We divided the development into two phases based largely on the availability of the specific Google Apps APIs. Mail and Calendar were phase 2, everything else was phase 1. We had a single, mostly dedicated developer for the effort.
Stage 1
We first implemented single-sign-on via OpenID and Google Docs API integration using OAuth for standard Google Accounts. This included data import/export, attaching Google Docs to rows, uploading office documents to Google Docs, and importing Contacts. We then extended this integration to support Google Apps users. These features were rolled out in Q3 of 2009, well in advance of the Google Apps Marketplace launch. It took a senior developer roughly 6 weeks to implement this first stage. With the core integration features completed, we were able to quickly implement new Apps Marketplace functionality, including Universal Navigation and the Licensing API, as they were made available in the sandbox.
Stage 2
We are developing full-featured Google Calendar integration, utilizing both the Google Calendar Data API and Calendar Event Gadgets, to be delivered in May 2010. Gmail integration will follow quickly, utilizing both the OAuth access to IMAP and SMTP and Gmail Contextual Gadgets. With the experience we have integrating other APIs, the development of these features is greatly simplified, as the infrastructure – implementation of OpenID, OAuth, and the GData Java Client Library – is already in place.
The Mechanics
We chose to enter three variations of Smartsheet into the Google Apps Marketplace: two mainstream solutions and one emerging technology solution.
Mainstream:
- Smartsheet Sales Pipeline for Google Apps
- Smartsheet Project Management for Google Apps
Emerging Technology:
- Smartsheet Crowdsourcing for Google Apps
The decision to start with the
Project Management and
Sales Pipeline applications was based on the belief that they would have the broadest appeal to two Google Apps customer types: Small Businesses and Large Scale Education customers.
We included Smartsheet
Crowdsourcing as a test of an entirely unique product that pushes an emerging trend.
The Results
Google Apps Marketplace has performed very well across several of Smartsheet's key performance indicators.
Strong Leads - the percentage of signups that accrue a statistically significant quantity of behavioral actions within the application. A strong lead is highly correlated with an eventual paying customer.
Convert to Paid - the percentage of total leads that eventually become paying customers.
Average MRR - Monthly Recurring Revenue is the average monthly spend of the leads that become paying customers.
The statistics are fantastic, and have improved the profitability of our customer acquisition programs significantly. Today, we get "free" leads generated by SEO, PR and buzz (Non-Paid). These are the Holy Grail source of profitable customers. We add $2,160 a month in recurring revenue for every 1,000 leads that come in via non-paid channels. At $1,740 a month per 1,000 leads, Google Apps Marketplace is also a very profitable channel that brings up the overall averages (subtract the 20% Google is planning to charge for Apps customers).
None of the statistics above matter without lead volume to power them. That's where the Google Apps Marketplace really makes these numbers sing. We've seen a very meaningful increase in high quality, non-paid lead flow directly attributable to Google Apps customers.
Our customers cite Smartsheet's tight integration with Google's Data APIs as a key factor in their decision to purchase. A common theme emerging in the feedback is reflected in this comment from a manufacturing company president: "Smartsheet is making the Docs component of Google Apps more useful to our team."
Moving Forward
Customer requests for features and enhancements to our Apps integration have already started pouring in. They are great guideposts toward attracting a larger percentage of these great Apps users.
The Google Apps Marketplace is a rich source of customers, so staying above the noise as it attracts more ISVs will be a priority. We're confident we can continue refining our product and services to deliver a superior solution. And, we'll count on the Google team to value customer success and application utility as primary criteria for rating and ranking the vendor directories.
By Brent Frei, Smartsheet
