Five Major Sales Leaks That Could Be Affecting Your Company

My wife Anne gets after me because I’m not always careful enough with my spare change and bills, and they often fall out of my pocket. This often occurs in her car, and many a shopping excursion has been thus funded. She says I “leak money” (and does her best to restrict my access to the same).

Some of our customers leak sales rather than money, and this was brought home to me when I recently had a conversation with a good customer who had started using our Quosal Order Porter Mobile for the iPad application. He said he was doing three times as many quotes as he previously had been. Naturally, I think that’s great – but I realized, as he did, that he’d been missing out on two thirds of his sales opportunities before – he was leaking sales by writing them down on yellow sticky notes, or business cards, or just trying to commit to memory a customer’s request for a new product, or his own on-site observations of a customer’s needs. Now, he takes out his iPad and delivers the quote on-the-spot.

There are many ways to leak sales, and all of us do, sometimes on a daily basis. It’s a very costly habit. Here are a few ways that I see sales dribbling away for businesses of all types, but particularly our information technology audience. Continue reading »


 

At Quosal, our team’s e-commerce experience goes back a long time, into the depths of the pre- “dot-bomb” years when e-tail was growing at a remarkable rate, and state-of-the-art online technology was brought to bear on e-commerce solutions of the type that we implemented for many well-known retailers. The burgeoning online technologies were becoming available at just the right time to provide excellent online solutions for our brick-and-mortar retail customers, and companies like Amazon.com were lighting the way for purely online play.

Fast forward some 10+ years, and lately we’ve seen some noise around e-commerce (again) for the IT market, as if it were something new that the market has just now discovered.

In our quote-and-proposal-automation line of work, we have occasion to talk with many information technology providers who have e-commerce offerings through one of many current providers, such as ChannelOnline, VARStreet or any number of equivalent systems. Our conversation is often in the context of looking for alternatives to those systems for their core need of product quoting, but the inevitable question is, “Do you provide an electronic storefront?” In this context, I always query, “How many orders have you taken from your storefront in the past few months?” The inevitable answer: “Few to none.”

So, is traditional e-commerce something today’s IT provider and/or MSP really needs? In a word, the answer is “No.” In two words, the answer is “Hell no.”

But do those same companies need to offer the convenience of online shopping, option selection and order execution? The equally strident answer is “Absolutely yes!”

E-commerce is the opposite of what today’s IT provider is about, which is expertise, understanding of needs, and total care based on specific knowledge of the customer. Sending a customer to an online store throws a lot of that out the window. The message to the customer is, “You don’t need me, just go find it yourself!” Once you’ve given that message to your customer, they’re half a step away from a much larger, more powerful online provider.

To be at all personalized, an e-commerce site must be maintained and cultivated by someone who knows what they are doing. Many are the companies I’ve talked with who know they’ve spent more money in labor to maintain their site, catalog and customer-specific features than they’ve brought in via the site.

There are several essential disconnects between a traditional electronic storefront and today’s MSP.

Messaging. Today’s IT provider wants to be the customer’s trusted advisor, someone who is giving sound advice based on their expertise and knowledge of the customer’s specific needs and resources. The messaging of an e-commerce site is the opposite: “You don’t need me, just go shop online.” Or, “Just buy what you’ve bought before, because our e-commerce site shows you your history. No thought required, nothing ever changes.”

These are not the messages of a trusted advisor.

Another important message to your customer is your own image. This is often enhanced when you first set up an e-store and put a lot of thought and resources into the organization, selection and other aspects of the e-store. But inevitably, this effort falls off – because it is often too time-consuming for the return on time. The site degrades, and is no longer a positive reflection of your company. This is a highly common occurrence.

We’ll take care of everything. Except new equipment? Many MSPs are moving into managed contracts, HaaS, and other arrangements that basically give the customer the warm fuzzy blanket of “it’s all included, we’ll take care of everything.” Sending the customer to shop for themselves on your e-store is anything but.

The wrong battlefield. It’s virtually impossible for a small company to compete with the Dell/CDW/Newegg/Apples of the world. Read your Sun Tzu — you’re simply taking the battle to the enemy’s favorable ground. Once you’ve given your customer the blessing to shop online, they’re half a step away from better selection, pricing, marketing and site maintenance.

Today’s Relevant Solution

A much more relevant solution is offered by Quosal and our ground-breaking, market-leading online quote delivery and order execution solution, Order Porter. This is the middle ground, preserving the MSPs position as the trusted advisor, yet providing the convenience of online shopping, option presentation and selection, and order execution and payment.

We at Quosal have simple evidence that this is today’s topical, relevant online solution: We have hundreds of successful MSP and IT providers in the SMB space successfully using Order Porter to capture business every day – yet I have encountered barely a handful successfully employing e-storefront solutions. The simple, immediate and compelling level of success achieved by our customers, as illustrated in this case study, shines far brighter than any success story an IT provider has shared with me about its e-storefront.

Think twice before embarking on the long-term commitment that such a storefront truly represents. A much easier, less expensive, lower maintenance option that is consistent with your client messaging is readily at hand!

Kent McNall

Kent McNall
President and CEO
Quosal LLC


 

I’ve had somewhat of an epiphany over the last few months as I’ve thought about working with MSPs and IT providers on their sales processes.

Sales processes can be a bit of a black box to such companies, and truly improving the process with a platform like Quosal is an area that seems somehow less comfortable than improving, say, improving a ticketing process.

I think it’s easier for many of our partners if they think of sales as a service — which it really is.

Sales is, in fact, the first service that you provide a new customer — in some ways, the most important service as it relates to your relationship. As a service, your sales effort and those delivering it should endeavor to provide excellent service to the customer in the same way you would judge any other service you provide.

So, what do your customers look for from any other service that they should also get from sales?

  • Timeliness — The sales team should deliver on time and as committed, whether that deliverable is an appointment, a quote or a proposal. This is especially true with a new customer that’s looking at the performance of your sales team as a harbinger of the performance of your company.
  • Quality — We all look for quality work when we receive services — thoroughness, professionalism, accuracy. Sales has many deliverables — particularly the quote and proposal — on which the quality of your services will shine through.
  • Follow Through — We all feel great when a service provider follows up and follows through on the services they have provided to us. That is certainly true of sales as well.

If you make a mental shift to thinking of sales as a service, then certain processes that you apply to your service delivery efforts become easy to apply to your sales efforts as well.

SLA for Sales? Do you have an SLA for responding to new customer inquiries? What about existing customer needs for a quote — what’s your SLA for them? When customers refer to an organization as “hard to do business with,” they are often referring to the difficulty of getting a quote or proposal for new business.

Surveys for Sales? Many of our customers follow up service tickets with a survey. Have you ever thought of doing that for your sales efforts as well? Wouldn’t you like to know how you’re doing on this all-important effort?

Sales as a Service because sales IS a service. It is, in fact, one of the most important services you can offer your customers. Great sales service leads to great sales, which is a big win/win.

Stay tuned, we have much to share on this topic.


 

There are five substantial areas of return on investment for businesses — especially IT providers and MSPs —  that implement Quote and Proposal Automation (QPA).

  1. Quote/Proposal Creation Productivity
  2. Quote to Order Productivity
  3. Quality
  4. Competitive Advantage
  5. Knowledge Transfer

In ROI terms, each can be very substantial, and determining which area has the most potential will vary from company to company. But more often than not, the ROI area with the highest potential may surprise you — Knowledge Transfer, most easily translated as “the ability to get a new salesperson up to speed and quoting for new business.”

Here’s a mini-drama played out time and again among small IT/MSP businesses: The business has a few productive sales people, most often the entrepreneur who started the business, and perhaps another veteran that handles a specialty area like government sales. They’ve each developed their own system of getting quotes out the door, often involving a combination of Word, Excel or Ye Olde Quoting Tool they purchased or developed themselves back in Aught-’02.

The entrepreneur wants to get out of sales, but can’t. Every once in a while, he gets fed up and hires a young fireball to expand the sales department, and the intrepid stripling gets off to a great start, has a big handful of prospects ready to sign in no time … but he needs to do a quote or proposal for them, and the party’s over.  The current systems are so arcane that the only way he can learn how to use them is to have some tribal knowledge passed down, either by the impatient, overloaded entrepreneur information-hoarder, or Mr. Grizzled Government Sales Specialist, who has absolutely no incentive or motivation to teach the new rep anything.

After a few months, the new kid wanders off to more successful hunting grounds.

This vignette happens constantly, and is the reason that the knowledge transfer possible through a standardized approach to QPA is possibly the highest ROI area for this business – because it can unblock growth and let the genie out of the bottle. If a business’ growth is stymied, and has been for years, how do you measure the ROI on a strategic move that allows them to get to the next level?

The ROI on Knowledge Transfer is facilitated by a QPA solution like Quosal by:

  • Standardized processes for creating and maintaining quotes and proposals.
  • Eliminating the manual steps and tools that lead to common errors and omissions.
  • Creating easy processes that allow the company’s experts to review and approve quotes and proposals.
  • Providing a way for standardized quote content to be centrally created and managed, rather than “inherited” from other quotes and proposals.

When these factors are in place, that new sales representative has a great chance to be successful without the roadblocks, “tribal challenges” and old, chaotic processes.

Quote and Proposal Automation generates tremendous ROI – and Knowledge Transfer can be the “sleeper” ROI, and the highest of them all.


 

A cobbler is defined as a person who mends shoes. In old, scary fairy tales, a cobbler might also be a clumsy worker. A cobbled street is one made up of uneven, unmatching pieces and parts.

Many proposals are clumsily “cobbled together” from unmatching pieces and parts by the proposal preparer — we encounter this frequently with prospective users of Quosal. This is often a result of different tools being used to create the different parts of the proposal – MS Word for the cover letter; statements of work and contract language; a quoting system or spreadsheets for bills of materials; tacked-on PDF brochures, etc.

A proposal that looks like it was created by an ogre looks as it sounds like it would look — the proposal equivalent to that clumsy cobbled street. It is not the way to put your best foot forward and make the right impression on the customer.

Your proposal document should be professional, smooth and top-notch to project the image you want to create with your customers. Your proposal should certainly be reflective of the scale of the business you’re trying to land with your customer. Each section of your proposal should be stylistically consistent.

Consistency is best achieved when the entire proposal can be created with one wave of your magic wand. Using the right wand for the purpose — like Quosal – helps create the right kind of proposal, and streamlines the process as well. Most MSPs should be able to create their proposals with a single command that does everything to produce the final document.

Do ye justice, fair knight, to the opportunity presented to you by yon customer — weave a magical spell guaranteed to make that customer fall in love with your craft.


 

As we work with MSPs and other types of businesses, we find that there are some wild variations in the definition of “proposal,” especially as related to “quotes.”

Some define a proposal as a quote with a cover letter, or one with a brochure attached. Others have proposals that are 20-30 pages long, with many sections and a lot of dynamic verbiage created for each customer.  None of these definitions is incorrect, but in general, a proposal will be longer than a quote and will present information differently than a quote.  In today’s MSP context, there’s more to present than ever before.

Without presenting the detail of what should be in a proposal, I would make the general statement that a lot of opportunities are approached with a simple quote when they really should be approached with a full proposal — the kind of “avatar” of your company that continues to speak highly of your brand, capabilities and the thought and care that you’ve taken to put a quality solution together for your (potential) client.

There are many that say, “We get the job done with our simple Excel or XYZ quoting system quote.” But unless you’re fortunate enough to have a 100% closing ratio, there are any number of reasons you may be losing out on opportunities — and the look, feel and professionalism of your proposals can be right up there.

This subject is worth a part 2 and maybe even a part 3, so stay tuned …


 

Human nature is alive and well in the Managed Service Provider (MSP) proposal creation process.

As I’m working with prospective clients here at Quosal, one of the most common pain points that an MSP will relate is the difficulty of creating proposals for managed services.  The word “dread” is often used when describing how they feel about sitting down to create a proposal for a customer, new or old.

When we human beings dread an activity, certain natural reactions take place.  We avoid that activity, we procrastinate.  We delay.  We make excuses.  We hem.  We haw.  In the case of proposals, this has the unfortunate side effect of costing us our credibility with the customer – and often our opportunity and even our potential relationship with that customer.

When I ask the question, “Have you ever lost business because you didn’t deliver a proposal as you committed you would?” the sheepishly delivered answer is most often “Yes.”

This is a problem that can be solved, and the “return on solution” is very substantial for most MSPs – not only financially, but emotionally as well.  It is a big burden to not meet your commitments and have unpleasant, incomplete tasks hanging over your head.

The solution involves a complete turnaround in the attitude toward creating managed service proposals.   The MSP must move from “dreading” the process to looking forward to the process.  We look forward to activities that:

  • Are not difficult and bring us recognition
  • Are in themselves enjoyable and engaging
  • Lead to success and the desired result – in this case, new business

A fresh approach to MSP proposals can help get you there.  Certainly a new tool and platform for proposal creation and delivery such as Quosal is a part of that solution – this turnaround is one of our favorite deliverables here at Quosal.  There are additional steps for the MSP as well, including re-design and refresh of the MSP documents (often performed in conjunction with implementation of Quosal) and working with other MSPs in a context such as MSPU (www.mspu.us), which has created actual training sessions for MSP proposal creation.

In a battle with human nature, you’re defenseless – so turn that process from something you dread into something you look forward to, and put human nature to work for your company.

© 2010   salesquoteblog.com Proposals that win. Quotes that close. Suffusion WordPress theme by Sayontan Sinha