Selling Business Email to SMB End Customers
Agenda
• Quick solution Intro• Opportunity Overview
– Hosted Exchange Business Email– And beyond
• Best practices selling Hosted Exchange• Helping you succeed
– Resources available to you
QUICK SOLUTION INTRO
Hosted Exchange Solution Overview
•But optimized for deployment by service providers (e.g. monitoring, reporting, provisioning, scalability, etc)
Solution based Exchange 2007
•Using the Service Provider License Agreement (SPLA)•Service providers charged on a per user per month basis (pay-as-you-grow)
Licensed by Microsoft to
Partners
•Pay per month to service provider•Typically also purchase additional storage, mobile access, anti virus/spam
End customer “rents” a mailbox
What is Hosted Business Email?
Hosted Exchange 2007 based email solution that includes all collaboration features, Outlook 2007
and SharePoint
Work anywhere and at any time using
any device
Deliver new levels of productivity and
flexibility to SMBs
Free them to focus on their business
rather than worrying about IT
infrastructureRemove barriers
that have kept SMBs from adopting +
fixed price
End Customer Experiences Enabled
POP/IMAP
Server Product End CustomerExperience
Internet Explorer
Experiences Enabled
Richest Client ExperienceEasier to on-board end usersVoice access to email, voicemail in email
Full Outlook Web AccessIE-based equivalent to rich client
Basic Web AccessLimited inbox functions without collaboration
SharePoint team sites + 40 templatesInnovative ISV applications for verticals
Basic Consumer EmailInbox send/receive Introductory offer
Mob
ility
(Pus
h em
ail)
Instant Messaging & PresenceKnow online and offline status, as well asInteract in with real time chat, voice, video
OPPORTUNITY OVERVIEW AND SIZING
Hosted Solution Adoption is Growing Explosively
Hosted Exchange TCO is fixed and well know, expenses are capped. ROI simple to understand and calculate
Source: Gartner, Feb, 2005
What Our Market Research Tells Us
Primary research done in 13 countries in EMEA• Belgium, Czech Republic, Denmark, France, Germany, Israel,
Italy, Norway, Netherlands, Russia, South Africa, Sweden, UK
Focus on • Opportunity: how many SMBs are willing to pay what price – Who are the “Best Candidates”?• Buying Drivers: Why would they buy – or be interested
Key Results• Typically 10% - 15% of all SMBs are willing to pay up to EUR 15 (or equivalent) for a Hosted Exchange Business Email and purchase < 1 year• About 50% of the overall, long term, opportunity• Key reasons for buying Hosted Exchange Business Email
• Mobility, Collaboration, Security and Cost
Sample Research – United Kingdom
• Best Candidates: Willing to pay 15 £ and would consider adopting within 12 months.
• Short-Term Opportunity: Willing to pay 7.50 £ or more and consider adopting within 12 months.
• Mid-Term Opportunity: Willing to pay 7.50 £ or more and consider adopting in a 12-24 months time frame.
• Long-Term Opportunity: Willing to pay 7.50 £ or more and consider adopting in a time frame > 24 months.
• Additional Potential Opportunity: Would consider adopting at a very low price (2.50 £)
• Non-Candidates: Did not indicate a willingness to adopt.
• 52% (633k companies; 2.5m Mailboxes) of UK SMB Companies is the overall opportunity over the next three to four years
Sample size: 4502 companies with 1 or more employees
Hosted Exchange Key SMB Buying Drivers
Anywhere Access
•Mobility and Remote Access Needs•Mobility•Work from Home•Employees in Home or Branch Office•Device Related Synchronization•E-mail while traveling•Mobile push email
Get More Done
•Collaboration Needs•Better ways to share and track documents•Work together effectively •Check, Share Calendars•Share Ad-hock company information•Share Customer Information
Peace of Mind
•Operational Efficiency Needs•Off-Site Back-Up•Lower TCO•Predictable costs, no large up front investment•Threat Protection•Quality and Availability of Tech Support•High Availability
“Best candidates” have multiple needs.
SELLING BUSINESS EMAIL
Target Markets
Size Channels Key Messages
Buyer Bundling
Lower SB
1-5 PC
Web TelesalesRetail (?)
•Anywhere Access•Features
•Business •Owner
Mobile +Broadband
Core SB
6-49 PC
WebTelesalesIndirect
•Collaboration•Get More Done•Cost
•Business and/or •Technical Decision •maker
Business Broadband
MM 50-500 PC
WebDirectIndirectVertical
•Peace of Mind•Integration•Management•Cost
•Technical •Decision Maker
Outsourcing
Companies with Windows Mobile users are significantly more likely to purchase Hosted Exchange Business Email
How to Sell Hosted Business Email
Small Business (1-24 PCs)
• Online• Telesales• Small Business Specialists (resellers)
Midmarket (25-500 PCs)
• Direct Sales (compensation)• Indirect Sales – reseller partners
Bundling
Up Sell
Priv
ate/
Whi
te
Labe
l
Monetizing the Up Sell Opportunity
Providers programmatically driving POP to Business email campaigns
• Migrate all users on HMC/Hosted Exchange• Give all users 2 month free Business Email trial• Use the 2 months to ensure new features are actively used
• 80%+ of active trial users buy Business Email• Overall >20% up sell conversion is benchmark (10% is baseline)
Case Study: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=201366
Why Bundling Business Email?
Price advantage easier to buy for end customers• Cross subsidizing
Leverage the customer’s compelling buying event
• Mobile email device purchase• Business broadband connection purchase• Web hosting package• Managed desktop, etc
Leverage existing sales channel • For the target segment• Broadband and mobility call center• Direct and indirect sales channels
Very Intereste
d32%
Somewhat Interested
41%
Not In-terested
27%
Interest in Working with a Microsoft Hosting Service
Provider ( vs. Self Host or Other alternative)
Channels: Indirect Sales
• This is not an automatic. Hosting Partners will need to build effective programs that address their needs and concerns
We trust the Partners more than the large Corporate like (IBM, MS , HP ).
Believe we would have greater flexibility for more specialized solutions.
I can continue to maintain the client relationship and have the flexibility to meet special needs.
What do you see as the advantages to working with a
Microsoft Hosting Service Provider?Can free us up to work on more strategic
projects for our customers.
A new set of services that can have a significant and noticeable impact on the productivity of our customers.
Indirect Channels: Summary
18
• 10s of Thousands World Wide• Total of 450 SI and Reseller partners in
Israel. 1600 overall.How many Interested?
• Evolving Computer Paradigm: S+S -(although many do not articulate as such) -
• Extends their role as Trusted AdvisorWhy are they Interested?
• Trusted Advisors who either are Generalists, Managed Services Providers or Web VAPS
Who is most interested?
• More business and more - new- customers
• Extend Sales Opportunity – Verticals, etc
• Allows focus on other, potentially more profitable, less costly services
What is the benefit to the Solution
Provider?
Channels: Online
An effective online presence and marketing capability is absolutely essential
• In the Lower SB especially • Search Try Buy
• £30 billion of offline spending is informed by information or marketing found online. (IMRG 2006) • 90% of IMRG survey respondents say they have researched goods online before buying them offline. (IMRG 2006)
Even if you do not SELL much online, a large and increasing part of the customer’s buying journey takes place online• They may purchase through your call center after
their last question has been answered professionally
Web Marketing DO’s and DON’T’s
•Test and iteratively refine you landing pages and Web marketing campaigns (add words, DM, etc)•A/B testing •Test different messaging – on different segments•Anywhere Access, Get More Done, Peace of Mind
•Test your online ordering process extensively from a customer user experience perspective•Measure the “leakage” in your online ordering and qualification process
DO
LOOKING BEYOND BUSINESS EMAIL
Up Selling Does Not Stop Here…
Platform for Growth and Up Sell• Over half of all Hosted Exchange customers
plan to add at least one additional service– 30% will add two or more
Hosted ISVs
Hosted
Unified Communications
Additional Hosted Services SMBs are Likely to Consider Within Next 12 Months
Likeliness to Consider Additional Hosted Services in Next 12 Months
36%
23% 25% 22%16% 18%
29%
11% 6% 9%
8% 7%
0%
10%
20%
30%
40%
50%
60%
70%
Voice over IP Hosted CustomerRelationshipManagement
InstantMessaging
Private webareas with
advanced toolsfor collaboration
amongstemployees and
business partners
Hosted GeneralAccounting or
ERP
Hosted SalesForce
Automation
Somewhat Likely to consider Very Likely to consider
Sample size: 904
Percents do not add to 100 because respondent could select more than one
• Nordic Hosted Messaging and Collaboration Study, Edge Strategies, March 2005
Looking Beyond Business Email – Windows SharePoint
Business Function Description % SMBs High Need
Project management Coordinate schedules, tasks, and documents internally and externally
39%
Problem Resolution Assign responsibility, track progress, and resolve problems 35%“Lightweight” (CRM) Share and update information on customer accounts,
contacts, and sales28%
Centralized Document Management
Coordinate updating and distribution of company documents, lists, policies, and procedures
26%
Departmental Portals Access to department-specific information, regardless of location
22%
24% Actively interested
Of all SMBS 5.4% Best candidates• W
illing to pay US$10 per user per month and adopt within 12 month
Source: Edge Research
Industry or Vertical % of Best Candidates
Professional Services 20%
Finance, Real Estate, and Insurance (FIRE) 16%
Construction 16%Business Services 11%Consumer Services 8%Healthcare 7%
Source: Gartner Research and Microsoft Estimates
(Hosted) CRM Market Size
Overall CRM Market: 7% Annual Growth
Hosted CRM: 34% Annual Growth
With 100% year over year growth, industry analysts have declared that Microsoft Dynamics CRM is the fastest growing CRM software in the world. Growth
Microsoft’s Hosted Solutions are Mobile Ready
Hosted Exchange
•Professional Email + Mobile Push
Hosted SharePoint
•Intranet/Extranet + Web 2.0 Business Apps
Hosted CRM
•Mobile business applications
Hosted Unified Communications
•Hosted Office Communication Server
HELPING PARTNERS SUCCEED
Microsoft’s Investment in Our Hosting Partners
• Market research• Partner ecosystem development• TAP Programs• ADS - Architecture & Design Session• BDS – Business Development Session• Sales Training• Sales and Marketing Toolkit• End User Training• Go-To-Market Support• Premier Support
SUMMARY AND CALL TO ACTION
Summary and Call to Action
We are just scratching the surface of the Hosted Exchange Business Email opportunity• We need your help to fully leverage it!
Key growth drivers in your existing customer base are:• Up-sell, cross-sell and bundling
Entering new market and acquiring new customers:• Resellers create scale and access to new markets and customers• Online marketing is crucial – this is where your customers “live”
Business email can be just the first step in becoming a more important provider for your customers• Up sell to MS CRM, SharePoint, Live Meeting, Windows Mobile, etc
THE OPPORTUNITY IS THERETOGETHER WE CAN SEIZE IT!
THANK YOU!
BACKUP
Business Development Session
Agenda Day 1 Agenda Day 2
Introductions & Background Discussion
Recap of Day 1 and Business Objectives
Market Opportunity& Market Segmentation
Lead Generation
Product Positioning, Packaging and Pricing
Direct Sales
Competitive Positioning
Selling Through Channels
Going to Market Review of Action Items
Day 1 Wrap-Up Wrap-Up and Next Steps
• Overview and Objectives
• Microsoft– Better understand your
needs as service provider
– Increase depth and value of relationship
• Service Provider– Look critically at go-to-
market plans– Determine best
possible offers– Execute with practical
tools & approaches
Hosted Exchange + SharePoint Sales Toolkit
Hosted Exchange Flash Demo
SharePoint Flash Demo
Industry Campaigns
Ready made campaigns “in a box” for you to execute
• Law firms• Consultancies• Financial advisors (FS)• Architectural & engineering (A&E)• Accounting• Real estate (RE)
Industries/Verticals Available Now
Bill of MaterialsExecution PlaybookBattlecardPains sheetWeb texte-FlyerData sheetDirect mail flyer
NEW - HMC Sales Toolkit v2
• Table of contents– 8 Key Success Factors– Core Sales Materials– Telesales– Email Marketing– Exchange Hosted Services– Online Best Practices– Upsell Best Practices– Sales Training– Needs Analysis– TCD-TCO Tools
• Supported Languages– V1: 11 languages– V2: English only today.
Localization planned (FY08).
What’s New and Improved?• MAPI Up Sell Best Practices
– Guidance on running an effective MAPI campaign.
• Business Email Sales Training– Trainer’s guide and training decks
• Online best practices– Guidance on how to promote and
sell HMC online. • Key Success Factors in selling HMC• Greatly improved instruction for
deployment and online examples of – Total Cost of Ownership calculator, – Cost of Downtime calculator – Needs Assessment Tool– http://tools.muralconsulting.com/
• Exchange Hosted Service Toolkit– To help partners resell EHS.
Additional Up Sell Opportunities Push Mail• 15% of SMBs “Best
Candidates” for HMC 24% if a decision influencer uses Windows Mobile
• 42% of Windows Mobile users would pay for push mail
• Very quick time to market – little up front investment
• US$20 per user per month revenue opportunity US$7 margin
• Basic and higher end
email security services • No up-front investments,
rapid deployment
• Offering multiple services/solution for segments/verticals
• Minimal incremental costs• ‘Viral’ selling
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