How is Selling Cloud Different?

How is Selling Cloud Different? What is Customer Success?

One of the key differences between selling cloud services and on-premise software is the focus on consumption versus billing cycle. Because customers “rent” the software versus purchase it through an annual (or multi-year) agreement, continuing to use it is a choice, not a necessity. In contrast, on-premise software companies largely put the burden of integration, management and upgrading on the customer. Customers perceived on-premise software purchases as permanent. While switching costs were high with on-premise, they are low with cloud.

Consumption involves helping customers adopt and use cloud services to achieve their business outcomes. That is, how can the service enable the customer’s business outcome faster? Companies must continually help customers realize value while satisfying their needs and wants (or face churn). Cloud is a consumption business and customer success matters. Customer success does not start the moment an agreement is signed. It starts the moment you engage with the customer. Companies must invest in their customers success for customers to invest in their success.

All contents copyright © 2018, Josh Lowry. All rights reserved.

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