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Business DynamicsPositioning through Messaging, Pricing and Packaging

With enough "ifs" we could put Paris into a bottle. French Proverb

SaaS Customer Needs

Pay Less for More

• No upfront cost• Pay as you go• No need for expensive and complicated software upgrades – updates are included at no extra cost• Cut employee training costs in half• Easily try before you buy• Only pay for what you use• Don’t need for the application? Stop paying!• Scale upward or downward as rapidly as your needs demand• Lower staff support requirements

Secure & Highly Reliable

• Best in industry security • Exceed compliance requirements• More complete security than customers can provide• Improved and consistent performance• Less need to worry about budgeting for what is always an unpredictable IT budget process• Shared risks and single source accountability

Greater Usability and More Complete Access to

Needed Functionality

• Bring applications into your business you wouldn’t otherwise be able to afford

• Single sign-on• Access Key Applications from a Single Portal• Functional upgrades several times per year in lieu of every other year . . .• Enterprise class functionality for your business

Build Messaging Pillars

• Emotion/Pain• Opportunity Drivers

– Hard hitting and compact

• Key Message– Strong benefit message

• Supporting Messages– These become the content of campaigns down the road

Emotion/Pain

‘Every time someone leaves the office on a service or sales call or works from home we

lose our ability to function.’

Opportunity Driver

Anywhere Access

Key Message

‘Access documents, appointments, contacts, and company schedules and information from anywhere with an internet connection.’

Supporting Messages

• Highly mobile employees (salespeople, consultants)

are dependent on the accurate and timely exchange

of information with co-workers and customers.

• Off-site employees need contact with the home office

for access to the latest documents and materials.

• Employees distributed in remote and home offices

need 24 hour access to company information.

Peace of Mind

= Experience Operational Freedom

You take care of your business, we’ll take care of your messaging system

Pain: Communication is important, but I can’t afford IT

=

Map Messaging Pillars to Defined Industry Segments

• So What: “We have developed a hosting platform to better meet your needs.”

• Better: “Organizations can now implement hosted applications with no risk and no long term commitment.”

• Best: “Be live in minutes with a free trial of mobile email and access to schedules -- designed specifically for financial services -- with zero up front investment and no risk.”

Peace of Mind

Most Value Attributed To:

• Off-site, scheduled backup

• Threat protection and enhanced security

• Technical support

• High availability

• Freedom from having to do it all themselves!

Features to emphasize:

• 24x365 technical support and on-line knowledge base

• Anti-spam, anti-virus, other privacy/security solutions

• Depth of engineering expertise

• Data backup, recovery and storage capabilities

• Self-service control panel, simplified administration

Anywhere Access

Most Value Attributed To:• Ability to work from home• Support for employees at

client sites or branch offices• Mobile device

synchronization• Access to information while

traveling

Features to emphasize:• Access from any location with an

internet connection• Incremental benefits of Hosted

Exchange• Synchronize mobile phones or PDAs

Current hosting partners estimate 1/3 of leads are for mobility

• Too complex to do internally• Too expensive to do internally• No IT to support it

Get More Done

Most Value Attributed To:• Better ways to share and

track files• Check and share individual

and corporate calendars• Share ad-hoc company

information• Share customer information

Features to emphasize:• Value add features of HMC• Shared folders (contacts,

tasks, mail) and calendars• SharePoint features • Instant Messenger for

speedy communication

Industries that Match Characteristics

Industry Target Reason Sales Focus

Professional Services Highly mobile employees (salespeople, consultants) dependent on accurate exchange of information with others.

Anywhere Access

Get More Done

Agent-Based Business

- Financial Services - Real Estate - Insurance Brokers

Employees distributed in many small offices with no centralized IT staff. Lower-margin, high-volume sales activity necessitates efficiency.

Peace of Mind

Anywhere Access

Business Services Employees go from client site to client site on support calls/requests.

Anywhere Access

Get More Done

Construction Dynamic employee teams, little or no IT support. On-project employees need contact with home office for access to latest documents and materials.

Anywhere Access

Peace of Mind

Get More Done

Business Challenges that Match Characteristics

Challenge Target Reason Sales Focus

Project Management Coordinate schedules, tasks, document sharing and progress reports with teams both internally and externally

Anywhere Access

Get More Done

Problem Resolution Ability to assign responsibility, track progress and resolve problems

Peace of Mind

Centralized Document Management

Updating and distributing important company documents, contact lists, procedures and policies

Peace of Mind

Get More Done

Departmental Portals Access to departmental information, lists, documents needed to do job.

Anywhere Access

Peace of Mind

Get More Done

Customer Relationship Management (CRM)

Central location to share and update contact information.

Anywhere Access

Peace of Mind

Get More Done

Case Studies – Messaging and Positioning-- People want quarter-inch holes, not quarter-inch drills.

Scannet

• Product/Feature/technology focused messaging

• Zero flow

• Hosted Exchange Exchange Server 2003?

• No methods of contact

• Effectively implementing elements of Demand Generation and Direct Selling but not bringing it all together

Case Studies – Messaging and Positioning

Cobweb

• Highly approachable• Top level messaging• Guaranteed! Save! Call!• Mobility focus• Emphasis on integrated archiving (packaging)• What does the buyer need in order to feel confident making the

purchase decision?– Excellence, Industry Certified, Ensure Compliance, Service

Excellence, No Compromise, ‘Why Cobweb? - Top Five’

Persona Marketing

• Persona Marketing is, in itself, a competitive advantage

• Identify an ‘ideal’ candidate for the defined service– Representative of thousands of other users that are

reachable via the Web Driven Model

• Personal Interview– Demographic– Psychographic– Pain/Motivation

• Map to messaging

Characteristics of Personas

• Mobile Worker– Needs access to email, files, calendar, contacts, tasks while

traveling

• Office Worker– Typically works in one location, needs to work on behalf of others,

plan and schedule• Delegate access, shared calendars and contacts

• Information Worker– May work in or outside of office, needs to share and have easy

access to information• Public folders, shared contacts

End-User Packaging should be driven by Personas that represent how the service is actually used

Hosted Exchange Office Worker Persona

Behavior Characteristics• Heavy Email User • E-mail is always running on the desktop• Being out of the office is the exception• Would like to be able to easily check email

from home• Does not travel regularly for business• Primarily a Desktop P.C. user, may have a

laptop but it rarely leaves the office

Typical Roles• Administrative Assistant• Software Engineer• Call-Center Customer Support

Representative• Accounting/Finance Users• Distribution Manager• Knowledge Worker

Key Features & Benefits• Shared Calendaring & Meeting Reminders• Delegation of rights in Outlook• Junk-Mail Filtering• OWA• Public Folders• Global Address List (GAL) for finding other

employees information• Task List

Packaging & Pricing Implications• Required MAPI, but not Mobility• Can be the bottom tier of a two-tiered model

where the top-tier includes mobility• Can be the middle tier of a three-tiered model

where the bottom tier is Basic OWA/POP

Hosted Exchange Mobile Worker Persona

Behavior Characteristics• Email-Centric User – Work revolves around

email

• Being out of the office is the rule

– Frequently works from home

– Frequently doing business from airports, hotels, etc.

• Primarily a laptop user

• Rarely disconnected, responds immediately to emails if possible

Typical Roles• Business Owner

• Senior Executive

• Sales Representative

• Sales Engineer

• Field Engineer

• Consultant

Key Features & Benefits• Mobile access to email, calendar, contacts, and

tasks saves time and increases responsiveness to internal & external customers

• Integration between contact list and telephony functionality for easy dialing and caller identification

• Transparent Synchronization Capability• Ability to Listen to Voicemails sent as sound

attachments

Packaging & Pricing Implications• Required MAPI and full mobility features • Is the top-tier of a two-tiered model where

the bottom tier provides MAPI but not mobility

• Can be the only tier of a single-tier offering that encourages the use of mobility features

Packaging & Pricing for Personas

Needs Segment Value Proposition Offering ComponentsPrice

Range$USD

Office Worker (High Operational

Efficiency)

Info Worker(High

Collaboration)

Mobile Worker(High Mobility)

Core Offering:• OWA w/personal folders, pop3• Tech support• Anti-Spam, Anti-Virus• Backup• Self-service control panel

• Core Offering• MAPI• Shared folders • Integrated IM

• Core Offering• MAPI• Mobile device support• Synchronization

7 €

• Quality tech support• High availability• Quality of Service• Spam/Virus protection• Offsite Backup

• Collaborative file sharing• Shared calendars,

contacts• Shared information• Instant messaging

• Email for remote workers• Email while travelling• Mobile Device Email and

Synch

10 €

15 – 20 €

• Recommendation is for a 2 or 3 tier approach

General Price Considerations

• Preserve low barriers to sale– 2 or 3 price levels

– Contract that local market will bear (minimal)

• Consider discounts– Long term commitment, large volume

• Reward existing customers for referrals

• Bundle popular services, ‘small business in a box’ ready offerings

Positioning, Packaging & PricingWorking Session

• How does your current packaging compare to the best-

practice recommendations?

• Is your offer correctly positioned to avoid feature-speak

and focus on customer-benefits?

• Is your current pricing a barrier to sale or an accelerator?

Background Materials

Sample Exchange OfferingsBase –

ISP-Like OfferStandard –

Mid-Tier and ValuePremium –

Full Collaboration & Web

Set-Up Fee Optional Optional Optional

Fee/month/seat Inexpensive or free $3-$8/standard MBX $8-$15/premium MBX

Storage 25Megs/MBX 100Megs/MBX 100Megs+/MBX

Mailboxes 10 Basic 10 Basic, 1 standard 10 basic, 3-5 premium

Client software Yes Yes Yes

Backup/Restore Weekly Daily, SLAs

Hosted Exchange      

Inbox [POP3/SMTP] Basic OWA (BOWA) Basic OWA (BOWA) Full OWA(FOWA)

Offline Mailbox (Outlook) None Outlook client (no collaboration) Full Outlook (full MAPI)

Anti-Virus Basic Online Service Basic Online Service Basic Online Service and Desktop

Anti-Spam Basic Online Service Basic Online Service Basic Online Service, Outlook Spam

Personal Address Book Yes Yes Yes

Personal Folders No Yes Yes

Personal Calendar Yes Yes Yes

Shared Address Book, Folders, Calendars

No No Yes

Other Internet Services

Domain Name No Yes Yes

Web Site No No Yes

Cross-Selling with HMC Components

• Hosted Exchange lead– SharePoint site for basic company intranet or document storage

(ie HR policies, forms)• Added value with solution-specific templates for Project Management, CRM,

etc.

– Secure instant messaging and awareness with Live Communications Server

– Windows-based web hosting

– Other Windows-based hosting services