What are private offers?Let’s start by understanding what private offers are in the Azure marketplace. Essentially, private offers allow ISVs and their customers to negotiate custom prices for offers. Furthermore, they enable them to customize or create their own end user license agreements which might have additional/ less clauses as compared to the standard Azure marketplace agreements. These private offers are only visible to targeted accounts for which they are created. Specifically, they allow ISVs to extend discounts and other attractive incentives to customers to unlock high value and longer deals.
Why do you need private offers?Now that you understand the meaning of private offers, let’s quickly glance through why you need private offers. The idea is to comprehend how private offers can help bridge the gap that public offers leave.
One size doesn’t fill all, alwaysPublic offers provide the same terms to customers which might not be the best offering for enterprise customers. Invariably, if a large enterprise which is engaging in multi-million dollar product offering with you, chances are that it will not wish to procure an off the shelf product with predefined conditions. Thus, your public offering which is generic in nature might be sustainable to sell to retail clients or small businesses, the game of enterprise and high value customers requires tailoring and customization which is made possible with private offers.
Limited co-selling incentivesSecondly, public offers don’t bring along any co-selling benefits. At a macro level, many ISVs rely on CSPs and other partners to facilitate co-selling and increase their revenue. However, without incentives, co-selling success becomes a challenge. If CSPs or other partners sell you public offers, they are not entitled to any extra commission or incentive which might motivate them to go out of their way to bring big sales. Private offers perfectly bridge this gap.
Top 6 ways private offers help accelerate cloud revenueIt’s time to understand how adding such offers to your marketplace offerings can help you significantly accelerate cloud revenue growth, sometimes as high as 10x.
Meet customer expectationsFirst, with private offers you can easily match the expectations of your customers. Increasingly, customers today have specific requirements, which if you are able to meet, you can easily get their business on your side. According to a study by Salesforce, 66% of customers expect companies to understand their needs. This suggests that when you are able to tailor make your offering based on customer expectations, chances of conversion become higher, leading to greater sales and revenue realization.
Convert enterprise customersIt doesn’t come as a surprise that the real profits and revenue growth lies when you are able to convert enterprise customers. It is through enterprise customers that you can unlock multi million dollar deals which are likely to have greater profit margins. However, when it comes to an enterprise customer, customization is everything and private offers are the only way you can convert them. Put simply, enterprise customers will demand discounts for bulk purchases, customized terms and conditions and other negotiation. When you are able to meet these with your private offers, you will unleash unprecedented enterprise growth.
Create a sense of urgency for faster turnaroundIf you study more about private offers, you will understand that private offers extended to any account are for a limited time period. This means that if the customer doesn’t accept the offer before the stipulated expiration date, the negotiated terms and pricing are no longer valid. In this scenario, customers are motivated to close the deal sooner than later to ensure they don’t lose out on the sweet deal they have negotiated. Invariably, this leads to a faster turnaround. In public offers, customers can prolong the sales process as long as they want. However, a sense of urgency created by the fixed offer acceptance duration facilitated accelerated conversion for private offers.
Promote bundling and upsellingPublic offers can be procured directly from the marketplace without giving you a chance to interact with your customers. Private offers allow you to build a rapport with them to understand their needs and expectations. As you delve deep into their business requirements, you can easily identify any additional features or services that they might need which you are able to offer. This way, you are not only able to sell your offer, but also generate revenue for additional features or services, impacting your overall sales and profits. Therefore, private offers enable you to bundle and upsell your services. Furthermore, the more time you get to engage with your customers, the better are the chances that you can identify greater opportunities for repeat sales.
CSP/ partners collaboration for co-sellingTo increase your revenue, you can explore co-selling with other marketplaces partners like CSPs in the case of Azure marketplace, who can provide your offer as an add on to the Microsoft offerings they are selling and position it as a bundled product. Private offers provide the best incentives to activate such partnerships. Put simply, you can create a private offer based on negotiated terms with the partner, who can then add a margin and sell it to their end customer. Overall, you get new customers and revenue, while they get the margin profit as well as benefit from better customer satisfaction by providing a greater bouquet of services.
Better access to pre-committed budgetsTaking cue from one of the points above, private offers enable you to engage 1-o-1 with your potential customers. When you do so, you can get a view of their pre-committed Azure budgets i.e. Microsoft Azure Consumption Commitment, that they have to spend. With such insights, you can easily tailor make your offer which works in both your favor. They may be unsure of how to leverage cloud budgets for a public offer, but in private offers, they can easily leverage their pre-committed budgets to unlock large value deals, which help them achieve more without any additional spend.
Unlock private offer revenue with SaaSifyWith SaaSify, creating these offers is a cakewalk. We do all the heavy lifting for you while you focus on servicing your customers with the best interactions. Here are a few ways SaaSify can help you with private offers:
- Zero engineering functionalities to take your private offer live quickly
- In built integrations for CRM and others to tracks and monitor customers who show an interest in private offers
- Pre-defined templates for creation of private offers to save time and efforts
- Ability to set up, manage and scale these offers in Azure marketplace
- Advanced reporting on transactions, payouts and collection of taxes, etc. to make the private offer lifecycle seamless