Directions EMEA - Neural Impactneuralimpact.ca/wp-content/uploads/2017/10/emea...• Creator: CRM Product Category Sharka’s contact info (604) 987-4275 [email protected] Partner

Directions EMEA

Packaging, Pricing and Positioning Your Cloud Solutions

http://neuralimpact.ca/Directions2017

Sharka ChobotAbout Sharka

• Chief Transformation Officer, Neural Impact

• 30 year marketing executive (Simply Acctg (Sage), Pivotal CRM, ATI Technologies, Epicor ERP/Vantage Point)

• Professor Marketing & Behavioral Science

• Advisor to Microsoft Partners and ISVs aroundthe globe

• Creator: CRM Product Category

Sharka’s contact info

(604) 987-4275

[email protected]

www.neuralimpact.ca

Partner Selling Challenges

High Cost of Selling

Long Sales Cycle

Low Lead to Close Conversion

Low Win Rates

Delayed Projects

Traditional Selling

SalesMarketing SalesMarketing

Marketing is the new sales

57%

Changing Buyer Expectations

Uncertainty

Risk Dependency

TRUST=Confident Decision

83% of respondents to the AccentureTechnology Vision 2016 survey agreed

that “Trust is the cornerstoneof the digital economy”

Shift to packaged offerings

https://abakion.com/#pricing

https://cloudplatform.sap.com/content/dam/website/skywalker/en_us/PDFs/SAP_CP_Pricing_September_2017.pdf

Average Revenue Mix for a Cloud MSP

10%

50%5%

20%

15%

IP

Managed Services

Hosting

Project/Professional

Resale

Source: Cloud MSP research by AMI Partners, Inc. N = 50

IP

Partners are rapidly adopting cloud focused business models

15%

Offer project services only

Offer project and managed services

48% Offer project services, managedservices and IP

8%

MDC Research, Microsoft Cloud Profitability Scenarios, May 2015

The IP Staircase – Offering Differentiation

COMPLEXITY/COST

Labeled bundles

Turnkey functional

infrastructure

Packaged

extensions

Full vertical

solutions

POTENTIAL ISV PARTNERING

DIFFERENTIATION/VALUE

Dynamics 365

Current Offering + Stack

Own Repeatable IP

OptimizeSpecific Function

Full Vertical Solution

Time and Materials Traditional Proposals

http://www.consultingcloud.org

Think Proposal

One fixed out of the box price is not an option!!!

Psychological reactant

Source: Flexera Software online poll Saas ISVs, April 2011

31%

38%

13%

6%

13%

0 1%-19% 20%-40% >40% Other

Estimated Revenue missed due to “One Size Fits All” Pricing/Packaging

56%

What are you leaving on the table because of “one size fits all” pricing/packaging?

Shift from time & materials to packaged solutionsPe

rcei

ved

Cu

sto

mer

Ris

k

Len

gth

of

Dec

isio

n M

akin

g

Tim

e to

Dep

loy

PackagedSolutions

“Out of the Box”

Time & Materials

Internal

Cu

sto

mer

High

Low

High

Cost of Selling

Length of Sales Cycle

Labour Intensity

Margins

Core differentiation?

Modern

Workplace

Business Applications

Apps and

Infrastructure

Data and AI

https://us.hitachi-solutions.com/oil-gas/

https://www.tecman.co.uk/Industries/Food-and-Beverage

Pricing models

PerpetualLicense

Consumption – Usage based on criteria,

pay as you go

Tiered – Scalable, pay based on levels criteria

Freemium – Capacity, feature, time, use case

1 2 3 4

Plan and pricing

Center Stage

Lite edition

$29/MO

Standard edition

$99/MO

Premium edition

$159/MO

Most Popular

Perfect for Ideal for growing Designed for

Transparency

https://www.encorebusiness.com/blog/erp-cloud-pricing-microsoft-dynamics/

https://www.greenrope.com/dynamics-alternative?cmp=GDynamics&utm_source=bing&utm_medium=cpc&utm_campaign=TPP%20-%20Dynamics%20US&utm_term=%2Bdynamics%20%2Bpricing&utm_content=Dynamics%20-%20Pricing

http://www.o365financials.com/for-business/pricing

Springboard

Retrieved June 2016 http://springboard.cloud2020.co.uk/

Customer NicheEx: What are your segments?

Retrieved May 2016

Retrieved June 2017 http://bindtuning.com/bundles

Persona packaging & pricing

Basic Standard Premium Premium plus

Target user Task worker Information

worker

Information

worker

Designer/

Engineer

Ideal use

Lightweight LOB applications

(e.g., data entry, expense reporting)

Productivity Applications(e.g., Office)

Productivity apps with large data files (e.g. Excel with macros)

Design or heavy compute apps(e.g. MATLAB)

Storage

(per user) 50 GB 50 GB 50 GB 50 GB

Starting price

(per user/month) $10 $15 $20 $25

Azure Remoteapp Pricing

What is the JOB your Product is being hired to do?

Retrieved May 2016 http://www.powerobjects.com/powerpacks/powermap/ Copyright Power Objects

What is PowerMap?

If you’re looking for a more visual representation of records

in your Microsoft Dynamics CRM system, PowerMap will be

your new best friend. PowerMap lets user choose an entity

in CRM, choose a view, and plots all of the individual

records from that view on one map. Users can map more

than one entity, and more than one view at a time, and can

also save their PowerMap preferences, including map

configurations, zoom levels and views

• Supports any entity with an address field

• Click on a pin on a map, and a summary of the

record will display

• Open a record directly from the map, by clicking on the

name of the record in the summary view

Add Ons

Vertical Value add Free Forever Applet

Call me!

Source: Retrieved Mary 2016, Copyright of each respective owner. https://azure.microsoft.com/en-us/marketplace/

Drive Conversion

Use code: ForeverMeExpires: August 31, 2016

Scarcity & Loss Pricing Approach

Free Trial – Limited Time

Cloud Industry Services Strategy

Business Case

Industry Benchmarking

Selection Services Enablement Services Optimization Services

Renewal

306090

Lower Costs & Development Time

Azure ARM template library on Azure.com

Azure ARM template library on GithubComplementary Tools Include

• Chef

• Puppet Labs

Develop

a focus

Create your

solution

Identify

the offer

Expand

your service

Building a customer lifetime value engine

Try the free value proposition generator: http://neuralimpact.ca/Directions2017

[email protected]

(604) 987-4275

0% 20% 40% 60% 80%100%

VALUE EXCHANGE AND …

TRUST AND CREDIBILITY

PROOF OF CLAIMS

SIMPLICITY VS COMPLEXITY

CURIOSITY AND NOVELTY

VISUAL STIMULATION

EMOTIONAL …

PERSONA ENGAGEMENT

TRIBAL CONNECTION

EMOTIONAL AUDIT SUMMARY

Session

How to Increase Online Engagement and Drive Conversion

Best practices in Digital Marketing Engagement - Townhall Discussion

Packaging, Pricing and Positioning Your Cloud Solutions

BE.20

BE.21

BE.22 Berlin