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A Framework to Build &
    Market Solutions
  The Case for Shifting from Product to
         Solutions Marketing

   Steve Hurley, Managing Director
We work with product and services based
companies to become more customer
focused.
We help B2B companies develop, market, and sell integrated solutions that
      deliver increased business value. Our main areas of focus are:

    Strategic                 Customer                   Offering                         Sales
   Integration               Connection                 Distinction                    Acceleration
     Aligning the       Deeping connections with   Developing and launching        Accelerating the selling
organization around a   customers and prospects    new and distinct solutions       process for solutions
  solutions strategy                                       offerings


                               Sample Technology Clients




                                                             © 2010 Solutions Insights. All Rights Reserved. 2
Let’s be clear on what we mean by a
   technology-based solution in B2B
   sectors…
ITSMA, a marketing association, developed the
following definition…

   A solution is a combination of products, services, and
   intellectual capital, focused on a particular customer problem
   which drives measurable business value.

….which has been generally accepted, applied or
adapted by most of the large, globally recognized
companies in the tech sector.


 Source: ITSMA 2007                     © 2010 Solutions Insights. All Rights Reserved. 3
Solutions Insights has its own version
 of what a solution is…

As a result of our experience in working with
companies that are looking to be build a competitive
solutions business, we’ve developed a definition with
a few important additions:
A combination of products, services, and
intellectual property focused on a business
problem or opportunity that drives
measurable business value and can be
significantly standardized.
The solutions components can be from
either the vendor and one or more partners,
and the solutions implementer can be the
vendor, the partner, the customer itself, or
a combination of the three.
                                      © 2010 Solutions Insights. All Rights Reserved. 4
Both buyers and sellers are motivated
to shift to solutions.
Seller’s Side                    Buyer’s Side
●  Product commoditization        ●  Buyers demand business
   continues to accelerate,          results from their IT &
   leading to…..                     networking investments, which
                                     has led to….
                                     4.3                                 4.5
                                                             3.5
                                                 2.5
                                                                                   ROI


                                   Product 1   Product 2   Product 3   Product 4


                                  ●  A stronger focus by the vendor
●  A steady decline in product       to develop offerings with a
   margins                           measurable impact on the
                                     customer’s business




                                       © 2010 Solutions Insights. All Rights Reserved. 5
Another motivation for companies to shift to
     solutions is the decrease in profits from
     simple services attached to products.

Market Dynamics 5 Years Ago:
•  Most sales included products
   and simple support and
   maintenance services; highly
   profitable
•  Small percentage of sales were
   just product or full solutions


Market Dynamics Today:
•  Most products and simple
   support and maintenance
   services sales have become
   transactional
•  Sales of full solutions have
   increased considerably
                                                                         © 2010 Solutions Insights. All Rights Reserved. 6
Source: Neil Rackham, presentation at ISBM conference, September, 2010
There are usually 7 steps in the solutions
transformation process.

Realization “Everyone’s pushing solutions; we better do it, too!”

      Pre-Mature        ““Yeah! We’ve shown that we’re a solutions company on our
      Enthusiasm        website!”

            Organization         “Wait…do we all agree on what it means when we say we
            Misalignment         offer solutions?”

                    Strategic        ““What do we have to change in our business model to
                    Confusion        successfully offer and deliver solutions?”

                           Sober
                                          “This is a lot harder than we thought it would be.”
                         Realization

                                  Initial         ““Great! We’ve done it with one part of our
      Solutions                 Successes         business…let’s transform other parts”.
   Transformation
       Process                         Long-Term      ““It’s working…let’s stay focused
                                      Commitment Solutions Insights. All Rights Reserved. 7
                                               © 2010 and committed”.
Solutions Marketing is all about creating
greater business value for the customer.


    Solutions Factors
•  More complex problems,
   resulting in a need to       Marketing Implications
   create more complex
   offerings                   •  Greater customer-centric
•  Greater personalization &      behavior
   customization
•  Increased organizational    •  A different approach to
   collaboration                  communicating the Value
•  Longer sales cycles and        Proposition
   more complex Value
   Propositions




                               © 2010 Solutions Insights. All Rights Reserved. 8
We’ve identified what product and
services marketers need to do
differently to market solutions.




                      © 2010 Solutions Insights. All Rights Reserved. 9
It’s not easy – in a recent survey, nearly 2/3 of the
    respondents felt that solutions marketing is harder
    than product marketing.

 Is solutions marketing seen as more or less                                       Is solutions marketing seen as more or less
 challenging than product marketing?                                               challenging than services marketing?
 % of Respondents (N=106)                                                          % of Respondents (N=115)


  Comparison to Product Marketing                                                   Comparison to Services Marketing

Solutions marketing
    and product                                                                   Solutions marketing                         Solutions
   marketing are                                          Solutions                   and services                           marketing is
equally challenging                                     marketing is                 marketing are                              more
        29%                                                 more                         equally                             challenging
                                                         challenging                  challenging                           than services
                                                        than product                      52%                                 marketing
       Solutions                                          marketing
     marketing is                                                                                                               43%
                                                            62%
   less challenging                                                                                     Solutions marketing
     than product                                                                                                 is
      marketing                                                                                           less challenging
          8%                                                                                                than services
                                                                                                              marketing
                                                                                                                 4%


                                                                                        © 2010 Solutions Insights. All Rights Reserved. 10
 Source: SI/ITSMA Online Survey: Anatomy of a Solutions Marketer, February 2012
While it’s harder, the benefits have
been substantial.

Benefits of being more customer-focused
and solutions driven:
●  Larger deals
●  Better margins
●  Deeper account penetration
●  Better customer relationships




                        © 2010 Solutions Insights. All Rights Reserved. 11
For more information, contact:
Steve Hurley
Managing Director
Email: shurley@solutionsinsights.com
Tel: 781-929-8570
Website: www.solutionsinsights.com




                                       © 2010 Solutions Insights. All Rights Reserved. 12

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A Framework to Build & Market Solutions

  • 1. A Framework to Build & Market Solutions The Case for Shifting from Product to Solutions Marketing Steve Hurley, Managing Director
  • 2. We work with product and services based companies to become more customer focused. We help B2B companies develop, market, and sell integrated solutions that deliver increased business value. Our main areas of focus are: Strategic Customer Offering Sales Integration Connection Distinction Acceleration Aligning the Deeping connections with Developing and launching Accelerating the selling organization around a customers and prospects new and distinct solutions process for solutions solutions strategy offerings Sample Technology Clients © 2010 Solutions Insights. All Rights Reserved. 2
  • 3. Let’s be clear on what we mean by a technology-based solution in B2B sectors… ITSMA, a marketing association, developed the following definition… A solution is a combination of products, services, and intellectual capital, focused on a particular customer problem which drives measurable business value. ….which has been generally accepted, applied or adapted by most of the large, globally recognized companies in the tech sector. Source: ITSMA 2007 © 2010 Solutions Insights. All Rights Reserved. 3
  • 4. Solutions Insights has its own version of what a solution is… As a result of our experience in working with companies that are looking to be build a competitive solutions business, we’ve developed a definition with a few important additions: A combination of products, services, and intellectual property focused on a business problem or opportunity that drives measurable business value and can be significantly standardized. The solutions components can be from either the vendor and one or more partners, and the solutions implementer can be the vendor, the partner, the customer itself, or a combination of the three. © 2010 Solutions Insights. All Rights Reserved. 4
  • 5. Both buyers and sellers are motivated to shift to solutions. Seller’s Side Buyer’s Side ●  Product commoditization ●  Buyers demand business continues to accelerate, results from their IT & leading to….. networking investments, which has led to…. 4.3 4.5 3.5 2.5 ROI Product 1 Product 2 Product 3 Product 4 ●  A stronger focus by the vendor ●  A steady decline in product to develop offerings with a margins measurable impact on the customer’s business © 2010 Solutions Insights. All Rights Reserved. 5
  • 6. Another motivation for companies to shift to solutions is the decrease in profits from simple services attached to products. Market Dynamics 5 Years Ago: •  Most sales included products and simple support and maintenance services; highly profitable •  Small percentage of sales were just product or full solutions Market Dynamics Today: •  Most products and simple support and maintenance services sales have become transactional •  Sales of full solutions have increased considerably © 2010 Solutions Insights. All Rights Reserved. 6 Source: Neil Rackham, presentation at ISBM conference, September, 2010
  • 7. There are usually 7 steps in the solutions transformation process. Realization “Everyone’s pushing solutions; we better do it, too!” Pre-Mature ““Yeah! We’ve shown that we’re a solutions company on our Enthusiasm website!” Organization “Wait…do we all agree on what it means when we say we Misalignment offer solutions?” Strategic ““What do we have to change in our business model to Confusion successfully offer and deliver solutions?” Sober “This is a lot harder than we thought it would be.” Realization Initial ““Great! We’ve done it with one part of our Solutions Successes business…let’s transform other parts”. Transformation Process Long-Term ““It’s working…let’s stay focused Commitment Solutions Insights. All Rights Reserved. 7 © 2010 and committed”.
  • 8. Solutions Marketing is all about creating greater business value for the customer. Solutions Factors •  More complex problems, resulting in a need to Marketing Implications create more complex offerings •  Greater customer-centric •  Greater personalization & behavior customization •  Increased organizational •  A different approach to collaboration communicating the Value •  Longer sales cycles and Proposition more complex Value Propositions © 2010 Solutions Insights. All Rights Reserved. 8
  • 9. We’ve identified what product and services marketers need to do differently to market solutions. © 2010 Solutions Insights. All Rights Reserved. 9
  • 10. It’s not easy – in a recent survey, nearly 2/3 of the respondents felt that solutions marketing is harder than product marketing. Is solutions marketing seen as more or less Is solutions marketing seen as more or less challenging than product marketing? challenging than services marketing? % of Respondents (N=106) % of Respondents (N=115) Comparison to Product Marketing Comparison to Services Marketing Solutions marketing and product Solutions marketing Solutions marketing are Solutions and services marketing is equally challenging marketing is marketing are more 29% more equally challenging challenging challenging than services than product 52% marketing Solutions marketing marketing is 43% 62% less challenging Solutions marketing than product is marketing less challenging 8% than services marketing 4% © 2010 Solutions Insights. All Rights Reserved. 10 Source: SI/ITSMA Online Survey: Anatomy of a Solutions Marketer, February 2012
  • 11. While it’s harder, the benefits have been substantial. Benefits of being more customer-focused and solutions driven: ●  Larger deals ●  Better margins ●  Deeper account penetration ●  Better customer relationships © 2010 Solutions Insights. All Rights Reserved. 11
  • 12. For more information, contact: Steve Hurley Managing Director Email: shurley@solutionsinsights.com Tel: 781-929-8570 Website: www.solutionsinsights.com © 2010 Solutions Insights. All Rights Reserved. 12

Hinweis der Redaktion

  1. Uncensored Sales Strategies