More Related Content
Similar to Sales Soft | HBR
Similar to Sales Soft | HBR (20)
Recently uploaded
Recently uploaded (20)
Sales Soft | HBR
- 2. SALESOFT Primary Objective: - To become the leader in the high end SA software industry Problem faced: - Introduce a Trojan Horse Project or not Advantages and Disadvantage of the the Idea Advantage Disadvantage Get into new customer accounts Distract SS from primary objective Gain quick sales Cannibalize PROCEED sales Generate more revenue Prevent SS from forming relationship with consultants
- 3. SALESOFT ● Gregory Miller was the President and CEO of SalesSoft. The dilemma that Miller was facing was whether or not to produce Trojan Horse Product or not. ● Primary objective of SalesSoft was to be the leader in Sales Automation ( SA ) software industry. ● Trojan Horse product would give them new customers, more sales and greater revenue but there were some problems associated with it that were putting Miller into the dilemma of using it or not. ● Problem with Trojan Horse was that it could distract SalesSoft from achieving its primary objective. It would cannibalize the sales of PROCEED. ● Trojan Horse would also prevent SalesSoft from making relationship with the consultants who were of utmost importance for the success of PROCEED.
- 4. High Rate of Failure ● Extended time frame for implementation ( 22-30 Months) ● Rapid change in Technology Changes in Staffing ● Refocus and train staff to handle automation tools specifically ● Need a competent software engineer for installation and maintenance No integrated solutions ● Collaboration of different vendors for customization Need of Technical Consultant ● to help them develop a better grasp of data architectures, tooling and user buy-in strategies. Huge Cost ● Customers usually relied upon consultants for implementing Sales Automation. User Buy-In ● need to collect enough adequate data about end users, their needs and their expectations to be able to tailor the system explicitly to them. Issues Related to Sales Automation Industry In 1990s Present Situation
- 5. TH or PROCEED which to buy? · Will be targeted to different markets · CSAS implemented firms will not look for TH · Do not have separate sales force · If asked to do both most of them will land up pushing TH · Pricing needs to be high · If customers are really excited, they will buy · Was against Tanner view- changing competitive environment · Cost issue – development and marketing · Use TH to expand market · Low price approach · High price will make it difficult to sell · Pull of potential customers · Priced at same level as CMS · Once into an account can convert it to PROCEED later · Relinquishing CSAS market temp will not affect the first mover advantage Will have resources to do both when they make a come back
- 6. 6 Modify the software in response to feedback in the pilot test 4 Customer decided the type of SA software and hardware to buy 2 Evaluate the potential to automate existing processes and to specify order of functions to be automated 1 The customer decides how the different function were to be automated and determined how data was to be collected stored and analyzed 3 The customer decides how the different function were to be automated and determined how data was to be collected stored and analyzed 5 Pilot test the software after customizing it according to customer need Buying Process of Proceed
- 7. TROJAN HORSE VS PROCEED ● A system specifically for sales forecasting process ● TH need minimal customization as compared to proceed ● Unlike proceed, TH is focused only on sales ● TH is a good solution where complete product is very expensive ● Prospective Price $400 - $1000 per user ● Marketing cost is ⅓ of proceed ● Sales module of proceed with functions from other module ● Salesoft’s CSAS product that automate Marketing, Sales and Service functions. ● Backend Decision Support system for the management to help them make decisions more proactively. ● Greater value where there was greater variance and uncertainty in the sales order cycle ● Long term ROI ● Less Competition ● Priced at $2400 per product
- 8. Trojan Horse Customer acquisition and Retention ● It was developed based on customer feedback ● Was addressing specific needs ● low customization ● provided opportunity to customers to scale up to implement other SA modules ● Easier to quantify benefits of TH ● A System specifically designed for sales forecasting process ● The Sales manager can anticipate any shortfall in sales. Can review associated sales activity and help in improving sales force performance.
- 9. Sales Structure for PROCEED and Trojan Horse PROCEED ❏ Selling would take trice process than Trojan Horse ❏ Concentrated not only on sales but also on marketing and customer services. ❏ Collaborated with consultants to gain market. ❏ Long selling cycle TROJAN HORSE ❏ Concentrated only on sales ❏ Easier to quantify the benefits of Trojan Horse ❏ Required only minimum customization ❏ No collaboration with consultants
- 10. B2B vs B2C ● Fewer, larger buyers ● Close supplier–customer relationships ● Professional purchasing ● Multiple buying influences ● Inelastic demand ● Derived demand ● Complex buying decisions ● Formalised buying process ● More but smaller buyers ● May not be directly in touch with customer ● Informed and uninformed purchasing ● Cultural, social, personal influences ● Mostly elastic demand ● Direct demand ● Simpler buying decision ● Informal buying process
- 11. STEPS IN A B2B PURCHASING 04 Order-Routine Specification Proposal Solicitation Supplier Selection 06 Problem Recognition General Need Description and Product Specification Supplier Search 02 01 03 05 STEPS IN A B2B BUYING PROCESS