| It seems like common sense. If you don't
want to compete on price, you need to differentiate your company by establishing
the value of your solutions. First, determine what that value is, then
devise a plan for communicating it to prospects and clients, and finally
deliver on your promise.
The devil for solution providers lies in the details. "When you
get right down to it, we all do much of the same thing," says Steve
Feldman, president of Graphtech Systems, a solution provider in managed
services and projects. "Everybody talks about the ability to do quality
work, good customer service -- all the normal things. We're always trying
to make ourselves look different, so that our value resonates with the
client."
Creating this resonance can be taxing, especially for solution providers
who don't have a marketing person on staff. "Many solution providers
may find it hard to market themselves because they are technologists at
heart," says Carol Kurimsky, vice president, marketing, at Ingram
Micro. "This can create a disconnect with customers. Odds are most
clients don't want to discuss technology, but would rather hear about
the big picture and 'What can you do to help my business?' "
There's also the need to narrow the message. "Some solution providers
struggle to understand and pinpoint their business value because they
do so many things well," Kurimsky says. "Often they are reticent
to craft a value proposition they can own and market as a 'beachhead'
to differentiate their businesses and begin the sales process."
This article is about the beachheads successful solution providers use
to establish value, and how smart marketing and sales techniques help
them leverage that value. We trust their ideas will help you improve sales
and marketing in your own business.
The Value of a Brand
Experts consider establishing a brand to be a milestone in creating value.
"Your brand is your promise, your value proposition, and what you
do is how you fulfill your promise," says Dennis Crupi, group manger
of client services in Ingram Micro's Marketing Services Agency. "Creating
a brand identity is a way to let clients know that they're going to get
a consistent experience."
Feldman of Graphtech recently undertook this process with Crupi and the
Marketing Services Agency. The brand identity they created focuses on
the value of Graphtech's business experience and technology expertise,
particularly in two vertical markets, education and creative/professional
services. All communications emphasize this, from the company logo to
the web site to sales collateral and to how staff members represent the
company.
"To rise above commodity selling, you need to talk strategically
to C-level people about the role technology plays in their success. To
do that, your sales and technical staff need to understand the specific
industry and business," Feldman says. "If someone needs an e-mail
server, most likely it's going to be Exchange, but how does it integrate
with their unique workflow or vertical applications? We try to always
focus on the business results that technology will deliver."
| "If you're not spending enough
on marketing and doing it wisely, it's costing you."
- Jon Eckhoff Venture Computer Systems
|
Since implementing the refreshed brand, Feldman notices a positive impact
on the sales process. Sales training for new hires is easier, now that
the company presentation is 80 percent consistent from client to client.
And consistent brand communication helps sales staff home in on likely
prospects.
"When we talk to clients," Feldman says, "if they're not
looking for a bigger impact and lower costs of owning technology; if they're
not looking for someone who understands their business; if they're not
looking for someone who can bridge the gap between technology and their
business processes, we're probably not right for each other."
When Quality Equals Value
For Jon Eckhoff, a solution provider with a sales and marketing background,
branding is critical and everything else follows. A partner at Venture
Computer Systems (VCS), a Minnesota-based solution provider with 35 employees,
Eckhoff has worked hard to establish a premium brand that says, "We're
not the lowest cost, but the highest quality and hence the best value."
He's created this perception over time through consistent marketing via
television and radio advertising, direct mail, working in the community
and, of course, delivering the goods.
To promote the business value of working with VCS, Eckhoff?s 18 technicians
drive sharp-looking company trucks during work and after hours with the
message, "Helping your business reach its potential." These
mobile billboards aren't cheap, but they are worth the investment, he
believes. "If you're not spending enough on marketing and doing it
wisely, it's costing you," Eckhoff says. "I've seen people hold
their dollars so tightly that they don't make as much as they had the
potential to do." For VCS, the results have been stellar: The company
consistently defeats competitors who charge 25 percent less.
The front lines at VCS are staffed by consultative salespeople, sales
professionals who are "good listeners as opposed to good talkers."
They need to be passionate about technology and understand the returns
it can deliver in enhancing productivity and profitability. "I'm
not just looking for raw sales experience," Eckhoff says, "but
an ability to explain how technology can improve the customer's business."
Sales talent notwithstanding, VCS's brand marketing paves the way to
solution sales. "First, our marketing practically guarantees a meeting
from a phone call," Eckhoff says. "Prospects know the company's
reputation, and they're interested in what we have to say. And proper
branding sets the stage for the sales close, because our promise is, 'VCS
may not have lowest price, but we are the choice that's guaranteed to
work.' "
Give Marketing Its Due
John Riddle, president of Information Networking Company (INC 1), seconds
this view of marketing's essential role in solution selling. A longtime
California-based solution provider with a degree in marketing, Riddle
advocates a prominent role for marketing in customer acquisition, rather
than expecting the sales staff to do all the heavy lifting.
"In the old days of computer reselling, sales was the preferred
method for reaching out to new customers and bringing them in," Riddle
says. "Now we are relying more on the marketing team to create awareness,
brand recognition and identification, so that customers come to us. Many
business owners are finding that creating a brand is more valuable than
having telemarketers dialing for dollars."
Riddle doesn't downplay the importance of the sales function -- "Nothing
happens until something is sold," he quips. He observes, however,
that startup and small firms may find it hard to hire and keep true consultative
salespeople. A sales staff often focuses on the immediate gratification
of the sales commission. A strong marketing team will take a longer view,
pinpointing the solution provider's true value and creating campaigns
designed to "make the community aware of the company's greatness."
At INC 1, recent customer research led the marketing team to alter the
value proposition -- not an IT provider, which is too technology-focused;
not a trusted partner, which also has limitations; but a strategic partner
for business-related issues. "A trusted partner says, 'Thank you
for trusting us; we will do whatever you say and give you whatever you
want,' " Riddle says. "A strategic partner says, 'This is what
we believe you should do to improve and grow your company.' It is a message
that resonates well with customers today."
The marketers at INC 1 communicate this value proposition to prospects
and clients through Lunch and Learn events -- half-day sessions covering
timely business issues, such as planning for disaster recovery and business
continuity. If the content and the marketing are on target, the session
will likely attract decision influencers, decision makers and senior executives,
Riddle says. Events can be expensive to host, but manufacturer and distributor
partners often provide funding and training.
Once a prospect is sold on the value of INC 1's expertise and solutions,
the account manager enters the picture -- typically a salaried employee
with strong people skills and a background in engineering or project management.
Riddle describes his ideal salesperson as a "logical, intelligent
and passionate individual. There is a quota," he says, "but
it's oriented toward long-term growth. With prospects qualified by marketing,
salespeople do not experience the no's and hang-ups of cold calling that
can destroy their confidence."
| Marketing Your Business
the Ingram Micro Way |
What is Ingram Micro's value proposition for solution providers?
"We view ourselves as the ultimate technology partner,"
says Carol Kurimsky, vice president, marketing, Ingram Micro. "We
put our partners in contact with the right people and the right
resources when they need them. With thousands of relationships,
services and resources, we are a powerful alliance because we understand
their businesses."
Nowhere is this understanding more valuable than in the marketing
assistance Ingram Micro provides. "Solution providers are really
expert consultants and advisors, and our marketing team can help
them promote themselves by highlighting all the points of value
they provide," Kurimsky says.
Resources for Better Marketing
Ingram Micro offers multiple resources for solution providers who
want to improve their marketing and boost sales:
- Agency Express is an online marketing portal for Ingram Micro's
customers to assist in developing fast, affordable marketing campaigns.
The portal offers access to customizable templated mailers; mailing
services, including postage, printing and delivery; and a databaseordering
service to jump-start targeted marketing campaigns. Market development
funds (MDF) are available to qualifying solution providers.
- Channel Services Agency is a fullservice marketing communications
agency that solution providers can use for advertising, marketing
and PR services. Those who need help with branding, marketing
communications and integrated marketing will work with seasoned
professionals in channel marketing strategies and tactics. Whether
for end-user marketing campaigns and collateral, direct marketing
and lead generation, or complete rebranding services, the agency's
staff works fast and effectively because of its channel expertise.
- Marketing field representatives work hand-in-hand with Ingram
Micro's sales team to help solution providers narrow and tune
their marketing choices. As an example, field reps can assist
in planning customer events such as Lunch and Learn sessions,
matching the event and collateral to the type of solution or service
being sold. They can also line up sponsors and other resources
to lower costs and maximize returns.
- Business development planning Ingram Micro's sales representatives
are business development specialists who can guide solution providers
to the most profitable technology solutions. For those wanting
a deeper commitment, Ingram Micro offers customized strategic
business planning. The process reviews annual business goals in
sales, marketing, operations, infrastructure/ staffing and technical
areas, and then formalizes a plan with Ingram Micro to achieve
the goals. The process produces a business plan with Ingram Micro's
written response, including activities for both parties, timelines
and commitments.
- Community membership Ingram Micro offers membership communities
focused on solution provider interests and business models, such
as the Venture Tech Network (VTN), Ingram Micro Services Network
(IMSN), SMB Alliance (SMBA), GovEd Alliance, and System ArchiTECHS
for system builders. In addition to seminars, vendor workshops
and special promotions, these communities facilitate sharing marketing
ideas, networking with like-minded executives and gaining insight
into common challenges. "When you're a member of an Ingram
Micro community, you're not constantly greenfielding new ideas,"
says Kurimsky. "That's going to save you money and make your
business more successful."
| "Solution providers are
really expert consultants and advisors, and our marketing
team can help by highlighting all the points of value they
provide."
- Carol Kurimsky, Ingram Micro
|
A Positive Impact
Solution providers agree that working closely with Ingram Micro
has a positive impact. "Ingram Micro is our No. 1 partner when
it comes to providing technology products and/or services,"
says Larry Hedin of Heartland Technology Solutions. "Besides
using their pick/pack/ship distribution services, we leverage IMSN
for the delivery of services. And Ingram Micro brings to bear many
resources to deepen our relationship with our major manufacturers."
Bryan Kuntz of Intellicom relies on Agency Express for marketing
assistance when creating mailers and other collateral, and uses
MDF from Ingram Micro to fund demand-generation programs. Intellicom
also participates in VTN to network with other solution providers
and manufacturers. Says Kuntz, "Ingram Micro has definitely
helped us achieve our marketing and sales goals." |
The Joy of Marketing
At Intellicom, a 28-employee solution provider in central Nebraska, operations
VP Bryan Kuntz also dislikes cold-calling on prospects. His salespeople
don't often have to, though, thanks to the company's extensive marketing.
"As a marketing person," Kuntz says, "one of my greatest
joys is knowing that our salespeople are getting inbound calls from people
who have heard of us and have a problem they think we can solve."
The brand the marketing team has created is that Intellicom is the largest,
most successful, full-service technology consulting company in the region.
With divisions in telecom, engineering, web design and managed services,
as well as hardware and software sales, Intellicom's "full service"
brand describes the company well and positions it as a community leader.
To win business against smaller firms that compete on price, Intellicom
markets its expertise and depth of experience. "We have so many talented
staff members that it comforts customers to know that we will be there
to take care of them," Kuntz says. "And we spend a lot of time
talking up our certifications -- with Cisco, Microsoft and through CompTIA.
We also stress the level of support we get as a Microsoft Gold partner,
and as a member of Ingram Micro's buying group and VentureTech Network
(VTN). These relationships help differentiate us."
| "As a marketing person, one of
my greatest joys is knowing that our salespeople are getting inbound
calls from people who have heard of us and have a problem they think
we can solve."
- Bryan Kuntz, Intellicom
|
The sales staff employs a consultative approach to further this perception
of experience and exper - tise. Using a relationship rather than a transactional
model, salespeople aim to establish trusted-advisor, virtual-CIO status
with clients, hoping to engage them for years to come. A key method is
digging deep into the client?s needs to show familiarity with business
and technology issues.
"As we peel back the layers on clients' needs and the solution,
we ask questions and offer advice on common pitfalls to help them make
an educated decision, even if they're evaluating multiple proposals,"
Kuntz says. "Often they say, 'None of the other providers asked us
these questions ? it really feels like you've done this before. Though
you're more expensive, your comprehensive process has demonstrated that
you know what you're doing.' "
Showing, Not Telling
Connecting Point of Greeley, a $6 million solution provider in managed
services for four years, does not sell on price. To establish the value
of its managed services, president Ted Warner believes in showing, not
telling. This means bringing all the prospect's senses into play with
a hands-on demonstration.
"In the SMB market we serve, customers want to know how well a solution
provider produces," Warner says. "We try to create a perception
of value by showing that we have superior processes and procedures, and
by offering more than they expect right from the start."
Few prospects expect to discover the excellence of managed services through
a live demo. Warner's salespeople bring them into the network operations
center, where they get to see and touch the hardware, experience the software
tools, and meet the engineers and help-desk staff -- an ideal setting
to showcase the business benefits. Says Warner, "This allows us to
be very anecdotal, saying, 'For this client we did this; another client
ran into this problem and we solved it this way,' and we actually show
them what we did."
Though most demos occur early in the sales cycle, Connecting Point uses
several marketing techniques to generate sales leads:
- Testimonial ads: These feature a photo of a high-profile businessperson,
often with Warner, along with a customer quote and description of the
IT solution. They run in local business journals and in the company
newsletter; they are posted in training and demo rooms; and salespeople
hand them out as collateral. "Say we did a testimonial ad for a
bank," Warner says. "Another bank executive will say, 'Hey,
we've got the same kind of issues. If they helped bank A, they certainly
can help us.' "
- Telemarketing: Several times a year, Warner hires a telemarketing
firm to cold-call on prospects for solutions such as managed services
or VoIP. Connecting Point executives compile the list, write the script
and spend about an hour on the phone training the telemarketers. Warner
estimates a close rate of between 1 percent and 1.5 percent. A list
of 700 names might generate 70 leads and result in seven to 10 new deals.
- Lunch and Learn events: Monthly meetings over lunch last less
than two hours, plenty of time for prospects to learn about managed
services. "Even if someone won't see a salesperson personally,
coming to a luncheon is a non - threatening way to get educated,"
Warner says. Between one-quarter and one-half of attendees sign on for
managed services.
- Security assessments: Prospects who meet certain criteria are
eligible for a free security assessment. A technician spends about one
hour at the prospect's site, another hour writing a report, and the
salesperson presents the results. "The security angle opens a lot
of doors," Warner says. "It leads to both project work and
the opportunity to sell managed services."
| "We try to create a perception
of value by showing that we have superior processes and procedures,
and by offering prospects more than they expect right from the start."
- Ted Warner
Connecting Point of Greeley
|
Back to Basics and Beyond
Heartland Technology Solutions also sells projects and managed services.
Spread across seven locations in four Midwest states, the $15 million
solution provider serves SMBs in multiple tertiary markets. Technology
specialties range from IT infrastructure to IP surveillance and telephony
to GPS and precision agriculture.
With so much to offer, how does Heartland present itself to customers?
"We don't compete on price," says Larry Hedin, vice president
of sales and marketing. "We focus on building a total value proposition:
'If you want it done right, with a company that has deep vendor relationships,
you'll call us.' "
Heartland's line card is surprisingly short -- only HP, Microsoft, SonicWall
and 3Com. "If you're going to buy a server from us, it's going to
be HP, and we sell the value of its engineering," Hedin says. Heartland
also promotes its investments in its services team, the people who deliver
and support the solutions.
If this approach seems basic, Heartland's marketing is anything but.
The marketing team is so ambitious that the company sells marketing ser
vices to other VARs, including a customized enewsletter for end customers
that gets excellent results.
"You will never see prices in our e-newsletter," Hedin says.
"What we do is educate and inform about subjects that have an impact
on the client's business." Content covers IT and business best practices,
stories about staff members serving clients, and case studies of clients
who have benefited from Heartland's solutions.
The e-newsletter, which requires recipients to opt-in, is designed so
articles are only partially visible -- if readers want to go further,
they click through to the full article online. "Our tools allow us
to track which companies did the click-through, so this helps with demand
generation," Hedin says. "I get a list every month that tells
me which prospects and clients clicked through, and I turn it over to
our sales staff for follow-up."
Heartland also uses "drip marketing," a campaign of several
oversized postcards that promise a free business assessment for small
and midsize companies. The third card in the series explains that a salesperson
will call. After landing an appointment, the salesperson performs the
assessment with Microsoft's free SBS Assessment Toolkit, which provides
insight into the company's business processes and pain points.
"The typical reseller salesperson usually reacts to what clients
think they need," says Hedin. "The business assessment puts
us in a more consultative role, giving our salespeople a deeper understanding
of the business and how we can help." That, as we have seen, is what
solution selling is all about. |