WHY OUTCOMES ARE THE NEW BUSINESS OPPORTUNITY
And 5 ways they deliver the deepest, highest margin customer relationships. We have spoken to hundreds of enterprise organizations who have bought hundreds of millions in technology and services, and 90% said they have always wanted tangible and verifiable solutions to their business problems. They define “tangible” as concrete business outcomes.
The tech startup ecosystems, which sell into all markets, are developing strategies to deliver business outcomes to as many customers as possible. They use digital technologies to create new offerings and complement existing ones. Then shift from the transactional process of selling products and services to developing deeper relationships and providing outcomes.
Which is turning into a fast-growing and profitable market segment.
It is a far cry from vendor promises which overwhelmingly, come up seventy to eight prevent short intangible value. The issue is they have never trusted vendor-partners to deliver on these promises.
- The absence of business outcomes has been the single greatest reason why long-term customer relationships suffer and turnover.
- The erosion of profits and sizable revenue growth with enterprise customers continues to falter because of this.
It impacts multi-year deals, upsells, cross-sells, and 8-figure customer relationships.
Customers have always desired solutions to problems. Not products or services, although they know that vendors continually fall short in this department. The basic needs have always been for end results. Smarter SaaS and tech vendors will produce 25X more value over the lifetime of their enterprise customers.
Why doesn’t every startup and business own up to this promise?
5 ways they deliver the deepest, highest-margin customers are:
- They focus on customer goals, objectives, KPIs, and success.
- It de-risks sales and proves vendors go the extra mile.
- Quantifiable outcomes are revered by the C-Suite and they show it with loyalty.
- It moves past transactional and into value-based selling.
- It builds lucrative partnerships with customers to jointly develop strategic solutions.
Software & SaaS firms have been accelerating the selling of outcome deliveries. Outcome-based business models (OBMs) are now in a host of digital technologies. Such as sensors, IoT, cloud, AI, ML, & predictive analytics. The market for Outcomes-related software firms is growing.
It’s approaching $185B and continues to accelerate.
Excerpts are taken from BCG, How Delivering Outcomes Changes Everything, Feb. 23, 2021, Konikoff, Mayer, Schmieg, Stephan, Trifonov. Always glad to share hundreds of blogs on selling value and getting to the C-Suite.