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I am constantly surprised at
how many software vendors offer a POC early in discussions with
prospects. Even worse, many of these organizations suffer from sadly low
win rates for their POC’s.
Here’s something to consider before
offering a POC: Your objective, as a vendor, is to secure the order using
the least expensive form of proof. Accordingly, here’s a quick
list of different forms of proof, from least to most expensive:
- Reference
call. This may be all that is needed for a prospect to be
convinced. They pick up the phone, call a colleague at another
organization and ask, “I understand you are using xxx from yyy
company. Two questions: does it do what you need and would you
buy it again?” Very inexpensive!
- Vision
Generation Demo. A brief Vision Generation Demo may be sufficient
for executives who simply want to find an adequate solution, rapidly, to a
non-strategic challenge.
- Technical
Proof Demo. Here, sufficient Discovery has been completed and the
corresponding maps closely to the findings uncovered in Discovery.
Great Demo! Workshop graduates frequently report that this has
secured the order without the need for a POC!
- POC.
The prospect needs a deeper level of proof than could be provided in a
demo and/or needs to minimize specific risks (network environment, user
culture, workflow specifics, etc.).
- Pilot.
While Pilots are often paid-for by prospects, they also represent the most
expensive form of proof. Many pilots result from substantial
implementation requirements or the need for longer-term use of the product
to confirm fit or value.
Offering a POC can often
(substantially) lengthen and increase the cost of the sales process.
[Note: For folks unfamiliar with the term, a POC is loosely defined as an implementation of the vendor's software into an environment that reflects the customer's data, software environment and/or processes. The customer (typically) wishes to run the vendor's software to reduce risks associated with the customer's environment, users/culture, data, and/or processes.
In some cases, vendors offer POC's to customers in expectation that "once they have it, they won't want to let it go" or as a competitive outflanking tactic.]
