To be successful on G-Cloud, you have to sell
First you have to decide who you are going to sell to
This article summarises some of the market characteristics to look out for
There is a free, detailed paper on selecting target markets in the ‘resources’ section
Who is buying?
6-in-10 SMEs marketing SaaS on G-Cloud are bringing a successful product from the commercial sector and introducing it to the public sector. B2B►B2G as we call it. 4-in-10 have a product that was written for a public sector purpose and is not much value outside it. Examples of ‘G-native’ products would be a police evidence management system or a system for managing radiology images.
Looking at Small and Micro sized suppliers (70% of total by number), the proportions are the same. However when we look at which suppliers are making sales, the situation is reversed. Almost 6-in-10 suppliers with sales running at over £100,000 a year in the most recent sales figures are G-native. That seems reasonable, if a supplier is writing an application for public sector we would expect them to understand their market.
Is the opposite of that statement also true? If a supplier has not written the application for public sector, do we expect them to not understand the market? As you might expect, it’s yes-and-no, some have spent a great deal of effort understanding the market, some are still somewhere on the learning curve.
You have to sell
A good product, well presented on the catalogue, will generate enquiries and sales (I have proof!). But the lesson that needs to come early on that learning curve is that you have to sell. You have to actively market your products to create your opportunities.
Who do you sell to?
Your product, your market position, your resources, strengths and weaknesses… these determine who you should sell to. But they aren’t the whole story. An SME with limited resources needs to be selective and not waste time pushing at a locked door.
In the 19 months to July 2018: 1,100 public sector entities bought some SaaS through G-Cloud. 350 of those had no transactions with Small or Micro sized suppliers and almost all of those (90%+) have never bought SaaS from Small/Micro businesses since G-Cloud started in 2012.
I’d suggest that’s a locked door.
By analysing which public sector entities are buying, we can identify:
- 160 entities buy significant values of SaaS from Micro & Small suppliers
- 80 of these have only been buying G-native products
- 80 do buy B2B►B2G products.
Voilà! The open door!
Selection of your target markets is an important component of your marketing strategy. To read the full paper on how to select your target market, with a list of those recently spending significantly on SaaS from the Micro-/Small-sector, click [here] to pick-up the .PDF in the Resources Section, [no registration required].