How to Calculate Value For Your IT Services
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1 SOFFRONT SOFTWARE INC. 3 WAYS TO SELL VALUE OF YOUR SERVICES Soffront Software Inc.
2 Overview You don t get paid for the hour. You get paid for the value you bring to the hour. Jim Rohn Many of us in the IT consulting and/or services field do not always take the time to reflect on value. We think more in terms of doing and activity than we do about outcomes and value. We think in terms of hours and the costs associated with those hours. As services increasingly becomes a bigger portion of the revenue mix for technology companies, effectively positioning and selling services becomes a more critical skillset for the consultants and their staff to master. This paper will detail three critical things every executive consultant should be focused on for both themselves and their organizations. Communicate in Terms of Value You have to think and speak in value in order to show your client that you get it. The way to do this is to think of three simple things: Problem What is the client's problem? Solution How do you deliver the solution? Value What benefits does your solution provide? Don t make things more complicated than they need to be. This happens a lot as we get caught up in: day to day details, various issues of implementing complicated technical solutions, and the difficulties of working in different client environments. Sometimes you may need to step back from the day to day tasks to remind yourself of the bigger picture. Why are we here? What are we doing this work for? Usually, the answer is one of the following:
3 To increase revenue To reduce processing time and increase customer satisfaction To reduce costs To improve information flow, allowing quicker decision making When you think in these terms, it gives you clarity on the why and helps you to align your activities (the what ) to those things that are most important to the client. This demonstrates to your client that you understand their business when you communicate in these terms. You may be a technical consultant, but you are implementing technology to help their business. When clients have a services organization that gets it they are much more likely to buy additional services over time. Display/Quantify Value The next important thing for a reputable consultant or services organization is to master is the documenting and modeling of value. It s one thing to say, We ll help you reduce processing time and save labor costs. It is another, and better, thing to say, We ll help you cut 15% from your processing time and save $1-2 million annually in labor costs. I would imagine most of your clients need to put some sort of ROI (return on investment) model together for almost every investment request they make. They ll love you if you at least start that process for them. Getting started is always the hardest part of this because you don t know the ins and outs of their business. Just relax. You don t need to be perfect. Put some figures together in a spreadsheet and then you can work with the client to adjust the numbers after further discussions. You can also use case studies or testimonials that you have from previous clients that specify how their business has improved since using your organization s services. By being proactive about this, it helps the client out and it puts you in the position of why they should be buying your services. Being able to speak in terms of saving time, reducing costs, and speeding up processes to their customers brings the value. You re really making a case for your solution/services, and at the same time, helping them explain it to their bosses or stakeholders. Show Off Your Value Don t be afraid to show off your accomplishments. You essentially want to scream the value your services will bring to them. Nobody else is going to scream it at the client for you.
4 Be proactive about problem solving Solve problems before they ask. Create Value for Customers Sell customers on your services to solve their issues Create a winning proposition Don t be too salesy. Show ROI of your services and make it practical. The figure above gives a visual on how to create value for a potential client. When you create value in the client s mind, you start to become a trusted advisor compared to just a consultant. You become their go to resource whether you have the technical knowledge or not. They know you get it and have the ability to address their needs. After a while, your reputation speaks for itself. Clients are now calling you to help them get through a problem which gives you a leg up on the competition. Conclusion Selling value is what makes you stand out, not your services. There are 10 other consulting firms or IT services companies out there that do the same thing you do. Your trick is to know the value that you deliver, and showing your prospective clients what it is. Once you ve learned how to define, communicate, and help clients capture value is when you ll be on top of the world.
5 About Soffront Software Inc. Soffront Software Inc., a pioneer in the CRM market since 1992, offers end-to-end, fully integrated CRM solutions consisting of sales force automation, marketing automation, order processing, customer service, employee help desk and asset management, self-service knowledge management, project and defect tracking. For more information on how Soffront CRM can help your business build a more efficient and effective sales team, improve opportunity management, streamline marketing services, and enhance the forecasting process, please visit or call SOFFRONT.
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