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APRIL 2005
Creating your program - focusing your business
James Benson, author of 22 Keys to Sales Success, wrote, "Businesses that just get by are in four or five markets. Businesses that do better are in three markets. Great businesses are in two markets, and phenomenal ones are in one market". In today's market everyone involved in selling the solution has to be an expert, providing some value to the customer. It is impossible to add the value required in each client relationship without focusing on some finite set of solutions in a target market area. Even more effective is the creation of a sequence of solution offerings that take a customer from a current state to a future state. I call this set of sequential solutions a "program". In last month's news letter I addressed considerations in building a managed services offering. While this is important, the Program is far more important!
1. What exactly is "The Program"?
I referred to this program in my last mailing, but it deserves more attention if we are going to implement this very important concept. A managed services offering is another offering you carry with you as you call on various prospects. It follows the question, "What needs do you have"? The problem with this approach is that business managers are tired of sales people calling to see what problems they have. There are so many people out there selling technology that a manager would have to answer calls and emails full time if they were to respond to each sales inquiry.
The "Program" is a set of offerings that solve a specific need you see in the market. Once you identify an area of need that you can fill, you build an offering around that need and focus on it. You create a sequence of solutions that carry your client through a process much like a health professional. Diagnosing the issues, fixing any major problems, and then creating a routine to keep that person healthy through diet and exercise. Your company may be identifying business problems that can be solved with technology, finding ways to enhance the business through technology, actually implementing new systems and optimizing existing ones, and creating a routine to monitor, maintain, manage, and grow the IT systems you are focused on. The program creates focus for your organization allowing you to become the best in your market. You position yourself as the expert.
2. Misconceptions
One misconception I hear all the time is, "We don't want to pass up good opportunities by focusing". James Benson's comment at the start of this letter is an easy concept to agree with when you are planning, but as the business moves forward there are always opportunities that fall outside of the plan. Sometimes it makes sense to take them, but more often than not, they take you outside of your expertise and result in failure - a reflection on your reputation. The other result is cost. The cost of taking opportunistic deals that fall outside of your current expertise is often high. Additional training and research is almost always required, sometimes new product relationships are signed, and much time is spent just working through the exception process. There is an expectation that you will do this deal again; however, since you are not focused on this new area, new deals rarely come. The total cost of sales, if you were able to track such a number, would greatly exceed the gross profit (GP) generated. It may create GP and commission, but net-net, there is no money on the bottom line.
3. How the program works
The program is a sequence of offerings that take a client from their current state of chaos to a manageable IT operation in the area of your expertise. For instance, if you "focus" on helping the small business community manage IT, you may have a broader set of technologies, but you are experts in dealing with small, disorganized environments. Your sales cycle is shortened if you are using a consultative/assessment approach. Once you have your assessment opportunity in place, you can easily gain access to decision makers as part of your analysis process (note: free assessments are less likely to provide invitations to meet with executives). The results of your assessment, if presented in a compelling way, should provide the justification for discussing larger (gross profit rich) remediation and optimization opportunities. The final step is showing the client how to move this whole process under your ongoing program to manage and maintain things.
4. Selling the program
Selling this program starts with a clear understanding of what your expertise and passion are, and what real needs exist in the market you are serving. You need both. Sales people are likely to sell what they know, but an understanding of what the market needs is necessary. Differentiation is also critical, so if your expertise is common, such as networking expertise, sales are going to be difficult. Every successful vendor is focusing around specific programs right now. Storage companies are putting more emphasis on their software solutions to address compliance, litigation, business continuity, etc. Security companies are letting go of unrelated technologies and building a suite of products to address an area such as malicious code attacks, and networking companies are focusing on the software side of their business to address threats within the fabric of their network offering. One large systems company is trying to figure out what they are going to do. It makes sense to follow their lead, building intellectual capital to address an entire system. Start today by listing the areas of need in your market, figure out how to start the assessment process, and how to you build your managed services to create a natural process for maintaining these systems.
Please pass this on to anyone you know who is working to build a profitable solutions business today. Consider having David Stelzl speak at your next business development meeting or customer event. Create a value proposition that positions you as the expert and attracts new clients. Consider hiring a professional coach to accelerate the process. |
