Prioritising projects related to digital transformation has never been more important. Goal Group’s Vicky Dean outlines the importance of filtering through the smoke and mirrors to find exactly the right vendor
As we emerge from the COVID-19 pandemic, companies the world over are analysing their business model and prioritising projects related to digital transformation, legacy system replacement, risk management, and automation, while concurrently being driven by sustainability and ethical change.
All these considerations, coupled with increasing industry competition, can make the buyer’s journey overwhelming and difficult to navigate. Over the last couple of years, the turmoil created by the pandemic has specifically declined revenue and B2B sales. This factor, paired with remote working and elongated sales cycles, has driven competition to a new ferocity.
Given increased scrutiny and regulations hitting the financial services industry, your decisions are now even more important. Your vendors should not only perform their services to a high-class standard, but additionally support and represent your business (albeit in the background).
You would not take on clients without due diligence or know your customer (KYC), so let’s turn ‘KYC’ into ‘KYV’ – know your vendor!
Reflections
One of the key considerations for this process is to see how customers have reacted to and evolved over the pandemic: did they remain constant, or did they use the time to innovate, drive change and improve?
The financial services industry is modernising in ways that would not have seemed possible, even a mere two to three years ago. It is so important to engage with customers and embrace change, while always being conscious of ways to improve, transform digitally and support every step of the client and their prospective journey.
Without a successful sale, followed by an excellent client service model, a client can quickly become an ex-client.
Ensure you are comfortable with the handover after the sale is done. If done right, the client service journey should be a lot longer than the sales cycle and should exceed your expectations.
At Goal, we have strategically and deliberately placed a regional head of sales as global head of client services, to ensure delivery of our products and services is consistent with the messaging and promises made during the sales cycle.
If you want to see something, ask for it; do not just rely on what you are being told. If the purchase involves automation, applications, or processing, do not be shy in asking for a demo or proof so you can see how it works and whether it will satisfy your demands.
Treat the process the same as if you were buying something for yourself. We have all ordered something online which we have not seen properly (aside from a few select images), and been disappointed when it has arrived.
Making the same mistake with your vendor choices can affect your bottom line and reputation.
Therefore, avoid risk and do your homework up front. Growing up, all of us were told that: “if it seems too good to be true, it probably is”. Keep this phrase with you through the process, and do not be afraid to ask for proof.
Even more important than the products and services are the people you interact with. Pay attention to the people you converse with. During the sales phase, everything they do and say will reflect the type of person they are and the company they are representing.
The sales cycle is often the most important in terms of relationship building, as this is usually the first, and sometimes only chance for vendors to meet with clients and present themselves, the company and the products and services they are selling.
Everyone has a different selling style, but to be able to establish and build genuine and lasting relationships, interactions should be balanced and feel more like a conversation than a hard sell.
Do not be put off by the subject matter — even the dullest of subjects can be interesting and informative if they are presented with passion and enthusiasm.
The presentation is often a reflection of how the employees rate their products and services. If my career has taught me anything, it is that you have to believe in what you are selling — if you do not believe it, your clients will not either.
Honesty is not the best policy, it is the only policy. A relationship can only be established and built upon if vendors are honest about what they are selling and how it can help to ease pain points.
Remember that you are the client and deserve the best fit for your needs. By asking questions, requesting demos and presentations and suggesting other departments attend calls and meetings to increase your comfort level, can only improve the relationship and elevate the process.
Involving additional departments, even through a request for proposal (RFP), or vendor risk assessment, prior to a decision being made, will provide further insight into the type of organisation you could be dealing with.
Seeing beyond the smoke
More bodies and a bigger company does not necessarily mean better service or a more successful company. In a world where navigating and minimising risk are of the utmost importance, and with increasing scrutiny on sustainability, companies should be looking to automate where possible, migrate to cloud-based technologies, and provide local support. Additionally, automation and applications often remove the risks associated with human and paper processing, and due to this, they do not need as many bodies to run the show.
Throughout discussions, companies will promote their strengths and USPs, but it is important to remember that what one may see as a strength or USP, another may consider as standard.
Given that potential vendors are given limited time to pitch to prospects, they will want to promote what they believe is the best of their service offering, and showcase their strengths in order of priority, whether this be automation, integration, knowledge, experience, or coverage.
Before you discount the other choices, make sure you verify with them that they cannot also offer the same thing that appealed to you with another vendor. Weaknesses will often be addressed by competitors as a distraction technique.
At any rate, the key message is to ensure that you base your decisions on what you see and experience, and not what you hear. Do not be afraid to ask the tough questions to allay any concerns you may have, based on what you have been told by others.
One of the biggest and most important considerations is price. It is common for pricing to be in a similar ballpark for comparable services and products, but do not dismiss a vendor immediately due to pricing, if they seem too expensive or too cheap.
Reduced costs can be due to automation or lower overheads, whereas more expensive costs are usually because of an elevated service offering, market reputation, and in some cases, because of complacency. It is always important to understand a pricing structure or offering, and vendors will be able to provide explanations. If they have a volume- or value-based pricing structure, they should provide some kind of analysis to ensure they provide you with compelling and flexible pricing. The buying process can be overwhelming and stressful, but like a great pair of jeans, if you keep looking, eventually you will find the perfect fit. As the world continues to emerge and adapt to a new normal, be prepared for vendors to come in with their ‘A’ game.
Remember you are the client, and you should drive and control the process, so that you are happy and comfortable with the choices you make. Be mindful that not many vendors come with a returns policy or money-back guarantee! Therefore, ask all the questions, request to see applications and automation. Do not worry about making demands. Gather references, do the RFP, build real relationships, filter out the noise and see through the smoke and mirrors.
