EDITOR’S NOTE: One of the most frequent questions I receive from solution providers is: what are the obstacles to landing new clients, and how do we address them?
If you are a solution provider asking that same question, here is what I would write to you:
Dear Service Provider.
If someone said, “I would give you a million dollars to climb Mount Everest or five thousand dollars to jog up and down a small hill,” what would you choose?
You spend too much time selling the million-dollar benefits without considering the “perceived” cost of climbing Everest. Put another way, you don’t have to convince me that a million dollars is worth more than five thousand dollars. You must convince me that climbing Everest is as easy as jogging up and down a small hill.
In other words, before you convince me that your solution is better, you must lay out the path to change and the associated cost of integration.
Here is a basic example of Gleicher’s formula for change – the continuing and persistent use of spreadsheets.
According to a 2019 report, half of procurement organizations still use spreadsheets – that number increases to 81% when considering enterprise-wide usage. I remember when Visicalc was first released in the late 1970s – early 80s. By 1985, the company’s sales had declined to the point that they were dissolved into Lotus Development Corporation.
Now read the following, and tell me why Excel replaced Lotus 123:
“Excel has a more user-friendly interface and offers more advanced features compared to Lotus 1-2-3. Excel also has better integration with other Microsoft Office applications, such as Word and PowerPoint. Additionally, Excel has continued to be updated and improved, while Lotus 1-2-3 has been largely discontinued.”
So, reading the above, what is our takeaway regarding your approach to prospective clients:
Excel wasn’t cheaper than Lotus 123
Yes, Excel offered more advanced features, e.g., graphics.
The big selling point was the “ease and convenience” of transition from Lotus 123 to Excel.
Recognizing that cost is not a big issue and understanding that, similar to Excel, the current provider’s solution is deeply integrated into the existing client infrastructure, e.g., “the provider’s solution is deeply connected to the infrastructure that we have here at the company,” how do you overcome or address the inconvenience of a client adding or switching to your solution.
What is your transition pathway? What is the cost in time, user comfort, and client payoff?
Making one of a myriad of “Solution Maps” or being in a quadrant isn’t going to inspire me to climb a “perceived” Everest. Can you tell me how you will lower the mountain and raise the ease of transition and integration?
That is your key to success.
Best,
J
What is the Client’s Best Pathway to Digital Transformation Success
Procurement Insights 
To succeed today, solution providers must “lower Everest and raise the ease of transition and integration”
Posted on January 5, 2024
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EDITOR’S NOTE: One of the most frequent questions I receive from solution providers is: what are the obstacles to landing new clients, and how do we address them?
If you are a solution provider asking that same question, here is what I would write to you:
Dear Service Provider.
If someone said, “I would give you a million dollars to climb Mount Everest or five thousand dollars to jog up and down a small hill,” what would you choose?
You spend too much time selling the million-dollar benefits without considering the “perceived” cost of climbing Everest. Put another way, you don’t have to convince me that a million dollars is worth more than five thousand dollars. You must convince me that climbing Everest is as easy as jogging up and down a small hill.
In other words, before you convince me that your solution is better, you must lay out the path to change and the associated cost of integration.
Here is a basic example of Gleicher’s formula for change – the continuing and persistent use of spreadsheets.
According to a 2019 report, half of procurement organizations still use spreadsheets – that number increases to 81% when considering enterprise-wide usage. I remember when Visicalc was first released in the late 1970s – early 80s. By 1985, the company’s sales had declined to the point that they were dissolved into Lotus Development Corporation.
Now read the following, and tell me why Excel replaced Lotus 123:
“Excel has a more user-friendly interface and offers more advanced features compared to Lotus 1-2-3. Excel also has better integration with other Microsoft Office applications, such as Word and PowerPoint. Additionally, Excel has continued to be updated and improved, while Lotus 1-2-3 has been largely discontinued.”
So, reading the above, what is our takeaway regarding your approach to prospective clients:
Recognizing that cost is not a big issue and understanding that, similar to Excel, the current provider’s solution is deeply integrated into the existing client infrastructure, e.g., “the provider’s solution is deeply connected to the infrastructure that we have here at the company,” how do you overcome or address the inconvenience of a client adding or switching to your solution.
What is your transition pathway? What is the cost in time, user comfort, and client payoff?
Making one of a myriad of “Solution Maps” or being in a quadrant isn’t going to inspire me to climb a “perceived” Everest. Can you tell me how you will lower the mountain and raise the ease of transition and integration?
That is your key to success.
Best,
J
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