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Stunningly Awful Software Evaluations – A Strategy of Hope?
It is almost the end of the quarter. Achieving your numbers depends on the outcome of an evaluation that has been running for the past three months. The end-user group has finally put in a few hours of use with your product and has gathered to vote: Go or No Go…
What will be the outcome?
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The Second Derivative
1538 Winding Way
Belmont, CA 94002
Phone: +1 650 631 3694
PCohan@SecondDerivative.com
www.SecondDerivative.com
www.DemoGurus.com
Peter E. Cohan, Principal
Stunningly Awful Software Evaluations - A Strategy of Hope?
It is almost the end of the quarter. Achieving your numbers depends on the outcome of an
evaluation that has been running for the past three months. The end-user group has finally put
in a few hours of use with your product and has gathered to vote: Go or No Go…
What will be the outcome?
Evaluations are the single most expensive component of a software sales process - and yet the
number of evaluations executed every quarter that fail is surprisingly high. Or, perhaps it isn't
surprising, giving the number of ways that vendors can increase the likelihood of failure!
If your organization's evaluations are not as successful as you wish, consider using this list as
an assessment tool. If these items sound too familiar then you may want to contemplate
making some changes…
The Stunningly Awful Software Evaluations Top Eight List:
1. No Critical Business Issues, No Objectives: "Living in the Land of Hope"
Agree to a 3-month evaluation without any understanding of your customers' Critical
Business Issues or objectives. This ensures that everyone is unclear as to why the
evaluation is being run. Even better, the customer can explore your software as deeply or
broadly as desired - without any direction or plan. Who knows what they might find
interesting?
This is truly "Living in the Land of Hope"! More frighteningly, forecasts reflect the fact
that the customer has an eval underway and show an increased probability of closing. This
hope-based strategy provides the opportunity to disappoint at least three times:
- Customer disappointed with the software…
- Sales Rep disappointed with an unsuccessful evaluation and no sale…
- VP of Sales disappointed with inaccurate and missed forecast.
2. Offer your Standard Length Three-Month Eval: "We've always done it this way…"
We are truly "victims of momentum" - we continue to do things the way we've always
done them, often with a clear reason as to why…! Is there a reason why three months is
necessary? Could the process be completed in two months? One Month? Three weeks?
Page 1 of 3 Copyright 2006 The Second Derivative. All Rights Reserved 11/14/2006Three days? (How often does the users' exploration of your software take place in the last
three days of an eval?)
Equally sad, say "yes" to your customers when they ask for your "standard three-month
eval…"
Contemplate mapping out the time needed in accord with the objectives and specific tasks
that need to be completed, rather than simply offering a standard term.
3. Make sure the eval end coincides with your End-of-Quarter: "Get out the knee-pads…!"
We've done a terrific job training our customers to expect deep discounts at the end of each
quarter - and especially at the end of the year. You can reinforce this by aligning the end
of your evaluations to coincide with your end-of quarter. This will almost guarantee
substantial weeping, moaning, and gnashing of teeth as your sales team tries to complete
the eval and close the business simultaneously.
4. Install and Run: "See you in three months…!"
Once your customer has the software, everything should go forward by itself, right? No
need to worry about objectives, installation, tasks, users' time, training, and support during
the eval.
If you'd like to increase your success with evaluations, contemplate using a Sequence of
Events - a tool similar to a very simple Gantt chart. It is used, mutually, with the customer
to define objectives, tasks, timing and responsibilities - and provides you with an accurate
assessment of how much time and resource the eval really needs.
5. Don't worry about the Evaluation Costs: "It's all part of our cost-of-sales."
Evaluations are the single most expensive component of a sales process. While sales
people may incur limited time-based costs, the investment from the balance of the team can
be staggering: Presales, training, professional services, installation, customer support, and
legal departments may all play a substantial role.
6. Free Eval: "No, we never charge for an eval…"
Assume that there is no value in the intrinsic use of your software - or in any training,
installation services, data migration/preparation, or other services. Your customer should
get all of this for free, correct?
Page 2 of 3 Copyright 2006 The Second Derivative. All Rights Reserved 11/14/2006"Free" then becomes exactly the perceived value of your software, in your customers'
minds.
Instead, consider identifying the value associated with your evaluation - and charge for it!
A customer who has made a monetary commitment for an evaluation is much more likely
to help it progress to a closed sale. They have "skin in the game".
Even if you ultimately choose not to charge for the value of the evaluation, at least you
should make sure that your customer understands the value and realizes the concession(s)
you've made.
7. No Path to Purchasing: "Show me the money…"
"If we can just get it in place, they'll not let it go - we can worry about the money then."
This is a terrific way to consume your organization's resources with little hope of closing
the business. It is surprising how many evaluations begin without agreement on what
happens pending a positive outcome - this is often the case when the key customer contact
is too low in the organization.
8. Make the legal groups do Two Agreements: "You need this draft ready by when?"
Many vendors require a signed evaluation agreement to move forward with an eval. A
great way to frustrate your customers' legal team (and key business players) is to torture
them with a second agreement - often pursued right at the end-of-the-quarter.
Instead, contemplate a "roll-over" agreement - a single agreement for both the evaluation
and the subsequent license that simply "rolls-over" pending a positive outcome to the eval.
This not only reduces everyone's time, but also is a wonderful way to help your customers
demonstrate commitment to the process.
Practicing these eight simple items will help reduce your quarterly revenues, delay deals, and
consume resources foolishly. Making a few changes may move you from being a "victim of
momentum" to achieving your numbers predictably.
Copyright © 2006 The Second Derivative - All Rights Reserved.
Feel free to forward this article on to others. For more on demonstration effectiveness
skills and methods that help your cause, visit www.SecondDerivative.com. For other
articles like this, as well as tips, best practices, tools and techniques, join the DemoGurus
Community Website at www.DemoGurus.com. For more information go to
www.SecondDerivative.com or register at www.DemoGurus.com.
Page 3 of 3 Copyright 2006 The Second Derivative. All Rights Reserved 11/14/2006
1538 Winding Way
Belmont, CA 94002
Phone: +1 650 631 3694
PCohan@SecondDerivative.com
www.SecondDerivative.com
www.DemoGurus.com
Peter E. Cohan, Principal
Stunningly Awful Software Evaluations - A Strategy of Hope?
It is almost the end of the quarter. Achieving your numbers depends on the outcome of an
evaluation that has been running for the past three months. The end-user group has finally put
in a few hours of use with your product and has gathered to vote: Go or No Go…
What will be the outcome?
Evaluations are the single most expensive component of a software sales process - and yet the
number of evaluations executed every quarter that fail is surprisingly high. Or, perhaps it isn't
surprising, giving the number of ways that vendors can increase the likelihood of failure!
If your organization's evaluations are not as successful as you wish, consider using this list as
an assessment tool. If these items sound too familiar then you may want to contemplate
making some changes…
The Stunningly Awful Software Evaluations Top Eight List:
1. No Critical Business Issues, No Objectives: "Living in the Land of Hope"
Agree to a 3-month evaluation without any understanding of your customers' Critical
Business Issues or objectives. This ensures that everyone is unclear as to why the
evaluation is being run. Even better, the customer can explore your software as deeply or
broadly as desired - without any direction or plan. Who knows what they might find
interesting?
This is truly "Living in the Land of Hope"! More frighteningly, forecasts reflect the fact
that the customer has an eval underway and show an increased probability of closing. This
hope-based strategy provides the opportunity to disappoint at least three times:
- Customer disappointed with the software…
- Sales Rep disappointed with an unsuccessful evaluation and no sale…
- VP of Sales disappointed with inaccurate and missed forecast.
2. Offer your Standard Length Three-Month Eval: "We've always done it this way…"
We are truly "victims of momentum" - we continue to do things the way we've always
done them, often with a clear reason as to why…! Is there a reason why three months is
necessary? Could the process be completed in two months? One Month? Three weeks?
Page 1 of 3 Copyright 2006 The Second Derivative. All Rights Reserved 11/14/2006Three days? (How often does the users' exploration of your software take place in the last
three days of an eval?)
Equally sad, say "yes" to your customers when they ask for your "standard three-month
eval…"
Contemplate mapping out the time needed in accord with the objectives and specific tasks
that need to be completed, rather than simply offering a standard term.
3. Make sure the eval end coincides with your End-of-Quarter: "Get out the knee-pads…!"
We've done a terrific job training our customers to expect deep discounts at the end of each
quarter - and especially at the end of the year. You can reinforce this by aligning the end
of your evaluations to coincide with your end-of quarter. This will almost guarantee
substantial weeping, moaning, and gnashing of teeth as your sales team tries to complete
the eval and close the business simultaneously.
4. Install and Run: "See you in three months…!"
Once your customer has the software, everything should go forward by itself, right? No
need to worry about objectives, installation, tasks, users' time, training, and support during
the eval.
If you'd like to increase your success with evaluations, contemplate using a Sequence of
Events - a tool similar to a very simple Gantt chart. It is used, mutually, with the customer
to define objectives, tasks, timing and responsibilities - and provides you with an accurate
assessment of how much time and resource the eval really needs.
5. Don't worry about the Evaluation Costs: "It's all part of our cost-of-sales."
Evaluations are the single most expensive component of a sales process. While sales
people may incur limited time-based costs, the investment from the balance of the team can
be staggering: Presales, training, professional services, installation, customer support, and
legal departments may all play a substantial role.
6. Free Eval: "No, we never charge for an eval…"
Assume that there is no value in the intrinsic use of your software - or in any training,
installation services, data migration/preparation, or other services. Your customer should
get all of this for free, correct?
Page 2 of 3 Copyright 2006 The Second Derivative. All Rights Reserved 11/14/2006"Free" then becomes exactly the perceived value of your software, in your customers'
minds.
Instead, consider identifying the value associated with your evaluation - and charge for it!
A customer who has made a monetary commitment for an evaluation is much more likely
to help it progress to a closed sale. They have "skin in the game".
Even if you ultimately choose not to charge for the value of the evaluation, at least you
should make sure that your customer understands the value and realizes the concession(s)
you've made.
7. No Path to Purchasing: "Show me the money…"
"If we can just get it in place, they'll not let it go - we can worry about the money then."
This is a terrific way to consume your organization's resources with little hope of closing
the business. It is surprising how many evaluations begin without agreement on what
happens pending a positive outcome - this is often the case when the key customer contact
is too low in the organization.
8. Make the legal groups do Two Agreements: "You need this draft ready by when?"
Many vendors require a signed evaluation agreement to move forward with an eval. A
great way to frustrate your customers' legal team (and key business players) is to torture
them with a second agreement - often pursued right at the end-of-the-quarter.
Instead, contemplate a "roll-over" agreement - a single agreement for both the evaluation
and the subsequent license that simply "rolls-over" pending a positive outcome to the eval.
This not only reduces everyone's time, but also is a wonderful way to help your customers
demonstrate commitment to the process.
Practicing these eight simple items will help reduce your quarterly revenues, delay deals, and
consume resources foolishly. Making a few changes may move you from being a "victim of
momentum" to achieving your numbers predictably.
Copyright © 2006 The Second Derivative - All Rights Reserved.
Feel free to forward this article on to others. For more on demonstration effectiveness
skills and methods that help your cause, visit www.SecondDerivative.com. For other
articles like this, as well as tips, best practices, tools and techniques, join the DemoGurus
Community Website at www.DemoGurus.com. For more information go to
www.SecondDerivative.com or register at www.DemoGurus.com.
Page 3 of 3 Copyright 2006 The Second Derivative. All Rights Reserved 11/14/2006
