As a startup, it is important to underscore the ROI to gauge whether or not selling on AWS marketplace is making sense or not. Here are some of the metrics to understand where your startup stands in the AWS marketplace journey.
Sales cycle
Startups should measure the impact of selling on AWS marketplace on their sales cycle. Put simply, increased trust, convenience, the ability to access pre-committed funds, etc. enables faster customer conversion. If you are able to close your sales cycle in a few weeks, as opposed to months in other sales channels, then the ROI is quite evident. In fact, shorter sales cycles and faster conversions are effective metrics for investor relations.
Customer acquisition rate
Second, you need to gauge the impact on the number of customers you acquire through the AWS marketplace. Ideally, the volume of customers and, therefore, the revenue you acquire through AWS marketplace should gradually increase. AWS marketplace might contribute to >1% of your total revenue in the first year, but it should turn into double digits to reflect on the growth. Here, you may also want to track the number of deals you receive from AWS to gauge the effectiveness of AWS marketplace selling for your startup.
Contract/ deal value
Finally, the contract or the value of each deal should also be measured. This refers to tracking the dollar value of each contract or deal you close. While this will have an impact on your revenue, it can also be an effective reflection of deepening credibility among existing and new customers.
Key insights for startups for AWS marketplace success
While the benefits and incentives of selling on the AWS marketplace are plenty, following the right approach is integral for efficient resource utilization to unlock success.
Launch without disrupting your engineering priorities
Launching on AWS Marketplace shouldn't require you to divert all your engineering bandwidth. Most startups work in a lean team model. You shouldn't have to shift your focus away from your core product to code engineering changes just to make your offer compatible with AWS Marketplace. Instead, partner with SaaS enablement platforms like SaaSify, which come with pre-built connectors for AWS marketplace. You can simply leverage their zero-engineering capabilities, transferring the heavy burden to them. This way you can launch in a week, without diluting your product roadmap timelines.
Set up your teams for success
Selling in the AWS marketplace requires rewiring your team with the nuances of the new sales channel. They need to be educated about the right terminology, how AWS marketplace selling works, the top use cases and USP, etc. Most startup sales teams don’t understand the transact models and end up giving an inaccurate pitch. In such a case, white-glove onboarding by the right partner can help prepare all your team members, sales, marketing, finance, partnerships, etc. to unlock the true potential of the AWS marketplace.
Register deals through AWS marketplace
AWS marketplace opens unparalleled opportunities for active sellers. Invariably, it is important that you register as many deals as possible through the AWS marketplace. Even if you get the deal through a different channel, you might want to share the AWS transaction route as well. On the one hand, your prospect might actually prefer AWS marketplace transactions, leading to faster closure. On the other hand, registering deals through AWS marketplace will help you grab the attention of their sales experts, who can further help you optimize your sales strategy. Furthermore, it can also enable you to unlock co-selling benefits faster, helping you access support for co-branding, joint selling, and even push for deal closures.
Have a robust GTM strategy in place
The importance of a GTM strategy can never be overstated. Focus on identifying the right customers, creating the right joint messaging, co-selling with AWS partners, accelerating AWS marketplace deals, growing revenue, etc. Cloud GTM by partners like SaaSify can help you nail your go-to-market strategy with the right resources, expert advisory and much more.
Get transacting from day one
Finally, it is very important to have transactable offers from the first day. Essentially, these offers enable customers to purchase your offer through AWS marketplace where AWS takes care of the transaction. On the one hand, customers are able to utilize their pre-committed budgets to buy your solution. On the other hand, they are relieved from multiple invoices and billing processes. This leads to a smooth and productive process for both startups and their customers.
