Knowing and Explaining Your Value

Today, I'm going to take a moment to write a bit more personal post than most of the professional demand gen topics I cover - but the two areas cross together.

In early December'09, I was laid off from my last company.

This week (Feb '10), I joined my new company.

I was officially unemployed for 69 days.

Most HR and Employment analysts believe that it takes 3-6 months for a professional/manager level person to gain new employment - however, with the soft economy, some predict that it could easily be 6-12 months now. This post is not meant as a "pat on the back" to myself for doing it faster than the industry standards.

In successful demand generation techniques, one must truly understand their solution/service/item's value - and explain it to prospects in a manner that makes sense and addresses their needs. In this case, I was selling myself.

Professionally, I have been successful at selling/marketing whatever my company sold; personally, I was raised as a good Irish Catholic girl that does not boast (heck, even plays down) her strengths. But to fight a sea of other demand gen folks also in the job market, I had to shout my value from the rooftops.

In the course of those 69 days, I learned to refine the ways that I described my previous experience, started to use certain terms that appealed to those I was speaking with, solidified gold references who could vouch for me, and made sure that I was as visible and relevant to employers. I never sent out a generic cover letter or resume - every time, I tried to show my value to an employer in their terms. I got to know their business, their lingo, their culture.

In professional demand generation, the same principles apply. Like the HR manager who sifts through hundreds of "qualified" applicants, companies routinely evaluate numerous vendors for a single purchase. As a vendor, if you cannot articulate your value proposition in the client's perspective, you won't make it past the audition with Simon (just a little American Idol reference). Go home and try again.

A good litmus test for checking your value proposition is to reach out to a friend in a different industry and ask them to read your email/call script/webinar slides - and see if they can explain back to you how your company can help them. I'll bet you'll be surprised at the result.

Personally, I was very lucky to have a strong network of friends and colleagues - and even one "Brigid-evangelist" - in my corner during my job hunt. Without that support, I think that more days would have come off the calendar in my job search. Professionally, I am very lucky to join the fantastic team at Nuxeo - it is exciting to be a part of the industry leader in Open Source ECM software!

Asking "Why?" - Selling the Value, Not the Cost

My niece is almost four years old now - and our favorite question that peppers our conversations is the word "why."

Georgia @ about 15 months old

She asks me the question of "why" to understand something that is new to her, something that she doesn't understand, or just to reinforce something she has learned.

I ask her the question of "why" to learn more about how she thinks at her age, how she processes things, what motivates her, where her logic is.

For a demand generation person, the question of "Why" is critical to ask your prospects so that you can sell the value of your (solution, asset, service) and not the cost of it.

"Need" is different than "Why" - and yet, most folks don't dive deep enough to move from the former to the latter. Let's take the instance of someone who is seeking a DAM solution (Digital Asset Management).

The "Need" may be initially described to the demand generation folks as "I'm looking for a DAM solution to streamline my company's storage and retrieval of digital content."

But by asking "Why" type of questions, you could determine that the company is really trying to handle a growing amount of content while trying to downsize its staff numbers and the Legal department is concerned that the company is keeping digital content that they no longer own the IP rights on.

If, as a vendor, you were to try to craft a value selling statement to the client with just the first statement of "Need", you could very easily fall into the feature functionality trap that many vendors do in explaining their worth or value to the client.

But with the second statement in hand, a comprehensive value statement could be prepared to address an ROI on human capital loss versus gained productivity (using the solution), what other clients have done in similar situations and savings realized, how specifically the solution offers a records management tag/alert system for digital content that is about to expire, etc.

If the value can be sold in a way that the client believes in, then the cost of it just becomes a number on an invoice.

The KISS Question is "when was the last time that you asked why?"

The "B" in BANT-focused Demand Generation - Budget 101

The best thing in life is free,

but you can give it to the birds an' bees.

I need some money, need some money.

-John Lee Hooker

My favorite Blues singer sang it well - and for demand generation, money (or in this case budget) is a necessary part of any qualified lead. However, most prospects don't like disclosing their budget numbers to vendors early - and often, vendors don't know how to ask the right questions around budget in general.

From the client's perspective, it's a bit like dating - you don't tend to disclose how much you make to someone on date #1, but by the time that you are serious enough, you'll share your W2 information. Same thing is true in the engagement cycle between a client and a vendor. On day 1 of engagement, the client will rarely disclose their actual budget numbers on a project (unless tactically it is done to reveal either a top or bottom line of price sensitivity).

From the vendor's perspective, if the client won't be sharing budget on day 1, then how in the world do you determine budget?

• Ask circular questions about budget.
• Do your research in public documents like the company's annual reports for budget trends and planned expenditures in the future fiscal year.
• Sell the heck out of the value of your solution - not the cost of it.

Circular questions about budget can range from understanding:

• Which departments are funding the project?
• Does a board of directors have to sign off on the expenditure?
• Are the funds only available for a certain timeframe and do they go away/need re-approval past that timeframe?
• Is the project considered part of a capital project initiative or "everyday" spend of IT dollars?
• If they are price sensitive (and have let you know it), have they considered using financing* to complete the project?

Researching the company's public records (and heck, twitters/blogs) can generate a wealth of information on the what the company has done in the past and what it plans to tackle in the future. Understanding the scope of what initiatives the company has on its radar can be invaluable - and lead the vendors to structure their value propositions more centrally to the company's plans.

Selling the value of your solution and not the cost of it is a topic I plan to discuss in a future post - but let's leave it as simple as, if the client understands and believes the value you bring to the table, cost can become irrelevant.

The KISS Question is "how many ways do you ask about budget on date 1?"

*Financing can be a terrific way to secure that a lead turns into a sale - a vendor can reap a ton of benefits including:

• Increase deal size.
• Close deals faster.
• Strengthen customer relationships by being a partner - not just a vendor in the process.
• Get paid up front.
• Offer more flexibility to the clients.