prove your advantage: tco sales and marketing tools

Proving Your Advantage:

TCO Sales and Marketing Tools

TOM PISELLO, Chairman & Founder

Blog: http://tompiselloroiguy.blogspot.com/

Twitter: @tpisello

http://www.alinean.com

http://www.fightfrugalnomics.com

Powering B2B sales to economic buyers

http://tompiselloroiguy.blogspot.com/

http://www.alinean.com/

http://www.fightfrugalnomics.com/

© 2011 Alinean, Inc.2

Proving Your Advantage: TCO Sales and Marketing Tools

• A New Buyer Requires New Strategy & Tactics

• What is a TCO Comparison?

• TCO Comparison Marketing & Sales Tools

• Best Practices & Benefits


A New Buyer Requires New Strategy & Tactics




Buyers are Economic-Focused

• Size

Longer Sales Cycles

Reduced Deal SizeMore Leads to Close Same

Amount of Business

Stalled Deals

Increased CompetitionMore Stakeholders

Executive Scrutiny


Quantifiable benefits

are mandatory

On average 90% of corporations surveyed require

quantifiable proof of bottom-line benefits on most

projects.

Quantifying value is

difficult for buyers

Two-thirds (65%) of buyers indicate that they do not

have the knowledge or tools needed to do business

value assessments and calculations.

Third party validation is

essential

Most trusted sources are: Industry Analysts (31.4%),

and Peers (28.7%).

Vendors lag as a trusted source for only 8.1%.

Buyers turn to vendors

for value proof points

81% of buyers expect vendors to quantify business

value of proposed solutions.

Source: IDC 2010, survey of 200 B2B buyers,

Sirius Decisions 2010 B-to-B Buyer Survey on trusted sources.

Frugalnomics: the new mantra for B2B Buyers


Fight Frugalnomics™ with Value Selling & Marketing

Value Focus

Discussion:

• Prescriptive & Quantified

• Discover… Is customer

aware of issue?

• Diagnose… How bad is it?

• Quantify … Value of change

• Compare … Value vs. Status

Quo / Competition

Drive: Diagnostic Led: What

is issue & value of change?

Product Focus

Discussion:

• Customer knows issue

• Tie features / functions to needs

• Compares product alternatives

• Feature • Function • Price

Drive: Sales Led: Product

Driven

Solution Focus

Discussion:

• Customer knows issues &

desired outcome

• Questions to discover pain

points

• Recommend solution to

solve pain

Drive: Sales Led: Pain-Point

Driven

Solution

ProviderTrusted AdvisorVendor


Facilitating the Buyer’s Journey w/ Interactive Sales &

Marketing Tools

BUYER’S JOURNEY

Interactive White Papers

Diagnostic Assessment Tools

ROI Analysis Tools TCO Comparison Tools

Create awareness

around a new problem

Align problem with

business issues; drive

urgency

Help buyer

identify needs in solving

the problem

Align solution

with specific sets of

business needs

Make the business case

for change

Validate/reinforce choice

Prove best value

Loosening of the

status quo

Committing to change

Exploring possible solutions

Committing to a

solution

Justifying the

decision

Making the selection

Content Marketing & Sales Enablement Strategy

DISCOVERY CONSIDERATION DECISION

PROVOCATIVE APPROACH VALUE APPROACH



Marketing Tools

BUYER’S JOURNEY




Create awareness


Align problem with


urgency

Help buyer


the problem

Align solution


business needs


for change


Prove best value

Loosening of the

status quo



Committing to a

solution

Justifying the

decision






Driving More Effective Demand Generation and Sales Enablement

• Developed for B2B websites and

direct marketing campaigns

• Provocative: Engage, Connect &

Educate

• High Level TCO Comparisons

• Help set competitive agenda and

advance sales cycle

• For global sales enablement

programs

• Empower consultative selling

programs

• Detailed TCO Comparison

• Help differentiate solution to

multiple stakeholders & CFO

Demand-Gen Tools Sales Enablement Tools


What is a TCO Comparison?




p

What is TCO Analysis?

Lifecycle costs of solution

3 or 5 year time frames based on

useful life

Used to compare costs head-to-head

for alternative solutions

Chart of Accounts used to assure

apples-to-apples comparisons

Needs to include business benefits

and ROI Analysis

Planning

Acquisition

Setup and

Install

Manage and

Support

Evolution

Retirement

TCO ($ per user per year)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Solution A Solution B


p

Typical TCO Analysis

Initial Purchase Price vs. Lifecycle Costs

Data Center, Servers and Client Computers 7%

Purchased Software9%

Purchased Services

9%

Communications3%

Application Development

8%

IT Operations

16%

IT Administration9%

Facilities and Overhead 2%

Change Costs 4%

Availability21%

Security Risks12%

25% - 30% Initial Purchase Costs …. 3-4x More in Lifecycle Costs


Difference Between ROI & TCO

Total Benefits = TCO Before (As Is) – TCO After (w/ Proposed Solution)

ROI = X 100%

Total Investments = TCO of Proposed Solution

ROI = Make the Case for Change

TCO = Compare Costs of Different Options


TCO Comparison for Demand Gen




Demand-Gen – IBM Storwize RAS


Profile & TCO Comparison


Results Summary


Registration Options & Reports

Executive Summary vs. Full Report?

Options: PDF / Word / PPT

Registration Considerations

Up-front

To get results

To get report

None

Integration

Lead Nurturing / CRM

Basic Registration

Enhanced Profile

Key Results

Additional Examples: http://www.alinean.com/demand-gen/TCO_tools.aspx

http://www.alinean.com/demand-gen/ROI_tools.aspx




TCO Comparison Report


TCO Comparison for Sales Enablement




ShoreTel TCO Commitment


ShoreTel TCO Tool


Organization Profile


TCO Quick Look and Comparison Selections


TCO Details


Several Report Options


TCO Comparison Report


TCO Comparison Tools Best Practices




Best Practices

• Demand-Gen

– Keep inputs & results simple

• 10 minutes maximum for demand-gen

– Layer details to provide access to review / challenge assumptions

– Pre-fill with default metrics

• Document assumptions

• 3rd party research and validation

• Case study examples for savings claims

• Keep metrics up-to date

– Allow access without registration, restrict details / report to registrants

– Strong call to action / next steps

– Use request to follow-up

• Sales Enablement

– Keep inputs & results simple• Sales easily intimidated

– Layer details so sales can work with customers to review / challenge assumptions / transfer ownership

– Provide ability to customize / disable / add chart of account line items

– Provide multiple report options• Format: Word / PPT

• Exec summary, details, different stakeholders

– Provide Support• Training

• Proposal Center

• Deal Assistance

– Keep metrics up-to date


Typical Development Project

• Demand-Gen– Week 1: Kickoff

– Week 2: Initial Prototype Spreadsheet

– Week 3: 2nd Prototype Spreadsheet

– Week 4: Initial Tool Alpha

– Week 5: Initial Tool Beta

– Week 6: Initial Tool Pilot

– Week 8: Final

• Sales Enablement – Week 1: Kickoff

– Week 2: Initial Prototype Spreadsheet

– Week 3: 2nd Prototype Spreadsheet

– Week 5: Initial Tool Alpha

– Week 7: Initial Tool Beta

– Week 8: Initial Tool Pilot

– Week 10: Final


What is Required of You and Your Team?

• Collect and Provide Prior Art:

– TCO chart of accounts

– TCO white papers

– Spreadsheet or other tools

– TCO oriented case studies

• Create Tool Development / Review Team

– Marketing/ sales enablement usually leads project

– TCO subject matter expert(s)

– Enterprise sales representation

– Channel sales representation

– Pilot review team (select customers / partners)

• Participation

– Weekly meeting

– Weekly review

– Alpha, Beta & Pilot review



Marketing Tools

BUYER’S JOURNEY




Create awareness


Align problem with


urgency

Help buyer


the problem

Align solution


business needs


for change


Prove best value

Loosening of the

status quo



Committing to a

solution

Justifying the

decision






Connect higher in organization & speak language of economic buyers / CFOs

Break through the noise with value add / personalized content

Elevate relationships from vendor to trusted advisor

Convert 240% more prospects to sales than other programs Increase the competitive success rate of proposals by over

60%

Prove more value, lower costs and competitive advantages

Automate development of personalized assessments and business case proposals

Reduce proposal time from days to hours Reduce sales cycles by 20-30%

Drive 50% more leads / connections compared to other initiatives

Reduce discounting and increase deal size by 20%

Engage on value vs. feature / function / price

Increase the credibility and acceptance of proposals by 100%

Deliver credibility with research and 3rd party validation

Convert existing Excel sales tools into on-line interactive applications with no programming

SaaS delivery Self-authoring for shared workload

Develop sales tools with lower TCO

Enable all direct and channel sales teams with a scalable sales /marketing tool suite.

Collect customer data, track and drive usage

Standardize and centralize value selling / marketing efforts

Convert 240% more prospects to sales than other programs Increase the competitive success rate of proposals by over

60%

Value of Alinean Business Value Selling / Marketing Tools


Q&A




Thank You!

1. Your Sales & Marketing Ready to Do Business with Frugal Buyers? Take this Diagnostic Assessment to Find Out.

2. Research White Paper: Sales Enablement and the Economic Buyer

3. Over 200% ROI from a Value Selling Program Sound Impossible? Find Out for Yourself

4. Why Alinean? Alinean Vendor Profile (SiriusDecisions)

Alinean powered tools can significantly upgrade the quality of sales interactions

throughout the buying process, allowing prospects to drive at the beginning

through simpler, self-service tools and sales to provide greater depth as the buying

process proceeds – SiriusDecisions 2010


https://roianalyst.alinean.com/enterpriseroi/AutoLogin.do?d=583481707964037332


http://www.alinean.com/docs/Alinean_Sales_Enablement_and_the_Economic_Buyer.pdf



http://www.alinean.com/Resources/Alinean2010Profile_SiriusDecisions.pdf




prove your advantage: tco sales and marketing tools

Business

interactive

initial tool

competitive

initial tool

initial prototype

2nd prototype

initial tool

discovery