EarlyRev110224h

Views:
 
Category: Entertainment
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

Early Revenue For Enterprise SaaS :

Early Revenue For Enterprise SaaS Sean Murphy, SKMurphy Inc. A DreamSimplicity Webinar Feb-24-2011 (c) 2011 SKMurphy, Inc. (www.skmurphy.com)

Goals For This Talk:

(c) 2011 SKMurphy, Inc. (www.skmurphy.com) 2 2 Goals For This Talk Explain Basics of Enterprise Sales Process Contrast “Buy Now” Sales With Enterprise Enter Credit Card On Landing Or Pricing Page Explain Need For an Internal Champion When A Product Requires Large Changes How To Identify And Support A Champion

What Sales Model Does Your First Dollar of Revenue Require:

What Sales Model Does Your First Dollar of Revenue Require Commodity Or “Buy Now!” Sale Considered Purchase (May Be Enterprise) Orchestrated Sales (Enterprise) Complex Orchestrated Sale (Enterprise) (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 3

Sales Model Commodity Or “Buy Now!” Sale:

Sales Model Commodity Or “Buy Now!” Sale Example: Simple iPhone App No Change In Form, Fit, Function, Inputs Characteristics Individual Buyer Try It and Like It No Behavior Change Needed (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 4

Sales Model: Considered Purchase (May Be Enterprise):

Sales Model: Considered Purchase (May Be Enterprise) Example: Video Editing Tool Change: Individual Job Or Task Characteristics Complex Decision: Evaluating Many Features Try It You’ll Like It May Work Often Individual Learning Curve Effects (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 5

Sales Model Orchestrated Sale (Enterprise):

Sales Model Orchestrated Sale (Enterprise) Example: Inventory Management System Change: Group Process Or Workflow Characteristics Complex Feature Set Team Learning Curve Effects Unanticipated Benefits & Problems (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 6

Enterprise Sales Model: Complex Orchestrated Sale:

Enterprise Sales Model: Complex Orchestrated Sale Example: Configurator For Order Entry Customer/Supplier Relationship Change Characteristics Significant Risks: Parallel Operation Very Hard Multi-Firm Learning Curve Effects May Require or Enable Contract Changes (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 7

Buy Now Vs. Enterprise Sale:

Buy Now Vs. Enterprise Sale Spending / Cost / Authorization Education Needed to Understand Benefits Number of People & Relationships Affected Length of Decision Process (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 8

Question For Audience: Monthly Cost of Minimum Product:

Question For Audience: Monthly Cost of Minimum Product What’s The Monthly Price For Your Minimum Product Configuration? Note: Freemium is Fine, But Tell Us What Is The Least Cost Option Above Free Please Type Your Answer Into Chat Window (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 9

Buy Now Vs. Enterprise Sale Spending / Cost / Authorization:

Buy Now Vs. Enterprise Sale Spending / Cost / Authorization Cost is $400 per month or more Somewhat Arbitrary Threshold Annual Deal Size 5K-100K or More Sales Process is Multi-Step Price Above One Level of Signoff Requires Orchestration (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 10

Buy Now Vs. Enterprise Sale Education Needed:

Buy Now Vs. Enterprise Sale Education Needed Task Level Change Job Level Change Experimentation May Be Needed Learning Curve Effects (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 11

Buy Now Vs. Enterprise Sale People & Relationships Affected:

Buy Now Vs. Enterprise Sale People & Relationships Affected Job Boundaries Process Changes Group Boundaries Contracts Between Firms How Many People Must Change Under One Manager Under One Business Unit Between Firms / Crosses Business Boundary (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 12

Question For Audience: Length Of Sales Cycle:

Question For Audience: Length Of Sales Cycle How Long is Your Sales Cycle: From Initial Conversation To Purchase? Please Type Your Answer Into Chat Window (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 13

Buy Now Vs. Enterprise Sale Length of Decision Process:

Buy Now Vs. Enterprise Sale Length of Decision Process Sales Process is Multi-Step Budget Cycles Requires Focus Over Many Conversations Spanning Weeks to Months (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 14

Buy Now Vs. Enterprise Sale Enterprise Is A Complex Sale:

Buy Now Vs. Enterprise Sale Enterprise Is A Complex Sale Multiple Criteria User Technical Business “Try It, You Will Like It” Necessary But Not Sufficient They Always Generate Options (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 15

Customer Buying Process:

(c) 2011 SKMurphy, Inc. (www.skmurphy.com) Customer Buying Process Understand Believe Act 16

Example Enterprise Sales Process Typical Sales Funnel:

(c) 2011 SKMurphy, Inc. (www.skmurphy.com) Example Enterprise Sales Process Typical Sales Funnel 17

Common Problem:

Common Problem Your Product Requires Or Triggers Change In Job Boundaries In Important Processes This Add Politics And Complexity Do You Have A Champion? (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 18

Your Sales Process Sales Funnel:

(c) 2011 SKMurphy, Inc. (www.skmurphy.com) Your Sales Process Sales Funnel 19

Identify & Support Internal Champion:

Identify & Support Internal Champion What Defines Them How to Recognize Them How to Work With Them What They Need From You Why Use Them Steve Blank’s Earlyvangelist Model Customer Validation Model (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 20

Internal Champions: What Defines Them:

Internal Champions: What Defines Them “Nothing is more difficult to undertake, more perilous to conduct or more uncertain in its outcome, than to take the lead in introducing a new order of things.” Niccolo Machiavelli (1523) (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 21

Internal Champions: How to Recognize Them :

Internal Champions: How to Recognize Them Past Success At Firm At Least One Prior Technology Introduction Current Sale: Can Map Path To Decision May Be Buyer Or Decision Maker Understands Who Is The Decision Maker Probe For Both: May Not Be Champion (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 22

Internal Champions: How to Work With Them:

Internal Champions: How to Work With Them “Identify a series of controllable opportunities of modest size that produce visible results and that can be gathered into synoptic solutions.” Karl Weick “Small Wins” (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 23

Internal Champions: When You Need Them:

Internal Champions: When You Need Them Scope of Change Nature of Change Champion Needed? Individual Task, job Individual (No) Team / Group Process Champion / Mgr Bus. Unit / Firm Process, Product, or Service Champion / Exec (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 24

Internal Champion What They Need From You:

(c) 2011 SKMurphy, Inc. (www.skmurphy.com) Internal Champion What They Need From You Visible Results Benchmark Results Based On Their Data Proposal Details Implementation Plan Promise Specific Outcomes On A Timeline Predicated On Customer Inputs In Timeline Help Document Pilot Project Results Continue To Support Until Full Rollout 25

Internal Champion Why Use Them:

Internal Champion Why Use Them Complex Change Is Political & Cultural Need Someone Who Understands Unwritten Rules – How Things Work Inside Language & Culture Leverage Their Expertise & Social Capital Understands Decision Inputs & Process Who Must Be Informed Or Consulted Who Must Approve (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 26

Steve Blank’s Earlyvangelist Model:

Steve Blank’s Earlyvangelist Model 1. Has a Critical Business Problem 2. Know That They Have the Problem 3. Actively Looking for a Solution 4. Has Tried to Solve the Problem Unsatisfied with In-House or Custom Fix 5. Has (Or Can Acquire) Budget From “Four Steps To The Epiphany” (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 27

Steve Blank’s Customer Validation Model:

Steve Blank’s Customer Validation Model Customer Validation: Four Big Ideas Goal: Build A Repeatable Sales Process. Orders Are Proof Your Process Is Working. Only Earlyvangelists Are Crazy Enough To Buy Unfinished Product. No Orders? Back To Discovery Process. Early Customers Help Spec Version 2. (c) 2011 SKMurphy, Inc. (www.skmurphy.com) 28

About SKMurphy:

(c) 2011 SKMurphy, Inc. (www.skmurphy.com) 29 29 About SKMurphy Startup Advisor Customer Development For SW Startups Focus: Early Revenue & Early Customers Any Questions On Webinar?

authorStream Live Help