How to Navigate The Perfect Storm in Software Commerce · 5/7/2013 · 3.Questions will be...

How to Navigate The Perfect Storm in Software Commerce Michael Ni SVP, Products & Marketing Avangate May 7, 2013

R “Ray” Wang Principal Analyst & CEO Constellation Research

www.avangate.com 2

2

Housekeeping Rules

1. All lines are on mute

2. Use the Questions Box on the right

3. Questions will be answered towards the end of the webinar.

4. Unanswered questions and parking lot items will be followed up subsequently.

5. This presentation is being recorded for later playback and sharing.

6. Feedback forms will be provided at the end of session.

3

R "Ray" Wang

Principal Analyst and CEO Constellation Research

Today’s Speakers

Michael NI

CMO/SVP, Marketing and Products Avangate

© 2010 - 2013 Constellation Research, Inc. All rights reserved. Client Confidential

TM

R “Ray” Wang (@rwang0)

Principal Analyst & CEO

Understand What Matrix Commerce Is and

How It Affects Your Business

© 2010 - 2013 Constellation Research, Inc. All rights reserved. Client Confidential 5

Disrupt or Be Disrupted


Only 48% of the F500 remain from 2000

6


Incremental innovation

7


Transformational innovation

8


• Project based

• Globalization

• New stakeholders

• Goliath vs start-up

• Public/ private /hybrid

• Regulation/ deregulation

• Business process outsourcing

• Pace of obsolescence increasing faster than the rate of adoption

• Consumer tech ahead of enterprise

• Digital divide closing around the world

• Connected ubiquity drives new adoption models

• Changing workplace norms

• Distributed nature of work

• New work force models

• Mixed generations

• Aging workforce

• Global talent

• Temporary talent

• Loss of faith in capitalism

• Commodity shortages

• Political instability

• Sustainability and environmental focus

• Economic crisis

• Price spikes Macro

conditions

Workplace dynamics

Business Models

Pace of tech

adoption

Organizations face massive and

unprecedented levels of change

9

1. Macro economic forces

2. Dynamic workforce

3. New business models

4. Disruptive tech adoption


Commerce Silos Are Dangerous


Commerce silos must be broken down

Fragmentation destroys customer experience

Duplicate systems drag margins

Organizations forget everyone’s on the same

team

Organizational and customer incentives lack

alignment Customer satisfaction drops

Loyalty programs impossible to launch and

maintain

11

© 2011 - 2012 R Wang & Insider Associates, LLC. All rights reserved.


No one owns the perfect order

12

© 2010 - 2013 R Wang & Insider Associates, LLC. All rights reserved. Source: B2C Matrix commerce survey, 2010- n=61, 2011 n=87, 2012 n=93 Source: B2B Matrix commerce survey, 2010- n=83, 2011 n=97, 2012 n=106

B2C

B2B

Which executive owns the perfect order

inside your organization?


B2B e-commerce requirements must address

channel, social, and vertical context

13

© 2010 - 2012 R Wang & Insider Associates, LLC. All rights reserved. Source: Matrix commerce survey, 2010- n=83, 2011 n – 97, 2012 n - 105


B2C e-commerce requirements must meet

social, mobile, product, and perfect order

14

© 2010 - 2012 R Wang & Insider Associates, LLC. All rights reserved. Source: Matrix commerce survey, 2010- n=61, 2011 n – 87, 2012 n - 93


Matrix Commerce Is Here


Matrix Commerce describes a buyer centric

world

Buyer

Centricity

Channels

Demand signals

Supply chains

Payment options

Enablers

Big data



Buyers don’t care what channel you are in, just

the one they use

Constellation predicts 57% of all mobile sales to be smartphones by end of 2013 (1B total)

Clothing, tickets, consumer electronics,

meals, books, daily deals/coupons are top

purchases in US

Compare on-line, buy – in store, return via web, comment in social are all

real scenarios

Social media fatigue will come like email.

Engagement strategies required to avoid ‘spam’

Context and relevancy by channel required for

success.

Content silos must go away



Demand signals and supply chains bring the

science to matrix commerce

S&OP key to success in managing demand

signals

Demand side testing and forecasting now a best

practices

Compare on-line, buy – in store, return via web, comment in social are all

real scenarios

What –if analysis paired w/ big data insights

allow for business model change and forecasts

End to end perfect order alignment required for successful optimization

Commerce network models drive future

commerce as the values is in the information not

the transaction © 2011 - 2012 R Wang & Insider Associates, LLC. All rights reserved.


Payment technologies transform the balance of

power within the value chain

Battle for payments is first front in the war for digital share of wallet

Payment tech disrupts existing incumbents as P2P becoming a reality

Dowalla, Intuit Go Payment, Square, Apple Passbook, BBMoney or

what?

Micropayments lead growth in emerging

markets

Pre-paid or stored value gift cards drive revenue

per square feet

POS tablets are real and here to stay



Frictionless enablers improve conversion

Digital signatures provide the first front on

security

Billing solutions support the subscription and

sharing economy

App stores key to building ecosystems

Communities deliver long term engagement

Sentiment analysis key to engagement

strategies

Front office tools required for complete

customer view



Why Digital Goods Are Different


The digital dilemma requires unique

vertical requirements

High velocity transactions Precision orchestration Entitlement management

IP protection and lifecycle Partner ecosystems Value chain co-creation

22



B2B software publishers must address

engagement through new entry points

Shift to digital buying and account management

Focus on revenue streams as products that are excuses to sell services

Assist buyers with compliance

Improve sales optimization and customer experiences

Manage complex license management

23

© 2010 R Wang & Insider Associates, LLC. All rights reserved.


B2C software publishers must follow the

consumer shift to experience

Start with mobile first

Build social into all touch points

Focus on revenue streams as products that are excuses to sell services

Deliver active subscriber management

Design for hyper personalization

24



Digital publishers seek outcomes

25

© 2010 - 2012 R Wang & Insider Associates, LLC. All rights reserved. State of Mid-market Buyers. 2010 n = 235, 2012 n = 339


People Centric Values

Culture

Community

Credibility

Delivery and Comm Styles

Channel

Content

Cadence

Right Time Drivers

Context

Catalyst

Currency

26


Next Steps: Walk the talk through the buyer

centric journey

www.avangate.com 27

27

Embracing Customer Centric Commerce

Michael Ni (@mikeni)

Avangate

www.avangate.com 28

28

www.avangate.com 29

29

Consumers Empowered

• Abundant choice

• 3,000 daily brand impressions

• Informed with 10-14+ pieces

• Buy anytime, anyplace

• Expect value on their terms

Business Buy Like B2C

• Choice, verticalized, platforms

• Modular, Pay as you go, BOB

• Informed: self-research, peer

• New channels/intermediaries

• IT budgets , tech spend

The Individual Is At The

Center

(B2i)

www.avangate.com 30

30 Source: “Welcome To The Era Of Agile Commerce” Forrester report

consume

become loyal

consider

B2i – Across The Customer Touchpoints

www.avangate.com 31

31

Software / SaaS Companies Aren’t Even Close…

We spend way too much energy on small VARs

How can we sell and service subscriptions? Trial? Freemium?

We traditionally build it all ourselves. But it’s slow and expensive.

We are introducing SaaS. But No Idea if our Pricing is right.

It takes months to roll-out new packages, promotions, bundles

How Fast can we optimize our selling online? Globally?

How do we know what we don’t know?

www.avangate.com 32

32

Direct Partner Tools Contact Tools

Order Management

Accounting

Who Owns Commerce

? Payment

Processing

Global Payments

Shopping Cart

Fraud Management

Entitlements

Fulfillment

In-App Purchases

Refund Management

A/B Testing

Mobile Commerce

Customer Management

24x7 Call Center Subscription

Billing

Promotions

Affiliate Management

Channel Management

Tax & Regulatory Compliance

www.avangate.com 33

33

Direct Partner Tools Contact Tools

Order Management

Accounting

Who Owns Commerce

? Payment

Processing

Global Payments

Shopping Cart

Fraud Management

Entitlements

Fulfillment

In-App Purchases

Refund Management

A/B Testing

Mobile Commerce

Customer Management

24x7 Call Center Subscription

Billing

Promotions

Affiliate Management

Channel Management

Tax & Regulatory Compliance

Who Owns the Commerce Hairball?

www.avangate.com 34

34

What Software & SaaS Companies Need

Touchpoints Online, API-based, Account Mgmt, Branded, Rules-based,

Personalization / Localization

Distribution On-Board, Activate, Empower, and Manage across Indirect

Channels

Channel / Partner

Affiliate Network

Market-places

Mobile Online / In-App Orders

Customer Portal / Self-Service

Commerce Engine Acquire, Scale, Retain, Expand leveraging Marketing Tools, Order Management, Fulfillment / Provisioning and Revenue

Assurance

Subscription Billing

Direct Sales / Contact Center

Global Payments

Systems of Record Extend and Integrate across Customer, Product, Pricing, License / Subscriptions, Order, Financials

www.avangate.com 35

35

Three Software / Cloud Service Examples Embracing Customer-Centricity

metaio Platform Play – Developer Ubiquity, Self-Service Business Models

Retina-X Mobile First, Multi-Channel enabled

Large Enterprise Software Accelerating Time-to-Market for subscription-based cloud offerings

www.avangate.com 36

36

metaio – Engaging the self-service developer community

Metaio started out in 2003 specializing in Augmented Reality. In 2006, released the first browser plug-in for web-based AR applications and shortly thereafter, launched the first

fully integrated AR app for mobile devices and the mobile AR browser, junaio.

www.avangate.com 37

37

www.avangate.com

It’s Cool: Augmented Reality is one of the Top 10 strategic IT tech of our time.

Objective: establish Global network of developers to create commercial AR solutions.

Context

Expand sales from strategic consumer brands to developer community to enable the broad use of the augmented reality platform - Introduce Self-service sales targeting developers

Time To Market / Operational Commerce & Billing Automation to on-board developers, manage self-service, leverage subscriptions matching cloud-based offering.

Maintain flexibility to future-proof systems to alternative models for acquiring, managing, and monetizing future set of known and unknown customer segments

Challenge

Results: Speed to market and wider, faster reach to a global developer community

Experiment with new business and revenue models

metaio – the leader in Augmented Reality Sell Online Globally via Multiple Channels, Multiple Models

Channels / Business Models: Offering multiple subscription licensing plans subscription mgmt, future flexibility

Grow Online Sales / Presence: Affiliates amplify marketing to niche developer communities. Merchandising tools for promotions, AB testing, upsells & cross sells.

Global Reach: Avangate offered global reach with support for currencies, languages to transact in over 59 countries (soon 100+)

"Avangate is key to taking our product sales across channels - online direct as well as via affiliate partners,” Thomas Alt, CEO, Metaio

Solution

http://www.metaio.com/

www.avangate.com 39

39

Retina-X Studios – Engaging across all channels

Retina-X Studios, LLC has provided professional computer software to over 100,000 customers in more than one hundred fifty countries focused on bringing consumers,

businesses and institutions the latest monitoring software tools available

www.avangate.com

Mobile Player: Provider of monitoring software focused on connected devices and mobile

Objective: sell more, profitably across channels where mCommerce is fundamental for Retina-X

Context

Continuously optimize customer experience across channels – focus to reach main target audience via preferred mobile channel

On-the-fly servicing expected by buyers for not only for the product, but also for account information, subscriptions, transactions and orders

Challenge

Results: Continuously optimize customer experience to action across channels

20% increase in conversion rates via mobile

Retina-X Studios Optimize Customer Experience on Mobile and other Channels

Consistently Service The Customer via empowered assisted service via the Avangate Control Panel

Self-Service for customers to look up their subscriptions, orders and transaction history, as well as adjust their subscriptions on-the-fly

"Avangate = key element not only for selling, but also for servicing and retaining our customers,” James Johns, CEO

Optimized Mobile: mobile self-service drive increased sales conversions by over 20% on the mobile channel

Solution

www.avangate.com 41

41

Fortune 50 Technology Company – Accelerating Customer Centric Commerce Uptake

One of the top 10 largest software companies in the world. Vision to transition to Cloud to establish a broad Common Cloud Offering, coupled with the ability to sell /

service online, improve speed to market, expand globally

www.avangate.com

One of the top 10 largest software companies in the world

Cloud Vision to transition to Cloud and sell / service online to expand market, improve speed to market, reach global markets

Context

Regained speed via focus on developing new markets and selling versus building infrastructure

Peace of Mind / Future-Proof with IT / architecture review verifying security, stability and scalability of platform for growth and future flexibility needs

Complete commerce platform replacing initial Billing Vendor for Customer SSO Portal, order orchestration, subscription billing, global payments / tax management

Acceleration via services for payments, support, fraud, as well as guidance on SaaS product/ pricing, B2i practices for selling and servicing

Solution

Time to market - Slow pace of progress for selling online even with a limited scope of the first product in one geography

Fragmented commerce systems and complexity of integration across global tax / compliance, PO mgmt, multi-channel enablement, and 24X7 support center needs

Traditionally B2B, adopting B2c selling and service approaches –multiple business and functional operational changes

Challenge

Results: 6 weeks go-live of key SaaS products versus

10+ months building atop billing tools Sales in 100+ countries, frictionless, subscription supporting hybrid model

Large Enterprise Software Company Introduce New SaaS Products Online alongside Traditional Sales Channels

www.avangate.com 43

43

Any Channel, Any Model, Any Market

Customer Centric

Commerce

Transact

at Every Customer Touchpoint

Optimize

New Business Models, On-The-Fly

Reach

New Global Markets Instantly

Avangate | Accelerating Customer Centric Commerce

www.avangate.com 44

44

Takeaways What Should You Do Tomorrow

Embracing Customer Centric Commerce

Individual is at the center

Today’s commerce is fragmented and ill-equipped to deliver on expectations

Frictionless commerce not limited to online self-service

Automation is fundamental

Continuous experimentation is the only constant – approach, offering, promotion, market, geo

Start with the 9C’s approach

Introduce self-service to your marketing & servicing strategy

Just start by signing up and trying systems like Avangate SkyCommerce

Download report on Matrix Commerce - link

Join the conversation around C3 – avangate.com/blog

http://www.avangate.com/lp/forrester-report-subscription-and-recurring-billing-solutions-2012.html

www.avangate.com 45

45

www.avangate.com 46

46

Avangate B.V. Amsterdam, The Netherlands Tel: +31 20 890 8080

Avangate Inc. Redwood Shores CA., USA Tel: (650) 249 - 5280

[email protected] www.avangate.com

Thank You! Michael Ni

@mikeni

R “Ray” Wang

@rwang0

Avangate B.V. Amsterdam, The Netherlands Tel: +31 20 890 8080

Avangate Inc. Redwood Shores CA., USA Tel: (650) 249 - 5280

[email protected] www.avangate.com

Thank You! For more information on Avangate and SkyCommerce, please visit www.avangate.com

Download the Constellation Whitepaper: “Introducing Matrix Commerce” Register at www.avangate.com/lp/whitepaper-matrix-commerce-2013.html

How to Navigate The Perfect Storm in Software Commerce · 5/7/2013 · 3.Questions will be...

Documents

Transcript of How to Navigate The Perfect Storm in Software Commerce · 5/7/2013 · 3.Questions will be...