Start of the Fall Selling Season

Summer is ending, back to school signals the start of the Fall Selling Season or does it?

Take a quick look back and compare the following benchmarks for your company over the past four years:

  1. The number of new customer additions (new license sales only – not transfer of VAR)
  2. The number of deals you chased that you didn’t win.
  3. Your cost of sale (includes all your sales rated costs + marketing costs dived by the number of net new customer additions).

If you are like most partners I talk with on a regular basis you will be a significant decrease in the number of net new customer additions. Remember this number does not include VAR transfers or any other situation where you did not acquire a new customer with new license sale.

The resulting number of deals you didn’t win probably decreased over the three year period, and thereby your sales cost increased for the period.

Slicing and dicing the first two numbers into much more detail will likely lead you to the conclusion that there just aren’t as many companies buying ERP / CRM Systems as there was back four years ago. Perhaps you are getting more market share now than you were four years ago and thereby your net new deals haven’t decreased, but pay attention to the total number of deals you are chasing. This is the number that I am betting is significantly lower than it was just four years ago.

Do you really think this decrease it total deals chased is just a factor of the economy? When we look at cloud-based companies all we see is growth. Typical growth levels of 30% or more per year. How do you compare to 30% growth companies?

The cloud is continuing to mature. While it still has a long way to go, more and more companies are starting to deliver complete systems that meet user’s demands. Companies that have fairly basic requirements are now able to find complete cloud-based solutions in certain industries.

If you are a bit skeptical, just look for services based billing systems and look at some of the offerings that are available today. Companies that bill for time have lots of cloud-based choices available to them today.

To all the folks that said the cloud was a fad and would never take hold, I am hoping you are beginning to think a bit differently. To the folks that believed the cloud would take hold I hope you have been hard at work with the task we gave you three years ago.

The question we asked you was “What value do you bring to the table in a cloud-based world?” I hope you answer is a bit better than  “local training” because as predicted the amount of money companies are speeding on training keeps getting lower and lower. Stuck for ideas if how you can fit in and prosper?  Give us a call, we are happy to help.

 

About the Author

Bruce Ciarleglio


As president and founder of Adventures in Automation, Bruce was featured on the cover of 11 nationally recognized magazines in 9 years time, and helped Adventures in Automation rank among the top 5% of VARs in the country for 6 consecutive years.