Building a new XaaS Marketplace combines B2B competitive strategy with digital transformation and partner ecosystem dynamics. Success requires deeper changes within branding, go-to-market (GTM) and sales motions to build a “revenue factory” fed by metrics to continuously optimize. Each sales motion has a unique customer journey design and touch-points.
Traditional businesses (telecoms, ICT, manufacturing etc), grow revenue using campaigns to win new customers attracted by price, features and/or performance of the next generation of existing products. Sales are expensive and slow.
B2B digital marketplaces are about upsell and advocacy. High levels of customer satisfaction, repeat business, extending the partner community – both XaaS vendors and MSP resellers – to enrich the portfolio of impactful XaaS solutions to drive upsell opportunities. It generates powerful network effects (fly-wheel) increasing economies of scale and attracting more partners. Selling both direct to customers and indirect through MSPs.
Upsell is 5x cheaper and faster than winning new customers. Marketplace economics is further improved by customer self-serve on digital channels supported by assisted sales journeys. With the now expected AI-enhanced B2C like digital experience. Even if, at first, only the awareness and education steps are completed digitally, over time the % of fully digital purchases will increase. This drives “revenue factory” success and sales efficiency.
Also key for our customers is "attached revenue" - pulling through their core products, such as connectivity, within every XaaS solution. The model delivers high customer loyalty and revenue growth whilst automating to reduce opex.
We recommend seeing the digital marketplace as a “product” with its own distinct brand promise. For the marketplace to be attractive and resonate with B2B customers and ecosystem partners, it must be correctly positioned. The product manager's job is to set this vision and strategic direction. They understand customer needs, market trends and the competitive landscape to zero-in on the growth opportunity. They prioritize both feature roadmap but also addition of new (categories of) impactful XaaS solutions and partners. They analyze the data and continuously improve the marketplace, sales motions and customer/partner experience through feedback. They add automation to deliver fast fulfilment and keep a low cost of managing the ecosystem.
Too many marketplaces are a digital frontend or silo on an existing business. Without clear leadership, direction, brand identity, roadmap, GTM and sales motions. Needless to say they are difficult for customers to understand or navigate so perform badly.
We run frequent briefings on anything-as-a-service (XaaS) marketplace dynamics, helping customers by drawing on 12+ years of multi-industry experience of how to successfully grow revenue. Learn more about our AI Digital Marketplace and B2B Digital Marketplace.
