AWS Marketplace is a platform connecting software vendors with over 300,000 active customers and 2.5 million subscriptions. Vendors using AWS Marketplace see 80% larger deal sizes, 27% higher win rates, and 40% faster sales cycles, achieving ROI in under a year. Key strategies for success include:
- Private Offers: Tailor pricing and licensing to customer needs.
- Flexible Payment Options: Pay-as-you-go, long-term plans, and multi-currency support.
- AWS Partner Network: Boost revenue with co-selling, faster deal closures, and larger deal sizes.
- Customer Insights Tools: Use dashboards to track trends and refine strategies.
- Simplified SaaS Contracts: Centralize billing and streamline procurement.
To maximize engagement, personalize customer experiences, leverage data for insights, and use AWS tools like Amazon Connect and AWS Data Exchange. Vendors can also simplify onboarding with platforms like Awssome, which helps manage listings and private offers efficiently. Focus on clear metrics like conversion rates, deal sizes, and customer retention to track success.
AWS re:Invent 2023 - Unleash your selling potential with AWS Marketplace (MKT104)
AWS Marketplace Basics
AWS Marketplace is a lively digital storefront that connects vendors with a wide range of customers across more than 70 categories, supporting over 3 million subscriptions [5]. Let’s dive into its standout features and the advantages of collaborating through the AWS Partner Network.
Core Platform Features
AWS Marketplace simplifies the procurement process with tools designed to improve customer interaction and satisfaction:
Private Offers: These allow vendors to provide tailored pricing and licensing options to meet specific customer needs, fostering stronger relationships.
"AWS Marketplace private offers provide a more mature procurement workflow and approval process than the point, click, purchase methodology of the public marketplace." - Michael Lehmbeck, Cloud Architecture and Operations Manager at BankUnited [5]
Flexible Payment Options: Customers benefit from various payment models, including:
- Pay-as-you-go plans
- Long-term commitments
- Custom payment schedules
- Multi-currency support
"Its ease of use is a significant benefit. Our data services or infrastructure teams can browse AWS Marketplace and find preconfigured applications with licenses included. Orders require fewer touches to complete, and everything is on a single bill." - Ian Binder, Director of Infrastructure at i360 [5]
AWS Partner Network Benefits
The AWS Partner Network (APN) offers tools and opportunities that help vendors connect more effectively with customers:
Co-selling Advantages:
Frequent co-selling through AWS Marketplace delivers measurable results:
- 51% higher average revenue growth
- 65% improved close rates
- 54% larger deal sizes [2]
Strategic Growth Opportunities:
By leveraging AWS Marketplace, partners see:
- 234% return on investment for channel partners
- 50% faster deal closures
- Deal sizes that are 4-5X larger compared to traditional channels [6]
"We position the AWS Marketplace in all of our customer negotiations as we have identified that procurement done via AWS Marketplace will cut in half the time to get a contract signed." - Dhiraj Sehgal, Director Partner and Solution Marketing at Tigera [6]
"AppDynamics has seen 5X higher average subscription price (ASP) for deals transacted in AWS Marketplace, when compared to ASPs for our direct deals. This is a significant AWS Marketplace value proposition." - Angie Mistretta, CMO at AppDynamics [6]
To maximize customer engagement, AWS Partners are encouraged to:
- Keep customer opportunities updated in ACE Pipeline Manager
- Use AWS Partner Central to plan co-sell strategies
- Implement Buy with AWS to streamline purchasing experiences
"Because of AWS Marketplace, Cimpress has been able to shorten procurement cycles of software and services needed to build solutions effectively in AWS by putting Marketplace's expansive catalog directly in autonomous teams' hands." - Jeremy Potash, Director of Technology at Cimpress Technology [5]
AWS Marketplace’s collaborative structure not only simplifies procurement but also strengthens customer connections, paving the way for the engagement strategies discussed later in this guide.
Customer Engagement Methods
Building strong customer relationships on AWS Marketplace requires a mix of tailored communications, actionable insights, and simplified contract management.
Customizing Customer Experience
Personalizing customer interactions is key to standing out. With tools like Amazon Pinpoint, you can target specific customer groups effectively. For instance, Green Man Gaming uses Pinpoint to localize email campaigns across 18 currencies and 10 languages, significantly cutting down campaign setup times [8].
Desygner took a similar approach by focusing on targeted segmentation and personalized onboarding. The result? They doubled user retention and boosted email open rates from 3% to an impressive 30% within just six months [8].
Once personalization is in place, leveraging data can take your strategy to the next level.
Data-Driven Customer Insights
The AWS Marketplace Insights dashboard is a powerful tool for understanding customer behavior. It provides visual usage reports, trend metrics, and options to export data in CSV or Excel formats [9].
By keeping an eye on usage trends and analyzing customer behavior, businesses can fine-tune their pricing strategies and make data-backed decisions [9]. These insights also support smoother contract management.
SaaS Contract Management
Managing SaaS contracts efficiently is vital for long-term customer retention. Many companies have streamlined their processes using AWS Marketplace.
"AWS Marketplace lets us simplify the management of all of our contracts, so rather than having multiple smaller contracts with as many organizations, we've got one central AWS bill that we put everything through." - Simon Challis, Senior Technology Manager, easyJet [10]
The DFL Deutsche Fußball Liga has taken advantage of AWS Marketplace’s features by implementing identity and access management. This supports deep customer segmentation, over 50,000 weekly logins, and tailored licensing through private offers [10].
TIER Mobility AG adopted a consolidated approach using tools like Datadog, PagerDuty, and CircleCI. This improved their system’s observability, response times, and deployment efficiency [10].
"Utilizing solutions in AWS Marketplace allowed us to lower our products base rates due to gaining longer customer commitments." - Daniel Ciaglia, Director of Engineering, TIER Mobility AG [10]
To get the most out of AWS Marketplace, align your pricing models with available options, create detailed product listings, and offer flexible terms through private offers [7].
Customer Engagement Tools
AWS Platform Tools
AWS offers powerful tools to help businesses engage with customers through the AWS Marketplace. Amazon Connect supports multiple communication channels, including voice, chat, SMS, video calls, and email. It provides inbound services in 158 countries and outbound calling in 72 countries. Additionally, it features neural text-to-speech in over 30 languages and automated speech recognition in 25+ languages or locales, making it a versatile option for global communication needs [12]. These capabilities integrate seamlessly with AWS Marketplace strategies, enhancing customer interaction.
Another useful tool is AWS Data Exchange, which provides access to more than 3,500 third-party data sets, empowering businesses to make informed, data-driven decisions [11]. Additionally, the AWS Marketplace Procurement Insights Dashboard offers visibility into customer interactions by enabling cost analysis and agreement tracking across AWS accounts [13].
Awssome Platform Features
The Awssome platform simplifies the process of managing product listings and private offers, making it easier for businesses to succeed in the AWS Marketplace. For instance, Presidio leveraged these features to achieve $1 billion in AWS Marketplace sales [14].
"I do not see a future where you can be an effective reseller without having marketplace expertise across the hyperscalers." [14]
"The Awssome team helped us and knew exactly what to show and request from us. Instead of spending hours of frustration and uncertainty just to get listed on the marketplace, Awssome made the onboarding process quick and smooth. The entire publishing process was really nice." [15]
Key Awssome features include:
- Analytics dashboard for tracking customer interactions
- Unlimited private offers to expand deal-making capabilities
- Go-to-market support to enhance marketing efforts
- Observability tools to meet compliance requirements
- Co-sell opportunity sharing to drive collaboration
Presidio’s success highlights the platform’s flexibility, offering easy point-and-click purchasing and simplified contract management. These features enable businesses to create private offers, generating hundreds of millions in annual software transactions [14].
With these tools in place, the next section will explore how to effectively track and analyze engagement performance.
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Performance Tracking
Engagement Metrics
Monitoring key performance indicators is crucial for improving customer engagement on AWS Marketplace. One standout metric is the Customer Engagement Score, which gauges the likelihood of customers purchasing partner solutions [16]. This score helps sellers pinpoint high-potential leads and focus their efforts where it matters most.
When evaluating engagement success, several metrics stand out:
| Metric Category | Key Indicators | Impact |
|---|---|---|
| Sales Performance | Private Offer conversion rate, Deal closure speed | 50% faster close rates [3] |
| Customer Activity | Subscription activity, Engagement depth | Insights into market reach [3] |
| Trial Performance | Free trial conversion rates | 25% of customers won’t consider a product without a free trial [17] |
| Revenue Patterns | Contract values, Renewal rates | 5X higher deal values [3] |
"Marketplace is important because it gives you access to the customer budget the it gives you access and ability to do co-sell it drives procurement efficiency."
– Nima Badiey [3]
To enhance these metrics, engage customers early, collaborate with AWS account teams, and consider transitioning to consumption-based pricing models [17].
AWS provides robust dashboards to help visualize and act on these metrics effectively.
AWS Dashboard Analysis
AWS's advanced analytical tools make it easy to track and refine engagement strategies. The Amazon QuickSight dashboard is particularly useful for visualizing customer product usage, allowing sellers to make informed decisions about product support, pricing adjustments, and private offer conversions [21].
Some key tools include:
- Amazon Connect Analytics: Tracks voice, chat, and other interactions [1].
- Amazon CloudWatch: Offers pre-built dashboards to monitor application performance and critical metrics [19].
- Enhanced Partner Analytics: Provides insights into AWS-led campaign performance and impact [22].
"We love our squeaky wheels, because we are building this together."
– Matt Baker, AWS Marketplace [22]
Real-world examples highlight the effectiveness of these tools. For instance, Capital One uses Amazon Connect to manage thousands of daily interactions, while Coinbase relies on Amazon Pinpoint and Amazon SES for secure, large-scale messaging [1].
Configuring CloudWatch can provide aggregated views of AWS resource health and performance, helping sellers quickly identify trends and areas for improvement [18]. Additionally, AWS allows for custom dashboard creation, enabling businesses to track metrics tailored to their specific goals [20].
Next Steps
Boost customer engagement on AWS Marketplace by applying strategies that have consistently delivered results. Independent Software Vendors (ISVs) have reported noticeable improvements in deal sizes, faster sales cycles, and higher closure rates [24].
To build on these insights, tap into AWS Marketplace's vast customer network, spanning 50 product categories [4]. The tools available on the platform simplify product listings, private offers, and analytics management, making it easier to reach your audience efficiently.
Here are some strategies with measurable impacts:
| Strategy | Impact | How to Implement |
|---|---|---|
| Personalization | 166% increase in revenue per user [23] | Leverage Amazon Pinpoint for targeted messaging. |
| Customer-Centric Approach | 20–40% higher spending from engaged customers [23] | Build feedback loops and strengthen customer support. |
| Loyalty Programs | 64% higher purchase frequency [23] | Offer exclusive private deals to loyal customers. |
"Become success managers, as opposed to sellers." - Xander Uyleman, Senior Director, Partner Marketing, MongoDB [22]
To put these strategies into practice, focus on these key steps:
-
Internal Preparation
Train your teams on AWS Marketplace processes and set clear goals. As Nora Di Bene aptly said, "it takes a little village" to make these efforts successful [22]. -
Customer Success Focus
Offer free trials and simplify onboarding experiences. With 78% of customers highlighting relevance as a key factor [23], tailor your approach to meet their expectations. -
Continuous Improvement
Use AWS analytics and Awssome's dashboard to track and refine your strategies. Regularly reviewing performance metrics ensures your engagement efforts stay effective.
"This is a project that becomes a calling." - Peter Malandra, Solace [22]
Take these insights and turn them into action. By implementing these strategies, you can lay the groundwork for long-term success on AWS Marketplace.
FAQs
How can vendors use AWS Marketplace to boost sales and close deals faster?
Vendors can boost sales and close deals faster on AWS Marketplace by taking advantage of programs like the AWS Marketplace List & Sell Program. This program not only offers financial support but also provides direct access to AWS’s global sales team, which can help sellers achieve higher contract values and speed up the listing process.
Incorporating strategies like the COSS framework can further streamline efforts. This approach helps vendors align with effective methods to better engage customers and simplify procurement. By prioritizing co-selling opportunities with AWS and enabling self-service purchasing options, vendors can deliver a smoother buying experience - encouraging larger contracts and faster deal closures.
How does AWS Marketplace help vendors create personalized customer experiences and boost engagement?
AWS Marketplace provides vendors with a suite of tools designed to create personalized experiences and boost customer engagement. For instance, Amazon Personalize harnesses machine learning to generate tailored product recommendations based on user behavior, enabling businesses to build stronger connections with their audience. Similarly, Amazon Connect empowers vendors to offer customized customer service by integrating real-time data, making interactions more relevant and proactive.
On top of that, vendors can tap into the Go-To-Market (GTM) Academy, which provides valuable resources to help craft marketing strategies that truly resonate with their audience. By combining these powerful tools, businesses can forge lasting relationships with their customers and maintain meaningful engagement.
How does the AWS Partner Network (APN) help vendors succeed on AWS Marketplace, and what are the main benefits of co-selling?
The AWS Partner Network (APN): A Boost for Vendors
The AWS Partner Network (APN) is designed to help vendors thrive on AWS Marketplace by offering a range of resources, including co-selling opportunities, marketing assistance, and technical training. These tools equip vendors with everything they need to connect with more customers and close deals more efficiently.
One standout benefit of co-selling through AWS Marketplace is the access it provides to AWS’s vast customer base and dedicated sales teams. Vendors often see faster sales cycles and larger deal sizes compared to traditional sales approaches. Programs like the AWS SaaS Co-Sell Benefit further enhance this by encouraging AWS sellers to promote vendor solutions, boosting visibility and driving growth.
By tapping into APN and its co-selling features, vendors can simplify their sales efforts, broaden their audience, and strengthen relationships with their customers.