Hello partners,
In my WPC session Learn What Successful Cloud Partners Know about Building a Profitable Cloud Business and in my last two blogs, I teed up 4 key pillars of building an optimized cloud strategy:
  1. Increasing Value
  2. Creating Stickiness
This week I’d like to delve into how partners are Increasing Value for their customers. The Increasing Value pillar pivots on how to maximize the revenue of each customer and develop an offering that extends the relationship for as long as possible.
Generally speaking, this is most commonly done in two ways:
  1. Expand your offering. Expand your offering portfolio to provide a broader solution. Many of you are selling Office 365 and have wrapped managed services around it. The next logical step may be for you to add complementary Azure workloads to increase your average revenue per use (ARPU) and solidify your role as a trusted provider of IT solutions. In an effort to help you identify new offerings to take to your customers, we have built the following new profitability tools:

    Scenario-focused value proposition content across twenty Office 365, Azure, CRM Online and Windows and devices scenarios/workloads. These scenario overviews include a summary of the customer needs, market opportunity, and partner opportunity, along with the average revenue and margins obtained for each.

    Financial models which allow you to model out the potential revenue, contribution margin, and valuation impact that taking a new scenario to market will deliver. Models are provided for Office 365, Azure, and CRM Online, and a combination model which combines Office 365, Azure, CRM online, and Windows/Devices.

  2. Focus on adoption. Cloud adoption is achieved when customers use the service they purchase on a regular basis, realize the value of the service, and the service becomes critical to their daily lives and work. To ensure long-term success, customer loyalty, and recurring revenue, partners must focus on driving adoption. So how do you do it?
  1. Set your vision and identify business scenarios: If you “sold it right,” as I discussed in one of my previous blogs, this step should be simple. Know what the customer is trying to achieve and the pain points you are trying to address.

  2. Map your business scenarios to usage scenarios and create an adoption plan: In this step you are connecting your customer’s needs to appropriate solutions. For example, if you know the customer is struggling to find a place to store documents and share content, you might make a plan to light up OneDrive or SharePoint Online.

  3. Commit resources (because buy-in is crucial), then implement your adoption plan: If the execs and business decision makers don’t buy in, they won’t allocate resources to help drive adoption. Identify an evangelist to help you drive the plan to fruition and motivate others to adopt the new solutions you are implementing.

  4. Measure the progress against your plan: Showcase or highlight successes and identify new use case scenarios. I strongly recommend that you take a data-driven approach to this step by monitoring usage data to uncover insights and opportunities.
Stay tuned for my final blog in this series – Creating Stickiness. Be sure to follow me on Twitter to get regular updates on profitability resources and tools! If you have feedback, questions, or if you have a compelling story to tell about your business, I would love to hear from you! Please reach out via email, Twitter, or LinkedIn.
Jen
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