Navigating the Sales Process: Commoditization vs. Expertise

From my last article, you may be under the impression that I believe you can use generative AI (or even an industry sales process / technique) to fully automate or commoditize the pre-sales process. For example:

I sell product or service X that solves for problem Y, so I am going to approach customer with solution Z = SUCCESS

However, this couldn’t be further from the truth, or as my kids might say, “this math aint mathin’.”

There are ways to make elements of the process more efficient and affordable - identify the portions that can be commoditized. Commoditization is the process of making a product or service more standardized and easier to produce and deliver. This can be done through automation, outsourcing, or other methods.

Here are some portions of the pre-sales process that can be commoditized:

• Lead qualification: Software can be used to automatically qualify leads based on their demographics, interests, and other factors. This can free up the pre-sales team to focus on leads that are more likely to convert.
• Information gathering: Software can be used to gather information about customers from a variety of sources, such as their website, social media, and CRM system. This information can then be used to develop a more personalized solution proposal.
• Solution proposal: Software can be used to generate solution proposals that are tailored to the customer's specific needs. This can save the pre-sales team a lot of time and effort.

However, there are some portions of the process that cannot be easily commoditized. These are the portions that require human judgment and expertise, such as:

• Building relationships: It is important for the pre-sales team to build relationships with customers. This can be done through face-to-face meetings, phone calls, and email. Relationships help to build trust and rapport, which can make it more likely that the customer will buy from the company.
• Understanding unique needs: Every customer has unique needs. The pre-sales team needs to take the time to understand these needs so that they can develop a solution that is truly effective. This requires human judgment and expertise.
• Industry expertise: The pre-sales team needs to have a deep understanding of the customer's industry in order to effectively communicate the value of the company's product or service. 
• Competitive landscape: The pre-sales team needs to be aware of the customer's other options and be able to differentiate the company's product or service from the competition. This requires a deep understanding of the competitive landscape.
• Negotiation skills: The pre-sales team needs to be able to negotiate effectively with the customer to close the deal. This requires strong negotiation skills.

The portions of the process that cannot be commoditized are the ones that create different lenses through which you can view a sales opportunity. For example, if you understand the customer's strategic objectives, you can position your product or service in a way that helps them achieve their goals. If you understand the customer's InfoSec and data privacy requirements, you can tailor your solution to meet those requirements. And if you understand how different teams will use the product or data within the product, you can develop a messaging strategy that resonates with each team.

Each of these lenses can help you to develop a more personalized and effective sales approach. And when you combine multiple lenses together, you can create a truly unique and compelling sales pitch.

Here are some examples of how the different lenses can affect your sales approach:

• Strategic objectives: If you are selling to a company that is focused on growth, you can position your product or service as a way to help them achieve their growth goals - focusing on how you can help them to increase sales, improve customer satisfaction, or reduce costs; which will likely be different for every customer.
• InfoSec and data privacy: If you are selling to a company that is in a highly regulated industry, such as healthcare or finance, you need to make sure that your product or service meets their InfoSec and data privacy requirements. For example, your product or service may help them attain or maintain regulatory compliance leaving them less vulnerable to the associated financial penalties.
• How different teams will use the product or data: If you are selling a product or service that will be used by multiple teams within a company, you need to develop a messaging strategy that resonates with each team. For example, your product may be used broadly across a revenue organization. You will need to understand how to position your product or service with the sales team to help them understand how it can help them to close more deals; or with the marketing team, you could focus on how it can help them to generate more leads.

By understanding the different lenses through which you can view a sales opportunity, you can understand all of the nuance that affects your ability to effectively demonstrate and develop a more personalized and effective sales approach. This will increase your chances of winning.

Where does the Solution Consultant or Sales Engineer fit into this process?

Strategic objectives:

• When demonstrating the product or performing a proof-of-concept, the sales engineer or solution consultant should understand how the product or service supports the strategic objectives of the business, and be able to position the product in a manner that effectively demonstrates this value using customer stories in similar industries, or with similar use cases.
• The sales engineer or solution consultant can also use the customer's strategic objectives to develop a customized scenario for the product demonstration or proof-of-concept. This will help the customer to see how the product or service can be used to solve their specific problems.

InfoSec and data privacy requirements:

• If the customer has any specific InfoSec or data privacy requirements, the sales engineer or solution consultant should make sure that the product or service meets those requirements. For example, if the customer is in a highly regulated industry, the sales engineer or solution consultant should make sure that the product or service is HIPAA compliant or that its data policies align with the requirements of the prospect.
• The sales engineer or solution consultant should also be prepared to answer any questions that the customer may have about the product or service's security and privacy features.

How different teams will use the product or data:

• If the product or service will be used by multiple teams within the company, the sales engineer or solution consultant should develop a product demonstration or proof-of-concept that shows how the product or service can be used by each team. This can often lead to multiple demonstrations with different stakeholders, and each stakeholder may have different expectations of the system.
• The sales engineer or solution consultant should also be prepared to answer any questions that the customer may have about how the product or service can be integrated with their existing systems and processes.

By understanding the customer's needs and using that information to tailor the product demonstration or proof-of-concept, the sales engineer or solution consultant can effectively demonstrate the value of the proposed solution and increase their chances of winning the deal.

Here are some additional tips for sales engineers and solution consultants on how to get the most value out of your interactions with the customer:

• Be prepared to listen. The most important thing is to listen to the customer and understand their needs. Don't just launch into a product demonstration or proof-of-concept without first understanding what the customer is trying to achieve.
• Ask questions. Once you have a good understanding of the customer's needs, ask questions to clarify any areas of uncertainty. This will help you to tailor the product demonstration or proof-of-concept to the customer's specific requirements.
• Be specific. When demonstrating the product or proof-of-concept, be specific about how the product or service can help the customer achieve their strategic objectives, meet their InfoSec and data privacy requirements, and be used by different teams within the company.
• Use examples. Whenever possible, use examples to illustrate your points. This will help the customer to see how the product or service can be used to address their specific business problems.
• Be honest and transparent. If you are unable to answer a question, be honest about it and offer to follow up with the customer. It is better to be honest than to give the customer incorrect information.

By following these tips, sales engineers and solution consultants can effectively use the information about the customer's needs to demonstrate the value of the proposed solution and increase their chances of winning the deal.