Deal confidence begins only when value is validated at the CFO level.
The widely held view is that when the customer proclaims that they are ready to buy, it is the signal for the seller to stop selling. But when does “yes” really mean “yes?”
What if the person that announces the decision lacks the final decision making authority? What if the person, seemingly prepared to buy, is stringing us along as leverage for negotiations with another vendor?
The obvious question is, “Are we selling at the proper (C Suite) level within the organization?” How do we validate that the person with whom we have been working (in spite of the fact that the person has told us that he/she has the requisite authority to buy from us) truly has buying authority?
As a sales leader, I’m a believer in the deal only when our business case has been negotiated (inserting their numbers into our otherwise straw man business case) and have validated the timing of the deal associated with the impending financial consequence of inaction (compelling event).
If the CFO tells us that we’ve been selected, it (obviously) carries more weight than if we learn this from someone lower in the company. While it is potentially good news that we are being given positive feedback by mid management, that news may be only that person’s viewpoint and not the final word (despite the promise of rubber stamp from upper management).
Be sure of one thing: if we aren’t working with the CFO on our business case, our competitor is. Moreover, we can be confident that the CFO isn’t working through business cases from multiple vendors. While mid level managers buy based on features, the CFO buys based on value as expressed in dollars (increased revenues or reduced costs).
In the end, we can’t have confidence in our deal and its timing until it has been validated by the CFO and the CFO isn’t buying without believing in the unique business value being delivered. If your sales team struggles to receive CFO approvals, MOIC Pipeline Grader can institutionalize this approach for your sales team.
