Desktop VPS with legal software suite Web Hosting in Minneapolis Hosted Applications
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
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)
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.
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
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?
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
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
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
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)
Issue: who are we trying to attract? Early Adopter, Pragmatist, or Conservative?
+1 marketing Should GoDaddy have a franchise model?
Note: “Parellels” was #32 on the keyword search with 32 searches in a week
JangoMail Pricing: PRICING $30 - $3,200 / month for 1,000 – 616,000 emails $0.03 - $0.005 per email depending on volume
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