Here we are...all talking about MPS as the solution to all of our problems: decreasing sales, deteriorating margins, world hunger, etc. Yet for all the chatter we then look around and wonder who is really having success with this thing?
Go ask Photizo and you can get stats on how Xerox or HP are leading in market share. But look around your neck of the woods...do you really see anyone dominating?
Art Post had an interesting survey running. He was asking vendors to rate their experience with MPS so far. The results were a little surprising. Almost 47% said that they were either not reaping the profits they expected or would not have gotten into MPS if they had to do it again.
So what's the reasoning behind it?
I think a lot of it goes back to the endless discussion forums that debate the definition of MPS ad nauseum. Unfortunately the entire purpose that MPS was supposed to serve has been lost through the well intentioned efforts of vendors to understand what this whole thing is about. The ol' can't see the forest for the trees example.
We get so lost in what MPS is, or is not, that we forget that the only thing that matters is what a specific prospect thinks. Better yet, what problem can you as a salesperson solve through combining a wider set of services?
So why is there so little success, or should I say so little success in the SMB market?
When you look at the 800 lbs. gorillas (i.e. HP, Xerox, etc.) they have some distinct advantages. First, the majority of their deals are selling enterprise accounts where there is typically a much larger problem with a much larger financial payoff. Secondly, the salespeople calling on these accounts have more refined sales skills than your typical SMB salesperson.
This second issue is probably the biggest challenge facing companies entering MPS. The problem is that you have a collection of salespeople that have been selling a specific product or service for years and now they are asked to change what has made them successful. Now that's a recipe for disaster.
Until vendors in the SMB segment figure out how to make this transition we will continue to see the similar reports out of those jumping into MPS.
The practical result of defining MPS is a company starts selling a different widget. The problem with that is that maybe the client doesn't need that widget. Maybe they only need one part of the widget...or maybe they need a bigger widget..or a completely different widget.
Every sale should begin and end with the client's problem and a determination of if/how you can solve that problem. Lose sight of that and it doesn't matter what you're selling...you will be destined for mediocrity.
Showing posts with label sales. Show all posts
Showing posts with label sales. Show all posts
Monday, December 28, 2009
Wednesday, June 17, 2009
Customers Don't Know What They Don't Know
Posted by Ken Stewart (LinkedIn, Blog)
How many times have you been attempting to talk to a potential client and they are just not picking up what you are putting down? You can tell the light bulb just hasn’t turned on as you are presenting…
Now, how many times have you been sold to by someone you didn’t think understood your problem, your need, your “hot button”?
For those in the document imaging business dealing with, struggling with, or embracing what has been termed as Managed Print Services (MPS) or even electronic Document Management Systems (eDMS), this is all to often the case. The customers just are not getting the concepts.
What is even more frustrating is when I support account managers that just don’t get it either. They haven’t flipped that switch to helping in a more consultative manner. Don’t get me wrong, these reps aren’t trying to sucker clients into buying something they don’t need, but they are an empty suit - throwing out buzz words like “right-sizing” , “TCO” (total cost of ownership), and my favorite - “solutions”.
When I ask, just what is a “solution” anyway? I get all manner of answers, but the bottom line is that there is no 1 definition of “solutions”.
So I would ask, what are you selling your customer if you don’t know? That’s the first question; you must know yourself and your line up to be effective in helping your customer solve - get this folks - THEIR business problem.
Not your business problems; their business problems.
Next, how do you sell to a customer who doesn’t have that light bulb moment about your “solution” to their problem - or doesn’t think they need your “whiz-bang”?
Education
Education is the key to enlightening customers. It isn’t enough to tell them they need it, they have to understand operationally how they need it, how it impacts them, and how they can be better with your solution than without.
Education requires investment, on your behalf, as well as caring for your customer. There is no shortcut to relationship building, and you wouldn’t want that.
You have to teach your clients the difference in a McDonald’s hamburger and a Filet Mignon; you have to show them the value of a marriage with you versus a one-night stand.
Folks, if you are not talking the same language as your customers - and your customers don’t get the emotional and operational impact of what you are selling, you are not going anywhere.
The 1-2-3’s of MPS
In summary, your customers might be just starting to talk about getting a handle on their document output costs as a tactical reaction to today’s economy. But most haven’t even heard of MPS- and even fewer understand cost reduction as a strategy, or the long tail of e-DMS strategies.
Why not?
Simple: Education.
Three to five years ago, many customers didn’t know what ’scanning’ was - unless you were talking about a police radio or reading a book very fast. Through the advent and proliferation of technology, this is now a must have in just about every office in America - and it comes with the MFP of your choice… there is almost no option. Scanning is now the power-locks and power-windows of the document industry.
That’s where you want to be, but you have to 1) BELIEVE it can benefit your client and 2) TEACH your clients how to achieve results with their ‘new solution’.
Let’s face it, they may buy from you once, but if they didn’t achieve results, as promised, you will have violated that sacred bond and dishonored your relationship with that client.
Teach, show, and educate your customers on what they are missing - what they don’t know!
________________________________________________________
Ken Stewart’s website, ChangeForge, focuses on the collision between the constantly changing worlds of business and technology in an information-centric world. He is always interested in connecting; to discover the many ways you may connect with him, visit him at DandyID
________________________________________________________
How many times have you been attempting to talk to a potential client and they are just not picking up what you are putting down? You can tell the light bulb just hasn’t turned on as you are presenting…
Now, how many times have you been sold to by someone you didn’t think understood your problem, your need, your “hot button”?
For those in the document imaging business dealing with, struggling with, or embracing what has been termed as Managed Print Services (MPS) or even electronic Document Management Systems (eDMS), this is all to often the case. The customers just are not getting the concepts.
What is even more frustrating is when I support account managers that just don’t get it either. They haven’t flipped that switch to helping in a more consultative manner. Don’t get me wrong, these reps aren’t trying to sucker clients into buying something they don’t need, but they are an empty suit - throwing out buzz words like “right-sizing” , “TCO” (total cost of ownership), and my favorite - “solutions”.
When I ask, just what is a “solution” anyway? I get all manner of answers, but the bottom line is that there is no 1 definition of “solutions”.
So I would ask, what are you selling your customer if you don’t know? That’s the first question; you must know yourself and your line up to be effective in helping your customer solve - get this folks - THEIR business problem.
Not your business problems; their business problems.
Next, how do you sell to a customer who doesn’t have that light bulb moment about your “solution” to their problem - or doesn’t think they need your “whiz-bang”?
Education
Education is the key to enlightening customers. It isn’t enough to tell them they need it, they have to understand operationally how they need it, how it impacts them, and how they can be better with your solution than without.
Education requires investment, on your behalf, as well as caring for your customer. There is no shortcut to relationship building, and you wouldn’t want that.
You have to teach your clients the difference in a McDonald’s hamburger and a Filet Mignon; you have to show them the value of a marriage with you versus a one-night stand.
Folks, if you are not talking the same language as your customers - and your customers don’t get the emotional and operational impact of what you are selling, you are not going anywhere.
The 1-2-3’s of MPS
In summary, your customers might be just starting to talk about getting a handle on their document output costs as a tactical reaction to today’s economy. But most haven’t even heard of MPS- and even fewer understand cost reduction as a strategy, or the long tail of e-DMS strategies.
Why not?
Simple: Education.
Three to five years ago, many customers didn’t know what ’scanning’ was - unless you were talking about a police radio or reading a book very fast. Through the advent and proliferation of technology, this is now a must have in just about every office in America - and it comes with the MFP of your choice… there is almost no option. Scanning is now the power-locks and power-windows of the document industry.
That’s where you want to be, but you have to 1) BELIEVE it can benefit your client and 2) TEACH your clients how to achieve results with their ‘new solution’.
Let’s face it, they may buy from you once, but if they didn’t achieve results, as promised, you will have violated that sacred bond and dishonored your relationship with that client.
Teach, show, and educate your customers on what they are missing - what they don’t know!
________________________________________________________
Ken Stewart’s website, ChangeForge, focuses on the collision between the constantly changing worlds of business and technology in an information-centric world. He is always interested in connecting; to discover the many ways you may connect with him, visit him at DandyID
________________________________________________________
Saturday, May 23, 2009
When You Assess You Make an Ass Out of You and Your Prospect (Part 1)
If you've been around MPS for more than 10 seconds you have undoubtedly heard the term "assessment" thrown out. In fact if you hang around too long you're likely to hear the term ad-nausea.
I recall a debate about what should be a part of an assessment. Is it simply collect meters and toner cost or was there more? It's safe to say that there should be more involved unless you're a drill and fill working out of your garage.
Of course that led into those who questioned whether it was even necessary. But eventually those people saw the latest hardware SPIFF and forgot all about the MPS conversation.
I'd like to question something even a little more basic, the terminology. I have always been a firm believer in collecting hard numbers to eliminate any debate on the validity of the data. What baffles me are those that are advocating a 2-week meter collection and then use average street price to tell a client how much they are spending. And they are all over the place...software companies, manufacturers, even CONSULTANTS. I mean seriously, if you paid some guy and this is what he told you to do you need to go demand a refund.
I know this is silly, but let me put myself in a prospects shoes.
Sales Rep: "Mr. Prospect did you realize that you're spending over $3,000 per month on your printers?"
Prospect: "I'm not so sure about those numbers. How did you come out to that?"
Sales Rep: "Well we took two meter readings and then exterpol.......exptralpo.....etaxper..... calculated what that came to for a monthly volume. Then we looked up the average price for each of your supplies and divided the cost by the yield to get your cost per page."
Prospect: (After coming out of the trance)"Well I pulled my invoices and I only spent about 2/3 that number in the last 6 months. I'm not buying it."
Sales Rep: "Well sir, the software we use takes into account a lot of variables that you or I may not think of."
Prospect: "Like what? I can prove to you how much I spent."
And on the story would go. The methodology described is nothing more than a repackaged hardware mentality. Instead of just sell the copier, it's "just get the volume under contract"...and do it quick before they realize what's going on.
Now don't get me wrong, I am all for a fast and efficient sales cycle, but how about we be a little more intentional with what we do.
So, let's look at the definition of "assessment".
2. A valuation of property or profits of business, for the purpose of taxation;
3. The specific sum levied or assessed.
Webster's Revised Unabridged Dictionary, © 1996, 1998 MICRA, Inc.
Is it just me or does that sound like you're setting up a prospect to screw them? So what do we do? What is or is not applicable to the cost of printing within an organization?
In the second part of this article we will take a look at how to approach the "assessment" and work to find a better definition of the first step in an MPS engagement.
I recall a debate about what should be a part of an assessment. Is it simply collect meters and toner cost or was there more? It's safe to say that there should be more involved unless you're a drill and fill working out of your garage.
Of course that led into those who questioned whether it was even necessary. But eventually those people saw the latest hardware SPIFF and forgot all about the MPS conversation.
I'd like to question something even a little more basic, the terminology. I have always been a firm believer in collecting hard numbers to eliminate any debate on the validity of the data. What baffles me are those that are advocating a 2-week meter collection and then use average street price to tell a client how much they are spending. And they are all over the place...software companies, manufacturers, even CONSULTANTS. I mean seriously, if you paid some guy and this is what he told you to do you need to go demand a refund.
I know this is silly, but let me put myself in a prospects shoes.
Sales Rep: "Mr. Prospect did you realize that you're spending over $3,000 per month on your printers?"
Prospect: "I'm not so sure about those numbers. How did you come out to that?"
Sales Rep: "Well we took two meter readings and then exterpol.......exptralpo.....etaxper..... calculated what that came to for a monthly volume. Then we looked up the average price for each of your supplies and divided the cost by the yield to get your cost per page."
Prospect: (After coming out of the trance)"Well I pulled my invoices and I only spent about 2/3 that number in the last 6 months. I'm not buying it."
Sales Rep: "Well sir, the software we use takes into account a lot of variables that you or I may not think of."
Prospect: "Like what? I can prove to you how much I spent."
And on the story would go. The methodology described is nothing more than a repackaged hardware mentality. Instead of just sell the copier, it's "just get the volume under contract"...and do it quick before they realize what's going on.
Now don't get me wrong, I am all for a fast and efficient sales cycle, but how about we be a little more intentional with what we do.
So, let's look at the definition of "assessment".
Assessment
1. The act of assessing; the act of determining an amount to be paid;2. A valuation of property or profits of business, for the purpose of taxation;
3. The specific sum levied or assessed.
Is it just me or does that sound like you're setting up a prospect to screw them? So what do we do? What is or is not applicable to the cost of printing within an organization?
In the second part of this article we will take a look at how to approach the "assessment" and work to find a better definition of the first step in an MPS engagement.
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