Evaluating a New Prospect is Similar to a First Date
In many ways, a first sales call is like a first date — a mutual qualification process that hopefully leads to a deeper relationship. On the first date, the people are typically looking to discover common likes, dislikes and values, while during the first sales call, the salesperson typically extols the virtues of his/her product and company, hoping to seize upon the slightest interest expressed by the prospective customer. In both situations, the primary goal is to determine if a second date/sales call is warranted.
Similarities aside, the most successful salespeople, instead of leading with the various product features, lead with a sample business case with a plan to validate (or invalidate) upon deeper discovery. This early business case test (supported by references to other similar companies that have received the proposed benefits) marks the beginning of an ongoing negotiation between the salesperson and the prospective buyer to determine the relative value of the product being proposed. It is on this very first sales call that potentially pits the salesperson, who should be promoting value, with the customer, who wants to know the price.
This conflict launches the negotiation process. Navigating this process takes patience and perseverance, particularly since the business case may not be obvious (at first). In the end, there are only three ways to demonstrate value: increase revenue, reduce expense or avoid expense. Sometimes, the solution can affect all three, but more likely, it is intended to show how the product either affects the revenue side or the expense side. Ultimately, when the salesperson properly navigates this "give me the price" trap and adequately vets (after discovery) the business case, a sale can take place.
But let's not get ahead of ourselves. Just like people generally don't get married after only one date (although I got married after two dates 40 years ago), enterprise SaaS deals don't usually occur after only one sales call. This negotiation process is merely beginning and doesn't end until the sale is made. In between the first call and the sale, a range of discovery activities take place, including interviews with various stakeholders, demos and reference calls. Everything gets negotiated: the demo scenarios, who should attend the demo, are we demoing last, the unit price, the implementation scope, timing and cost, as well as the business case numbers themselves.
In the end, just like on the first call, it is the strength of the business case that will drive the speed and size of the software deal. The business case needs to leverage the unique capabilities of our product (so that our business case can't be used by the competition, as well), needs to be supported by customer generated numbers (so that the customer can "own" the numbers), needs to be vetted by the decision maker and needs to incorporate the cost of delaying a buying decision. In other words, the business case must be compelling enough to drive action by the prospective customer (in case the proposed project didn't get budgeted). We need to be able to say something to the effect of "every day that goes by, $X are either unnecessarily being spent or are not being earned."
Negotiation with our prospective customer begins as we approach our very first interaction with that prospective customer and continues throughout the sales process. If your SaaS company struggles with navigating this negotiation process, please ask Virtual Dave or email dave@moicpartners.com.
Virtual Dave is an AI-based virtual sales support tool trained on 40 years of enterprise software sales experience, available 24/7 to enhance sales process consistency.
