SaaS RFP's from the Customer's Perspective Part 2

This is the rest of the discussion with Steve Furman on SaaS RFP's and their processes from his perspective as a buyer.

Jason: Steve, so far the feedback on our conversation has been strong. There is so much to explore as we try to understand the challenges both buyers and sellers face when they are working on big RFP level deals. One of the interesting things I've seen in the past is poorly written RFPs that have the same question asked multiple times; a clear indication that various stakeholders have submitted their departmental needs but that they haven't been aligned with the entirety of the organization’s scope requirements.

With that in mind, how do you lead the needs assessment that takes place? How do you identify the internal owners, and how is that process managed before you even consider engaging vendors?

Steve: Your needs assessment should be informed by your strategy and roadmap. Well crafted plans should include identifying the capabilities a company will need to build or buy. The roadmap will tell you when you will need to acquire that capability or skill. If you have been forward thinking enough to conduct annual performance evaluations of your agency or vendor (“A/V”) then you already have a baseline from internal stakeholders. If not, you should solicit input from the people in your organization who work directly with the A/V, as well as the people who are directly impacted by the products and services that they provide.

Jason: This is great insight, and actually very useful for existing vendors or agencies that should understand their clients’ needs. Can you talk a little about some of the challenges you face internally on whether or not to pursue a project? We often hear that inertia is a huge factor and can have a big impact on the opportunity. If this is true, how do you navigate through this?

Steve: You have definitely hit on a big challenge. Unless things are completely out of control with an A/V, there are always switching costs that must be carefully evaluated. There is also the "grass is always greener" syndrome. It's not always the case. As far as projects go, each firm has a way that they scorecard value and prioritize projects. One has to master that process in order to get their project considered and ultimately approved.

Personally, I have a love-hate relationship with inertia. It's the force that keeps things moving while we sleep, but it is so difficult to overcome when you want to inject change or a fresh perspective. One of the things a sharp sales person can do is demonstrate how they have helped companies through transitions and proactively offer references, without waiting to be asked.

Another thing is to find out what the fear points are and offer solutions for them. Oftentimes a company is just not ready to take something on. Every firm is at a different place on the maturity curve. Understanding where they are is critical for sales people. Sometimes it means sitting on the sidelines until that time has come. If you play it right you will get the first call.

Jason: Steve, this is phenomenal information. Having run teams that sell to decision makers like you for quite some time, the importance of understanding an organization’s needs cannot be overstated. But you're right; it extends beyond the tactical solution and into the pain points, organizational challenges, and costs associated with change. Essentially, it comes down to leveraging consultative selling and exhibiting patience.

Steve blogs on many topics at Expendiantmeans.com