So another day, at another venture backed and exciting new company. Great team, highly educated, well backed – and yet I see an upcoming SQUEEZE.
Can they grow their sales model and still make a profit? Can they grow their sales faster than their marketing and sales expense?
Questions to ask your executive team:
Are you providing a tailored solution, an expert solution that focuses on that particular customer‘ s needs and particular industry? Yes or no?
When you focus on a particular vertical and provide a specific solution in that vertical, enterprise customers will appreciate your expertise, insight and experience in that industry. This will also establish a closer and longer relationship for higher revenues.
Can you provide the outcome, the customer is looking to achieve with your solution?
Work backwards – this sounds almost too basic – but customers will actually pay considerably more and feel satisfied, if you are able to do so, effectively. What are your particular customer needs today? With what can you provide them today to offer a differential advantage?
Total cost of ownership and return on investment
In particular with the (SaaS, PaaS) software and information technology offerings, today’s potential customers are able to compare features and potential costs fairly quickly. Merely, having a closer inside relationship will not help to move an entire team of internal buyers from making their decisions based on total the costs of ownership. So what are your total cost of ownership and basic features, compared to the SaaS / PaaS competition?
Sales performance means having the ability to retain high-value customers
How is your team up-selling and cross selling to expand the customer relationship? This will most likely be the only method to keep the customer over the longer term – if you do not offer more, the customer will feel „locked-in“ and try to break out of the product and pricing arrangement with a new solution provider.
Are you selling a solution based on expertise or just another software product?
Given the open nature of software APIs and cross-functional platforms – customers will benefit most if you tie together various functions from selective bundles to offer a particular solution, fit to the circumstantial needs. (Open tools and service platforms to add additional functionality to your core product)
Consultative selling
Customer will pay more if you understand the industry and business need. Covering this need with expertise, will provide the return on investment the customer is seeking.
Your sales team
Does your current sales team have the background and expertise to specifically talk to your customers and their particular needs? Do they have the industry expertise and experience to talk the language of the customer? – If not, are you providing the necessary training? (Major growing expense, and hit on profit margins and reputation, if you do not have this very basic module in place.)
Repeatable sales model to exceed expenses
Where are your highest value market opportunities?
Can you build a high margin growth model for accelerated sales growth? – Is your process repeatable?
Customer confidence and your company credibility
In closing – yes, as the technologies we offer grow in complexity – we need to continuously train our sales teams to offer expert advice and avoid employee turn over. Training plus concentrated experience within the domain of the customer´s environment lead to more customer confidence in building high value solutions with proven return on investment. Higher ROI will also build your company´s credibility and sales growth.