Profitable digital sales transformation is dependent on strong leadership skills, collaboration between tech providers and sales teams, customer aligned sales strategies, and a dedicated sales force. We believe the three most powerful approaches right now are the private equity go-to-market strategy, customer success, and consulting partnerships/strategic alliances. The one thing they have in common is they all require an immense amount of trust. If there is one thing to focus on in your sales career, it is a genuine commitment to building and nurturing trust-based relationships rooted in good intentions, mutual benefit, and good-old-fashioned, human-to-human interaction. When your customers and strategic partners think of you as a trusted resource, they are more likely to take your advice to heart and have more constructive conversations with you. Trust enables intimacy and it opens doors. The key is mastering the art of earning it. That said, how can you best leverage trust to deliver on your promises?
The Strategic Alliance Ecosystem and Forming Partnerships
Strategic alliances are effective because they allow you to scale up at a much faster rate than through an internal direct sales team alone. It is important to identify partners with aligned values, compatible sales processes, and a working knowledge of your product. Forming partnership alliances can take a variety of forms, including:
- Implementation consultancies (like EY, PWC, and Deloitte) that handle integrations, configurations, and training as part of their core businesses
- Strategy consulting firms (like McKinsey, Bain, and BCG) that are closely aligned with target customers and are in a position to recommend software solutions
- Alliances with technology firms that can help you fill holes in your existing product
You can also sell through third-parties, which collect a commission on individual sales. This approach can include resellers, small independent sellers, and referral programs (e.g. 10% commission if you identify a lead, 10% if you help close it). It is a beneficial model because it allows you to capitalize on the network of connections and foundation of trust your channel partners have already built.
The process of forming strategic alliances often requires closing one deal, doing good work, and continually keeping in touch with the people you have relationships with. Ultimately, you will recognize when you jive with an organization and see who influences a deal, including both internal executives and external entities such as legal, accounting, and strategy advisors. The key is to take a long-term view and to expect to give more than you take.
Private Equity Go-To-Market
While there is no one single approach to software sales, we believe the Private Equity Go-To-Market model is the most efficient and effective relationship-based sales channel, bar none. This model works off of a private equity company’s portfolio. Established private equity companies often have a large number of companies within their portfolio. When software companies align themselves with those private equity companies, they gain access to their portfolio and the operating executives at each of those companies.
Although in years past their work focused mainly on financial re-engineering and cost cutting, today private equity companies are also tasked with driving growth for companies within their portfolio. Cloud software helps companies re-engineer finances, streamline processes to cut costs, and grow. The combination of the high-talent operating partners with the value cloud software solutions offer creates an ideal environment to sell products and services on a scale once thought impossible. The PE model allows you to get in front of one operating executive who, after seeing your company deliver great products and services for one company, can and will introduce you to more companies across their portfolio. The model is based on one simple concept: happy customers are the best salespeople.
Selling in partnership with PE companies is not a traditional sales process and requires a willingness to solve problems, not a salesperson with a pre-packaged solution. This is critical because the PE model involves strategic thinking, patience, and a genuine inclination to respect and serve others. Like everything else in cloud software, relationships and the value you provide is what will drive your success. If you deliver more than you promise and your solution is effective, the operations partner will introduce you to the entire portfolio. If you drop the proverbial ball or your solution does not deliver, you will be shut down across the portfolio.
The Endgame
Whatever path you choose, earning the trust, respect, and loyalty of your partners and customers is essential. Cloud-titan Klaus Besier, well known for his role as President and CEO of SAP America, where he pioneered the channel/partnership sales approach and grew revenue from $50 million to $1 billion within 5 years, offers this advice: Put yourself in your customer’s shoes. In sales, you are nothing without empathy. Effective sales and leadership require putting yourself in your customer’s shoes and taking time to understand their pain points. Be honest about where you can add value and where you can’t. There’s no reason to pull wool over anyone’s eyes in sales. You will have longer term gains if you are honest and real every step of the way.
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