Danger in Assumptions!

We all know the dangers in making assumptions.  I came across this post by Colleen Francis which I think is highly relevant to not only Software Sales professionals, but business people in general.  Enjoy!  The real trouble with assumptions

Strategy for the New Reality in Account Management

So we all agree that these are challenging times for everyone, strategic sales professionals as well as their customers and prospects.  So what?  I believe the “what” is a focus and dedication to sales and account management execution.

First, it is crucial to play defense with your key customers.  As we all know, the best defense can be a good offense.  Many of your best customers will be approached by competitors with low price offers to switch.  Here’s a plan to ensure your customers rebuff such overtures.

Gather your account team (Sales Manager, Support, Inside Sales, sponsoring executive etc.) and build out a 2009 Account Plan.  This plan should include monthly activities and initiatives at a minimum.  The theme behind these activities is proactive communications and value add, and serve to keep you as close as possible to your customer.  These activities could be additional training for key users or groups, “lunch & learn” presentations, executive briefings and the like.  Your planned activities should be enhanced with regularly scheduled update calls to key sponsors and executives from the appropriate corresponding executives on your team.  For example, the sales executive calls the key users and influencers bi-weekly.  The sales manager joins that call monthly.  Your VP Sales should call the executive sponsor bi-monthly.  This level of communication in concert with value-added activities will prevent or mitigate any unpleasant surprises. 

Once you have built a draft plan for the year, share the process with your customer!  Engage them in the mission to add value to the relationship.  I recommend including tasks or initiatives for them to execute which will drive momentum and good will.  Ask them to introduce your team to new groups or other divisions or subsidiaries.  Ask them to participate in product planning sessions with your engineering team.  Ask them to speak at a sales meeting or a management team meeting.  Build in a process for creation and delivery of a published customer profile/success story.  The successful engagement of your customer in the 2009 Account Plan will significantly enhance your ability to maintain and grow the relationship.

The final step is to create and share the Account Plan working document with your customer.  This is best done in a face-to-face working session if possible.  Include as much detail and timeline information as you can.  I recommend incorporating the Account Plan into your CRM to ensure visibility for all internal team members.  Make sure the activities are in everyone on your team’s calenders.  Now, you are ready for the successful execution of your Account Plan.

Good luck!

End of Qtr/Year Price Objection

It’s happened to most of us in the enterprise software sales marketplace.  You’re in the final review meeting.  Your proposal has been verbally agreed to, and your prospect pulls out the “higher authority” objection mentioning that the CFO or someone wants/needs a price concession.  Your commission statement flashes before your eyes (without this deal!).  The poker game begins.

Strategic sales excellence dictates that you calmly address the objection directly with questions to expose the issue.  For this example, we will assume it is purely a gambit to get a better deal.  I have used different combinations of the following with good results.

In any case, it is time to review the key value points your solution will deliver and quantify the pain that will be addressed.  It is important, during this review,  to gain agreement throughout the discussion on each point.  If you don’t, you haven’t finished selling, and you have missed something in your process.

Now the fun starts.  If you are extremely confident, you can employ a soft version of the “take-away” close which goes something like:

“Bill, I’m sorry we seem to be on different planes, here.  Based on the value we provide which addresses your issues at the price we discussed, I expected we would proceed as planned.  I can only wonder if perhaps our solution isn’t the right one for you.  What do you think?”  He who speaks next loses.  “Bill” won’t concede at this point, but you have shifted the negotiations to a different level, and taken a much more powerful position from which to negotiate a settlement.

Another approach for those of us in the SaaS/subscription world, is to suggest a compromise.  Consider offering to extend the subscription by one month, in return for accelerated payment terms. You need to get something in return for the implicit discount of the 13 month subscription and full price on accelerated terms makes the finance department happy. 

One final approach, and the one I like the least, is to agree to a lower price in return for a reduction in services.  This approach puts the long term relationship at risk because your solution may not be used in an optimal way, and the overall value may be compromised. 

What’s your favorite/most successful approach?

Holiday Season Focus, Discipline, and Leadership

This time of year is challenging for sales teams with a December fiscal year-end.  It’s no wonder leading software companies like MSFT and Salesforce.com end their fiscal year’s on different schedules!  That said, there are two dynamics that must be planned for.  

The first is closing crucial year-end deals.  If you haven’t already asked the question (“Is there any reason why we can’t conclude this transaction before Dec 23rd?) there is no time like the present.  In a perfect world, that question would have been answered already in the qualifying discussion related to your prospect’s purchasing process ( who? how? when?).  The answer to that question will have a direct impact on your forecast for December and Q4.  It is good practice to jointly build in a detailed timeline with your prospect to address the steps that need to be completed.  These include proposal modification, draft agreement submission, and availability of key resources including legal.  Well planned and executed sales processes will deliver your agreements on the 23rd. 

The second dynamic is your or your team’s January/Q1 pipeline.  It ’s easy for sales teams to spend an inordinate amount of time staring at the phone and fax machine “wishing” it to come to life with good news from your prospects.  It’s easy to get away from the on-going requirement and imperative of filling and managing the pipeline.  It is crucial for teams to maintain continued momentum and activity for January/Q1 deals.  This requires discipline, focus and leadership during a time that features a high degree of distraction and competing priorities.  Don’t fall or let your team fall into the trap of losing sight of next month and quarter.  There’s nothing better than having a good January pipeline enhanced by a few deals that didn’t make Q4.  The result is a solid January and a foundation for Q1 success.

Good luck!

Strategic Sales Methodology

Managing complex, multi-level solution sales for large corporate accounts requires strategic sales excellence particularly if they involve emerging technologies. Key elements in the process are building relationships and credibility within the account(s) that allow the sales team to “earn the right” to engage in a sales process, while at the same time qualifying the opportunity. I have found that understanding the prospects vision for the solution, and their personal and professional “win” in implementing the solution, provides a solid roadmap to success. Listening skills, empathy, and the ability to qualify, understand and confirm the prospect’s pain points are the foundation for ultimate differentiation from competing alternatives. Once established as a “trusted advisor”, discerning the real issues and marshalling key resources to address those issues for all stakeholders builds sales momentum towards the close. If the aforementioned process is managed and executed properly, collaborating with the prospect stakeholders on the proposal, and negotiating a mutually beneficial agreement is a natural conclusion to the sales process versus a contentious and/or uncomfortable one. Strategic selling today can be optimized by eliminating as much risk as possible from the sales process for the prospect. True strategic sales professionals successfully guide their sales processes by keeping the objectives well-defined, and the aspirations, and politics of their prospects clear. In this way, they avoid multiple mid-course corrections resulting in extended or failed sales cycles.

Software Sales Excellence Blog

This blog will explore key tenets for developing software sales excellence both for individuals and  organizations.  Beyond my own comments, you will find links to other esteemed authors who I believe have relevant and impactful perspectives that are important for today’s selling climate.
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