MicrowarehouseCloud Customer Acquisition Acceleration Workshop

Mark StuytChief Engagement OfficerNeural Impact Inc.

Founder – Chief Engagement Officer, Neural Impact Inc. 8 Years management consulting to global Microsoft

community 25 year sales professional (CA, Pivotal CRM, PeopleSoft, SAP) Developed Microsoft Accelerated Selling Methodology (Cloud

SureStep) Developed Microsoft Industry Acceleration Content >100s 1:1 partner workshops Developed and delivered global SMB PSE CAA & PTU

Workshops

Partner Win Rates

20%

50%

80%1-3 Industries (teach)

>3 Industries (service)

1 Industry (disrupt)

Self-educatingAnonymous researchHighly informedIndustry expectationProduct orientationRisk averseConnected/SocialDemanding

Our average attention span has dropped to 8 seconds, one second less than a goldfish.

Buyer 2.0

Buyer 2.0 – Changing Buyer Behavior

Four Core Impacts

Solution Design

MarketingSales

Services

Summary

Buying behavior has changed (forever)Big impacts to four core partner disciplines• Focused solutions• Digital marketing strength• Prescriptive selling• New service offeringsEconomic impacts…

Assessing Cloud Readiness

Customer Acquisition

Solution Maturity

Cloud Capability Gap

Investment Focus

Customer Acquisition Capability

Solu

tion

Mat

urity

Exercise.

Complete a high-level self profiling assessment.

ExerciseAction Plan

http://neuralimpact.ca/microsoftpartnerexecutivesummit2018

Summary

Complete the assessment WITH your PDMIdentify near and long term business prioritiesIdentify key metric prioritiesConvert assessment insights into your partner business planRevisit in six months…..

Leveraging Focus (and IP) to Drive Differentiation & Higher Profitability

Solution Design

MarketingSales

Services

Differentiation 2.0

Product advantage

Pricing advantage

Geographical advantage

People advantage

Industry/vertical solutions

Knowledge advantage –new information

Simplicity

Safety (limited risk)

Logical Differentiation

Emotional Differentiation

IP Staircase

Labeled bundles

Full functional solutions

Packaged extensions

Full vertical solutions

Complexity/Cost/Revenue Potential

Diffe

rent

iatio

n/Cu

stom

er V

alue

/Usa

ge

POTENTIAL ISV PARTNERING

Labelled BundleLabeled bundles

Full functional solutions

Packaged extensions

Full vertical solutions

POTENTIAL ISV PARTNERING

Managed Services

(Contracted Support)

Traditional Professional

Services (Project Based)

Cloud Subscription

Reselling

Financial Impact – Labelled Bundle

39.7%

23.5%

Average Gross Margin Average Annual Revenue Growth

Source is CloudSpeed Realities on the Ground Study 2017

Packaged ExtensionsLabeled bundles

Full functional solutions

Packaged extensions

Full vertical solutions

POTENTIAL ISV PARTNERING

Financial Impact – Packaged Extension

Managed Services (Contracted

Support)

Partner Own IP Subscriptions

Traditional Professional

Services (Project Based)

Cloud Subscription

Reselling40.6%

24.3%

Average Gross Margin Average Annual Revenue Growth

Source is CloudSpeed Realities on the Ground Study 2017

Functional SolutionLabeled bundles

Full functional solutions

Packaged extensions

Full vertical solutions

POTENTIAL ISV PARTNERING

Financial Impact – Functional Solution

44.1%

27.6%

Average Gross Margin Average Annual Revenue Growth

Source is CloudSpeed Realities on the Ground Study 2017

Managed Services (Contracted

Support)

Partner Own IP Subscriptions

Traditional Professional

Services (Project Based)

Cloud Subscription

Reselling

Vertical SolutionLabeled bundles

Full functional solutions

Packaged extensions

Full vertical solutions

POTENTIAL ISV PARTNERING

Financial Impact – Vertical Solution

48.6%

31.6%

Average Gross Margin Average Annual Revenue Growth

Source is CloudSpeed Realities on the Ground Study 2017

Managed Services

(Contracted Support)

Partner Own IP Subscriptions

Traditional Professional

Services (Project Based)

Cloud Subscription

Reselling

Which step of the IP Staircase do you currently occupy? Where would you like to be in three years?Create your own pie chart with revenue streams.

ExerciseExercise

IP Staircase Gap

10%

50%5%

20%

15% IP

Managed Services

Hosting

Project/Professional

Resale

Average Revenue Mix for a Cloud MSP

Source: Cloud MSP research by AMI Partners, Inc. N = 50

IP

Defining Your Solution Area Focus

Defining Your Focus

Development Accelerators

Solve a business problem

Lower risk

Choose a focus

Industry/Vertical Workload /functional (persona)Solution Area

Leverage the work of others (P2P)Speed time to marketLower costs

Who are my customers?What have they purchased?What can we leverage?

Industry Assessment Tool

Complete the vertical assessment tool or reflect on your customer portfolio and strategic organizational competencies to determine your core focus.

Summary

Customer demand is changingServices are being commoditizedDifferentiation requires focusStart with what you knowSolve a business problemPartner to lower risk

Leveraging Neuroscience & Emotional Engagement to Accelerate Cloud Customer Acquisition

24 X 78

e-motion

.

.

5%Conscious

Logical

95%Unconscious

Intuitive

Decision Making is Nonconscious

Behavioral Economics

Primacy AnchoringPrematureCognitive

CommitmentConfirmation

BiasConsistency

Principle Recency

Marketing is the New Sales -Engaging the (Anonymous) Digital Buyer to Increase Online Engagement and Lead Conversion

Solution Design

MarketingSales

Services

Qualify55%

Proof30%

Close15%

Alignment Letter Demonstration Plan

Prop. Pres.

Creating Bias

Create Bias

Marketing Assessment

Marketing is the New Sales

10%

57%

Get Found Convert NurtureTriage

Industry FocusThought Leadership

SEO, SEM, Social

Digital EngagementCalls-to-Action

High Value Offers

Deliver ValueEngagement

Communications

Build RelevanceRemain in Conscience

CRM/Automation

Four Marketing Disciplines….

Tribal Engagement

Tribal Engagement

Persona Engagement

Greater productivity

Improve customer satisfaction

Better visibility

Scalable

Manageable

Reliable

Powerful

Easy to use

Dynamic

Business software

World leader

Market leader

Best-in-class

Best-of breed

Cost effective

End-to-end solution

Increase revenues

Reduce costs

Competitive advantage

Mission critical

Award winning

Value add

Best

Unique

Great

Innovative

Exclusive

Business solutions

Collaboration

Language Engagement

Emotional Engagement

Emotional Engagement

Visual Engagement70% of the population is primarily visualMoving pictures evoke emotions.25% of brain activity is involved in visual processing70% of the body’s sense receptors are in the eyes

2X conversion

Quiz; which one worked better?Visual Engagement

Visual Engagement

SimplicityWhat is the cloud? Where is the cloud? Are we in the cloud now? These are all questions you've probably heard or even asked yourself. The term "cloud computing" is everywhere.In the simplest terms, cloud computing means storing and accessing data and programs over the Internet instead of on your computer's hard drive. The cloud is just a metaphor for the Internet. It goes back to the days of flowcharts and presentations that would depict the gigantic server-farm infrastructure of the Internet as nothing but a puffy, white cumulonimbus cloud, accepting connections and doling out information as it floats.What cloud computing is not about is your hard drive. When you store data on or run programs from the hard drive, that's called local storage and computing. Everything you need is physically close to you, which means accessing your data is fast and easy for that one computer or others on the local network. Working off your hard drive is how the computer industry functioned for decades; some would argue it's still superior to cloud computing, for reasons I'll explain shortly.The cloud is also not about having a dedicated network attached storage (NAS) hardware or server in residence. Storing data on a home or office network does not count as utilizing the cloud. (However, some NAS will let you remotely access things over the Internet.

Digital Engagement Gap

Identify evidence of tribal, persona and emotional engagement on your website.Tribal EngagementPersona EngagementLanguage EngagementEmotional EngagementVisual EngagementSimplicity

Workbook ExerciseDigital Engagement Gap

www.neuralimpact.ca/mini-audit

Emotional Website Audit

Accelerating Your Cloud Sales Cycle – Leveraging Cloud & Focus to Drive 50% - 80% Win Rates

Solution Design

MarketingSales

Services

Strategic Tipping Point

Qualify Develop Solution Proof Close

EmotionalDiscovery

BDMWhiteboard

BVAWorkshop

SolutionDemo

Proposal Presentation

STP

StrategicTippingPoint STP

Current Sales Motion (20% Win Rate)

STP

Profile Anchor Collaborate Confirm Commit

Profile Anchor Expand Commit

Profile Confirm Commit

Buyer 2.0 Sales Motions

55% 30% 15%

Confirm Commit Up/X SellProfile

Sales Strategy

STP

Cloud Selling Motion

SolutionSelling

SALES CYCLE

SALE

S SK

ILLS

CloudSelling

Skills Shift

Engagement Communications

Alignment E-mail

Demonstration Plan

Summary

Align your sales motion with your solution offeringPreconfigure ENGAGING prospect communications to create bias and comfort (safety).Drive an early STP (front-end-load sales pursuits)Focus = Differentiation, Safety, 50%+ Win Rate

Re-imaging Cloud Services

Solution Design

MarketingSales

Services

Services$

$$

$$

$

Consult Design Implement Integrate Maintain Manage Adopt

ProjectServices

ManagedServices

Services Offers – Current State

Services$

$$

$$

$

Consult Design Implement Integrate Maintain Manage Adopt

AccelerationServices

OptimizationServices

SelectionServices

Services Offers - Future

Automate Deployment/Project ServicesQuarterly Business Impact/Alignment Review

SelectionServices

OptimizationServices

Cloud Services Strategy

AccelerationServices

Business Case

Industry Benchmarking

Selection Services

Business Impact AssessmentBusiness Alignment WorkshopCloud Readiness Assessment Cloud TCO and ROI analysis Business Opportunity Identification Business Value AssessmentVision and Scope DefinitionBusiness Case Expansion/ValidationBusiness/Project Risk Assessment

But…..Where’s the $?

Solutions

Outsourcing

Advisory

Commodities

Differentiated

Competitiveposition

Undifferentiated

Market Pricing Premium

Relevant to

Needs ofcustomer

Irrelevant to

The Experience Economy – Pine & Gilmore (2011)

Partner Value Delivery/Differentiation

P&L Shift

Download the P&L Modeller and define both current and future state (with a new cloud practice).

ExerciseExercise

P&L Modelling

Cloud Business Model Transition

Source is JB Wood, Technology Services Industry Association

Next Steps….

30-60-90 Day Action Plans

aka.ms/cloudsecurityplaybook aka.ms/dataplatformplaybook aka.ms/cloudappdevplaybook aka.ms/cloudinfraplaybook

NI CCAA Leadership Workshop

https://ubcbusiness.qualtrics.com/jfe/form/SV_8hKw3c7UckkLpFb

What ‘landed’ today?Directions: