As the SMB software market is $163 billion (a quarter of the worldwide ecommerce market estimated at $559 billion, Symantec wanted to grow their online SMB business of digital and subscription based products. But, they quickly discovered that their consumer model did not translate well to business users as:
- They did not have a flexible online store engine that could provide specific features such as quote delivery, volume discounting, banded pricing, co-termination, and cross-sell/upsell of new products and services.
- Symantec’s previous model did not allow them to augment their sales capabilities to handle the complex business buying process with the help of sales assist agents, via phone, email or chat.
- Symantec’s huge network of channels made it difficult to track sales and identify those customers who were in need of service contracts and renewals. As a result their retention rate was much lower than others with a better mid-market business ecommerce strategy.
In order to attract and retain more middle market business buyers, Symantec had to take the following two steps.
Action 1: Create a Turn-Key Website Solution to Go After the SMB Market Without the Costs of Creating One Internally.
We at Rainmaker hosted e-commerce site store.symantec.com and implemented it as a custom branded storefront where SMB customers can:
• Shop for all of Symantec’s products or services
• Purchase the products directly
• Engage a Global Commerce Services agent (who was well versed in all aspects of Symantec’s product offerings and act as an extension, rather than an outside vendor) to place orders via partner, web, or phone.
The Agents were able to utilize Grow Commerce to:
• Produce sales transactions from inbound calls and chats from the store.symantec.com store
• To track, monitor and engage with customers in real time
• View, edit, or change the SMB customer’s shopping cart to provide a full-service e-store solution
By integrating their diverse software and services offerings into a single, easy to access website focused on the needs of SMB buyers, Symantec’s sales in the SMB market grew by 25% within 1 year. The Symantec Storefront has exceeded sales projections and generates millions of dollars of SMB revenue annually. 100% of Symantec’s North American SMB Sales are now delivered through Rainmaker and average order size has increased by 35% with Sales Assist.
Action 2: Implement a New System to Effectively Identify Mid-Market Business Customers Who Need to Renew Their Subscriptions
As mentioned earlier, Symantec’s huge network of channels made it difficult to track sales and identify those customers who were in need of service contracts and renewals. They knew they were leaving extensive revenue opportunities untapped but had no system in place to effectively pursue these customers.
Symantec needed an external partner that could provide several critical services to meet their revenue goals, and work with their largest channel partners such as CDW and Insight to help them manage contract sales and renewals opportunities. They wished to implement an integrated marketing campaign designed to notify customers of their warranty status and offer enticing options to extend or purchase new contracts. Finally, Symantec wanted the solution to be based on a Revenue Share model between the manufacturer, distributor and the resellers, to improve sales revenue without increasing expenses.
Working closely with Symantec’s internal marketing team, we designed a personalized direct mail and email notification campaign which was strategically timed for maximum impact. Customers are now notified of expiring contracts on a 60/30/15 day multi-touch cadence, and are supported by a dedicated team of trained sales assist agents covering 70 countries, 34 languages, and 14 currencies. The end customer has the ability to evaluate cross-sell or up-sell offers and promotions, and to renew online through the Rainmaker hosted e-commerce store at renewals.symantec.com, or over the phone, via Rainmaker’s Global Commerce Service agents.
Since the initial engagement, Symantec has seen a 35% increase in revenue per existing customer year over year and 35% of all SMB Renewal sales occur through the ecommerce store. They have 100% participation among Symantec resellers, a 95% Customer retention rate and an 87% Channel Renewal Rate.
If you want to gain market share on the $163 billion dollar mid-market business environment just like Symantec – register for our webinar at: http://www.rainmakersystems.com/resource-crackingthecode.html