B2B Total Cost of Ownership (TCO) Sales Enablement Tools and Marketing Calculators are required to prove value, best competition and Fight Frugalnomics™.

1. Powering B2B sales to economic buyers
TOM PISELLO, Chairman & Founder
http://www.fightfrugalnomics.com
Blog: http://tompiselloroiguy.blogspot.com/
Twitter: @tpisello
http://www.alinean.com
Proving Your Advantage:
TCO Sales and Marketing Tools

2. Proving Your Advantage: TCO Sales and Marketing Tools
• A New Buyer Requires New Strategy & Tactics
• What is a TCO Comparison?
• TCO Comparison Marketing & Sales Tools
• Best Practices & Benefits
© 2011 Alinean, Inc.
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3. A New Buyer Requires New Strategy & Tactics
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.
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4. Buyers are Economic-Focused
• Size
More Leads to Close Same Executive Scrutiny Reduced Deal Size
Amount of Business
Longer Sales Cycles Increased Competition
More Stakeholders
Stalled Deals
© 2011 Alinean, Inc.
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5. Frugalnomics: the new mantra for B2B Buyers
On average 90% of corporations surveyed require
Quantifiable benefits
quantifiable proof of bottom-line benefits on most
are mandatory
projects.
Two-thirds (65%) of buyers indicate that they do not
Quantifying value is
have the knowledge or tools needed to do business
difficult for buyers
value assessments and calculations.
Buyers turn to vendors 81% of buyers expect vendors to quantify business
for value proof points value of proposed solutions.
Most trusted sources are: Industry Analysts (31.4%),
Third party validation is and Peers (28.7%).
essential
Vendors lag as a trusted source for only 8.1%.
Source: IDC 2010, survey of 200 B2B buyers,
Sirius Decisions 2010 B-to-B Buyer Survey on trusted sources.
© 2011 Alinean, Inc.
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6. Fight Frugalnomics™ with Value Selling & Marketing
Product Focus Solution Focus Value Focus
Discussion: Discussion:
Discussion:
• Customer knows issue • Prescriptive & Quantified
• Customer knows issues &
• Tie features / functions to desired outcome • Discover… Is customer
needs aware of issue?
• Questions to discover pain
• Compares product points
alternatives • Diagnose… How bad is it?
• Feature • Function • Price • Recommend solution to • Quantify … Value of change
solve pain
• Compare … Value vs. Status
Drive: Sales Led: Product Drive: Sales Led: Pain-Point Quo / Competition
Driven Driven
Drive: Diagnostic Led: What
is issue & value of change?
Solution
Vendor Trusted Advisor
Provider © 2011 Alinean, Inc.
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7. Facilitating the Buyer’s Journey w/ Interactive Sales &
Marketing Tools
BUYER’S JOURNEY
Loosening Exploring Committing Justifying
Committing Making the
of the possible to a the
to change selection
status quo solutions solution decision
DISCOVERY CONSIDERATION DECISION
Content Marketing & Sales Enablement Strategy
Help Align
Align buyer solution Validate/
Create reinforce
problem with identify with Make the
awareness choice
business needs in specific business case
around a new
issues; drive solving sets of for change Prove best
problem
urgency the business value
problem needs
PROVOCATIVE APPROACH VALUE APPROACH
Interactive White Diagnostic Assessment
ROI Analysis Tools TCO Comparison Tools
Papers Tools
© 2011 Alinean, Inc.
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8. Facilitating the Buyer’s Journey w/ Interactive Sales &
Marketing Tools
BUYER’S JOURNEY
Loosening Exploring Committing Justifying
Committing Making the
of the possible to a the
to change selection
status quo solutions solution decision
DISCOVERY CONSIDERATION DECISION
Content Marketing & Sales Enablement Strategy
Help Align
Align buyer solution Validate/
Create reinforce
problem with identify with Make the
awareness choice
business needs in specific business case
around a new
issues; drive solving sets of for change Prove best
problem
urgency the business value
problem needs
PROVOCATIVE APPROACH VALUE APPROACH
Interactive White Diagnostic Assessment
ROI Analysis Tools TCO Comparison Tools
Papers Tools
© 2011 Alinean, Inc.
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9. Driving More Effective Demand Generation and Sales Enablement
Demand-Gen Tools Sales Enablement Tools
• Developed for B2B websites and • For global sales enablement
direct marketing campaigns programs
• Provocative: Engage, Connect & • Empower consultative selling
Educate programs
• High Level TCO Comparisons • Detailed TCO Comparison
• Help set competitive agenda and • Help differentiate solution to
advance sales cycle multiple stakeholders & CFO
© 2011 Alinean, Inc.
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10. What is a TCO Comparison?
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.
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11. What is TCO Analysis?
Lifecycle costs of solution
$25,000
$20,000
3 or 5 year time frames based on
$15,000 useful life
$10,000
$5,000
Used to compare costs head-to-head
for alternative solutions
$0
Solution A Solution B
TCO ($ per user per year) Chart of Accounts used to assure
apples-to-apples comparisons
Planning
Needs to include business benefits
Retirement Acquisition
and ROI Analysis
Evolution Setup and
Install
Manage and
Support
© 2011 Alinean, Inc.
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12. Initial Purchase Price vs. Lifecycle Costs
Typical TCO Analysis
Data Center, Servers and Client Computers
Security Risks 7%
12% Purchased Software
9%
Availability Purchased Services
21% 9%
3% Communications
8%Application
Change Costs 4% Development
Facilities and Overhead 2% 16%
9% IT Operations
IT Administration
25% - 30% Initial Purchase Costs …. 3-4x More in Lifecycle Costs
© 2011 Alinean, Inc.
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13. Difference Between ROI & TCO
ROI = Make the Case for Change
TCO = Compare Costs of Different Options
ROI = X 100%
Total Benefits = TCO Before (As Is) – TCO After (w/ Proposed Solution)
Total Investments = TCO of Proposed Solution
© 2011 Alinean, Inc.
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14. TCO Comparison for Demand Gen
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.
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15. Demand-Gen – IBM Storwize RAS
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16. Profile & TCO Comparison
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17. Results Summary
© 2011 Alinean, Inc.
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18. Registration Options & Reports
Registration Considerations
 Up-front
 To get results
 To get report
 None
Integration
 Lead Nurturing / CRM
 Basic Registration
 Enhanced Profile
 Key Results
Executive Summary vs. Full Report?
Options: PDF / Word / PPT
Additional Examples: http://www.alinean.com/demand-gen/TCO_tools.aspx
© 2011 Alinean, Inc.
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19. TCO Comparison Report
© 2011 Alinean, Inc.
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20. TCO Comparison for Sales Enablement
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.
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21. ShoreTel TCO Commitment
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22. ShoreTel TCO Tool
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23. Organization Profile
© 2011 Alinean, Inc.
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24. TCO Quick Look and Comparison Selections
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25. TCO Details
© 2011 Alinean, Inc.
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26. Several Report Options
© 2011 Alinean, Inc.
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27. TCO Comparison Report
© 2011 Alinean, Inc.
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28. TCO Comparison Tools Best Practices
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.
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29. Best Practices
• Demand-Gen • Sales Enablement
– Keep inputs & results simple – Keep inputs & results simple
• 10 minutes maximum for demand-gen • Sales easily intimidated
– Layer details to provide access to – Layer details so sales can work with
review / challenge assumptions customers to review / challenge
assumptions / transfer ownership
– Pre-fill with default metrics
– Provide ability to customize / disable /
• Document assumptions
add chart of account line items
• 3rd party research and validation
• Case study examples for savings claims – Provide multiple report options
• Keep metrics up-to date • Format: Word / PPT
• Exec summary, details, different stakeholders
– Allow access without registration,
restrict details / report to registrants – Provide Support
• Training
– Strong call to action / next steps
• Proposal Center
– Use request to follow-up
• Deal Assistance
– Keep metrics up-to date
© 2011 Alinean, Inc.
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30. Typical Development Project
• Demand-Gen • Sales Enablement
– Week 1: Kickoff – Week 1: Kickoff
– Week 2: Initial Prototype – Week 2: Initial Prototype
Spreadsheet Spreadsheet
– Week 3: 2nd Prototype Spreadsheet – Week 3: 2nd Prototype
– Week 4: Initial Tool Alpha Spreadsheet
– Week 5: Initial Tool Beta – Week 5: Initial Tool Alpha
– Week 6: Initial Tool Pilot – Week 7: Initial Tool Beta
– Week 8: Final – Week 8: Initial Tool Pilot
– Week 10: Final
© 2011 Alinean, Inc.
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31. What is Required of You and Your Team?
• Collect and Provide Prior Art: • Participation
– TCO chart of accounts – Weekly meeting
– TCO white papers – Weekly review
– Spreadsheet or other tools – Alpha, Beta & Pilot review
– TCO oriented case studies
• Create Tool Development /
Review Team
– Marketing/ sales enablement
usually leads project
– TCO subject matter expert(s)
– Enterprise sales representation
– Channel sales representation
– Pilot review team (select customers
/ partners)
© 2011 Alinean, Inc.
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32. Facilitating the Buyer’s Journey w/ Interactive Sales &
Marketing Tools
BUYER’S JOURNEY
Loosening Exploring Committing Justifying
Committing Making the
of the possible to a the
to change selection
status quo solutions solution decision
DISCOVERY CONSIDERATION DECISION
Content Marketing & Sales Enablement Strategy
Help Align
Align buyer solution Validate/
Create reinforce
problem with identify with Make the
awareness choice
business needs in specific business case
around a new
issues; drive solving sets of for change Prove best
problem
urgency the business value
problem needs
PROVOCATIVE APPROACH VALUE APPROACH
Interactive White Diagnostic Assessment
ROI Analysis Tools TCO Comparison Tools
Papers Tools
© 2011 Alinean, Inc.
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33. Value of Alinean Business Value Selling / Marketing Tools
 Break through the noise with value add / personalized
Connect higher in organization & speak
content
language of economic buyers / CFOs  Elevate relationships from vendor to trusted advisor
 Drive 50% more leads / connections compared to other
Engage on value vs.
initiatives
feature / function / price  Reduce discounting and increase deal size by 20%
Automate development of personalized  Reduce proposal time from days to hours
assessments and business case proposals  Reduce sales cycles by 20-30%
 Convert 240% more prospects to sales than other programs
Prove more value, lower costs and  Convert 240% more prospects to sales than other programs

 Increase the competitive success rate of proposals by over
Increase the competitive success rate of proposals by over
competitive advantages 60%
60%
Deliver credibility with research and 3rd  Increase the credibility and acceptance of proposals by
100%
party validation
 Convert existing Excel sales tools into on-line interactive
Develop sales tools with lower TCO applications with no programming
 SaaS delivery
 Self-authoring for shared workload
 Enable all direct and channel sales teams with a scalable
Standardize and centralize value
sales /marketing tool suite.
selling / marketing efforts  Collect customer data, track and drive usage
© 2011 Alinean, Inc.
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34. Q&A
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.
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35. Thank You!
Alinean powered tools can significantly upgrade the quality of sales interactions
throughout the buying process, allowing prospects to drive at the beginning
through simpler, self-service tools and sales to provide greater depth as the buying
process proceeds – SiriusDecisions 2010
1. Your Sales & Marketing Ready to Do Business with Frugal Buyers?
Take this Diagnostic Assessment to Find Out.
2. Research White Paper: Sales Enablement and the Economic Buyer
3. Over 200% ROI from a Value Selling Program Sound Impossible?
Find Out for Yourself
4. Why Alinean? Alinean Vendor Profile (SiriusDecisions)
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.
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