Selling premium services to companies that have suffered due to the commercial recession is no straightforward task if they are implemented well, they can enhance income significantly. With 20-years experience promoting Net and programs, Bob Angus claims it’s possible to sell premium services successfully, but there should be the right mixture of products, quality, and pricing.
In his 2pm Tues. session at HostingCon 2009, “Selling Premium Services to Cost-conscious Customers,” Angus will explain how companies can implement premium services that sell, and enhance margins by captivating and maintaining highly valuable patrons. The Buzz : In what ways has the fresh depression modified how online service suppliers sell their services?
Bob Angus : The depression has been problematic for everybody. However, we’ve seen that as shoppers ( and even companies enormous and little ) attempt to chop costs that they’re going online to find deals and cost-saving services.
As a consequence, spending has shifted away from normal offline companies and techniques of delivering services and leading to further speeded up growth of web businesses. This is ideal for online service suppliers – more internet business clients beginning and looking to valuable services to drive success.
At VeriSign, we’ve seen this first hand as our web hosting partners have been awfully successful in selling SSL ( the green bar of EV especially ) to their clients. Is this a reasonable model for the hosting industry? What are the possible difficulties with it?
I used to work at a company with this model we called it “seed and upgrade”. The reason why this approach works is that you introduce your brand first and have the 1st shot at making that newly bought shopper a valuable, good customer. The key’s to then upsell ( aka earn money ) effectively by actually offering value.
Then it’s a matter of execution – build a message around the additional value and present a great offer to make them act. Actually companies need to make certain the value-add sales more than offset the cost of delivering the free services and your purchase promoting costs.
Losing money over a significant period of time isn’t sustainable. Presuming a business tries to be profit-making, then the sole potential problem is that you really finish up giving away all of you TRUE worth and your clients get everything they need for free. The hurdle to make them pay for something will become too high. It’s OK for purchasers to pick you as the reasonable supplier where they can get the other stuff I need. It’s not O.K if you become the “why should I pay for that” supplier. In a falling economy, how can sellers sell “premium” services to companies that fundamentally wish to scale back expenses any way they can? BA : It’s all about the price you present.
For VeriSign, the worth we and our partners have successfully presented when selling SSL is all about ROI. Other easy strategies and execution methods that help raise conversions include : adding the offer without delay in the purchase trail ( you’re buyer already has their wallet out ), make the higher price service or product as the default purchase option, and always demonstrate that you’re a shopper too by visibly using the same product / service that you are selling them. In order to challenge based of premium services, should corporations target 1 or 2 core competencies, or try and offer a complete solution ( maybe using reseller partnerships ) ?
BA : There’s no golden rule for the amount of premium services to give. Find out what’s actually valuable to prospects and existing consumers. What makes them successful? How are you able to solve their problems? How helps grow their business financially? You’ll discover multiple opportunities and can add more as new services become available.
In several cases, you can finish up keeping your most valuable shoppers by offering a collection of premium services so they know they can get they want when they need it from you. They don’t have to buy anyplace else to get what they want. How does VeriSign’s price structure reflect its technique to sell premium services?
BA : The VeriSign Partner Program offers competitive margins to online service suppliers. It’s very easy the more that you sell, the bigger your discount.
Also VeriSign offers the most total set of SSL certificate options and breadth of price points. Thru the VeriSign Partner Program, web host and online service partners can sell any of the VeriSign SSL brands – VeriSign, GeoTrust, or thawte. That way, partners can offer the right SSL certificate for their clients situation and wishes.
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