SCALING A CLOUD SERVICES BROKERAGE BY BUILDING A “LEAN” CUSTOMER

ACQUISITION ENGINEUnderwritten by

Presenter

Dave ZwickerPartner & Co-Founder

CSBexcellencewww.CSBexcellence.com

@csbexcellence

Intro and Agenda

• Quick Market Update• IT Channel Transformation• Defining Your CSB Business Model• Differentiating Your CSB Business• Scaling Your CSB Business (Profitably)• “Lean” Customer Acquisition• Ensuring Business Alignment• Resources, Questions & Comments

Quick Market Update

IT Channel Transformation

In-HouseIT Staff

OPEX SAVINGS

VAR/Agent MSP CSB

Business Model Attributes:

Efficient Product Sales Engine

Provides Break-Fix Support

Earns Margin & Commissions

One-Time Revenue Recurring Revenue (Premise) Recurring Revenue (Cloud)

Sells Products & Services Remotely Manages IT Manages the Cloud

Business Model Attributes:

Sells the Value of Services

Manages On-Premise IT

Earns Margin on MSP Services

Business Model Attributes:

Sells the Value of Solutions

Adds Value to Commodity Cloud

Earns Margin on Blended Service

CAPEX SAVINGS

Outsourced IT Staff

Outsourced IT Staff

Differentiating Your CSB Business

• 277,713 channel partners globally*– 244,905 VARs– 20,981 MSPs– 11,827 Cloud Hosters

• What is your business model?• What are your core competencies?• What are your target markets?• What are your cloud solutions?

– Hosted Apps & Services– Managed & Professional Services– Business Outcomes

* Data Compiled by AMI Partners

Defining Your CSB Business Model

Enterprise

Mid-Market

SMB Market

Cloud Service Broker

Reseller

Integrator

Hoster

Aggregator

Mobility & BYOD

VirtualInfrastructure

Business Continuity

Collaboration & UC

SaaS-basedBusiness

Apps

HybridIT

InformationSecurity

Cloud Services

Target Markets

Business Strategy

CSB Growth

Plan

Cloud SolutionsPortfolio

Sales &Marketing

Metrics

Managed &Professional Services

Scaling Your CSB Business (Profitably)

• Average Deal Value • OTR Value• MRR Value• GM Value

• Cost of Acquisition• Sales Expenses• Marketing Expenses• Ratio to Deal Value

• Deal Volume• Deals/Month• Close Rate• Cycle Time

• Funnel Metrics• Lead Volume• Cost/Lead• Conversion Rate

Measure the Metrics That Matter

“LEAN” Customer Acquisition

Cloud Services Contract Value

Months to Recover Customer Acquisition Cost

Wasted Profits

Recu

rrin

g Re

venu

e

Customer Acquisition Cost Comparison

Lean Breakeven

Traditional Breakeven

Lean Sales & Marketing

Traditional Sales & Marketing

“LEAN” Customer Acquisition

NotTargeted

HighlyTargeted

OutboundMarketing

Outside Sales

Inbound Marketing

Inside Sales

Sales-Driven Customer AcquisitionExpensive Customer

Acquisition Cost

Low CustomerAcquisition Cost

Audience

Audience

Marketing-Driven Customer Acquisition

Awareness Consideration Decision Purchase

Lean Sales & Marketing

Traditional Sales & Marketing

What is Inbound Marketing?

LeadsWebsiteContent

SEO

Site Conversion

Rate

LeadNurturing

SocialMedia

Many Disciplines

WorkingTogether

To Produce Quality Leads

An Inbound Marketing Engine

LeadsWebsiteContent

SEO

Site Conversion

Rate

LeadNurturing

SocialMedia

FuelsYour

Funnel

And Drives

Growth!

Fueling Your Sales Funnel

Website Visitors

Customers

Inbound Marketing:

Converts Website Visitors into Suspects

Converts Suspects into Prospects

Converts Prospects into Sales Opportunities

Top of FunnelSuspects

Middle of FunnelProspects

Bottom of FunnelOpportunities

Generates Traffic to Your Website

Perform Research

Establish Buying Criteria

Select a Vendor Solution

Realize a Problem or Need

The Buyer’s Journey:

Rele

vant

Con

tent

Nurturing Cam

paigns

More Satisfied Buyers

Scalable Customer Acquisition

Ensuring Business AlignmentGrowth Plan

Cost of customer acquisition?

Monthly deal volume?

Average deal value?

Average deal size?

Deal Economics

Create a ScalableBusiness Model

Funnel Metrics

Execute AgainstThat Model

Create a Cloud Business Growth Plan

Build High Value Cloud Solutions

Align Business Goals & Funnel Metrics

Inbound Marketing Assessment

Provided by:

Online Business Resource Center

Resources For Attendees

CSB Business Modeling Tools (Give me your business card – I will email today)

– Business Growth Modeling Tool

– Portfolio Planning Modeling Tool

– Funnel Metrics Modeling Tool

FREE Inbound Marketing Assessment– Visit www.csbexcellence.com

CSBcommunity.com Online Resource Center– Visit www.csbcommunity.com

Contact

Dave ZwickerPartner & Co-Founder

CSBexcellencedave@csbexcellence.com

@csbexcellence

QUESTIONS