Ronan Bradley's FinanceTech Directions

Over the years, I have listened to a lot of hokum about enterprise software sales from all sorts of people but in particular from venture capitalists and dodgy sales guys looking for a job. It often revolves around the belief that if your product and the sales guy are good enough, you will be able to close any deal in 90 days so long as the client sees "compelling" value. I know that I have been involved in short sales cycles but it has been about being lucky and being in the right place at the right time with the right product. Therefore, it was nice to read some vindication of my view from the buyer side of the fence in the form of an article from James Gardner

James kicks off his article with an amusing story of a vendor asking for a demonstration of intent from James before the vendor would engage with James' employer (a large bank). It sounded a little like the sales guy had being listening to my hokum peddling friends a little too long! I can't remember ever being in a position to ask for something like that. As James puts it the burden of demonstrating value always lies with the vendor and I am sure he was politely shown the exit.

The real world challenge for all vendors is actually to be able to stay engaged with the customer until the funding cycle can come around with a placeholder for the type of project that suits your product. In theory, selling simply requires the locating of projects with budgets available which fit your product. However, in my own experience this doesn't happen very often as by then in most cases the product has already been chosen or at least a short list created. I have been asked in the past how long is the enterprise infrastructure software sales cycle - my answer must be: it really depends on the customer cycle more than the speed with which you can demonstrate value. This is of course where those unpaid for proof-of-concepts come in - to stay engaged and to mold the customers view of the world into seeing your product as the solution. As James also states: there is cost to the customer associated with any engagement even if supposedly unpaid for..

As we look forward into 2009, the overarching agenda will probably be 'do more for less'. However, translating that into specific projects that a vendor can go after is of course not possible: There won't be a budget for cost cutting! Rather, the cost cutting agenda changes the emphasis of every opportunity. For all suppliers this can be challenging to prove over and above other products making the same claim - even if you product is uniquely better (here again we come back to the unpaid for proof-of-concept).

The only solution is a little like living the virtuous life: Stick to your principles, listen to constructive criticism from people you should trust (including your customers), hunker down for a long struggle and hope for your rewards in the next life (or at least budgetary cycle).