Introduction: Why is it so difficult to sell the cloud?☁️🌩️
Selling the cloud is a challenging task for most technology companies, as many factors need to be taken into account. From the cost of hardware and software to the complexity of setting up and managing cloud computing, technology companies face an uphill battle when trying to make money from the cloud.
The challenge of selling the cloud is compounded by a lack of understanding of what it is and how it works. Many potential customers don’t understand why they should switch from their existing IT infrastructure to a cloud-based solution, or how much money they could save by doing so. This makes it hard for technology companies to explain why their product is worth buying - and even harder for them to make a profit from it.
How the Lack of a Clear Value Proposition Can Affect Sales 😕
Having a clear value proposition is essential for any business, especially when it comes to sales. Without a value proposition, it can be difficult to market and promote your product or service. This can lead to lower sales and decreased revenue.
The cloud has made it easier for businesses to offer their products and services to customers, but without a clear value proposition, it can be challenging to market the ROI of the cloud. Companies need to understand how their product or service will benefit customers for them to make an informed purchase decision. Without this knowledge, customers may not be willing to invest in the cloud.
Order taking no longer works - customer expectations have changed🍟 🍔
In the past, order-taking was a viable strategy for businesses. However, with changing customer expectations and the emergence of innovative technologies, this approach is no longer effective. Customers now expect more value from their purchases and are looking for solutions that align with their business outcomes. In this environment, businesses must focus on solution selling rather than order taking to meet customer needs and grow their revenue.
Solution selling is more customer-focused and flexible than order-taking. It focuses on the customer's business outcomes to achieve sustainable growth. It also aligns with modern-day business needs, such as customer experience and brand management. Customers now expect their interactions with businesses to be easier and less time-consuming for them to make an informed decision before the purchase. Solution sales focus on turning customers into advocates who tell their friends about their experience with the company by advocating on social media or through word-of-mouth marketing tactics such as referrals.
Do it with Style! Order Taking vs Solution Selling 🆚
Order-taking typically comes in the form of a relationship between the sales team and the customer’s IT department. “We need a DR” “We need backup” or “We need to move the cloud.” Sales teams will quickly accept this order and churn out a respective quote or proposal.
👍Pros: Solid IT customer relationship that typically spans years. Shorter Sales Cycle.
⛔Cons: Unqualified leads. Lost deals. Unnecessary busy work
The reasoning: IT is no longer the only buyer along for the journey. As more companies adopt a transformational mindset. Sales teams must work to get outside of IT and align their products or services’ value to the business outcome.
Solution Selling is the form of aligning a solution to a customer’s Business Outcomes. However, this requires a deeper understanding of your customer and their industry. What do they care about? Who and where are their customers? What do their customers care about? How can this solution add value to my bottom line?
👍Pros: Larger Deals. Deeper and more relationships within organizations. Sticky customers. Upsell and Cross Sell opportunities.
⛔Cons: Longer Sales Cycle. Expected Industry Knowledge. Increased expectations and performance required from Sales Teams.
Examples:
IT Director - “Hey there John Smith. We have a new initiative from the business that is requiring some more computing than our VM Host can currently manage. Can you help me quote something? Know, the business also has a cloud initiative. It is unfamiliar territory for us, but we are open to exploring those options as well.”
Sales Rep - “Sure thing Richard, I would be happy to assist you with this. Tell me, what is this for?”
IT Director - “HR has some need to run some new software that they are looking to purchase.”
Sales Rep - “Does this need to be protected by your current backup and DR strategy?”
IT Director - “Yes.”
Sales Rep - “What’s the budget for this new initiative?”
IT Director - “I am not sure; they have explicitly stated anything. Let us go with something like what you quoted us last time.”
Sales Rep - “Great, I will get to work.”
The Sales Rep will then go back internally to his team of resources to begin building out a solution and a quote. This typically means engaging some sort of Sales Engineer (SE) or Cloud Solutions Architect (CSA). Since the customer stated a cloud initiative. Lastly, he will update his pipeline, forecast, and Sales Manager of his new opportunity.
What is wrong with this method?
The Sales Rep never fully qualified the lead (BANT). Never identified what the true “initiative” was our business outcome that it aligned to. Lastly, the Sales Rep did not identify other key stakeholders or decision-makers in this initiative.
Result: wasted time and a lost sale. The business would have chosen another vendor that proved value that aligned with their business outcomes.
IT Director - “Hey there John Smith. We have a new initiative from the business that is requiring some more computing than our VM Host can currently manage. Can you help me quote something? Know, the business also has a cloud initiative. It is new territory for us, but we are open to exploring those options as well.”
Sales Rep - “Sure thing Richard, I would be happy to assist you with this. Tell me, what is this for?”
IT Director - “HR has some need to run some new software that they are looking to purchase.”
Sales Rep - “Interesting! Can you tell me more about that?”
IT Director - “You know, I’m not sure; I know they have been complaining about some legacy processes for a while.”
Sales Rep - “I know how that goes, we too have some tools and processes that can slow me down at times. Tell me, who from HR is the decision-maker in processes?”
IT Director - “That would be our Head of People, Susie Smith. Anything of impact at a department level would go through her.”
Sales Rep - “Great. Susie, I have never collaborated with her before. Do you think you can send me a quick email introduction for me? I want to make sure we are accomplishing IT’s goals for technology while aligning to their Business Outcomes.”
IT Director - “Absolutely, they typically do not listen to IT anyway. It would be great to have an advocate for us. Hey, maybe if you do get the chance to speak with her, bring up security. That is another major focus for us and I want to ensure the company is protecting our employee’s sensitive data.”
At this point - you can take the conversation and expand upon Security and why it’s important to them. Ask open-ended long questions and LISTEN LISTEN LISTEN.
From here, IT Directory makes an email intro:
“Hey Susie,
The team and I have been working hard around HRs asking for some recent technology. I would like to quickly introduce you to Sales Rep, our partner. He is helping with several of our initiatives. He will reach out and ask a few questions to make sure what they propose aligns with your outcomes.
Best,
IT Director”
And just like that, you GOT OUTSIDE OF IT 👏👏👏. Now, all you have to do is continue to ask open-ended long questions. Questions that related to HR, Talent, People, Recruiting, etc. No need to talk tech AT ALL.
Do not know what to ask? Take to LinkedIn Sales Navigator. Do some Prospect learning. Google hot topics and trends for HR to see what their challenges may be.
Sales Rep - Hey Susie, how do you Recruit, Retain and Reward Talent? How do your current tools and processes affect those areas? How does HR track data concerning these areas?
The Difficulty of Convincing Customers to Buy into The Cloud 😒
The cloud has become an essential part of modern businesses, but convincing customers to buy into the cloud can be a challenge. Despite the many benefits that cloud services offer, buyers are often reluctant to pay for them due to their perceived complexity and lack of trust in the security of the data they store on the cloud.
Therefore, companies need to understand why buyers are hesitant and come up with strategies to convince them that using the cloud is worth it.
According to Gartner - B2B Buyers in 2019
Buying groups are incredibly diverse 🌈
Customers add complexity to the buying journey as they add more and several types of stakeholders.
Millennials are generally skeptical of sales reps 📱🎙️🔊
They are increasingly joining the buying groups and as a result, are holding more influence in decisions. They are more than twice as likely as baby boomers to be skeptical of a claim.
The journey is not linear! 🛣️
Customers do follow some sort of path to purchase. But that path is anything but straight. B2B purchasers tend to group into six distinct “jobs” that must get done to complete a purchase.
Access to information 📄🚮
Customers today have access to more, high-quality, and trusted content. Make sure you bring value to these conversations or quickly lose attention and credibility.
Conclusion: There is money to be made selling the Cloud. Today’s Sellers must adapt to buyers’ expectations and behavior’s to be successful. 🤑🤑🤑