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


 

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.


 

(Part 2 of a series; read Part 1 here)

You’ve got an opportunity to do some business with a customer. What kind of document should you prepare? A “quote” or a “proposal?”

There are no hard and fast rules, but there are definitely some guidelines.

A new client should ALWAYS get a full proposal, one that professionally introduces your company and makes the best possible impression, even if they’re only buying a printer or a hard disk. While that initial purchase may be only a few hundred dollars, the value of the relationship could be, well, unlimited. We’ve all had the experience of a chance meeting that turned into a very profitable business transaction or relationship. Well, putting your first sale together for a client is no chance meeting — it’s the real deal.

(By the way, ALWAYS deliver that proposal right on time for that new client.)

Certainly the size of an opportunity drives the type of document you should create for the customer. Many a large MSP sale has been prepared on two-page quote that looked like Della Street typed it up on a pre-Selectric model that dropped the “J.” Your document must reflect the value and importance of your client’s investment. (If you don’t know who Della Street is, you probably don’t know what a Selectric is either, so I won’t stop to explain)…

Certainly another gating factor is the nature of what you’re proposing to the customer. The more sophisticated the solution; the more services you’re providing; the more options you must present and discuss; the more you should be looking at a proposal document rather than a quote.

Consider the type of customer you’re working with – both the type of business and the personality of the decision-makers or contacts you’re working with. What do THEY expect? What do they want? Many MSPs we work with here at Quosal really drive their presentations by what they like personally, rather than what the customers might want.

Finally, consider this: If a quote represents your minimum effort but your full proposal represents putting your best foot forward, under what conditions do you not want to put your best foot forward?

Next:  Cobbled together proposal or a full, professional document?


 

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 …

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