Are you guilty of bad love?

Bad love: when your affection for customers is solely based on the revenue they bring. Ask yourself, if they didn’t contribute financially, would you still talk to them, believe in them or invest in them? Is it the money you love, or the customer?

Good love: genuinely caring for your customers, regardless of their financial value. Even if the relationship ends, your business gains in reputation and brand loyalty. You become the go-to for recommendations, known for going above and beyond.

Love your customers for who they are, not just what they bring financially. Strong relationships lead to happier outcomes for everyone involved.

💖 Happy Valentine’s Day! 💖

It’s a well-known good practice to do your research before you meet with a potential customer.  Spending some time understanding them so you can have a decent conversation with them when you meet goes a long way and shows you’re serious about them.  The question is: how much is too much?

When selling in education, I worked with a guy for several years who made a point of researching the schools we were due to meet with; he wanted to come across as a ‘trusted advisor’ as opposed to a salesperson.  However, he would take it far too far and spend the meeting quoting their school motto at them, discussing their school trips and questioning their exam results; they didn’t feel like he had done his research, they felt like they were being stalked!  It ended up having the opposite effect and the staff would become suspicious and back away – it rarely ended in a successful sale.

If you veer too far into the realm of over-research, you’ll likely give your potential clients the creeps rather than impressing them. Striking the right balance is the key to a successful client meeting. Here’s how you can do it:

1. Background Research: Start by gathering some basic background information about your potential customer. This might include their mission, vision and values, size, and any recent news or developments related to their school or trust.
2. Tailored Questions: Use your preliminary research to frame thoughtful questions. Focus on inquiries that demonstrate your genuine interest and understanding of their needs. For instance, instead of quoting their school motto, you can ask how they envision their future.
3. Active Listening: During your meeting, pay close attention to what your potential client says. Listen for pain points, challenges, and objectives. This is where you can showcase your expertise by aligning your solutions with their needs.
4. Engage in Two-Way Dialogue: Make the meeting a conversation, not a monologue. Share relevant insights from your sector and how your business can provide value. Encourage your potential customers to share their thoughts and expectations.
5. Respect Boundaries: Remember that your potential customers have their comfort zones and boundaries. Respect their personal space and the information they choose to share.

The key to successful customer meetings lies in a balanced approach to research. While thorough knowledge is valuable, your customers ultimately want you to be an expert in your own field, not theirs.

So, be curious, be prepared, but most importantly, be attentive and adapt to your customer’s unique needs. By doing so, you’ll forge more genuine connections and create a stronger foundation for successful sales relationships.

So here we are, almost at the end of the month and most people are desperately trying to close those last few orders to meet what are probably very challenging targets.  Time to bring out the discount – that will work, surely?!  Well, not necessarily.  Here are my 4 reasons why offering a discount to close is not always a good thing:

1. It devalues your product. If what you are selling was worth, say, £5,000 two weeks ago, why is it only worth £4,500 now?  While a discount designed to get the customer to order before the end of the week might just incentivise them to do so, it is also likely to leave a lasting impression that the product was priced too high in the first place which won’t help your long-term relationship and future sales.

Which brings us on to . . .

2. You risk ‘training’ your customers to expect a discount. If a discount is usually offered towards the end of any given month, term or year then the customers will learn to expect it and wait for it to happen.  We all know how we feel about certain large out-of-town furniture and carpet stores that advertise their sales an awful lot; we wait for the sale until we buy as we know there’s probably going to be one just around the corner.

3. It’s obvious but, by discounting to close, you are lowering your revenue and margins. To hit your overall business plan, how many more sales will you now need to make?  Would it be better to take a longer-term view and aim for a smaller amount of committed long-term customers who are willing to pay the true price of your product than a larger volume of customers who bought it because it was a bargain?  It’s a question only you can answer for your business but it’s worth considering.

4. You’re no longer in control of your sale. Most companies will spend a significant amount on sales (account management and new business development) in some way, shape or form.  Those people that you hire are there to add value to your business and, by offering a discount to close, you’re moving all the control over whether or not that potential customer will order onto your client – the decision is now theirs and there is little your salespeople can do to influence.  Unfortunately what this means for the business is that you’re really not getting the best value for money from the salespeople.

Instead of offering a discount, consider how you could add value to the sale.  Is there something you could offer that not only has a financial value attached to it that your potential customer would appreciate but also helps them get the best from the product they’re buying which will increase loyalty and long-term revenue?

Don’t get me wrong, used sporadically discounts can work and sometimes it can help you launch a product with early adopters or build a preferential relationship.  However, give it some thought before you do as it may be that the long-term pain isn’t worth the short-term gain.

Why are some businesses more successful than others?

Is it because they provide a better solution technically?

Is it because they were first to market?

Or is it just luck?

You could say all these statements are true, however, more often than not it is the way you look at a solution and how easy it is for a potential customer to purchase, on board, reduce their pain, and continue to enjoy the experience of working with your solution and business. It’s all about reducing friction.

We work and continue to work with several businesses across the edtech world and, in the main, the majority of companies that are not growing as quickly as they would like comes down to how hard are they making it for customers to either buy in the first place or make it hard for them to choose to stay, its all in your power to solve!

Look at your Customer Journey, look at every step, and understand when you are making it hard for the customer/user.

Ask yourself:

• Have you made it easy for the potential customer to find you and know what you stand for? Where do they receive their information?
• Have you made it easy for them to purchase? Do they know you are going to take away a problem better than your competition?
• Have you made it easy for them to onboard? Through little to no manual or human interaction.
• Have you made it easy for them to get to the value? This may include human intervention to understand best practices, however, if you can make it light touch this is great for the business and your customer.
• Do you have processes of ensuring that the customer continues to have a great experience of the solution and the business? To make the decision to be loyal easy.

If you say yes to all these questions, ask one more! Are you looking at this from your perspective or the customer’s? If you answer from yours, as we know best, you are not reducing Friction!

In Systems engineering and Requirements engineering, a Non-Functional Requirement (NFR) is a requirement that specifies criteria that can be used to judge the operation of a system, rather than specific behaviours. Previously this would be mainly Architecture of the system. For example: Scalability, Accessibility, Capacity. These are all still important, however, it should be about more than this in a SaaS world!

Why do I think this is far more important then ever to get right? From an Architecture perspective, you need to get this right or you will have heavy costs fixing issues in the future. But more importantly you should be setting out to the business what are your expectations of the overall customer experience. You have to remember that software is not a solution on its own, everything from the purchasing journey to the training journey and how you are going to support your customers, are also part of the overall solution, and getting this right will retain customer loyalty.

When thinking of your NFR, think about the experience you want your customers to have and draw out all these journeys, so that every area of the business is aware of their responsibility.  Some questions to ask are:

• Are we going to offer free trials? If so, how are we going to support them? What do we need from development, sales, pre-sales, marketing?
• What is the work flow for customers to purchase? Do we have Account Managers selling? Are we expecting customers to purchase from a portal? Who across the business needs to be involved?
• Are we going to do all training online? Will this be self service? Do we have partners who need to train the software? Are we going to sell the environments?  Who across the business needs to be involved?
• How are we going to support our customers, once they are trained and on-board?

There are many more questions, but all of them will have a potential impact on the overall solution (incl. Architecture) and customer satisfaction. Once you have been through this exercise, most NFRs will be the same for subsequent solutions. But always review the NFRs and learn how you can make the solution better.

Is it possible to win a bid purely on your ability to meet the requirement?

My opinion is that it isn’t.

In my industry (education/public sector) it’s important for establishments to engage in a fair procurement process, so the ability to meet a technical requirement will score you points.

However, I personally don’t think you’re in the running if you don’t have a relationship with the customer, understand what’s important to them and know why you’re bidding. There’s so much more to it than what’s written in the product spec. It’s your job as a business to understand that. Relationships are everything.

Still, a lot of companies in the sector insist on bidding anyway as they think they have a chance based on requirement alone. To them their product is king (they’re also the people who think “the product sells itself”) but more often than not they’re just pouring their money/resource away.

What do you think?

Selling is difficult.  It’s not enough to talk about your product and hope your prospect will buy – there’s always a lot more going on than that.

Here are my top 3 painful truths you need to get your head around when it comes to selling:

Painful truth #1: Nothing is “too expensive”.   It’s more likely your potential customer doesn’t see your thing as having the value you think it does.

Have a look at your Value Proposition; it should be a clear statement of the value your product will deliver and should be the main reason your potential client will buy from you.  Is your Value Proposition clear?

Painful truth #2: When your customer tells you their reason for not buying, it’s not a good idea to believe it.  I’m not saying that people wilfully go all out to lie to you, it’s just that it’s always worth exploring further as there might be a win-win situation you’re both missing.  It’s up to you to find out the REAL reason and address it – don’t expect people to lay themselves bare.

Painful truth #3: “I’ll think about it” means ‘No’.  As does “Send me a proposal”. You need to get to the reasons behind the decision process to be able to influence that sale.  Walking away with a promise of either of the above puts it out of your hands completely.