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The SaaS & Success Project

Thursday February 23, 2012





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SaaS, Paradigm Shifts, and Personal/Professional Survival

History is full of examples of what ultimately happens to those who cannot adapt to changing circumstances. The end of the dinosaurs. The buggy whip and carriage manufacturers of the early 1900's; where are they now? The USS New Jersey class and the Japanese Navy's Yamato and Musashi -- these battleships were awesome weapons platforms in their time, as finely built as any traditional Swiss watch -- but what role do battleships and their admirals have today? How about mainframe computer people; d

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SaaS/Cloud: Tsunamis Are Not Small Things

I had a conversation with the CEO of one of my oldest software manufacturer clients. He's a veteran, having successfully weathered a number of industry changes over the years with his company, but he made a comment that concerned me. "We can go SaaS at any time," he said. "We've got the code already revised and in place, so it won't be a big deal if we decide to offer that model." Unfortunately, the reports of those who have undertaken the journey to SaaS show that it will be a big deal, and the

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SaaS/Cloud & Support: Reinventing the Role

In the previous SaaS/Cloud & Support Briefing, I called for a complete re-invention/redefinition of the role of Support and the customer contact center, starting with a total change in focus. The heart of what's been wrong with Support all along is that the Break / Fix interactions between customer and company offer no real value or economic gain to anyone. The motivation for creating a new era of Support is clear cut: No one can afford to do business in the old reactive way anymore. Everyth

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SaaS/Cloud & Support: The Right People

I've been reviewing position announcements posted on LinkedIn and other services seeking potential employees for customer support roles. The typical job description is explicit. VP or Director of Customer Support/Service/Care. Must have 5-10 years experience in all aspects of technical support operations. Must have [insert technical expertise details.] We are a startup On-Demand software company, and you will be responsible for building our Customer Support team from the ground up, etc. Major Co

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The Reality of SaaS/Cloud Customer Retention

One of the major challenges facing SaaS/Cloud companies is accepting the reality of the new industry playing field.  This contest won’t be won by people who insist on playing by the old rules.  When the VC/Investor funding well starts to run dry and the competition kicks in, continued survival and profitability is a function of persistent customer relationships.   Yet most players in the on-demand world today still do not have a game plan or even a team designated and accountable for profitably

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By Mikael Blaisdell

While their Marketing and Support professionals continue to explore the usage and management of social media, there is a much larger challenge to be faced by SaaS/Cloud firms — and all other technology players as well.  The implications of the changes in our general culture over the last 25 years are not limited to those two disciplines in the technology industry.  All around us, corporate logos are proudly blazoned across t-shirts, jackets, bags, bumper stickers and everything else across the full range of visible possessions in daily life. We’ve become a society which increasingly is about personal definition through membership in groups and other affiliations.   In the face of that reality, it’s time to fundamentally revise how companies think about the marketplace and their own organizational structure.  The old Marketing & Sales  paradigm and focus on the procession from Suspect to Prospect to Customer is too narrow.  Today’s companies require a wider view as they seek to increase market share.   To succeed over time, Management must consider the entire scope of its customerium, the community of its customers, influencers, fans, affiliates, mavens, promoters, detractors, ambivalents — and understand how each role affects and impacts the future of the corporation.

Mavens and the Knowledge Inventory

Network in green with people edt SM 300x224 SaaS/Cloud Success and the CustomeriumSupport professionals have been focused on building and extending community support resources for many years as a means of reducing skyrocketing contact center costs.  A key aspect of this effort has been encouraging the role of “mavens,” non-employees who are very knowledgeable about how the company’s products work and who are willing, even insistent to share their expertise with other customers for free.  The contribution of a small number of mavens can easily reach strategically significant levels for a technology maker.  Not only do mavens answer technical questions about how something works, they are also often at the forefront of innovation in how to better use a product to enhance productivity and profitability.  As such, they represent a substantial value to the company.

The encouragement of mavens also carries a risk, however, for affiliation with a company or product can be positive or negative.  At the senior end of the scale, mavens tend to have their own extensive set of relationships within the customerium and beyond.  Their contributions build their own reputation and identity within the community over time, and savvy companies need to keep this fact in mind, for mavens also tend to be serious influencers.  If offended, what was once an enthusiastic supporter, promoter and influencer can easily turn into an equally dedicated and active detractor and enemy — and the resulting damage can be every bit as substantial as the former gain.

 

We’ve become a society which increasingly is about personal definition through membership in groups and other affiliations. In the face of that reality, it’s time to fundamentally revise how companies think about the marketplace and their own organizational structure.

 

Mavens are only one expression of the knowledge inventory that grows up around a technology.  Each customer company will have employees that learn how to use the application to increase their productivity and their company’s profitability.  There is no reason why that knowledge and value must be lost if/when they are laid off or move to a different employer.  Recognizing the value of such individuals, some SaaS firms have begun to maintain a registry of skilled users, and rent them to other customers when additional staff is needed on a temporary basis.

The Architecture of Enduring Relationships

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