Revenue Stocking Stuffers — Support the Ideal Purchase Process (3 of 8)

This is part three of the Stocking Stuffer Series. Be sure to check out the other articles for more ideas!

Understanding Target Audience Behavior
Improve Outreach Credibility
Support the Ideal Purchase Process
Reassess Product-Market Fit
Break Down Barriers to Inbound Interest
Adopt a Digital Adoption Platform
No Sales Allowed! Outreach
Invest in Long-Term Customer Success

Photo by Tomas Sobek on Unsplash

Support the Ideal Purchase Process

In the intricate dance between sellers and buyers, aligning the sales process with the buyer’s journey is paramount. While a company may have a meticulously crafted and vetted sales process, it’s crucial to acknowledge that buyers have their own unique path. Attempting to impose a rigid structure that doesn’t seamlessly integrate with the buyer’s preferences can lead to missed opportunities and lost deals. It’s akin to trying to use a cheque or bank transfer in a store that only accepts cash or digital payments. In the B2B realm, where convenience and adaptability reign supreme, it’s imperative to explore methods that bridge the gap and facilitate transactions. Here, we delve into key considerations for a more harmonious alignment.

License Models: Adapting to Varied Preferences

One of the foundational aspects to consider is the alignment of license models. While annual models provide stability and security for the selling company, buyers may hesitate to commit to lengthy annual or multi-year agreements. Industry advancements play a pivotal role in shaping preferred license models. For instance, the advent of cloud automation has witnessed a shift towards consumption-based licenses, driven by the on-demand nature of services and ephemeral containers. It’s imperative for sellers to stay attuned to these shifts and tailor their licensing models accordingly. The Deloitte Global Human Capital Trends report emphasizes the need for organizations to be agile in responding to market changes, and this extends to adapting license models to meet evolving buyer preferences.

Whale-Hunting vs. Land-and-Expand: Strategic Approaches to Growth

The conventional approach of landing a significant deal, often referred to as “whale-hunting,” might seem enticing, but it comes with its own set of challenges and resource-intensive processes. In contrast, the “land-and-expand” strategy offers an alternative paradigm. By establishing a smaller foothold with straightforward contract terms, quick return on investment (ROI), and strong champion support, sellers can pave the way for organic expansion. The Gartner Magic Quadrant report highlights the effectiveness of this approach, emphasizing its potential for sustained growth and increased customer lifetime value. Establishing a network of champions and showcasing tangible ROI studies can position the selling company favorably for larger opportunities in the future.

Third-Party Partnerships: Bridging Varied Models

In the intricate landscape of B2B transactions, third-party partnerships emerge as strategic facilitators, adept at bridging gaps between diverse transactional models or meeting unique needs. Large enterprise accounts, in particular, often rely on preferred partners — third-party entities approved for business dealings with customers. These partners play a multifaceted role, covering aspects ranging from financial and security considerations to providing essential services and warranties. As businesses expand into regions like Asia/Pacific (APAC) or the Middle East/Africa (MEA), where local presence is pivotal, these partners become invaluable conduits for successful transactions. The strategic use of lobbyists are used for federal accounts, facilitating interactions between Congress, federal entities, budgets, and gaining inclusion in programs like the System for Award Management (SAM) or GSA Schedule.

Financial Flexibility and Assistance

One of the primary benefits of engaging third-party partners lies in their ability to provide financial flexibility and assistance, effectively tailoring contracts to suit the preferences of both sellers and buyers. In instances where annual models may not align with a customer’s immediate needs or budget constraints, partners can facilitate the conversion of contract models. Third-party partners enable sellers to offer consumption-based models or other flexible arrangements, closing the gap with the buyer’s financial strategy.

Scaling Service and Support Effectively without Overburden

Beyond financial considerations, third-party partnerships offer a strategic avenue for scaling services and support. Sellers often face the challenge of maintaining a balance between scaling their operations and ensuring high-quality customer support. By collaborating with third-party entities, sellers can offload specific support tiers, allowing them to focus on top-tier customer accounts. This scalable approach is particularly relevant in scenarios where an onboarding and training program can be supplemented by third-party support for Tier 2 or Tier 3 services. The Everest Group’s research on the global services market emphasizes the need for organizations to leverage external partners to enhance scalability and operational efficiency.

Streamlining Transactions With Reseller Programs

Another significant advantage of third-party partnerships is their ability to absorb costs and streamline transactions through reseller programs. Platforms like AWS’s ISV Accelerate Program provide avenues for reselling products through established marketplaces, such as the Amazon Marketplace. In scenarios where customers have negotiated Enterprise Discount Programs (EDP) with cloud providers, prospective buyers can transact through the cloud provider’s Marketplace. This not only simplifies the purchase process but can also leverage existing budget allocations, allowing for a seamless and cost-effective transaction.

Calls to Action

1. Initiate a comprehensive review of existing licensing models, considering industry trends and buyer preferences.
2. Explore the viability of transitioning from a “whale-hunting” approach to a “land-and-expand” strategy. Identify products or services suitable for a smaller and sustainable sale.
3. Assess the potential of engaging third-party partners to provide financial flexibility and assistance. Collaborate with preferred partners to tailor contracts, and explore becoming an ISV partner on AWS or other cloud platforms.