Access to the markets of other countries often seems risky m event, which will absorb a lot of resources with a high chance of not getting anything in return. In the case of an online service, AMI it is, in many respects, prejudice. In fact, you can minimize the risks that are fast enough to localize the product to get a plus in the first months of the expansion. Strengths Saa S companies include the opportunity to 100% online sales without opening local offices and without registering as a legal entity.
However, if sales are to go not very active, have to worry about hiring a few sales on the spot, or at least know the right languages. The market testing is best done on a small and controlled advertising campaigns, for example, a context that can be scaled according to the results. We will try to tell you by example with a service for project management Wrike, which is now used by more than 13 000 companies in 150 countries, what principles we try to adhere to when entering a new market.
C HOICE a and. The first phase is to assess the macroeconomic data of the new region and to develop a profile of the buyer to understand the local rules of the game and then move from General to specific. This is the part where you have to verify the theoretical basics of Economics obtained at University (or at least regularly reviewing business news). Key macrodantin include GDP, including parity purchasing power (PPP ) , inflation, and the mood of the representatives of the local audience (business in the case of B2B). These indicators are easy to compare with the markets in which you already work.
Lets compare the RRR, for example, would basilii and the United States ( in the case of Wrike known to us market versus the new). GDP is one of the most important indicators of prosperity in the country. The incomes of the population formed, or is the amount of goods and services produced in a year. To understand how a high standard of living, GDP divided by every living person and get GDP per capita ( GDP per capita ).
Roughly speaking, a measure of the wealth of the region, how much money average hospital earns every. Obviously, a SaaS product and with sales of Bud have tons of problems in countries, the population which has no money for more pressing things. There is the theory that in the long term cannot grow faster than GDP growth in the country. However, we are more interested in the immediate prospect, therefore, continue to consider other important factors. You can use alternative specifications of the welfare.
For example, if you have some idea of the audience of the service in terms of social status, it is possible to try to assess the potential number and average income. We know some companies, for example, assesses potential markets by income 75% of the highest paid people in the country. That is roughly the category of people who uses their services, and they cut off the poor and, most likely, economically passive online group that are not inclined to spend money on software and services in any case. Of course, in the case of B2B product the relationship between product demand and the wealth of the people not straight — but it is unlikely you will find many prosperous corporate clients in a country where there are problems with the effective demand.
At the same time is to watch inflation. If prices are rising, and purchasing power falls, people lose interest in buying anything that is not necessary for life. Core inflation shows how fast prices are rising in the country. And s it excludes prices for food, energy and everything exposed to short – term changes- thus, we obtain an indicator that can be compared to the buyer tion ability.
A more detailed live data can be obtained by comparing the cost of living in two countries, for example here. Https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=Brazil&country2=United+States. However, the purchasing power depends on the prices of the products. Earn $ 20 in Norway and India – not the same. To compare real living standards, economists have coined a beautiful term PPP (purchasing power parity), as often happens, for a beautiful acronym hides a simple principle – the calculation of GDP takes into account the fact that the same money can buy different products in different countries.
Youve probably heard about the index the big Mac, so Im going to stay here for a long time. If you cant afford flexible pricing, special regional discounts and other ways to take into account local PPP, your moderate home standards, the price tag in a new location can cause confusion unless. A source.
TradingEconomics.com. Https://d3fy651gv2fhd3.cloudfront.net/embed/?s=usanygdppcapppcd&v=201701171619t&title=false&url2=/brazil/gdp-per-capita-ppp. Not useless be to check how things are in different sectors. Suppose your solution is well sold to small and medium business and are wondering how much the entrepreneurs are willing to spend money in the near future. In almost every country, small and medium business regularly polled on the topic of expectations and confidence in the future, these surveys are not based on numbers, but take into account the sentiments of the representatives of the business.
And in Brazil it is not very, if we take into account the last quarter. And that relates to the quantity of companies of level of SMB.
If we compare this with data from Global Entrepreneurship Monitor ( https://en.wikipedia.org/wiki/Global_Entrepreneurship_Monitor ), it turns out that the SMB sector in Braslia large enough — the number of entrepreneurs is the third country in the world, but with low purchasing power and low share of IT-companies. This means that the SaaS company, which will offer services to SMB in the industry with high competition, will receive a high interest and few real buyers. The output is that Brazil — the economy which is in recession. P pokupatelya ability is several times lower than in the USA, with signs of falling prices, many th target audience, but not particularly minded to spend money.
At first glance, the Outlook in Brazil is not so rosy. However, why are we the region with less than perfect figures might be a good solution for expansion. For this it is necessary to shift our focus from the global economy and consider the buyer close. Profiling of the client.
Now lets define the portrait of the consumer. It is important not to approach the issue formally — better and faster just to make a buyer profile present a working model that will be used in copywriting, direct mail, targeting and touch points with the buyer. How to gather information for a customer profile. It will be useful for system analysts, conducted a survey, talk to the sales.
Here our colleagues already wrote about this in more detail. Can help data for Affinity and In Market audiences from GA Analytics website and open data.
Systematize the acquired knowledge and create a client profile as if you were talking about a real man. One of the ways to do this is to answer 10-20 questions. For this there are templates , for example by service Inbound. The output is similar to this portrait.
Next, rate the regional perspective for each profile. To obtain data on countries for every interesting portrait will help the Consumer Barometer. Function Graph Builder there provides the opportunity to analyze the data by segments.
For example, go to the Filters section and choose the country of interest ( let it be all the same Brazil) and sidem (for example, men s up to 45 years with an income above average). You can do a segment on the basis of the recent purchases of the users. It would be useful to see what people have recently bought a product similar to your. At first glance, the option is more suitable for B2C products, but also for enterprise solutions, there are many interesting.
In the about tab Questions we can analyze data on the buying habits and behavior online, by segments.
What sources were used by customers when choosing a product?. How many of them bought through mobile.
What is the strongest motivation for buying?. What difficulties have prevented to purchase. Collected at this stage information will help you decide whether you need website translation, local helpdesk and sales managers, and what are the expectations of the consumers.
Ideas and a lot of data, so you need to take what will be useful to you. On the basis of these x data not only to understand market prospects, but to consider ideas for future tests.
At the end of this stage, you should be ready for promotion strategy and media plan outline that you can use for cost estimation test campaign. With SRA read. You need to understand from where will come the first thousand leads. Here you need to rely on the tried and tested ways of attracting leads, which make a good show in other countries , but also teaches you the VAT local features.
For example , you can assess the value, competition and traffic volume on transactional queries in the G oogle A dwords — with the help of services like Market Finder or system selection of key words, such as K eyword Pl anner.
Next, schedule the campaign using the same methodology as for other markets. Not stopping in detail, we will note that often the cost per click in the new region might be pleasantly surprised.
Perhaps you find that hiring a local marketing Agency boutique-type is a good step, in reality it is not always the case. You know your product better and if you have no problems with performance marketing in other markets, you probably will be useful to talented local specialist, who perfectly understands the target market. With it, you will be able to carry out all complex of works — from adaptation strategies to proofreading ads, pages, and assistance in the selection of keywords.
Planning processes. In from looks like the easiest option process of entering a new region at Wrike. Logical and beneficial step will be the hiring online – Advisor of the interest of the country. Forums, questions and social networks can provide primary information, but probably the OST well ll weighty pitfalls.
For example, unpleasant discovery can be a big duty , which in Brazil are subject to all the Saas, a company registered in the United States. Calculate variable and fixed costs. At this stage it is necessary to calculate the cost of attracting 1000 leads , which we found out in points 3 and 2, and to assess their expected LTV , using historical statistics on other markets adjusted data x from point 1.
This indicator will help you to more accurately segment customers, select messedzhing and promotional channels and to calculate the correct ROI for each client. One of the most popular models – schedule marketi n dial-up budget of 10-40% of the ARR (Annual Recurring Revenue). Here I would like to note that the involvement of users in most SaaS sectors, especially the corporate segments, it is quite expensive. According to research th Pacific Crest, the median company spends $1, 13 for every dollar of revenue.
Interface localization and marketing materials. Interface localization — a separate process, the configuration of which is described separately.
Before you start, you can see the level of penetration of English in the country of interest. E if it is high enough, such as in Scandinavia, you will be able to do the existing materials, or to resort to crowdsourcing translation projects. Then you need to make a list of marketing and sales materials to be translated in the first place. The list must include advertising materials (banners, landing pages, key words), grocery stores, tours, educational materials and nurture emails that involve potential buyers to interact with the service and reduce the outflow of people after the end of the trial period.
Translated manuals should be enough to the ideal to develop your service without additional assistance to sales professionals and, again, minimize churn. The main problem of this item is that the localization of interface and auxiliary materials have to be updated regularly, and therefore, it is better to automate this process using TMS and incorporate into standard processes developers.
Run test campaigns. If you dilly I dedicated enough time the profile of the buyer, you already have ideas for UTP and first tests. Each country has its own peculiarities. For example, in third world countries may not trust the remote purchases of software with payment on the map in principle , when the Central E Europe is not a problem.
Perhaps , in this case, help of certification that will convince the target audience that pay by credit card you are quite safe. When it says UTP, made landing pages is the process of familiarization and involvement of the user, you need to first run a test advertising campaign — for example, the context in the same Google. C spruce so far — data collection and testing.
From things to find out in the first place. Whether the SRA and return to the expected level. – I wonder whether your offer to the consumer.
Here you can conduct a survey, for example using the service Qualaroo. P ROSTO ask visitors what theyre interested in more. Optimization and results.
It is important to understand that despite the low costs to succeed in the new market will have to pay the time. At the first stage it is desirable to identify individual Manager and his team who will be engaged in the new market , scaling the results. Markets showing good results, it is possible to think about hiring additional sales, leading customers to buy and dealing with Absalom current accounts and local marketers create the language materials, taking into account national specifics. If youve already been out to new markets with minimal cost, will be glad to know about your experience in the comments.