Rodney Bint is a company director from England. He's worked for many years in the international sales arena and has also worked with New Zealand IT companies and NZTE's Beachheads programme.
As the keynote speaker at NZSA's Networking Dinner on 9 June 09, Rodney shared some of his experiences and provided tips to help New Zealand software companies thinking of selling in the UK and Europe.
Our thanks to Rodney for his permission to print the following excerpt from his presentation.
What about selling in the UK?
Why on earth would someone in the UK want to buy your software? You're 12,000 miles away, you sound like an Australian, and no-one has ever heard of you. If you don't know the answer to this, then you really should not be thinking about selling in the UK.
So let's assume you do know why
You've done your market research, haven't you? There's a potential market large enough to support your efforts, isn't there? What you have is better, it's unique, it fills the gaps, it saves hours, makes more profit for the company - maybe you even want to sell it at lower cost (never cheaper, that's a bad word).
You need to get through the door
How? You've heard the UK is in recession, no-one wants to spend money they don't have to, and businesses are downsizing. So there's no potential business there, right? Poppycock.
When 'big business' is in recession, smaller ones have a great opportunity to grow. They often need to expand quickly or increase capacity without increasing staff levels, or improve efficiency to allow time to concentrate on additional customers. Remember, the UK is built on the success of small businesses, not multinationals.
In a recession, you'll find a large number of UK SMEs looking for that 'edge' against the ailing corporate. And that is why you can sell software in the UK in a recession.
If your software can provide that edge, then you should parade your wares throughout your market sector; make phone calls, push for introductions, even camp out on someone's door step until they see you … but get in there. It's hard work, but it is rewarding.
Thoroughly research your customer first. Don't go in blind and try to guess where the pain is. That's a real turn off to your decision maker. Ask questions beforehand and talk to staff lower down the food chain, too. They're usually a great source of what doesn't work and where wasted effort is.
OK - so now you're in the door
Have you got a decision maker or a decision influencer? A decision maker is 'king'. A good influencer who wants your product will put you in front of the decision maker. A poor influencer will just ask for a price. All can be converted to sales, but you need to know early on which one you're dealing with.
You can of course use the American idea of 'Five Dimensions of your Customer':
Demographics: who are they?
Psychographics: what kind of person are they?
Sociographics: what is important to them?
Value Perception: what is driving the decision?
Business Orientation: how do they make decisions?
All that apart, in the end people always prefer to buy from people they like and trust. You can be as scientifically savvy as you could possibly be, but if the buyer doesn't like you, they won't buy.
The Meeting
In the UK, the meeting always starts with a preamble. It's where we English discuss the weather, the cricket, holidays and the like. It establishes the pecking order, but it is always interspersed with some pertinent questions about business.
The first question a prospect will probably ask is "where are you based?" If the answer is not somewhere in the UK, then you're behind already (this also goes for France, Germany, Spain, Italy, etc). So get a UK address.
The second question is usually "who else uses your software?" You need early adopters in the UK and great referees from your existing client base. One in the UK is enough to start with, three are better. It’s even worth considering a very low return on your first UK client to establish credibility in the market. An early user is unlikely to say to his peers that he made a mistake, even if your software is not quite right for the UK market and is still undergoing 'anglisisation'. Remember, not many like to be first (new technology will attract 'technophiles', but a new version of something existing will not, unless it's very different).
The third question will be "how can you support us from New Zealand?" You do need a local phone number in the UK (not your salesman's mobile either). It needs an English voice answering it. After that you can transfer it anywhere you like. You can make good use of the 24/7 service option by having out-of-hours calls answered in New Zealand. Make a positive of it - "our New Zealand helpdesk are on their normal day shift (wide awake) when you phone with a problem at night".
The Demo
Don't oversell. Listen for the buying signals, don't just carry on showing everything your software (your baby) can do. Over half of failed presentations are because the customer perceives the solution to be too complex, bigger than what they need, or paying for features they don't use. When you get a buying signal, eg "that will solve our problem", shut up. Let the customer sell it to themselves.
You might not close the deal on the first signal, but you've now got the customer animated and in tune with your software. Let them get "hands on" and ask them what else they need it to do. When the customer clears three areas of pain themselves, you should find the sale easy.
So, you've done the demo and you're still talking. What do you do next? Do you quote?
The Quote
Traditionally a quote is a document used the world over and in every industry to confirm in writing what is being offered for sale. In most countries, this is a legally binding document. And, because of that, it's filled with just about every reason a prospective customer should NOT buy anything from you. And it looks like a bill. If it looks like an invoice, if it smells like an invoice, it's going to feel like an invoice. So make it into a proposal instead.
The Proposal
A proposal should not be a surprise package. Be sure you've agreed the price, the delivery and the payment terms before you leave the customer. If not, then you can be sure it won't be what the customer expects.
Do you include your terms and conditions? Are they in small faded print on the back of your quote? Why? Didn't you explain the terms to your client? Are you expecting a court case? Get away from legal terminology and get a short, simple set of terms and conditions that everyone understands.
Price is valid for how long? If you offer to hold your price for 30 days, what happens when the client phones up after 40 days? Do you start all over again? If there's a valid reason for a short time window on price, say why and be honest, eg exchange rate changes mean raw components are higher or suppliers have increased their prices. That doesn't work when you're selling software.
Don't use E & OE in a sales document. What it really says to the customer is "whatever we've promised you doesn't count because if we fail to deliver what we said we would, we can say we made an error or there was an omission".
If you're trying to sell at your higher price or need longer to deliver your solution, then don’t build barriers.
In the UK, software buyers think that they have an edge, that there are alternatives out there in most cases, that they can play one off against the other. Unless you're number one in your field or have a unique feature that the customer needs, you must make yourself the easiest to buy from, you must be the most flexible on delivery, and you must make it easy for the customer to choose you.
If you got an invitation to tender from the New Zealand Government, it would tell you exactly how to lay out the document, what the requirement is, what the timescales are, maybe even what the price band is, and when to submit everything by. And you'd do it that way, wouldn't you? You would because it's easy - the thinking has been done for you.
Apply that approach to every customer and you'll be successful. You know what the elements are, so engage the customer, ask the questions, and deliver a proposal that is meaningful to the customer. A good sales company treats every prospect as an individual.
Five Elements of a Good Proposal
What does the customer actually want and how will this add benefit to their business (objective)?
What do you have that can achieve those objectives (recommendations)?
What extra features do you have that will add value to their business (additional benefits)?
How will implementing your solution increase the profitability of their business (financial reward)?
How will you be around for years to come to ensure prolonged benefit (after sales care)?
How does your prospect receive the proposal?
By fax, email, post? You're proposing a solution to their problems in exchange for an investment totalling thousands of pounds. You commit that solution to a few pieces of printed paper. You put it in a 50 cent and stick a $1 stamp on it.
Don’t do that - take it in. You'll increase your chances of a sale by 50% or more if you take the time to deliver your proposal by hand. Take your client through the elements, highlight how you've listened to their pain and found the cure. If you get that right then the final bit, the cost justification, is much easier.
And don't assume customers always understand. Ask if you're not 100% sure and make sure you get it right. The UK is becoming more like the US. Who do you sue? Get it right or be prepared to fight for your money.
