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The ABC's of Selling Services
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It's pretty tough to sell product on the net these days.
Bigger companies have cut and consumed their pieces of the net profit
pie, and it's difficult to make inroads in a crowded market. If
customers want the product you're selling, it's likely that a bigger
company is also selling it-for less money. The real profit potential
for the net lies in business to business marketing. Businesses need
services. If you sell them the right way, you can make a profit
whether the customers' businesses succeed or not. Business to business
marketing is something ENTEX knows well. ENTEX plans, builds, designs
and maintains distributed IT infrastructures for Fortune 1000 companies.
It's a complex job, but the basic principles and strategies that
underlie the ENTEX success can guide your business to selling services
too. ENTEX CEO John McKenna explains how it's done.
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Assess
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Before even thinking of proposing a business solution,
ENTEX first spends the appropriate time assessing the client company's
needs. "The most important thing in the service business is understanding
the fact that you're generally selling something intangible," says
McKenna. "When a customer buys a hard product, they get to see it,
touch it, feel it, and decide for themselves. When we're providing
a complex solution for a customer, we make sure to go through these
six phases so that there's no disconnect or misunderstanding between
what our customer means and what we mean in terms of providing the
solution." It's a mistake to skip the assessment stage. You can't
offer a good design without first thinking of what it will incorporate.
"When another supplier has done that too fast, we tease them and
say, "It's like a second surgery. It's always more expensive." You
want to get it done right the first time. You want the doctor to
do the right diagnostics before designing the operation," McKenna
says.
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Design
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Next, your job is to design a solution for the business-one
that solves the problems you uncovered in the assessment. We can't
guide you through THAT-or you'd have to give us a cut of the profits-but
whatever you design should be fully explained to customers. "A statement
of work is no different from what a contractor might give you when
they do an addition to your house," McKenna explains. "The statement
of work spells out exactly what will be provided in the work you're
doing for them." You want your customer to know exactly what the
solution is going to look like. And both your company and the customer
must sign off on the design statement. That way everybody's on the
same page.
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Develop and Implement
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"Probably the most important piece of the statement of
work is a detailed project plan that specifies when each piece will
occur, what is the ENTEX responsibility and what is the customer's
responsibility," says McKenna. "There is a project plan with time
frames and dates. It's also the place where we highlight complex
tasks, because in the services business there's always some dependence
on the client. Let's say we're doing an outsourcing engagement for
a large customer and we're going to be doing password resets over
the net. We need to have access to their password files. They have
to have that ready for us at a certain time," McKenna says. "It's
the next step, where you've agreed on the statement of work and
now you're sitting there shaking hands and saying, 'Yes, and your
job is to have this information to us in this format at this point
in time.'" Next you'll have to implement the solution, but you're
not done yet!
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Review and Maintain
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Many companies feel they're done after the implementation
phase, but McKenna says that's shortsighted. "We have a concept
at ENTEX that you have to have continuous improvement. The world
changes so fast, technology changes so fast, customer needs change
so fast that if we are planning or hoping for a static environment
at all, it’ll be a disaster for our customers," McKenna says. Businesses
need to watch over their solutions, both after they are implemented
and beyond. Without that level of service, companies won't be back
for a second helping. Those are the steps that take your company
from zero to sixty with your customers. We gave you the framework.
Now go convince those customers to buy the whole building!
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