Selling an innovative product into a large organization is extremely difficult. The average enterprise sale requires sign off from 5.4 individuals. And when selling something that is novel that the buyer hasn’t bought before it can be two or three times that number. In addition, there’s no set budget or buying process in place for a buyer to buy. As a result, it falls on the seller to create a process for the buyer to purchase the innovation.
I designed the process below to help address this challenge. The idea is to take the buyer through a set of meetings that generates support for the idea and get an gets them comfortable that they’re checking all the boxes they need to check to get a contract signed.
The process requires three meetings (though the second and third meetings could be grouped together for smaller, less complex deals).
- The Concept Meeting. This meeting is where the seller introduces the concept, gets support from the buyer that the product solves an important problem and that the seller’s product might be a good solution to that problem. The goal for this meeting is to ask for the buyer’s permission to start a process around examining the potential ROI of a partnership. If the buyer isn’t supportive of the concept, both parties shake hands and part ways.
- The Financial Meeting. If the concept meeting is successful, prior to the financial meeting, the seller should ask the buyer to provide them with some financial inputs that will help determine the return on investment that would come from a partnership. The purpose of the financial meeting is to walk through the financial inputs and an ROI model and allow the buyer to poke holes in the model and to get to agreement on what a realistic ROI might be. If the ROI is compelling and the project is worth prioritizing, move to the next meeting. If it’s not, shake hands and part ways. The ROI is going to be the thing that drives the rest of the process so it’s crucial to have agreement in this area. It’s also crucial that, when possible, the seller is using the buyer’s own numbers in the model, rather than industry averages.
- The Implementation Meeting. The purpose of this meeting is to determine whether or not it makes sense for the buyer to buy the product now. With a compelling ROI, it will most likely make sense, but there are lots other considerations. Technology resources, leadership changes, budget cycles, competing priorities, etc. The idea is to get the prospect so excited about the importance of the problem and the concept and the ROI that all of these concerns will be overcome. But this meeting should be used to put everything on the table. The meeting should include the appropriate stakeholders from both sides to determine if the project can be implemented and, if it can, what kind of work will need to be done and which resources will be required. A timeline with tasks and assigned owners should also be discussed and (ideally) agreed upon. If successful, the next step is to move to contract and setup a weekly meeting between both organizations to track the deal to contract close and product delivery. If that can’t be done, both parties should shake hands and part ways. In this meeting the seller should inventory all of the elements of the customer’s procurement process and get all of them down on paper. Those elements should be incorporated into a project management document that will be tracked in the weekly meeting.
One other note: when moving the deal to contract, the seller should setup a short meeting with the attorney on the buyer side. Because the product is innovative, the contract terms may be confusing and non-standard. Walking the attorney through the product and the purpose of the partnership should dramatically reduce back and forth on the contract.
Being disciplined about taking the buyer through these three meetings and understanding exactly what they’ll need to do be able to write a check will help sellers accelerate sales cycles and avoid many of the pitfalls that come when selling into a large organization.
So often “selling” innovation is the easy part. The bigger challenge, in many cases, is helping the buyer “buy.”