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Selling Your Twilio-powered Apps to Businesses

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SELLING TWILIO APPS
Patrick McKenzie – Kalzumeus Software

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My Business

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Two Ways To Sell Software
 Low-touch sales
 Demand driven
 Convert customers at scale: web, email, etc
 End-user is bu...

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Selling Your Twilio-powered Apps to Businesses

  1. 1. SELLING TWILIO APPS Patrick McKenzie – Kalzumeus Software
  2. 2. My Business
  3. 3. Two Ways To Sell Software  Low-touch sales  Demand driven  Convert customers at scale: web, email, etc  End-user is buyer  Lower price points  High-touch sales  Supply driven  Convert customers one at a time  End-user probably is not buyer  Higher price points (up to $GADZOOKS)
  4. 4. The Curious Case of Modern SaaS  Monthly billing is a core innovation.  $X,000 LTVs can be acquired at low-touch  Hybrid models are possible  $200/month for small businesses  … but you need an SLA? Talk to sales team.
  5. 5. A Brief Primer On SaaS Pricing  Price based on value, not on cost.  Anchors matter! Do NOT anchor on Twilio cost!  Segment to capture customer value.  The 4 plan pricing page  Evolutionary maxima for low-touch SaaS.  Not necessarily optimal for high-touch sales.  Interesting ways to play with it.  Always remember: it is not their money.
  6. 6. Pricing Page Teardown
  7. 7. Single Most Actionable Tip at TwilioCon Offer Annual Billing
  8. 8. The Six Figure Email  Offer discount (“1 month free”) if they switch to annual billing.  Offer it to “loyal customers” over email  One click + confirmation to switch.  Conversion rate from 10% to 25%+  Immediate revenue of $200 per email sent
  9. 9. Low-touch Stuff That Works  SEO / AdWords / marketing site / etc  Olark / chat widgets / etc  Fully-functional free trials  Funnel optimization  Product tours  Email. Email. Email.
  10. 10. Let’s Talk Product Tours  40 ~ 60% of 1st time users won’t ever come back  First experience of app has to rock  Customization screens do not rock  Empty dashboards do not rock  Productivity apps (w/o team) do not rock
  11. 11. Three Goals Of A Tour  1) Demonstrate one awesome improvement to the user, immediately.  2) Establish a reason why the user should come back.  3) Ask users to invite anyone appropriate into the app.
  12. 12. Appointment Reminder Product Tour  Problem: Customers require 4 ~ 6 weeks to perceive value from product  … and the product has a 30 day trial  … and 60% of users abandon on Day 1  Solution: Demonstrate value on Day 1
  13. 13. Tour Script  Customer first listens to reminder on their phone.  Then, they learn how to schedule appointments.  Then, they learn how to manipulate appointments.  Then, they learn what they should do next.  This would be a great point to sell sell sell.  Or to ask them to invite their co-workers into the app.
  14. 14. Ugly As Sin But It Works
  15. 15. Single Best Tour Tip Introduc e Sticky
  16. 16. Email Customer s
  17. 17. Low Conversion To Trial? Sell Via Email  Conversion from visitor to paying signup: ~1%  Conversions to free email submission can be 20 ~ 40%, particularly if you offer a decent incentive  Send people a drip campaign  “One month free course, delivered over email, about $TOPIC”  6 ~ 8 emails  Educate. Persuade. Then, and only then, sell.  Absolutely prints money.
  18. 18. Sample Landing Page For Email Submit  Offers immediate incentive for signup  Asks for permission to contact, with the course offering  Describes what they’ll get if they opt-in  http://speed.wpengi ne.com
  19. 19. Drip Marketing Example
  20. 20. More Advanced Uses Of Email  Client starts using software?  Send “personalized welcome” from the CEO.  Client looks like they’ll cancel?  Send a rescue email. (“Write back and I’ll extend trial.”)  Client doesn’t use a particular feature?  Send a getting started guide.  Client getting to decision point?  Send them an ROI calculation!
  21. 21. Weekly Checkup (“Get Them Promoted”)
  22. 22. Everyone Can Do Sales
  23. 23. Core High-Touch Sales Insights  You are not being bought by the person using the software.  Customers can “request” high-touch sales with questions or behavior in trial.  Expectations are very different.
  24. 24. Who Is The Decisionmaker?  Business owner?  Typical for SMB  Head of IT? Head of Ops?  Project lead lower in the organization?
  25. 25. Dealing With Purchasing Cycle  Purchasing may have adversarial relationship with users.  Purchasing is scored on discounts.  Purchasing hates rejecting work, wants you to reject them.  Lead -> Call -> Meeting -> Proposal -> Formal Quote -> Deliver -> Invoice -> Heat Death of Universe -> Check Arrives
  26. 26. Purchasing Has A Checklist  Lacking certain things will auto-kill deals.  SLA  Support/maintenance contract  Industry-specific compliance (HIPAA, etc)  “Sign our standard vendor contract”  You need to have and mention that you have these things.  Charge through the nose for these things.
  27. 27. Enterprises Have Money. Take It!  SLA  Maintenance / support  Custom integration work  … and maintenance!  Training  Delivered in person  Delivered scalably (videos, etc)
  28. 28. Key Sales Anchors  “The fully-loaded cost of one employee”  Wasted time with hard costs associated with it  Truck rolls  High-value employees  Low-value employees who are monitored effectively  Lost business / missing revenues / etc  Missed appointments  Missed opportunities for sales  Case studies make this much more credible
  29. 29. Have A Question You Can’t Answer? Roleplayin g Exercise
  30. 30. Dealing With Pricing Objections  Never compromise on unit prices.  Purchasing needs a discount. Give them one:  Bundled extra, “normally” charged $X, for $Y instead  Nominal discount for pre-payment or commitment.
  31. 31. Unfortunate Necessities  Corporate shield  Insurance  Lawyer (ideally, on standby)
  32. 32. More Goodies!  LifecycleEmails.com : 5 hour video course, with annotated examples, of how to use email to sell SaaS better.  kalzumeus.com/blog : ~6 years of posts  training.kalzumeus.com : Free video on improving first run experience of app  patrick@kalzumeus.com or @patio11  I love talking about this.

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