Rating: +0
Clarification added April 18, 2008:
I am just trying to collect some more of your experiences. For example, I know of a few companies that usually walk away from customers requesting to pilot, particularly if it were a competitor side-by-side evaluation due to time and cost of the engagement.
Here are some examples of what I'm seeking -
1) Flyn Penoyer suggests "selling" the ROI of the project as opposed to the software -- this takes you out of the product competition with the other vendors and puts them in the light of proposing "costs" in contrast to your "profits." The best explanation of this strategy is in Mac Hanan's book "Consultative Selling".
2) John Pugh suggests formally doing the PRECLOSE with a "Plan Letter" if the pilot is unavoidable, getting the customer to "sign-off" on commitment to purchase contingent upon satisfying the goals identified in the Plan Letter.
3) An example I'd serve-up is to expand the power of references and testimonials by getting an OK from a relevant current client for a tour by the prospect, hosted by the Seller.
Thank all of you for collaborating with me, Have a nice day, Scott
Scott,
R. Baldwin, above, is spot on. He says "embrace" the pilot & out execute your competition”. In todays competitive environment, POCs are becoming a normal part of the sales cycle. Knowing, this & planning for & embracing this are to your competitive advantage. Also, if you know that it’s part of a prospects criteria, take the lead & take the advantage & get the customer onto your playing field early in the cycle; by proposing the POC, how its done, the options you propose for their size & scope, the amount of time it will take, the data needed from their side, the resources, etc. & most importantly, lay out the cost! POC’s cost money, make it clear what your capital & non-capital outlay are; your prospect has to know what your skin in the game is, & by doing this upfront you get to earn the right to ask for your customers “skin in the game” in return.
Now, with respect to avoiding a POC altogether,the best shot you have at that is by having the prospect come to your territory for a very smartly laid out Technical & Executive Briefing. Briefings can be prepared to include a mini-POC using the prospects real use cases, data, etc. They can potentially be done with little investment & overhead & w/o all of the environmental issues that will pop-up on the customers site.A well laid out agenda, that takes the prospect through detailed technical areas,with Prod. Mgrs & Dev. Mgrs to address every question, & add as much color & competitive advantage as possible, then done in conjunction with a customers data against a real-live system. This can go along way, not only to close your prospect,but shut down a POC altogether.
That said, in today’s environment POCs are a normal part of the sales cycle, there is so much vendor FUD that its almost a necessity to weed through the marketing & vapor-ware tactics of many vendors.
One of the goals of an enterprise sales cycle, is to get the customer into “your process” & out of theirs,by taking control of the POC you can do just that; I would create different POCs that can be proposed,you can take a small, medium, large approach–& treat these like field engagements executed by services staff & supported by engineering, note they have to be flawlessThe small option should even be an off-site hosted type offering; where the customer can come in over the internet & test exposed functions remotely using their data for example.
Also, the small, medium, large approach presented to the customer,takes them off guard, it’s like going to the car wash & the attendant puts the menu of choices A,-G in front of you; & you quickly migrate to the “Mgrs Special”. So, make one of the POC options a “paid” option also,& for each option outline (line by line) project plan, time, resources, hourly rate, etc. that you will spend on each, & guide the prospect to what you want them to choose & you know in advance will allow you to shine the best.
This is “embracing” the inevitable & turning the tables at the same time to take control of the sales cycle & increase your chances of winning.
Lastly, do not fall into the trap,of over doing the “CSFs” (critical success factors) to the point where they don’t make sense & before you even get started the prospect perceives you as a difficult organization to work with; What do I mean? Many sales people take an approach, “If we do these 11 things successfully in the POC, then you will sign on the dotted line”. Come on, grow up! This makes you a difficult & foolish organization to work with; it’s like going into a car dealership & asking to take a car for a test drive;& the sales person strong arms you “if this thing does 0-60 like it says;then when we get back you will take it” otherwise no test drive.
It’s a foolish tactic that is best left off the POC negotiation. CSF’s should be designed to best your competition,not the prospect.It is wiser to use the additional face during a POC to build trust & confidence than to go down that track.
Good Luck,
Peter
April 2008