Tech Buyer’s Point of View: Is Price a Deciding Factor?
Not necessarily…Price is just one component I consider as a buyer of complex B2B technology. Understand what “budget” really means to your buyers to strengthen your selling approach.
While budgets traditionally have been black and white, according to Gartner, 43% of B2B technology buying was done outside any planned or budgeted projects, and they project that will grow to 60% by 2021. A strategic business leader can make a case to purchase technology if there’s significant demonstrated business value. As a seller of technology, it’s your job to help them understand and articulate that value to their organization.
According to the latest annual Demand Gen Report, deciding factors for more than 50% of B2B buyers in 2019 were:
- The vendor’s understanding of the buyer’s business and needs
- Relevant, easy-to-absorb information from the vendor
- Timely response to questions and requests
That doesn’t mean price is irrelevant. The cost has to add up, and I especially value vendors that make the number crunching easy me for—as do many of my tech buyer colleagues. Consider providing your buyers with cost/configuration calculators and allowing them to create their own “what if?” scenarios to negotiate internally across functions. Something else to consider: rethinking your pricing strategy can make the cost of entry for buyers more attainable. For example, Salesforce decided against charging big software license fees and turned their cost into a series of smaller operating expenses. This allowed small and medium sized businesses to tap into their technology, while cracking open the door to the enterprise market.
Once you’ve solidified the sale, it’s time to refine your customer success strategy. Effective customer support isn’t one size fits all. Depending on product usage, adoption ease and a customer’s tech fluency, Customer Success can look different for each sale.
Do You Know What Success Looks Like to Your Customer?
Take the N3 Customer Success assessment to better understand where you can bolster this area of your business further giving your customers confidence in their buying decision. You’ll receive a customized report from our Customer Success experts featuring 20+ recommendations personalized for your organization.