Ah, the classic Presales (and consulting) answer to those key customer questions:
- Where do we start?
- How long will it take?
- What will it cost?
“Well, it depends…”
I use this answer myself and see it getting used often by others in the team. I want to consider in this post why I think “it depends” can be a problematic answer, and offer some alternatives and expansions.
In summary, what I’ve concluded over time is that the customer is looking to me as the subject matter expert, and they are looking for guidance. The demo they’ve just seen looks great and exciting, but it also looks complex and feels a bit overwhelming. Therefore, I need to answer these questions in a way that gives them a better understanding of our solution, and a higher level of confidence in why they should choose to work with us.
A challenge for Presales with these sorts of questions is that “it depends” is the most truthful, accurate answer we can give. And if you are a detail-oriented technical person like me, accuracy and facts are important. You don’t want to mislead the customer, you don’t want to kill the opportunity by making it sound complex and expensive, you don’t want to anger the Sales Rep, and you probably don’t have enough information yet to provide a more specific answer.
The risk with answering “it depends” is that it can contribute to our solution being perceived as too complex, signals that we don’t understand the customer well enough, and puts the burden of analysis and decision making back on to the customer. Unfortunately, this helps our biggest competitor in every sales opportunity: Do Nothing.
One thing to remember is that the customer is asking genuine, curious questions. Just like a sales team, your customer is also engaged in discovery and qualification. Evaluating the products and messages from different vendors can be confusing, and they might be exploring a solution or technology that is unfamiliar. The customer is not trying to trap you or to get an answer they will hold you to. They are thinking about their own problems and plans, their ability to get budget and resources, and the expectations they have from management. These are important questions to help them determine whether your solution can meet their needs and how likely it is that they can proceed with a purchase and a project.
As the subject matter expert, what we in Presales need to do in this situation is provide a confident and clear answer, that expresses a point of view (POV). This is important for three reasons. The first is to provide the customer with the information they have asked for. The second reason is that you want to provide such information in a way that reflects well on (and hopefully differentiates) your company and solution. The third is that being able to provide a firm POV demonstrates your knowledge and experience – both of your solution and of the customer’s situation.
It’s a lot easier for a person to evaluate and respond to a stated position than to be faced with a large list of options and variables. Even if they disagree with you, or things change as planning progresses, your answer is giving the customer something tangible that they can consider and discuss. This provides focus, lightens their mental load and makes their job easier, which will also reflect well on you as the vendor.
Where do we start?
This is a common question, especially with solutions that can address multiple use cases or provide different capabilities. Is this situation, it’s great to reference other customers, and to talk about recommended best practice.
If you have done appropriate discovery with the customer, you should be able answer this question with some confidence. This is another reason why it is so important to talk to key stakeholders before a demo. And make sure you ask questions during the demo (and note the questions they ask you) to understand their requirements, pain points or areas of focus. You want to tailor your answer to “where do we start?” to align as closely as possible to the customer and to demonstrate that you understand them and their business.
Example answers:
“It depends on a few factors, including X, Y and Z. Let me give you some examples. At customer ABC, they chose to start [here] because of [reason].”
“Based on my understanding of your business and pain points, I would recommend that you start [here].”
“Best practice is to get quick wins by starting with [capability 1], then expanding to [capability 2].”
“There are three common starting points that our customers take: D, E, or F. From what I’ve heard today, I think you will get the most value by starting with E and then expanding.”
How long will it take?
“How long is a piece of string?”
This is an interesting one to answer, because there are so many variables. It’s also tricky because there is often a tension between the Sales & Presales team, who are trying to make their solution look easy and close a deal; and the Professional Services team, who have been burnt before by under-scoped projects, and have a good understanding of what it will “really” cost. Add in (unrealistic) customer expectations of fast time-to-value and the risk is that an “accurate” answer might not get you to the next round of discussion.
Variables that influence this answer include: the scope of the solution, the point you are at in the sales cycle, size of the organisation, size of the project team, complexity of the environment, how much of the work they want to do themselves, change management considerations, executive sponsorship etc.
My broad advice is to focus on breaking the answer down into quick wins and short phases that deliver value. What the customer is usually asking is, “how long will it take before our teams can start using this?” rather than “how long will it take to implement absolutely everything that is available?” You can also talk about concepts such as quick starts, sprints and minimum viable product (MVP) as ways to make the time-to-value sound shorter.
Example answers:
“We take an iterative approach and typically work in 3 month phases”
“Customer XYZ were up and running with out-of-the-box content in 6 weeks.”
“Our services team have a “Quick Start” approach that involves installation, training of your team and basic setup. This typically takes 2-3 months and then we handover to you.
What will it cost?
This is a difficult question. Not only are there multiple variables that impact the scope, there is list price, street price, and the price that the Sales Rep may be desperate enough to offer. Generally I expect that the Sales Rep will step in at this point to answer, but sometimes find the Sales Person is also looking at me expectantly, especially if they are new to the solution.
The most common and best way to deal with this question is to defer by saying that we’ll need to gather more information, take a look at it and get back to you with some rough pricing.
Sometimes I have thrown out a rough number, such as “the entry point is typically in the range of 100K”, although I feel uncomfortable doing this. I have seen Sales Reps also do this and one trick is to think of a likely number and then (at least) double it: “the entry point is typically in the range of 200-300K”. This puts a figure in the customers mind, and gives you room to come back with a more accurate figure. But it’s better to avoid this.
Where Presales should be direct and specific is in explaining the core mechanism and drivers of pricing. Use the time here to ask questions and gather the data you need in order to pull together some rough pricing. These might be number of users; number of agents; number of devices; volume of data; or whatever else is relevant to your software.
The corollary of this question is “What is it worth to you?”. I would not directly ask the customer this, but what I do is listen for ROI anecdotes or measurable evidence of the pain they are experiencing. And I ask questions that will help me build a value story. When we do come back to share pricing information with the customer, I want to do it in the context of the anticipated value that our solution will deliver.
In conclusion, when answering any question we are trying to build confidence in the customer. Using “it depends” is a valid (initial) response, as long as you immediately follow up with concrete information or examples that demonstrate your expertise and provide a clear and understandable point of view.
How long does it take to write a blog post? It depends…
Thoughtful Presales 