Sales Management in Information Technology (IT) Company
Introduction
Information technology (IT) companies are constantly evolving and conforming to new technologies, trends, and client requirements. Sales management in an IT company requires a unique set of skills and strategies to effectively drive profit growth and market share.
One of the crucial liabilities of a sales manager in an IT company is to set clear and attainable deals pretensions. This may involve assaying request trends and client requirements, as well as working with the rest of the leadership platoon to develop a sales plan that aligns with the company’s overall business objects.
Another important aspect of sales management in an IT company is the capability to develop and apply effective sales training programs. This may include training on the company’s products and services, as well as on sales ways and strategies. Sales managers in IT companies should also be familiar with the rearmost technologies and trends in the assiduity, to be suitable to give precious perceptivity and guidance to the sales team.
In addition, sales managers in IT companies should work nearly with marketing and product development teams to insure that the company’s products and services align with client requirements and market trends. This may involve conducting market exploration, assaying client feedback, and relating implicit areas for invention.
Another important responsibility of sales managers in IT companies is to analyze sales data and identify areas for enhancement. This may involve tracking key performance indicators (KPIs), similar as sales volume, profit, and client retention rates, and using this data to identify trends and patterns.
What should you know before you approach the customer?
Before contacting a customer (suspect or prospect), you should be aware of the 4 Ks listed below:
Know your Company.
Know your Company’s Products & Solutions
Know your Target Customer Base
Know your Approach Strategy while reaching to a suspected / prospective Customer.
Know your Company
These are many points you may ask yourself to know your company in broad way:
What is your company’s name?
How long company is in operation?
Who are the management?
What is your company’s primary business?
How long has the company been around?
What are the company’s sales figures?
How many employees does the company have?
What products, services, or solutions does your company offer?
Who are the main current customers?
Know your company’s product / solution
Before learning more about the specifics of your company’s product or solution, one must consider the key distinctions outlined below:
What distinguishes a product from a solution?
If it is a solution, what kind of solution is it?
What purpose do they (product/solution) serve?
Major features/functions they (product/solution) offer?
Who can buy those (product/ solution)?
How will the product/solution benefit the customer?
What is the customer base for offered solution/product?
What is the pricing structure?
What are the prerequisites for purchasing the solution/product?
Product — one single thing that serves one need. “An article or substance that is manufactured or refined for sale.”
Solution — bring all the products together to solve the bigger problem under one umbrella. “A means of solving a problem or dealing with a difficult situation: “there are no easy solutions to financial and marital problems.”
Know your Target Customer Base
Who is the target customer for the product/solution?
Is the suspected/prospective customer truly in need of your company’s product/solution?
Does the suspected / prospective customer have a sizable enough income to purchase your company’s product/solution?
Does the suspected / prospective customer have the financial ability to buy and maintain your company’s product/solution?
Is your prospective customer confident in your company?
Is your prospective customer confident in your company product/solution?
Know your approach strategy
How should you approach your planned customer?
Telephone / Mobile Phone Call
Email
Personal Meeting
Traditional Letter Mail
Who is…….. in the customer organization?
Key Decision Maker
Key Influencer
Key Facilitator
Key Spoiler
When and how should you meet?
Just barge in!
Call and take an appointment!
Use a 3rd person to take an appointment!
Other factors to think and decide:
Whom should you meet?
What should you talk to the customer?
What would be required to convince the customer?
Market Strategy
What is Go To Market?
Go To Market Process is the ………
Strategic and Tactical aspects of delivering and supporting a product or service offering in the marketplace.
This includes products specification, pricing, distribution, market communications, sales, after — market support and customer management experience.
Have a thorough investigation for the following, keeping in mind that the market is a place where forces of demand and supply operate:
Total population
Potential market
Available market
Qualified available market
Target market
Penetrated market
Positioning
The term positioning refers to consumer’s perception of a product / service in relation to its competitors. Positioning is all about perception.
Perception differs from person to person and market to market. E g.: What you perceive as Quality, Value for Money etc. is different to my perception.
Differentiators
Identifying possible Competitive Advantages
Differentiation can be based on Products, Services, Channels, People or Image.
Choosing the Right Competitive Advantage
Which differences make for a Competitive Advantage?
Criteria includes:
Important
Distinctive
Superior
Communicable
Affordable
Profitable
Value Proposition
Value Propositions represent the full positioning of the Brand. Possible Value Propositions:
Save Money, Effort & Time
More & More
More for the Same
More for Less
The Same for Less
Less for much Less
Proposal / Negotiation / Order
A sales proposal is a document presented by a seller to an implicit buyer with the thing of convincing them to buy a product or service. A negotiation is a discussion between two or further parties to reach an agreement. A work order is a document that details the work that needs to be done, the materials needed, and the cost of the project. It’s generally used in construction and manufacturing diligence to communicate the specifics of a design to a contractor or supplier. In summary, a sales proposal is a document that’s used to sell something, negotiation is a discussion to reach an agreement and work order is a document that details the specific of project and helps in communicating the same to a contractor or supplier.
How to make the proposal?
What all should the proposal contain?
What are the terms you can offer?
What are the payment terms which you can offer?
What are delivery terms which you can offer?
What should be the validity of the offer?
How much would Customer negotiate?
In how many rounds would the negotiation happen?
With whom in your company Customer would negotiate?
Who would release the order?
Bidding
Who would make the technical bid?
Would we be eligible to bid?
Who would decide the specs of the technical bid?
Who would decide the terms of the technical bid and commercial bid?
Would the specs and terms suit us??
How be bidding documents prepared?
What are the documents required in preparing a bid?
What would it require to become T1 (who has offered the shortest timeframe for completing the project)?
What would require becoming L1 (lowest quotation received in tender as adjudged in the evaluation process as per the tender)?
How to make a Project Proposal (General Tips)
Use the standard Company Template
Use a standard Font:
For example:
Arial 16 /Bold for main headers
Arial 14 /Bold for sub-headers
Arial 11 or 12 for Text Content
Use Numbered Bullets
Only relevant Matter
There should be a covering letter or a covering e-mail.
Version control of the Proposal
Should always be sent as a PDF file.
Contents of Proposal
Header/covering page
Index
Introduction & Brief about your company
Project Objective
Project Scope
Project Lifecycle /Methodology
Minimum Infrastructure Requirement
Project Timelines
Project Commercials
Exclusions
Terms and Conditions
Cover Page
Should be a standard Company Template
Name of the Project
Name of Client
Proposal by
Proposal Date
Version
Index
One page containing not more than 10 to 12 main points.
Can be auto generated using the Index feature of proposal processing software.
Introduction of the company with its strength in brief (not more than two paragraphs).
Keep the Context of the project in mind.
Project Objective
Give a brief one para introduction about the client and its requirement.
One para introduction about the project and its objectives.
Project Scope
Define the Scope clearly in points. Typical Scope would include:
Delivery of Application Software (Modules covered in the Application Software (may
include the same as annexure))
Software Customization
Deployment (Data Centre Services, Deployment at Client Location)
Master Data Build-up
Legacy Data Build-up
Digitization if any!
Training
Implementation Manpower
Hand Holding Support
Project Life Cycle / Methodology
Define the project Life Cycle and Methodology
Preliminary Requirement Study
Basic Product Deployment
System Study and submission of SRS
Software Customization as per SRS
Training
User Acceptance Certificate / Document
Master Data & Legacy Data Build-up
Data Migration
Implementation Support
Hand Holding Support
Defect Liability Period
Post Defect Liability Period
Minimum Infrastructure Requirement
Minimum Server infra required.
OS /DB required.
Minimum connectivity required.
Any additional requirements.
Project Timelines
Define milestones
Project Kick off
System Study Report
Basic product deployment
Customized product deployment
User Acceptance
Warranty period
Use a good timeline chart if possible.
Project Commercials
Give the pricing breakup module wise scope wise.
Pricing clarity
Taxation clarity
Payment terms
Exclusions
Define the exclusions clearly (customization, additional modules, support exclusions)
Other Terms
Scope terms
Warranty terms
Project delay terms
Payment terms
Any other terms
Close the order with
Written work order in hand. Signing agreement — Both sides
Post-work order tasks
Acknowledgement Letter
Bank Guarantee / FDR etc.
Releasing Internal Work Order
Signing SLA (Service Level Agreement) in complete satisfaction.
Proper accounting by monitoring Deliverables.
Monthly Review Meeting to the Delivery Team.
Timely issuing UATs
Generation of Invoices
Collection of Payments
Collection of Certificates
Conclusion
Eventually, sales managers in IT companies should be suitable to manage connections with crucial clients. This may involve relating and targeting new business openings, as well as maintaining and expanding being connections. Overall, effective sales management in an IT company requires a deep understanding of the assiduity and the capability to suppose strategically about how to grow the business. It also requires a combination of specialized, sales and leadership skills to lead the sales team to success.