Beyond Products: Solution Marketing

Beyond Products:
Solution Marketing
Steve Robins
February 16, 2012

© 2009-2012
© 2011
www.SolutionMarketingBlog.com
Steve Robins, The Solution Marketing Blog

CBOND
competition
company
products
yourself
services
limits

© 2009-2012

Beyond Solution
Products: Marketing

THE Solution Marketing Blog

© 2009-2012

What is “it”?
What’s Happening What’s Needed
• Customers want it • Solutions make life easier
• But most customers • Technology is increasingly complex and • Help customers
can’t do it on their own customers lack in-house resources, time,
expertise
• Apple, IBM and Chuck e • Each offers complete solutions to
Cheese sell it customers…
Apple iPad ecosystem, IBM industry
solutions, Chuck e Cheese birthday

• Most tech companies
claim to have it
package
“It” = Solutions
• Seems like everyone sells solutions today
• Provide discipline, rigor,
consistency – best
practices

• But none of them know • But there’s not a common definition
what it is
• Sales thinks they’re • Many sales teams use the Solution Selling • Help Marketing to work
selling it… methodology with Sales
• Provide a solution
• …but they’re doing it • But Solution Selling does not provide methodology for
without Marketing. strategic guidance for Marketing Marketing
• It can be confusing • Solution Marketing Blog,
• There’s little discipline around solutions
Group, Consulting

p4
© 2009-2012
Steve Robins, The Solution Marketing Blog www.SolutionMarketingBlog.com

What is “it”? Solutions is It.
What’s Happening What’s Needed
• Customers want it • Solutions make life easier
• But most customers • Technology is increasingly complex and • Help customers
can’t do it on their own customers lack in-house resources, time,
expertise
• Apple, IBM and Chuck e • Each offers complete solutions to
Cheese sell it customers…
Apple iPad ecosystem, IBM industry
solutions, Chuck e Cheese birthday
package • Provide discipline, rigor,
consistency – best
• Most tech companies • Seems like everyone sells solutions today practices
claim to have it

• But none of them know • But there’s not a common definition
what it is
• Sales thinks they’re • Many sales teams use the Solution Selling • Help Marketing to work
selling it… methodology with Sales
• Provide a solution
• …but they’re doing it • But Solution Selling does not provide methodology for
without Marketing. strategic guidance for Marketing Marketing
• It can be confusing • Solution Marketing Blog,
• There’s little discipline around solutions
Group, Consulting

p5
© 2009-2012

Steve Robins

 10+ years in solution marketing
– Expertise in solution, industry and product
marketing
– Experience: FirstBest Systems, Solution
Marketing Strategies, EMC Documentum, KANA,
The Yankee Group

 Founder, The Solution Marketing Blog, • Provide a solution
Top-rated solution marketing blog methodology for Marketing
• Discipline, rigor,
 Inbound Marketing Certified consistency – best
Professional practices
• Help Marketing to work with
s.robins [at] SolutionMkt.com Sales
LinkedIn.com/in/SteveRobins1 • How:
Twitter.com/SteveRobins • Solution Marketing
Blog
SolutionMarketingBlog.com
Slideshare.net/Steve_Robins • LinkedIn Group

p6
© 2009-2012

Solutions Everywhere

Device Device Kid food
+ + +
Software Software Adult food
+ + +
Content Content Entertainment
+ + +
Cloud Cloud Activities
+
Party gifts

p7
© 2009-2012

Solutions Everywhere

p8
© 2009-2012

Agenda

 Introduction
 Beyond products
 Solution marketing
– Solution
– Education & engagement
– Value
– Access

 Building your solution marketing strategy
– Discovery
– Strategies for solutions, education & engagement, value, access
– Case studies

 A cautionary tale
 Next steps, Q&A
p9
© 2009-2012

Beyond Products
The Solution Imperative

© 2009-2012

Typical Company Wants…

Customer

Tech-
nology

Company

p11
© 2009-2012

What is a Solution Anyways?

so·lu·tion
noun sə-ˈlü-shən
General definition:
a: an action or process of solving a
problem
b: an answer to a problem

so·lu·tion
noun sə-ˈlü-shən
Business definition:
A complete and integrated
offering that includes everything
required to solve a customer
problem

p12
© 2009-2012

Typical Customer Wants…

Services

User

Tech-
nology Process
Customer
---
Pain
Points

Content/ Data

Complete Solution
Everything to solve the customer’s problem
p13
© 2009-2012

Complete Solution

User • User interfaces • Best practices
• Training • Domain expertise
• Support
Process • Process optimization • Integrated experiences
• Reengineering • ROI studies
• Workflow • Security
Content/ • Content • Data
Data  Documents • External data sources
 Images • Data security, data policies
 Video
 Music
 Books
Technology • Hardware/ infrastructure • Complementary technologies
• Software platforms • Integrations
• Applications • Custom coding
Services • Strategy • Integration services
• Project management • Communications services, hosting
• Risk management • Support
• Custom coding

p14
© 2009-2012

Why Solutions?

 Increasing complexity of technology
 Limited in-house IT to support systems
 Avoid in-house/SI build or integration
 Business users drive tech decisions but don’t
understand the technology
 Mature markets

p15
© 2009-2012

Why It Matters

The Chasm Main Street
Relative % of Customers

The Solution Opportunity

The Tornado

End of Life
Early Life Bowling
Alley

Innovators Early Adopters Early Majority/ Late Majority Laggards Time
Technology Visionaries Pragmatists Conservatives Skeptics
Enthusiasts

Customers want technology Customers want solutions and convenience
and performance Sources: E.M. Rogers, G. Moore

p16
© 2009-2012

Solution Marketing
Customer-Centric
Marketing for Today

© 2009-2012

What is Solution Marketing?

so·lu·tion mar·ket·ing
noun sə-ˈlü-shənˈmär-kə-tiŋ

The process of defining,
educating, and providing access
to complete and integrated
solutions
that deliver value
by helping customers to solve
their problems.

p18
© 2009-2012

Solution Marketing Adds Value To
Marketing, Sales and Product Management

Field
Enablement
Social Media Frictionless
Sales

Marketing Product
Support Management

p19
© 2009-2012

The 4 P’s – All About the Company

“Build it and
they will come”
Product

Best channels
for us to sell Place Pro-
the product motion
Company
Outbound,
interruption
marketing
Price

Cost-plus;
margin is king

p20
© 2009-2012

Solution Marketing – All About the Customer
“How can I solve
Strategy, Metrics
my problem?”
Solution
Product

“How can I
“Where can Education
Access
Place Pro- learn more
I find it?” Engagement
Customer motion about it?”
---
Company
Pain
Points

Price
Value
“How will it help me and
what is my total sacrifice
to get this solution?”
End-to-End Marketing for Today
Customer-Focused Marketing
p21
© 2009-2012

Building Your Solution
Marketing Strategy
Discovery
Strategies for:
Solutions
Education & Engagement
Value
Access
© 2009-2012

360o Discovery

What markets and What will each solution How will we educate and How will we incorporate How would the user/buyer
solutions should we do and include? engage with potential and communicate value? like to buy and use the
target? users and buyers? solution?

Internal Solution Persona Value Access
• Revenue Requirements • Titles • Before/after process • Best channels
• Current offerings • Use cases • Business challenges • Before/after • Optimal role of
• Core competencies • Revenue • Career goals challenge/gain VARs, SIs, direct
sales, buying on
•
•
Oppor-
Solution maturity
Sales-readiness
•
•
Business challenges
Solution
Industry/function
• Thought process
Users
•
Value
Customer’s value
drivers - Access
contract
• Preferred delivery
tunity
External •
trends
Key components
How to connect
• “Hang-outs” –
• Drivers
dollar impact
ROI Needs
models… Software?
• Purchasing habits, SaaS? Business
• Under-solved • Buy vs build communication Process
challenges • Testing channels, pubs, budget
Outsourcing?
• Top market, solution trade shows, social
opportunities media
• Segment size • Industry jargon
• Market drivers • Influence levers (ex
• Competition case studies?)

p23
© 2009-2012

360o Discovery
Portfolio Solution User Customer Solution
Strategy Development Personas Value Access

What markets and What will each solution How will we educate and How will we incorporate How would the user/buyer
solutions should we do and include? engage with potential and communicate value? like to buy and use the
target? users and buyers? solution?

Internal Solution Persona Value Access
• Revenue Requirements • Titles • Before/after process • Best channels
• Current offerings • Use cases • Business challenges • Before/after • Optimal role of
• Core competencies • Revenue • Career goals challenge/gain VARs, SIs, direct
• Solution maturity • Business challenges • Thought process • Customer’s value sales, buying on
• Industry/function drivers - contract
• Sales-readiness
trends dollar impact • Preferred delivery
How to connect models… Software?
External • Key components • ROI
• “Hang-outs” – SaaS? Business
• Under-solved • Buy vs build communication • Purchasing habits,
budget Process
challenges • Testing channels, pubs, Outsourcing?
• Top market, solution trade shows, social
opportunities media
• Segment size • Industry jargon
• Market drivers • Influence levers (ex
• Competition case studies?)

p24
© 2009-2012

Solution Needs Hierarchy

Intelligence: Mature
templates, 5
rules etc
Components &
4 integrations

Business
3 value

Solution description –
2 what it does

Target audience and
1 business problem Less
Mature

p25
© 2009-2012

Solution Strategy

• General strategy:
• Target markets/functions, solutions
• Solution maturity
• Partner
• Buy vs build
• Completeness: Platform > Framework > Templates > Application

• Portfolio management
• Revenue goals
• Cross-functional team
• Metrics for success

• Cross-functional alignment, organizational support
• Development/engineering/product management
• Channel/SI partners
• Marketing
• Sales
• Support
• Services

p26
© 2009-2012

PowerAdvocate Offers Complete Solutions

BIZ CHALLENGE SOLUTION

 Business challenge:
Optimize procurement in the energy
sector (power plants)
 Company challenge:
Differentiate the company from larger
players like Ariba

© 2009-2012

PowerAdvocate Offers Complete Solutions

BIZ CHALLENGE SOLUTION

 Products: SaaS solutions for
procurement
spend, cost, market, sourcing Solution Assessment
User 
 Services: Industry experts Process 
provide services to lower Content/Data 
costs Technology 
 Data: Market-specific Services 
procurement data and
analysis

Differentiator: industry-specific data
© 2009-2012

Education & Engagement: Message

$
Insured
Agent
Carrier
Loss ratio

Consistent/ Value-
Targeted True Driven Relevant Jargon

p29
© 2009-2012

Education & Engagement: Strategy

Challenge Buy
& How to Now!

Market Market Demand Frictionless Field
Education Engagement Gen Sales Enablement/
Sales

p30
© 2009-2012

Value = Benefit - Cost

Value Benefits (Improvement)
 Profit, expense, revenue drivers
 New business
 Time savings
 Productivity improvement
 Headcount reduction
$Dollars

 Soft benefits

Total Cost of Ownership
 External…
– Software
– Hardware
– Services

 Internal…
© 2011 www.SolutionMarketingBlog.com – Training
– Change management
– Desktop upgrades
– IT management

p32
© 2009-2012

Value-Based Pricing

Value = Benefit - TCO
Assume that vendor charges fair price
for features provided
Business Benefit ($)

Lost revenue

Customer
Benefit Unneeded features

Customer
Benefit Price

Customer Customer
Benefit Benefit
A B C D
High Value Fair Value Poor Value Fair Value
Lost software Price matches Unneeded Price matches
revenue benefit features benefit

Solution use-case drives benefit and value
p33
© 2009-2012

Microsoft SharePoint Delivers Value
with 50% of the features

BIZ CHALLENGE SOLUTION RESULT

Share information with other
people in the enterprise

© 2009-2012



“
We don’t claim we do everything.
If we do 50 percent of the
functions that these other
companies do, but they’re the ones
customers really want, that’s fine.

”
The magic is that end users
actually like to use the software.
Chris Capossela
Senior Vice President
Information Worker Product Management Group , Microsoft

NY Times 8/2/2009

© 2009-2012



Significant growth at expense
of mainstream ECM vendors

Lesson: Customers gain value by
buying only the features they need

E
© 2009-2012

Access

 Be flexible
 Provide seamless experience
 Enable frictionless sales
 Complete/close the sale quickly
 Ensure success thru “the last mile”

p37
© 2009-2012

Solution Marketing Failure

 Solution
– Don’t give customers what they want

 Education/Engagement
– Blame your offering’s failure on communication instead of admitting it was
just a really bad idea

 Value
– Base your pricing on what works for you, not for customers
– Nearly double prices for your best customers
– Decrease customers’ perceived value of your solution

 Access
– Make it more difficult to do business with you – split your offering into 2
websites
– Dis-incent customers from buying both of your services

p39
© 2009-2012



 Inexpensive
 All-you-can-eat
 Video by mail
 New: streaming
 New pricing plans, July 2011:
streaming vs. video by mail
 Focus on what’s good for Netflix,
not the customer
© 2009-2012


New pricing plan
28 July 2011 $944

$263 $894
26

$238 $844

Revenue ($ Millions)
Subscribers (Millions)

24
$794

22 $176 $744
$155
20 $694

$107 $644
18 $113
$594
$75
16 $69 $544

14 $494
3/2010 6/2010 9/2010 12/2010 3/2011 6/2011 9/2011 12/2011

Unique subcribers Revenue
Subscriber trend Revenue trend
Stock price Sources: NetFlix, Google
© 2009-2012

Getting Started

1. Begin internal discovery
2. Know the customer
3. Define the business problem
4. Move from feature/benefit  business
value
5. Think about solution completeness
6. Bonus: how are market/tech forces
changing solution requirements?
p45
© 2009-2012

Q&A

Services Strategy, Metrics

User Solution
Product

Tech- Education
Access
Place Pro-
nology Process Engagement
Customer Customer motion
--- ---
Company
Pain Pain
Points Points

Content/ Data Price
Value

Complete Solution Solution Marketing
p46
© 2009-2012

Thank You

Steve Robins s.robins [at] SolutionMkt.com
Founder LinkedIn.com/in/SteveRobins1
The Solution Marketing Blog
Twitter.com/SteveRobins
SolutionMarketingBlog.com
Slideshare.net/Steve_Robins

www.SolutionMarketingBlog.com

p47
© 2009-2012

Take the Next Step

Saturday
June 9, 2012 We’re hiring!
Microsoft NERD firstbest.com/
Cambridge company-careers.htm
www.ProductCampBoston.org

Solution Marketing Pros www.SolutionMarketingBlog.com
LinkedIn Group
THE
linkedin.com/groups? Solution Marketing
gid=1826720 Blog

p48
© 2009-2012

Beyond Products: Solution Marketing

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