Frugalnomics Demands That Vendors Prove Superior Competitive Value


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Customers are forced to do-more-with-less. More buyers are involved in each purchase decision. Use total cost of ownership comparisons to prove superior competitive value versus competitive options.

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Frugalnomics Demands That Vendors Prove Superior Competitive Value

  1. 1. Frugalnomics Demands That Vendors Prove Superior Competitive Value Customers forced to do-more-with-less 61% “Keeping-lights-on” operations 24% Already designated projects 15% Discretionary funds for new proposals Purchase process is more complex More buyers involved in each purchase decision Average purchase 2010 2011 Growth process takes longer 16% 2009 4.3 months 17% 2010 5.6 months 7% More Economic Scrutiny It’s easier for B2B buyers to “do-nothing” than change 90% 81% 85% of buyers require a expect vendors to doubt vendor claims ! business case for provide economic unless there is 3rd- new projects justi cation party proof Frugalnomics is in Full Effect To Fight Frugalnomics requires a new approach Yet most still sell using antiquated techniques: 10% Provocative 60% Traditional Value Selling Product Selling 30% Solution Selling Number One Sales Priority for 2011: Show Buyers the Money Improving sales’ ability to show bene ts / value to prospects is the number one tactic to drive B2B sales performance in 2011, according to a recent survey by CSO Insights. Improve Ability to Show Bene t 30% 34% 12% Optimize Sales Process 17% 15% 12% Improve Ability to Reach People 16% 14% 13% Increase Customer Loyalty 15% 11% 14% Optmize Forecast Accuracy 11% 14% 10% Optimize Competitive Difference 9% 13% 20% 1st Priority Bow Out of Poor 2% 2nd Priority Deals Sooner 9% 15% 3rd Priority 0% 10% 20% 30% 40% 50% 60% 70% Differentiate with Total Cost of Ownership (TCO) Engage Diagnose with Interactive White Papers with Assessment Tools ery scov Di Co Customer nsideration Buying Lifecycle on Differentiate Justify isi with TCO Tools with ROI Tools c De Differentiate by Proving Superior Competitive Value Use total cost of ownership comparisons to prove superior competitive value versus competitive options: 1. Elevate the discussion beyond purchase price 2. Tally and compare costs over the useful lifetime 3. Quantify and prove incremental value / savings 4. Contrast required investments and bene ts 5. Summarize the comparison in terms executives need to make the decision ROI Analysis Tools Components of a successful TCO Comparison Tool: the tool Solution / Total Cost of Competitive Ownership Selections & Quanti cation & Click to view Con gurations Comparison Red Hat Server Modernization TCO Tool Total Bene t of Competitive Ownership tool Comparison and Quanti cation & Summary e Comparison Click to view th Great Examples Windows Azure TCO Tool ol Click to view the to Shoretel TCO Tool powering B2B sales to economic buyers 2011 http://www.alinean.comAbout AlineanAlinean, the leading provider of dynamic sales and marketing tools, empowers B2B vendors to better sell to todayseconomic-focused buyer. Alinean-powered interactive white papers, assessments, ROI calculators and TCO comparison toolscreate more compelling value-based connections, workshops, presentations and proposals — delivering customized diagnos-tics, benchmarks, solution recommendations, bene ts, investments, ROI, payback and TCO advantage proof points.Leading B2B rms leveraging Alinean tools include: HP, IBM, Microsoft, EMC, Dell, Intel, IDC/IDG, AT&T, Siemens, Unisys,Thomson Reuters, NetApp, Citrix, Symantec, Novell, Cisco, Oracle, Sybase, and CA.Learn more: at the Fight Frugalnomics™ Resource Center http://www., by visiting, or calling 407.382.0005.SourcesThe CSO Insights Sales Management Optimization research report for 2011 can be found at: research can be found at: http://www. ghtfrugalnomics.comMore examples of successful TCO Tool programs can be found at: