How to Secure Deals: Pitch Value, Not Price
In tough economic climates, smart companies look inwards for competitive advantage. Whether it’s a product or service that you are offering, it’s an opportunity to refactor and improve your own value proposition rather than looking at how you measure up against the competition. When your target market is under pressure, your job is to demonstrate enough value to get a deal on the table rather than focusing on competing with other deals. For the customer, it’s not about deciding where the money goes but whether there is any money at all.
The differences are subtle but important. Your pitch is about ROI (return on investment) rather than feature comparisons, efficiencies rather than expansion, value rather than price. People don’t buy products anymore, they invest in them, and investment is measured in returns. Get your offering right and you will have a long term customer rather than just a closed deal in your pipeline.
From a product or service perspective this requires that you spend more time understanding the pains and requirements of your target market instead of ensuring that you compete feature for feature with a perceived competitor. Analyze each area of your offering and look for opportunities to refactor existing features before you introduce more. When customers are under pressure they need the basics, the core feature set, to work well. They require business solutions and not expanded feature sets. Ensuring that your service or product addresses a real business pain point is the basis for a lasting customer relationship. Scrutinise your pitch and offering and make sure that you are selling solutions and not feature sets. Pick a smaller number of key pain points and ensure that you are providing – and communicating – real value in those areas.
While this is particularly true during recessionary times, it’s a lesson that applies well across the board. Do the basics right, then go back and do them even better.
Ian van Reenen is CTO CentraStage, which works closely with MSPs. Monthly guest blogs such as this one are part of MSPmentor’s annual platinum sponsorship. Read all of CentraStage’s guest blogs