Friday, August 21, 2009

Value of Integration and the Complex Sale

How can you sustain an integrated, unique value proposition during a complex sale, especially when the RFP process by design is commoditized?  For example, suppose you are selling call center services.  Call centers are often viewed as commoditized services, where basic capabilities are assumed and customers evaluate vendors primarily on cost.  So, you receive an RFP that asks for 100 seats of English language for customer care and that there is no restriction on where you can source the labor.  Well, what do you do?

In a sense, it’s a trick question.  At this stage in the process, you should get ready to accept a commodity-type deal.  Creating an integrated value proposition on a complex sale happens before the RFP has been issued.  After all, an RFP is the embodiment of manifest demand.  Somebody has already decided on the “complete” solution and approach, and all they need now is to procure specific capabilities to realize the overall vision.  While most RFPs include a “Value Add” section, that at best gives your proposal a few points in the evaluation criteria but is not decisive. 

Let’s assume you did not make that mistake, you’ve engaged early, and have established an integrated value proposition.  To return to our earlier example, let’s assume that the 100 seat customer care call center is part of an ordering business process which includes e-commerce as well as order fulfillment.  You have clearly established the value of integration.  You have crafted a compelling top-level value proposition.  What’s next?

At this stage, the procurement team will get involved.  They will work with a department who has a budget who does not care about an integrated value proposition (which by definition extends across multiple departments).  There may a master budget, but getting involved with that process could make a complex sale even more complex.  How can you sustain the top-level value proposition while you sell at the department level?

First of all, someone within the organization needs to own the top-level value proposition.  There is added complexity for this type of sale, where you must sell at two levels: the upper part of the organization that owns the top-level value proposition and the department that owns the budget for the current procurement activity (such as the call center).  The scoring criteria should be adjusted to reflect that integrated value is a key evaluation criteria.  

Selling in this way isn’t easy, but it is a trend in the market and it does help you create stronger value propositions and create higher-margin deals.  Plus, it raises the likelihood that you will win.

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