Digital Marketing Strategy Workshopneuralimpact.ca/wp-content/uploads/2017/11/ISV... · Agenda Day...

Digital Marketing Strategy Workshop

• 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 ChobotChief Transformation Officer

sharka@neuralimpact.ca

Your Workshop Objectives

AgendaDay 1

Marketing Foundation & Strategy

Topic Key Discussion Points

Introduction, Objectives • Workshop objectives

Revenue Profiling • Revenue profile exercise

Customer Acquisition and Sales

Process Review

• Mapping of your current sales process and lead conversion

Cloud Competitive

Differentiation

• Competitor review and differentiation development

• Identify key competitors in target vertical segment

• Competitive mapping

• Determine primary competitive differentiators

Vertical Go to Market Strategy • Current markets assessment

• Target vertical prioritization

• Segment profiling

Emotional Messaging

Framework (EMF) Development

• Emotional trigger industry analysis

• Prioritization of emotional triggers

• Core decision making pain identification

LUNCH

Persona Development • Why persona based development

• Customer empathy maps

• Uncovering primary needs and pains

Persona Empathy Maps • Why, How and What Empathy Map Development

New Differentiated

Recurring Services Definition

• Services brainstorm

• Onboarding packages, remote

AgendaDay 2

DAY TWO – Digital Emotional MarketingPricing Approaches and Strategies • Review of current services and pricing approach

• Various pricing strategies, approaches and trade-offs

Industry Solution Packages Definition • Determining how best to bundle offerings project services, training support, etc.

• Determine 3 core industry solution packages

LUNCH

Marketing Objectives & Measurement • Digital marketing objectives

• Conversion measurement definition

Tribal Engagement • Review of website tribal messaging and resonance

Persona Messaging • Engagement content strategy - WHAT HOW WHY

• Marketing asset mapping

Pain Messaging • Stimulating desire – ways to leverage fear, create loss and risk

• Unveiling compelling prospect pain vs benefit based messaging

Emotional Engagement Triggers • Contrast imagery brainstorm

• Appealing to 3 learning styles – videos

• Simplicity vs Complexity – Landing, videos, messaging and design

Website Headline Re-Writing • Persuasion & novelty – curiosity, questioning

Maximizing Visual Stimulus • Landing page, use of video motion, effective imagery, design

Reciprocity and Value Exchange (Ve) • Converting the Curious - Getting Action – ways to use scarcity, loss

Building Trust and Credibility • Proving your claims - Evidence that works and doesn’t

• Proof mapping matrix

• Develop influencer plan

Nurture Content Calendar Definition • Development of a 12 month “theme” calendar for marketing content development

Next steps and implementation • Summary - Key take aways

• Next steps

Workshop Resources:

http://neuralimpact.ca/isv2017/

Global Stats

Cloud application services (SaaS]), grew

21.7% in 2016

What’s your growth?

Source: Bessemer State of Cloud 2015, Point Nine News - See more at: http://www.valuecoders.com/blog/technology-and-apps/trends-saas-industry-2016/#sthash.MNTKQf7x.dpuf

Cloud Market Success

• Perpetual to Recurring

• One off Proposal to Repetitive Packages

• Time and Materials to Fixed Package

• High Touch to Low Touch

• Long Sales Cycle to Short

• Demoing Features to Business Process Slides

• High Cost to Low Cost

• Product Knowledge to Industry

• High Transaction to Low

• Upfront to Ongoing

• Geographic Territories to Vertical

• On Premise to Cloud

• Custom to Out of the Box

• Product to Solution

• Technology expertise to Industry domain expertise

• Local to Global

• Horizontal to Vertical

• Logical to Emotional

• Traditional to Digital

• Cap ex to Op ex

• IT Buyer to Business Buyer

Marketing Strategy

Product and Services Mix

Packaging and Pricing Strategy

Sales Process

Partner Profile - Customer Acquisition Capability

Partner Profile - Solution Maturity

Go to Market StrategyDirect Partner Channel

What’s Your Growth Strategy?

Current Product New Product

Current Market

Further Market Penetration

ProductDevelopment

New Market

Market Development

Diversification

“

Current Challenges? Opportunities?

Opportunities? Challenges?

Results?Financial Customer

Innovation People

SalesMarketing

Domestic vs Global

On Prem vs Cloud Revenue

Revenue Composition

Total Revenue

License

Project Services

Support & Maintenance Services (on

prem)

What’s your Recurring Revenue Mix Today?

Microsoft Solutions

ERPCustomer

Engagement Solution

Office 365 PowerBI

Non Strategic Project Services

Data Migration Deployment Integration Configuration Customization

Reactive Managed Services

Help Desk On Demand Training

Commoditization

One Time 80%???Time & MaterialsNot Repeatable

Recurring 20%???

Cloud Sales Motion

Core Defensible Differentiation

VERTICAL

✓ Manufacturing

✓ Distribution

✓ Retail

✓ Services Industries

✓ Public Sector

✓ Financial Services

Expertise in a specific business function or workload, across industries(i.e. Compliance, security, event management, online recruitment , etc.

How do you Differentiate Now?

1.

2.

3.

That’s what they ALL SAY!!! NOT a Compelling, Defensible, Unique Competitive Differentiation Strategy

✓We have a industry solution for your company”

Partner Value Proposition

The customer was really impressed with Microsoft

Dynamics, but decided to choose a product from the competition because certain specific features

or industry functionality were missing.

Your customer has started using a new release and upgrading

your customization is proving to be a nightmare.

To be able to sell Microsoft Dynamics into a specific industry

requires modifications, but software development is not

your core business.

Add competitive power to your business and join the AXtension

partner community!

Create or extend your own winning vertical solution with

AXtension and boost your business!

Customer Value Proposition

Why Differentiate?

Why Differentiate?-Commodities

-Higher margins-Lower selling costs

-Less price competition-Less discounting -Reduced churn

-Higher business valuation

>3 Industries (service)

20%

50%

80%

1 Industry (disrupt)

1-3 Industries (teach)

Industry Partner Win Rates

Progression of economic valueD

iffe

ren

tiat

ion

PriceLow

High

High

Experience

Services

Products

Commodity

Customer Relevance

Price and Gilmore, 2011

Industry IP

Domain Expertise

Higher Margins

IP?

Progression of value

Retrieved: June 18, http://www.pricegain.com/en/2015/11/26/how-to-price-water/

0.003 €/liter 1.30 €/liter 2.25 €/liter 2 000 €/liter

Cost plus Market Pricing Price Differentiation Value based Pricing

Product Driven to Industry Solution Driven

Industry Solution Focus

Vertical 1 Vertical 2 Vertical 3

We know about this industry & their unique challenges better than competitors do.

We have IP we have developed specifically to meet the needs of this industry. This is something others would not easily know how to do.

Our team members have worked in this vertical industry and/or have years of industry specific domain knowledge.

We have proven and quantifiable results that have been gained by our customers in this industry.

We have won awards, spoken at conferences or are belong to industry related associations or organizations.

Through delivering services we have gained unique industry workflow and process expertise and knowledge.

We have a large number of clients in this industry.

Value Proposition?

Low Price

Better Product

Easier, more Convenient

Customer Relationship, Dependency

Partners Need to Re-Define their Value Proposition

How do you solve customers’ problems or improve their situation (relevancy)?

What specific benefits do you deliver (quantified value)?

What do you offer that your competitors don’t?

What are you the best at – core competency?

Why should customers buy?

Competitive Map

Exercise: Map YOUR Competitors on Multiple Factors

Pivotal Map

Microsoft

Enterprise

Oracle

Small Bus

ArumBrock

Siebel

Act

MaximizerMail

Goldmine

Competitive MappingFactor US

We’ve been in business 25 years …. Done lots of implementations.

1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

Specializes in providing Microsoft Dynamics –ERP CRM BI

1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

Experienced technical experts – great people 1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

Proximity – local 1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

Great service, happy customers 1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

1 Low2 Medium3 High

studies…are you part of an industry association

Exercise: Competitive Differentiation Map

AREA of DIFFEENTIATION INDUSTRY PRIMARY COMPETITOR COMPARSON

Industry business knowledge & expertise (problems you have helped solve)

Education – student recruitment problemsRetirement issues Training and onboarding issues Weak alumni relations and tracking

Unique industry workflow and process knowledge

Registration and enrollment issuesDemand forecasting Grant management and trackingFaculty and classroom scheduling

Team industry experience & expertise One of our staff was an IT manager at a university

Client industry clusters We have 5 universities and colleges as customers

Proof of success in the industry We have 5 case studies, we won the education industry technology solution provider award of the year

IP we have developed We have integrated with the top selling enrollment management system and Camtasia for dynamic lectures, we have integrated with CATME a team student performance evaluation software app. We integrate with research grant management and tracking software. We have created a number of reports to track student

Exercise: Points of Similarity, Points of Difference

Factor

Price Same/Different

Superior quality of product?

Quality of services?

Unique product features, functionality?

Breadth of services?

Rapid delivery?

Customization?

Visual dashboards?

Training of staff?

Processes used?

Is it a Segment?

• Their needs require and justify a distinct offering?

• Reached through different channels?

• Require different relationships?

• Substantially different profitabilities?

• Willing to pay for different aspects of the offering?

A

B

C

Segmentation MethodsSegmentation Method Sample Segments

Geographic Continent: North America, Asia, Europe, AfricaWithin U.S.: Pacific, mountain, central, south, mid-Atlantic, northeast

Demographic Age, gender, income

Psychographic Lifestyle, self-concept, self-values

Benefits Convenience, economy, prestige

Behavioral Product usage, loyalty

Segment 1

Segment 2

Segment 3

Segment Exercise

SEGMENT ATTRACTIVENESS

Big Enough -Substantial

Reachable with Your Message,

Identifiable

Have a High Need -

Responsive

Have $ to Spend -

Profitable

Highly Disrupted

Highly Competitive

Market Shake Up – New entrants,

consolidation, growing Tier

2

Technology as a

Differentiator

Assess if it is a good “cloud market”

Changing industry regulations

• Highly regulated

• Compliance requirements

• High risk industry

Changing buyer behavior

• Increase in desire for self service

• Demands to offer better service

• Customer experience as a differentiator

Technology viewed as a competitive differentiator

• Dropping margins

• Increasing costs

• Inefficient processes

Highly competitive environment

• Industry consolidation

• Dropping barriers to entry

• Large number of new emerging players

• Significant internal obstacles to growth

Good Cloud Market Segment

High level of industry disruption

“Branding is the promises you make...

Your brand comes from

the promises you keep.”– K. Zhivago, 2004

Moving along the IP Staircase Offering Differentiation

COMPLEXITY/COST

Labeled bundles

Turnkey functional

infrastructure

Packaged

extensions

Full vertical

solutions

POTENTIAL ISV PARTNERING

DIF

FER

EN

TIA

TIO

N/V

ALU

E

Dynamic 365

Azure

Office 365

Power BI

Current Offering + Stack

Own Repeatable IP

OptimizeSpecific Function

Full Vertical Solution

Test & PivotIndustry Specific

Marketing

Build Low Risk

Minimum Viable

Product

Identify Vertical

Emotional Triggers &

Business Pain

Lean Cloud Solution Design ProcessSolution

Management

Product Design: Don’t ASSUMEGo Out to the Tribe

Emotional

Reliable

Pretty Much Usable

Basic Functionality

What is in the MVP?

Emotional

Reliable

Pretty Much Usable

Basic Functionality

Current IP Fit Gap

Repeatable

Current Vertical IP

Core Emotional

Broken Business

Processes

New Cloud Product

↑ New Prod. Development ↑ New Equipment Sales

↑ Labor Costs ↓ Differentiation

↑ Warranty Periods ↑ Field Service Contracts

↑ Cost of Sale ↓ Profitability

↑ Capital investments ↑ Automation Investments

↑ New Services Offerings ↑ Technology Investments

↑ Penalties ↑ Skills Training

↑ Receivables ↑

↓ ↓

↓ ↓

MacroeconomicMacro level economic shifts.

• Rapid industrialization of 3rd world

• Cost of energy increasing

• Cost of labour increasing

• Unpredictable commodity prices

• Mining & Construction sectors fluctuating

• Automotive sector rebounding

• Fracking , Oil & Gas industries strong

• Emerging Economies : Brazil, Russia, India and China still growing

• Public sector infr. projects flat

• Renewable energy projects (solar, wind)drive demand

Regulatory

Anticipated or legislated changes

• EPA Wastewater treatment

• OSHA/Dept. of Labor – increasing workplacesafety regulations

• Clean Air Solvents and Lubricants

• Focus on Explosion Proof Compliance

Industry ConsolidationMerger and acquisition activity

• Expand geographic reach, expandcustomer base and entering new lines ofbusiness and primary M&A drivers

Product/Service Commoditization

Inability to differentiate basedon product or service offering.

• Extremely difficult to differentiate

Competitive BehaviorChanges in competitor behaviour/new entrants.

BRICs producing lower cost machines(no regulatory constraints, lower energy prices,lower labor costs, China & Mexico)High labor content cost advantages

Customer Demand/Behavior ShiftsChanges in Customer Behavior

• Personalization & Customization – customer driven configurations & packages (product + service offerings)

• Demand for improved service

• Asset management (EAM) and flexible

• Manufacturing is also expected to drive factory-enterprise integration, significant potential for automation and customized service solutions in industrial applications

Manufacturing Market Forces

© Neural Impact Inc. 2016

Threats/Impedimentsto Growth

Example: Discrete Manufacturing

Maintenance strategy that provides early detection of asset defects and conditions that lead to defects

Predictive Maintenance Management (PdM)

Copyright © The Economist Newspaper Limited 2016. All rights reserved.

Whiteboard Facilitation (IEM)

Industry Driver

Macroeconomic:• US emerging from recession• Growth in heavy industry• Increasing energy costs• Higher labour costs

Regulatory:• EPA:• Clean air/CO2 emissions• Green landfill• Green Lubricants• OSHA & Dept. of Labor

Competitive• Lower prices• Commoditization of non-

specialized products

Customer• Consumer driven

product configurations (personalization)

• Increasing demand for improved service

• Increasing Dealer expectations

Impacts

Partner Exercise: Emotional Messaging Framework

As a result of <industry drivers > we <trigger event> which is impacting our <key operating metrics>. We struggle with <business challenge> because of our inability to <operational limitation>. This issue would be resolved if we could <new capability>. © Neural Impact Inc. 2016

© Neural Impact Inc. 2016

Emotional Messaging

Framework

5 Core Emotional Triggers

WHAT

Persona’s help you create the right product.

HOWWHY

Persona Profiling

John SmithGender: MaleTitle: VP Manufacturing

Goals: Help grow the company and retire.

Worries about: • Competitors operating more efficiently • Afraid of failure and looking bad• Concerned about risk & liability• Frustrated by inefficiencies• Hates wasting time and money

Needs: • More control • More information • More automation of routine processes

Age: 40-55Status: Wife & 2 KidsLives in good neighbourhoodEducated Values his personal timeStruggles with work life balance

Persona Definition

Buying Behavior

Purchase Urgency

Information Needed

What’s Most Important

Involvement in Decision

Psychographics

Activities Lifestyle Personality Values

Demographics

Age Gender Income Marital Stats

Exercise: Why PersonaEmpathy

WHY Persona Driven Dashboard

MAP: Current Services by REVENUE TYPEONE TIME

Exercise: New Strategic Services Opportunity Brainstorm

Non Strategic Project Services

Data Migration Integration Configuration Customization Deployment

Value Add Services

Help Desk/Support Services Online Training &

Self paced Learning

High Value Professional Services

Strategy Advisory

Business /Project Risk Assessment

Business Case Expansion/Val

idation

Cloud Readiness

Assessment & Transformatio

n

Business Impact

Workshop

Vision & Scope

Definition, & Design

High Value Vertical Strategic Professional Services

Reporting & Analytics

CRM - Social Monitoring

Sentiment analysis

Optimization Services

Benchmarking Service

Commoditization

Differentiation

One time Recurring

How to Monetize

Shift from Time & Materials to Packaged Solutions

Fallacy: High Utilization is Good

Uncertainty

Confident Decision

One Fixed

Out of the Box Price

is NOT an OPTION!!!

Trust & Transparency

Emotional vs logical

Pricing Models

1. Perpetual License – upfront, for life

2. Consumption – usage based on criteria, pay as you go

3. Tiered – scalable, pay based on levels criteria

4. Freemium– capacity, feature, time, use case

Plan and pricingCenter Stage

Lite edition

$29/MO

Standard edition

$99/MO

Premium edition

$159/MO

Most Popular

Perfect for Ideal for growing Designed for

99, 95

Retrieved May Retrieved June 2017 https://rnd-solutions.net/devops-services/

Primacy numbers

$475 $537$349

Competitive Packages:Salesforce

Persona Packaging & Pricing

Exercise: Who are your 3 Target Offerings for?

Springboard

Exercise: Package up your Services

http://thenextweb.com/google/2013/02/21/google-debuts-four-tiered-247-support-for-its-cloud-platform-services-prices-start-at-0-to-400-per-month/

Add Ons

http://www.powerobjects.com/powerpacks/powermap/

Value-add Content

Exercise: Create Your 3 Package Offerings

NetSuite

NetSuite

OneWorld Pricing

Starting from:

$499.00/month

31% Year-over-Year Increase in Q4 Revenue of $206.2 Million

Exercise: Three Industry Solution Packages

Pricing Psychology

$515 $626 $867

•© 2016 Microsoft

Proposal Presentation

What ‘landed’ today?