Date post: | 20-Oct-2014 |
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Proving Your Advantage:
TCO Sales and Marketing Tools
TOM PISELLO, Chairman & Founder
Blog: http://tompiselloroiguy.blogspot.com/
Twitter: @tpisello
http://www.alinean.com
http://www.fightfrugalnomics.com
Powering B2B sales to economic buyers
© 2011 Alinean, Inc.2
Proving Your Advantage: TCO Sales and Marketing Tools
• A New Buyer Requires New Strategy & Tactics
• What is a TCO Comparison?
• TCO Comparison Marketing & Sales Tools
• Best Practices & Benefits
© 2011 Alinean, Inc.3
A New Buyer Requires New Strategy & Tactics
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.4
Buyers are Economic-Focused
• Size
Longer Sales Cycles
Reduced Deal SizeMore Leads to Close Same
Amount of Business
Stalled Deals
Increased CompetitionMore Stakeholders
Executive Scrutiny
© 2011 Alinean, Inc.5
Quantifiable benefits
are mandatory
On average 90% of corporations surveyed require
quantifiable proof of bottom-line benefits on most
projects.
Quantifying value is
difficult for buyers
Two-thirds (65%) of buyers indicate that they do not
have the knowledge or tools needed to do business
value assessments and calculations.
Third party validation is
essential
Most trusted sources are: Industry Analysts (31.4%),
and Peers (28.7%).
Vendors lag as a trusted source for only 8.1%.
Buyers turn to vendors
for value proof points
81% of buyers expect vendors to quantify business
value of proposed solutions.
Source: IDC 2010, survey of 200 B2B buyers,
Sirius Decisions 2010 B-to-B Buyer Survey on trusted sources.
Frugalnomics: the new mantra for B2B Buyers
© 2011 Alinean, Inc.6
Fight Frugalnomics™ with Value Selling & Marketing
Value Focus
Discussion:
• Prescriptive & Quantified
• Discover… Is customer
aware of issue?
• Diagnose… How bad is it?
• Quantify … Value of change
• Compare … Value vs. Status
Quo / Competition
Drive: Diagnostic Led: What
is issue & value of change?
Product Focus
Discussion:
• Customer knows issue
• Tie features / functions to needs
• Compares product alternatives
• Feature • Function • Price
Drive: Sales Led: Product
Driven
Solution Focus
Discussion:
• Customer knows issues &
desired outcome
• Questions to discover pain
points
• Recommend solution to
solve pain
Drive: Sales Led: Pain-Point
Driven
Solution
ProviderTrusted AdvisorVendor
© 2011 Alinean, Inc.7
Facilitating the Buyer’s Journey w/ Interactive Sales &
Marketing Tools
BUYER’S JOURNEY
Interactive White Papers
Diagnostic Assessment Tools
ROI Analysis Tools TCO Comparison Tools
Create awareness
around a new problem
Align problem with
business issues; drive
urgency
Help buyer
identify needs in solving
the problem
Align solution
with specific sets of
business needs
Make the business case
for change
Validate/reinforce choice
Prove best value
Loosening of the
status quo
Committing to change
Exploring possible solutions
Committing to a
solution
Justifying the
decision
Making the selection
Content Marketing & Sales Enablement Strategy
DISCOVERY CONSIDERATION DECISION
PROVOCATIVE APPROACH VALUE APPROACH
© 2011 Alinean, Inc.8
Facilitating the Buyer’s Journey w/ Interactive Sales &
Marketing Tools
BUYER’S JOURNEY
Interactive White Papers
Diagnostic Assessment Tools
ROI Analysis Tools TCO Comparison Tools
Create awareness
around a new problem
Align problem with
business issues; drive
urgency
Help buyer
identify needs in solving
the problem
Align solution
with specific sets of
business needs
Make the business case
for change
Validate/reinforce choice
Prove best value
Loosening of the
status quo
Committing to change
Exploring possible solutions
Committing to a
solution
Justifying the
decision
Making the selection
Content Marketing & Sales Enablement Strategy
DISCOVERY CONSIDERATION DECISION
PROVOCATIVE APPROACH VALUE APPROACH
© 2011 Alinean, Inc.9
Driving More Effective Demand Generation and Sales Enablement
• Developed for B2B websites and
direct marketing campaigns
• Provocative: Engage, Connect &
Educate
• High Level TCO Comparisons
• Help set competitive agenda and
advance sales cycle
• For global sales enablement
programs
• Empower consultative selling
programs
• Detailed TCO Comparison
• Help differentiate solution to
multiple stakeholders & CFO
Demand-Gen Tools Sales Enablement Tools
© 2011 Alinean, Inc.10
What is a TCO Comparison?
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.11
p
What is TCO Analysis?
Lifecycle costs of solution
3 or 5 year time frames based on
useful life
Used to compare costs head-to-head
for alternative solutions
Chart of Accounts used to assure
apples-to-apples comparisons
Needs to include business benefits
and ROI Analysis
Planning
Acquisition
Setup and
Install
Manage and
Support
Evolution
Retirement
TCO ($ per user per year)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Solution A Solution B
© 2011 Alinean, Inc.12
p
Typical TCO Analysis
Initial Purchase Price vs. Lifecycle Costs
Data Center, Servers and Client Computers 7%
Purchased Software9%
Purchased Services
9%
Communications3%
Application Development
8%
IT Operations
16%
IT Administration9%
Facilities and Overhead 2%
Change Costs 4%
Availability21%
Security Risks12%
25% - 30% Initial Purchase Costs …. 3-4x More in Lifecycle Costs
© 2011 Alinean, Inc.13
Difference Between ROI & TCO
Total Benefits = TCO Before (As Is) – TCO After (w/ Proposed Solution)
ROI = X 100%
Total Investments = TCO of Proposed Solution
ROI = Make the Case for Change
TCO = Compare Costs of Different Options
© 2011 Alinean, Inc.14
TCO Comparison for Demand Gen
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.15
Demand-Gen – IBM Storwize RAS
© 2011 Alinean, Inc.16
Profile & TCO Comparison
© 2011 Alinean, Inc.17
Results Summary
© 2011 Alinean, Inc.18
Registration Options & Reports
Executive Summary vs. Full Report?
Options: PDF / Word / PPT
Registration Considerations
Up-front
To get results
To get report
None
Integration
Lead Nurturing / CRM
Basic Registration
Enhanced Profile
Key Results
Additional Examples: http://www.alinean.com/demand-gen/TCO_tools.aspx
© 2011 Alinean, Inc.19
TCO Comparison Report
© 2011 Alinean, Inc.20
TCO Comparison for Sales Enablement
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.21
ShoreTel TCO Commitment
© 2011 Alinean, Inc.22
ShoreTel TCO Tool
© 2011 Alinean, Inc.23
Organization Profile
© 2011 Alinean, Inc.24
TCO Quick Look and Comparison Selections
© 2011 Alinean, Inc.25
TCO Details
© 2011 Alinean, Inc.26
Several Report Options
© 2011 Alinean, Inc.27
TCO Comparison Report
© 2011 Alinean, Inc.28
TCO Comparison Tools Best Practices
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.29
Best Practices
• Demand-Gen
– Keep inputs & results simple
• 10 minutes maximum for demand-gen
– Layer details to provide access to review / challenge assumptions
– Pre-fill with default metrics
• Document assumptions
• 3rd party research and validation
• Case study examples for savings claims
• Keep metrics up-to date
– Allow access without registration, restrict details / report to registrants
– Strong call to action / next steps
– Use request to follow-up
• Sales Enablement
– Keep inputs & results simple• Sales easily intimidated
– Layer details so sales can work with customers to review / challenge assumptions / transfer ownership
– Provide ability to customize / disable / add chart of account line items
– Provide multiple report options• Format: Word / PPT
• Exec summary, details, different stakeholders
– Provide Support• Training
• Proposal Center
• Deal Assistance
– Keep metrics up-to date
© 2011 Alinean, Inc.30
Typical Development Project
• Demand-Gen– Week 1: Kickoff
– Week 2: Initial Prototype Spreadsheet
– Week 3: 2nd Prototype Spreadsheet
– Week 4: Initial Tool Alpha
– Week 5: Initial Tool Beta
– Week 6: Initial Tool Pilot
– Week 8: Final
• Sales Enablement – Week 1: Kickoff
– Week 2: Initial Prototype Spreadsheet
– Week 3: 2nd Prototype Spreadsheet
– Week 5: Initial Tool Alpha
– Week 7: Initial Tool Beta
– Week 8: Initial Tool Pilot
– Week 10: Final
© 2011 Alinean, Inc.31
What is Required of You and Your Team?
• Collect and Provide Prior Art:
– TCO chart of accounts
– TCO white papers
– Spreadsheet or other tools
– TCO oriented case studies
• Create Tool Development / Review Team
– Marketing/ sales enablement usually leads project
– TCO subject matter expert(s)
– Enterprise sales representation
– Channel sales representation
– Pilot review team (select customers / partners)
• Participation
– Weekly meeting
– Weekly review
– Alpha, Beta & Pilot review
© 2011 Alinean, Inc.32
Facilitating the Buyer’s Journey w/ Interactive Sales &
Marketing Tools
BUYER’S JOURNEY
Interactive White Papers
Diagnostic Assessment Tools
ROI Analysis Tools TCO Comparison Tools
Create awareness
around a new problem
Align problem with
business issues; drive
urgency
Help buyer
identify needs in solving
the problem
Align solution
with specific sets of
business needs
Make the business case
for change
Validate/reinforce choice
Prove best value
Loosening of the
status quo
Committing to change
Exploring possible solutions
Committing to a
solution
Justifying the
decision
Making the selection
Content Marketing & Sales Enablement Strategy
DISCOVERY CONSIDERATION DECISION
PROVOCATIVE APPROACH VALUE APPROACH
© 2011 Alinean, Inc.33
Connect higher in organization & speak language of economic buyers / CFOs
Break through the noise with value add / personalized content
Elevate relationships from vendor to trusted advisor
Convert 240% more prospects to sales than other programs Increase the competitive success rate of proposals by over
60%
Prove more value, lower costs and competitive advantages
Automate development of personalized assessments and business case proposals
Reduce proposal time from days to hours Reduce sales cycles by 20-30%
Drive 50% more leads / connections compared to other initiatives
Reduce discounting and increase deal size by 20%
Engage on value vs. feature / function / price
Increase the credibility and acceptance of proposals by 100%
Deliver credibility with research and 3rd party validation
Convert existing Excel sales tools into on-line interactive applications with no programming
SaaS delivery Self-authoring for shared workload
Develop sales tools with lower TCO
Enable all direct and channel sales teams with a scalable sales /marketing tool suite.
Collect customer data, track and drive usage
Standardize and centralize value selling / marketing efforts
Convert 240% more prospects to sales than other programs Increase the competitive success rate of proposals by over
60%
Value of Alinean Business Value Selling / Marketing Tools
© 2011 Alinean, Inc.35
Thank You!
1. Your Sales & Marketing Ready to Do Business with Frugal Buyers? Take this Diagnostic Assessment to Find Out.
2. Research White Paper: Sales Enablement and the Economic Buyer
3. Over 200% ROI from a Value Selling Program Sound Impossible? Find Out for Yourself
4. Why Alinean? Alinean Vendor Profile (SiriusDecisions)
Alinean powered tools can significantly upgrade the quality of sales interactions
throughout the buying process, allowing prospects to drive at the beginning
through simpler, self-service tools and sales to provide greater depth as the buying
process proceeds – SiriusDecisions 2010
http://www.fightfrugalnomics.com