Increase your revenue by selling hosted exchange

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Information about Increase your revenue by selling hosted exchange
Technology

Published on March 5, 2014

Author: LuxCloud

Source: slideshare.net

Description

SMBs are adopting a wider variety of cloud services. Hosted communication and collaboration are the fastest growing cloud service categories in Europe. Hosted Exchange email is the perfect product to build an attractive offer around. You can make it as interesting for your customers as you want, discover how.

Increase your revenue by selling Hosted Exchange Overview SMBs are adopting a wider variety of cloud services. The average number of cloud applications used by SMBs is growing fast; last year they were using an average of 4 cloud services, up from 1 in 2009. This number will grow to 6 apps by 2015. This trend connected with the fact that SMBs prefer to buy all their cloud services from the same provider show the importance for cloud service providers to build competitive offers bundling different services together and then upsell and cross-sell other services that customers could find interesting. This way you could maximize your revenues and could increase customers’ retention. In this paper we would like to explain you how you could increase your revenues through your cloud offer taking Hosted Exchange Email as an example of it. Hosted Exchange Email Hosted communication and collaboration are the fastest growing cloud service categories in Europe with a CAGR (Compound Annual Growth Rate) greater than 57%. Hosted Exchange is a great starting point to move SMBs to the cloud. Email is still the primary channel for business communication; workers spend an average of 165 minutes per day with their email interface. Exchange is the number one business email service, 51% of the users worldwide use Microsoft Exchange for Business Email and Collaboration. Hosted Exchange is more than just an email system; it is a powerful collaboration tool. Your customers can manage contacts, calendars, tasks and email whether they are at their desk or on the go. Because it is hosted in the cloud, your customers don’t need to manage servers and gain the benefits of backups and data security. With Hosted Exchange they increase staff productivity and drive their costs down. Hosted Exchange 2010 is one of our most popular service modules, it helps you to increase your revenue and ARPU while decreasing customer churn. www.luxcloud.com 1|

How to make the best by selling cloud services? There are three main strategies to get your customers buy more services from you and increase your revenues: Bundling your services, upselling and cross-selling additional services. Sport Pack Up-sell: Better product Cross-sell: Lateral product Bundle: package of products Bundling consist of creating packages of related products together at a price that is more than that of any of the individual items, but less than buying them all separately (for example, selling spam filtering, virus protection and an Outlook license along with basic e-mail). One of the best ways to take advantage of the growing cloud opportunity is to replace single hosted services with bundles of related services—and then upsell customers to more comprehensive packages and cross-sell other services that might be attractive to the same decision maker. This way, you can deliver the value that SMBs are looking for while at the same time boosting your ARPU. It’s a win/win approach that increases your profits while providing your customers with the convenience of getting all their needs from one single source—which in turn increases their stickiness. The typical example to understand bundles of products is when buying a brand new car from a car salesman. He uses the car as the base product which he sells with additional services/products together in one package (music equipment, insurance, GPS system) which is cheaper than buying those services later on separately. To succeed in up-selling, you need to motivate the customer at the point of purchase to buy a higher-priced package or commit to a longer-term subscription—for example, by focusing on the savings compared with purchasing all services separately; or by presenting a special, limited-time offer. These upsell offers give you an opportunity to both increase your average revenue per user (ARPU) and enhance customer retention. A typical up-sell example from the car industry: when a customer is buying a new car… “Would you like to upgrade the engine size?” or “This latest higher model is equipped with everything you need”. The customer pays a little more, but also gets a better version of the product. While upsells present a higher-priced version of similar or closely related services, cross-sells typically present other offerings in which the same customer may also be interested. In crossselling, for instance, you may suggest additional services purchased by others who bought the same package the customer is about to buy—or a special savings if they buy another service at the same time. As with upselling, you need to provide motivation to purchase the additional service. It’s also important to make sure that the services you’re cross-selling target the same decision maker who is making the initial purchase. www.luxcloud.com 2|

Typical cross-sell example from the car industry: when a customer is buying a new car: “would you like bigger size rims/full audio and navigation system/ additional insurance/with that?” The customer buys a product and then adds another product than compliments the first. Hosted Exchange examples Hosted Exchange email is the perfect product to build an attractive offer around. You can make it as interesting for your customers as you want: Bundle: Configure your own package which highly complements your offer. COMPLETE HOSTED EXCHANGE BUNDLE COLLABORATION BUNDLE MOBILE PRODUCTIVITY BUNDLE OTHER OPTIONS TO DEVELOP YOUR BUNDLE Hosted Exchange Hosted Exchange Hosted Exchange Hosted Exchange + Anti-Spam & AntiVirus + SharePoint + Blackberry Messaging + Domain registration + Mail Archiving + Outlook License + Company Website + Outlook License + Lync + Anti-Spam & AntiVirus + Mail Archiving + Extra mailbox storage Up-sell: Suggest separate additional options or offer Hosted365 which complements the bundle. Cross-sell: Offer other cloud services that can attract customer attention www.luxcloud.com 3|

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