SaaS Branding | 6 Challenges of Killer Cloud Brands

SaaS branding has some unique challenges that aren’t covered in the average MBA program. As a new communication channel, the Internet has altered the rules of branding for almost every category of product. However, cloud brands that owe their very existence to the Internet often find that the message, the medium and the merchandise are a confusing tangle of clicks, words, sounds, images and experiences that is difficult to describe.

I’m not going to re-hash branding 101, there are plenty of resources available for that. I’m also not going to provide a fool proof recipe for creating killer cloud brands. Anyone who says they have that is lying. What I will do is provide some SaaS branding food for thought by exploring 6 key questions you need to ask before committing to your SaaS branding strategy. Because once you commit, it’s not easy to change. All brands, not just cloud brands, are ultimately owned by their buyers, not their sellers. Once you put yourself out there, the evolution and results of your SaaS branding strategy are no longer your own. Your first impression may also be your last, so you should strive to get it right.

Are You in a Category unto Yourself?

saas branding categoryWith respect to cloud brands, everyone wants to own the category. It’s where the big, BIG money is. Moreover, the combination of network effects and switching costs common on the Internet often demand that you attempt to own the category, as everyone else is destined to be an “also ran.” Consider the status of the direct competitors of Salesforce.com, Google, and Facebook.

I like Al and Laura Ries description of the relationship between categories and brands.

“The mind is like a sorting rack at the post office, which has a slot or ‘pigeonhole’ for every name on the letter carrier’s route. Every piece of mail is put into the hole corresponding to the name on the mail. If there’s no hole for a new piece of mail, it’s set aside in a pile called ‘undeliverables.’ So too with brands. The mind has a slot or pigeon hole for every category. If the pigeonhole is named ‘safe cars,’ this is the hole for a brand called Volvo.”

When you are creating a new brand, your challenge is to shove your way to the top of the slot by focusing on your unique and valued qualities over the competition. Building a new category is 3X more difficult, as you must first clarify and create a new pigeonhole where none currently exists, second promote the unique and valued qualities of the fuzzy new category relative to unclear alternatives, and third hold on to the top of the slot by outpacing the competition (which will come eventually if the category is real).

If you find yourself in the enviable position of being a BIG category unto yourself and the nature of that category demands that you own it, then your SaaS branding strategy should focus on crystallizing that confusing tangle into a simple, easily describable position that is unlike any other. No easy task as we all have very big, complex post office racks. Fail and your brand becomes “undeliverable.” If you find yourself in a crowded category where you must fight your way to the top, then focus on your unique differentiation to pull away from the crowd. In either case, realize that positioning alone will not win the battle of the cloud brands; you must also deliver.

Are You Experienced?

saas branding experiencedCloud brands are the most experiential of service brands. What you see and hear isn’t always what you get. You can’t taste them. You can’t smell them. You can’t touch them. You can only do them. Cloud brands must be experienced to be truly understood. In addition, most cloud brands follow a recurring revenue subscription model which precludes any ongoing discrepancy between your message and your service. Your SaaS branding strategy must be tempered by reality, such that your service absolutely delivers on the promises made in the name of your brand.

The experiential nature of cloud brands is one of the myriad reasons behind the free trial imperative of SaaS. If you are tired of explaining and explaining and explaining your cool new category or you can’t quite come up with the perfect words to describe your difference, any car salesperson will tell you that there is no better way to seal the deal with an uncertain buyer than a test drive. With cloud brands, doing is believing.

The cloud brand experience does not begin or end with your product. Read more »

CloudFlare | Crowdsourcing Web Traffic Control

cloudflareLike most small website owners, I have a very limited view of what really goes on under the covers at Chaotic Flow. I know my own source code and I have Google Analytics and basic Web logs, but without a fleet of operations and security IT staff, I really have no clue who is coming to my website beyond the browser types, IP addresses and keywords they use. I routinely have to battle comment spam and I’ve definitely fended off a couple of real attempts to hack my site. It’s amazing when you consider just how small a part of the Internet Chaotic Flow represents, yet the bad guys have sufficient time and processing power to spend it on little old me. Pretty scary.

Since email spam and desktop virus protection are proven, large markets, you’d think that by now someone would have cracked the nut of protecting websites. There are security options out there, particularly if you are a large site and can afford them. Most provide a combination of site scanning for detection with locally installed security software and hardware for prevention, but to my knowledge no one really provides attack detection and prevention for the Web with the kind of SaaS simplicity and effectiveness of email and desktop equivalents. Until CloudFlare.

CloudFlare is a creative and rapidly growing SaaS startup that wants to eliminate website spam the way Postini did for email, only more, a lot more. So much more that the two year old Cloudflare is already rumored to be valued in excess of $1B. I recently sat down with Matthew Prince, CEO of CloudFlare, to talk about what makes CloudFlare unique. He had no shortage of answers.

This is the first article in a new “Cloud Disrupters” interview-based series that will highlight recently launched SaaS companies and products that have the potential to be real game changers. In keeping with the long standing Chaotic Flow theme, the purpose of this series is not news and friendly buzz, but an exploration of the Internet strategies and technologies that make these companies unique and disruptive. And, maybe a little unsolicited advice.

CloudFlare’s Secret Sauce

The simple, game-changing element of CloudFlare is its approach to the website protection problem at the network transaction level, rather than the Web application level. CloudFlare asks nothing more than that you redirect all your Web traffic through CloudFlare, and CloudFlare will make sure only the good guys get through to your website. Technically, it’s completely analogous to Postini, except as opposed to swapping out MX records, you change your DNS settings.

cloudflare network

Cloudflare attacks the website security problem at the network layer,
making sure only the good guys get through to your website.
However, access to all website traffic
opens up myriad business opportunities beyond security.

This approach has the double whammy of being incredibly simple for customers to adopt, while empowering CloudFlare with the maximum amount of community knowledge, business opportunity and network effects to become a truly valuable service and formidable competitive force on the Internet. More on this later.

Community Leverage Lies at the Heart of The CloudFlare Strategy

Growing out of Project Honeypot, an open community-driven experiment to identify and quash website spam, CloudFlare has been community-centric since day one, and the company has reaped the benefits. Prince has a great story about Read more »

SaaS Sales Model and Organization Strategy – the eBook!

One of the most difficult SaaS challenges is choosing and evolving the right SaaS sales model for your business. While the most common SaaS sales model is characterized by a transactional inside sales organization, frequently split into new business focused sales reps and retention focused account managers, this is by no means the only SaaS sales model, and may NOT be the best SaaS sales model for your business. SaaS businesses come in many flavors from consumer-ish freemium services like Box.net and Cloudflare to high-end enterprise solutions like Workday and BazzarVoice. Choosing the right SaaS sales model is often a bet-the-company decision, as second chances are rare in the fast moving world of the Internet. Plus, as your SaaS product offering and customer base grows, you are likely to find yourself supporting several distinct and varied SaaS sales models. How to choose?


saas sales model

Click the image or link to download the complete SaaS Sales Model eBook

A compilation of some of the most popular articles at Chaotic Flow, this new eBook provides a a simple, powerful strategic framework for choosing the right SaaS sales model for your business and gaining wisdom beyond the conventional for matching the right the SaaS sales organization options to your specific operational challenges. Share and enjoy!

B2B Startup Marketing | Blog Your Way to Leads

b2b startup marketing blogB2B startup marketing is tough. It used to be that you could polish off a high level message and a slide deck and let the salesperson handle it from there. Today, online marketing is the primary driver of revenue at the typical B2B startup. The new breed of B2B buyer expects your online content to be engaging, valuable and deep, and is unlikely to engage your salesperson if you don’t deliver. However, B2B content can be excruciatingly difficult to produce. It’s technical, complex, dry and requires deep subject matter expertise to be truly valuable. Plus, it usually must be done on a shoestring budget, yesterday.

The B2B Startup Marketing Blog Imperative

Every B2B startup marketing professional knows that they need a blog, but not everyone recognizes it’s central importance in getting the B2B startup marketing effort off the ground. After all, its just a corporate blog, and who reads corporate blogs right? Wrong! Perhaps it’s the terminology that is getting in the way. Your corporate blog should a) not be corporate and b) not be a blog, as in a Web log of what’s going on at your company. What it should be is a publishing platform for creating engaging, valuable and deep content for the new breed of B2B buyer by following the Top Ten Be’s of the Best B2B Blogs. But, that’s just the beginning. A successful blog should provide enormous leverage to your B2B startup marketing effort and enable you to generate leads faster, cheaper and more effectively.

The Shortest Path to Deep Content

Creativity is a process, not a plan. Turning technical, complex, dry B2B marketing content into something interesting, engaging and compelling doesn’t just happen because you set a date to complete a new video or whitepaper. You need time to think it over. Free your creative juices. Then, hone your ideas into something really cool. In the meantime, you can blog.

b2b startup marketing blog

Your B2B startup marketing blog should be a crucible of creativity. You can try out your ideas piecemeal, one post at a time, until they converge into that fantastic whitepaper, webinar or video series. Regular readers of Chaotic Flow (thank you!) will recognize that this is an integral aspect of how I develop this blog. Read more »

Startup Business Growing Pains | Staying Focused

startup business focus There are a few good things in life that you can never have too much of, and at a startup business that good thing is growth. However, we all know there is always a price to pay for overindulgence. To my way of thinking, the key to being a glutton is to balance your consumption with an equal amount of discipline. If you eat a lot, you gotta exercise a lot. This is the first post in a series that will explore some of the more common startup business growing pains and present strategies and tactics to manage them for maximum success.

A startup business is all about capitalizing on opportunity. When you’re growing, opportunities abound. The challenge is to focus on the right opportunities without getting distracted by all those other shiny objects. The challenge of focus pervades the entire startup business from the big strategic choices of product development and org design to everyday decision making and productivity. Moreover, focus must be balanced with flexibility, because startup businesses generally compete in rapidly evolving markets. Too narrow a focus for too long a time can be just as deadly as no focus at all.

Here are nine battle-tested tips for keeping your startup business focused and on the path to success.

Startup Business Focus Tip #1: Choose to Do a Few Things Very Well

It is the very heart of focus that you should strive to be great at few things, not mediocre at many. This principle is universal, applying to your core competitive advantage, your high level strategic goals, your tactical plans, your everyday priorities and your enduring cultural values. Complexity is the enemy of startup business success. The ability to crystallize the chaos into clear, simple goals and action plans is the essence of focus.

Startup Business Focus Tip #2: Align the Organization to Strategic Goals

There are many complex, competing concerns that go into designing an effective organization for a startup business: markets, products, processes, functions, geography, skill sets, and even personalities. But, the number one criteria is executive accountability for strategic goals.

startup business strategic alignment

Startup organizations with strong strategic alignment ensure accountability and focus.
Organizations with poor strategic alignment require lots of coordination on the part of the CEO
and encourage bureaucracy, finger-pointing and politics.

Those few things you choose to do at the highest level must get done cleanly and quickly, without excuses. There is no forgiveness for bureaucracy or finger-pointing in a startup business; you simply fail. Look at your strategic goals and look at your key executives and ask yourself this simple question: Read more »

Cloudburst Expected on Wall Street | Xignite Raises $10M

xignite market data cloudWhen not moonlighting at Chaotic Flow and Cloud Ave, I’ve been toiling away at Xignite for the better part of the last three years, and I’m happy to announce that the company has successfully closed $10 million in B round funding. The round was led by of Starvest Partners‘ Deborah Farrington who is #77 on the Forbes Midas List and was the lead VC for Netsuite, and John L. “Launny” Steffens, former vice chairman of Merrill Lynch. Previous investors Altos Ventures, Startup Capital Ventures and Peter Caswell, CEO of Netbase and former CEO of Advent Software, also participated.

While most of the public Silicon Valley buzz in recent years has gone to B2C startups like Facebook, Twitter, Zynga, and the like, I believe we’re at the beginning of a B2B renaissance led by a prominent list of rapidly growing cloud plays like Xignite. B2C startups tend to happen very fast or not at all, and consumers will often forgive their growing pains, even if they’re posting the fail whale on a daily basis. Not so in B2B. B2B startups spend their A rounds very carefully to make sure their offerings are rock solid before they scale. When I joined back in 2008, Xignite had about 150 clients. Today it has more than 900 customers in 47 countries.

The Financial Market Data Cloud

Market data is the life blood of the financial markets Read more »

What is SaaS? | Software-as-a-Service Myopia

It seems a little late in the game for me to be asking a question like “What is SaaS?” But, I’ve always harbored a few embarrassing little secrets on the subject and I think it’s time I came clean.

There is a classic Harvard Business School case study called Marketing Myopia by Theodore Levitt that is familiar to every MBA student since the 60′s–the moral of which is not to define your business too narrowly lest you become obsolete. Well I don’t think software is going away any time soon and neither is service, but what about software-as-a-service? Between the rise of the cloud and the fall of the browser, SaaS seems so passe’.

What is SaaS?

Is SaaS software delivered as a service? As in renting, not owning the software. Or, is SaaS a service layered over software? As in a complete solution, not a tool. SaaS is both.

what is saas

Software delivered as a service means on-demand. It means eliminating the feed and caring of the software itself through automation. Notice that I say eliminating, not obscuring or outsourcing. Automated deployment. Automated maintenance. The software simply arrives and runs as needed in a fashion that is all but invisible to the customer, so the customer realizes the benefit of the service without incurring the headaches of managing the technology.

Service layered over software means the software solves a problem without creating new problems of its own. Not only is the customer freed from managing the technology, but the customer is freed from understanding the technology. A service doesn’t require the customer to master a bunch of technical mumbo jumbo in order to use it.

Software-as-a-Service Myopia

One of my embarrassing little SaaS secrets is that I’ve always Read more »

B2B Blog Strategy | Ten Be’s of The Best B2B Blogs

Blogging is one of the easiest, cheapest and most effective ways to engage the New Breed of B2B Buyer, yet so many B2B blogs miss the mark. Here are ten “be’s” of the best b2b blogs. It isn’t the first top ten list of best B2B blog secrets, and no doubt it will not be the last. But, it is mine and it’s what I personally strive for Chaotic Flow to be.

B2B Blog Be #1 : Be Interesting

b2b blog interestingYou would think that making your B2B blog interesting would go without saying…well, I’m saying it. Let’s face it, there is a lot of crap out there on the Internet. Don’t be that. Whether you are creating a community blog, a corporate blog, a support blog, or your own professional B2B blog, you are in the publishing business and all good publishing basics apply. You must understand your readers and you must connect with their interests. Not casually, but completely. I considered lots of runner-up best B2B blog be’s like “be funny”, “be visual”, “be concise”, etc., all good advice for the right B2B blog audience, but there is no single B2B blog tactic that will connect with every audience. You must know your audience and publish content that is inherently interesting to them.

B2B Blog Be #2 : Be Prolific

b2b blog prolificMaintaining a steady stream of interesting content is essential to building and maintaining readership. This blogging fundamental can be approached from many angles, but the conclusion is always the same: a successful B2B blog requires prolific authors. Building readership requires a strong Internet presence. How many Web pages exist on the Internet? What fraction of that is your B2B blog? Read more »

Customer Self-Service | The Holy Grail of SaaS

self-service holy grailOne hundred percent customer self-service is the holy grail of SaaS. Everyone looks for it, but it is never found. Even if your product is simple enough to provide complete self-service purchase, you are unlikely to get away with complete self-service support, because you can’t hang unhappy customer’s out to dry or you will ruin your reputation. Nonetheless, the divine power of the Internet to help customers help themselves combined with the promised land of lower customer acquisition cost and lower cost of service will always enrapture the true SaaS believers and hasten them on their quest.

SaaS Top Ten Do #3 : Accelerate Organic Growth depicts the SaaS self-service holy grail as revenue generation with zero marginal costs, because your customers can find, try, buy and use your product even if no one shows up for work. But just because your customers can, doesn’t mean they will. It’s very hard to build a product that enables one hundred percent customer self-service. In some cases it is impossible. Imagine your frustration when you finally achieve it and those pesky customers simply refuse to do it.

The Self-Service Maturity Model

The closing post of my recent New Breed of B2B Buyer series introduced the concept of the self-service limit in B2B sales. The self-service limit is that point where a customer’s desire for instant gratification is thwarted by the complexity of purchasing and using your product. Purchase complexity comes in two flavors: informational and emotional. Informational complexity arises when the buyer requires education to consummate the purchase. Emotional complexity arises when the purchase entails a personal risk to the buyer. When either or both of these purchase barriers becomes high enough, the buyer simply will not make the purchase without the aid of a salesperson.

Complexity, however, is a subjective measure that is different for every single customer. In particular, and this is the point of this post, it is very different for the novice and the experienced buyer. An experienced buyer knows your company and trusts your brand. An experienced buyer knows your product and fully understands both its value and its use. As your customer base increases, so does the percentage of experienced buyers in your market, your knowledge share.

saas self-service

The percentage of experienced buyers in the market, knowledge share,
increases as a SaaS business matures.
Experienced buyers that trust and understand your brand,
are not only capable of one hundred percent self-service,
they usually prefer it, bringing you closer to this holy grail of SaaS.

Increasing knowledge share reduces both the emotional and the informational complexity of buying your product. A strong brand reputation reduces purchase risk and Read more »

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