SaaS RFP's from the Customer's Perspective

This is an older blog I wrote about the challenges of running a RFP from the buyers’ side. This is an interesting read for anyone selling SaaS technologies into sizable organizations.

 

RFP's are daunting exercises for both the buyer and seller of SaaS marketing technologies. Over the years, I have had the opportunity to work through many of these processes with a wide variety of Fortune 500 companies from every major vertical.  The most common thread I've found is that there isn't one.  Some organizations run RFP's as a matter of procurement driven process; while others are truly seeking a new or better solution.  I started thinking about the level of work that goes into the RFP process from both the buyers and sellers perspective.  

Since I understand all too well the effort that sales teams and their company's put into participating in a RFP, I decided to learn more about the evaluation process on the buyers side.

I reached out to an old friend and a respected client of mine for insight.  Steve Furman of Discover Financial Services is currently the Director, Design, Customer Experience and Social Media (http://www.linkedin.com/in/stevefurman) for Discover.  In 2002, Steve was leading the email team at DFS as they were upgrading, enhancing and innovating email marketing for the financial services company.  It was here that we met and began a lasting relationship that was built on mutual respect and appreciation for one another's responsibility to making our business interaction work. At the time I was leading the sales effort for Bigfoot Interactive as we were seeking to win the Discover RFP as email service provider.

 

Steve and I have decided to have a virtual cup of coffee and discuss the elements that help form a well run RFP from the clients point of view, and how good sales organizations can effectively communicate their value propositions during the sales process.  

 

In part 1; we'll discuss how an organization should decide how it's going to RFP and what they need to look for in the open market.  A clearly defined need from the client will help drive a well run evaluation of platforms as so many SaaS and marketing technology have similarities and need to accentuate their differentiators to provide a viable solution.

 

Jason:  "Steve, focusing on marketing technology, what are the triggers that cause and organization like yours to consider either adding a new service to your processes or replace and existing vendor?"

 

Steve:   "Probably the biggest trigger is the need to increase the impact marketing technology can have on business results.  Over time firms have seen significant growth in the online users/customers/subscribers they serve as well as the amount of content/SKU's/ they offer.  Due to this growth, connecting a buyer with the appropriate product has become more difficult. Firms need to add to their arsenal of interactive marketing tools to better identify the consumer and present an attractive offer quickly.  That need drives the request to add capability."

 

Jason:  "That makes sense, particularly as new needs are identified.  New add ons in terms of need and technology.  But what about when it's time to replace a vendor or upgrade?"

 

Steve:  "As far as replacing a current agency or vendor (A/V) I use the following guidelines.  

• Have your business results improved during the time you have been working with the your A/V?
• Do they help you innovate around YOUR core competencies?
• Do they bring you ideas that spark your desire and courage to innovate?
• Has their customer base grown?
• Do you get access to top thinkers at the A/V?
• Are their business results growing?
• Are they pushing you or are you pulling from them?
• Do they have a thoughtful and plausible strategic roadmap?
• Has their quality been improving?
• Has your account management been stable?

If you answer NO to 3 of these questions put them on a watch list and have a fireside chat with them.  If you answer No to 5 or more, it's time to start looking."

 

As you can see, the internal process a company goes through to arrive a decision on selecting a new technology or replacing a vendor boils down to assessing performance and business metrics that are focused on growth and forward thinking.  In the next installment of this "coffee" chat, we'll explore what the buyer goes through to determine which elements are important during the needs assessment.

 

Steve blogs at http://www.expedientmeans.com/