What it means to be solution centric
Let's
begin this discussion by expounding on the definition of a "solution".
Quite simply, the word solution means an answer to a problem. But the
English Thesaurus offers us other terms such as key, clarification,
elucidation, explanation, resolution, and result. All of these
definitions fit quite nicely into the constructs of business solution
selling, and therein is the crux of the issue—"solution" can mean
different things to different people. Because a solution has
applicability to multiple contexts, it is a commonly used word in
organizations, necessitating that the organizations must clearly define
the usage of the term.
For some organizations, it
has become very fashionable to say that they have "solutions" and that
they are "solutions-focused", as this apparently takes away the negative
connotation associated with the term "products". A product is viewed as
an offering that the selling company is forcing on the marketplace,
while a solution is viewed as something the marketplace is actively
seeking, with the solution being that answer the sellers can offer to
the buyers. So, is the product the antithesis of a solution? Far from
it! In many cases, and especially in the context of business solutions,
the product can be the primary driver of the solution. But it is in the
usage or delivery of that product that can truly define the success or
failure of the solution for the customer. And the up-front positioning
of the solution is the key to a successful delivery, which is where the
solution-centric approach comes in.
For an organization to be
truly solution focused, Eades explains that they need "more than
superficial packaging manipulations or bundling services with products".
Solution-centric should not be treated as buzz words to be thrown
around by the organization.
The need to be truly
solution-centric is even more important in mature marketplaces such as
ERP/CRM solutions. In this market, many of the top solution providers
offer products that have been around and used by many organizations.
Each of these products includes a range of features and functionality
that are hard to differentiate from the competition. SPI terms this differentiation blur,
which is a result of the product being perceived as commoditized, or
the product becoming too complex and feature rich for the industry to be
able to differentiate it. To combat this issue, companies start to
bundle their products with services and deem these as solutions. But
what they have really achieved is creating what SPI labels as "pseudo
solutions".
Such approaches neither
help the customers looking for a solution, nor do they help the solution
provider develop a consistent approach to selling. This is further
corroborated by a market research by industry analysts, who found only a
ten percent effectiveness rate of value positioning by these solution
providers. The research also points to other findings that are endemic
in a pseudo-solution company. In these companies, a high percentage (70
to 80 percent) of the marketing materials remain unused, highlighting
the disconnect between the sales and the marketing teams. Another
finding in these companies is that they revert to sales training to
solve the problem, and they often find the shelf life of unreinforced
sales training to be about six to eight weeks.
So
how then does a company become truly solution centric? As SPI puts it,
for a true solution-centric approach, organizations need to embrace a
sustained business model to market, sell, and deliver customer
transformation. They need to identify the problems they solve rather
than the products they offer, align all of the aspects of their
marketing with the solution framework, and systemically adopt and
reinforce the solution selling and solution-centric disciplines across
the entire organization. Companies doing this will find themselves able
to consistently position the value of their solutions to their
customers, to clearly differentiate the value vis-à-vis their
competition, and create a business model for sustainable growth.
The Microsoft Solution Selling Process
In the previous sections, we
have seen how effective the solution selling concepts can be to align
the seller with the customer's needs. Solution selling helps the
solution provider build a trusting relationship with their buyer, and
facilitates a working relationship between the seller and buyer to craft
a common solution vision for the mutual benefit of each other. As a
company, Microsoft prides itself in ensuring that the customer's needs
are at its forefront, and in turn helping its vast partner ecosystem to
also operate by this credo. To facilitate that mission, Microsoft
adopted the solution selling method and fashioned it within the
constructs of its internal and partner sales mechanisms. This method,
known as the Microsoft Solution Selling Process (MSSP), is the subject of this section.
Specifically within
the business solutions arena, MSSP has been systematized to help
Microsoft Dynamics Partners and Microsoft's internal teams through their
sales cycles. The method gives selling teams a structure for creating
and delivering value at each step of the sales cycle. Sales teams are
provided with an effective process to understand the customer's needs
and critical business issues. The process also facilitates the sales
resources to work closely with the customer's subject matter experts for
determining and developing the right Microsoft solution to fit their
requirements.
MSSP aligns the account
teams with the customer's decision-making process in their buying cycle
and creates an emphasis on driving real business value through Microsoft
solutions. It helps the sales teams evaluate their progress on their
sales cycles, and it affords the sales and leadership teams a means to
develop business plans, drive resource allocation and utilization, and
develop viable forecasts for effective decision making.
The stages of MSSP are shown
in the following diagram. Also shown in the diagram is a mapping of MSSP
to the buying cycle described in the solution selling concepts section,
which we will also discuss below.
The first stage (0%) of MSSP is the Prospect
stage. The goal of this stage is to identify prospects for the business
solutions via sales calls, mailers, internet marketing, conferences, or
other means to arouse interest in the solutions. Sales teams create
account plans and research typical customer pain points in the industry.
They also gather customer success stories as evidence of past success
in the space.
The next stage (10%) is the Qualify
stage where the sales teams ensure that the prospect has a real need
for a solution. In this stage, the customer will have identified their
pain areas, while the sales teams may also detect potential latent
needs. The sales team helps the customer by ascertaining the business
drivers and starts working towards developing a shared vision. This is
also the stage where the sales teams will ensure that there is a
business sponsor for the initiative, as well as look to negotiate access
to the power sponsor.
The Prospect and Qualify stages correspond to Phase I of the buying cycle. The actions by the sales teams assist the customer to unearth the needs for the solution.
Develop is the
next stage (20%) of MSSP. The sales team understands the high-level
solution requirements and conducts detailed requirements gathering
sessions to craft the solution vision. The customer has admitted to
their business pain, and is aware of the consequences of not going
through with the solution deployment. The sales team will also want to
meet personally with the power sponsor in this stage. They will also
want to gauge the competitors involved, as well as gain an understanding
of the customer's decision-making process.
The next selling stage (40%) is Solution.
The goal of this stage is to develop a solution blueprint that matches
the customer's requirements. The sales team has linked the solution to
business need, and has identified the business metrics or KPIs for the
solution value measurement. Hardware and any third-party software needs
for the solution are also determined. A high-level cost estimate has
been developed, shared with the customer, and acknowledged. The sales
team also begins to plan for any solution demonstrations that it may
anticipate in the next stage.
The Develop and Solution stages correspond to Phase II
of the buying cycle. The sales teams assist the customer to understand
how the solution fits their needs during these stages. It also bears
mention that the customer teams may run parallel exercises with the
competitors to evaluate alternatives.
The next MSSP stage (60%) is Proof.
In this stage, the sales teams mitigate any perceived risks for the
customer, with detailed product demonstrations, showing proof that the
solution meets the requirements. Detailed value proposition analysis for
the solution is also conducted to help the customer articulate the
projected savings associated with the solution, as well as the timeline
as to when they can recoup their investment. In this stage, the sales
team also provides the initial proposal to the customer.
Close is the last stage (80%)
in the sales cycle before the deployment of the solution begins. The
goal of this stage is to finalize and get sign-off on all the
contracts—this includes contracts for the software and the Statement of Work (SOW)
for the solution delivery. The solution implementation plan is
presented and acknowledged by the customer. The solution team also
begins to finalize the appropriate resources for the solution delivery.
The Proof and Close stages correspond to Phase III
of the buying cycle. The steps taken by the sales teams help alleviate
any risks identified by the customer, leading to the final approval of
the solution.
The final stage (100%) of MSSP is the Deploy
stage. This stage begins with the transition of knowledge from the
sales to the delivery team. The delivery team then takes over
responsibility for the solution. The sales teams conduct internal
reviews of the sales cycle and document key learning for future
opportunities.
