How To Sell Technology to C-level Executives

CIO Magazine Reviews DigitalHatch's IT Sales Techniques!
by Paul DiModica, Editor BDM News (05-06-02)

Recently, I sat down with Jerry Gregoire, a CIO Magazine editor and the former CIO of Dell Computer and Pepsi-Cola to discuss DigitalHatch's book How To Sell Technology and our IT selling methods.

Jerry bought the book over the Internet and called me in February to interview me on the book, its content and our IT selling techniques. Jerry flew into Atlanta, Georgia where our firm is headquartered. Over lunch, we spent a very intriguing and mutually educational three hours discussing the technology sales process.

This may have been the first time in recent history, where an IT salesperson and a CIO both met on neutral ground to discuss each other's perceptions of how their job responsibilities intersected and how both groups can work together successfully.

To say it was enlightening would be an understatement.

From the get-go, Jerry expressed his dislike for IT salespeople (read the article) and the whole process of dealing with salespeople. From our conversation, I made three general observations:

1. Most C-level executives do not like salespeople.
   
   
2. Most C-level executives do not understand the IT sales cycle process.
   
   
3. Most C-level executives do not know how to buy technology.

So, let's discuss each one of these observations to help us as IT salespeople become more successful.

ISSUE 1
Most C-level executives
do not like salespeople.

This statement is sad, but true.

As professional IT salespeople, we have failed to earn the respect of C-level buyers and subsequently have positioned in their minds that we are like all other salespeople. All C-level executives have had experiences with salespeople through personal purchases of cars, houses, insurance and stock and bonds. Based on these experiences, they have lumped us into the same category.

C-level executives believe the statement "buyer beware!"

Why is this?

Well let's be honest - there are unethical technology and professional services salespeople who roam the streets selling vaporware and invisible delivery capabilities who have taken advantage of CIO's during the sales cycle.

Additionally, IT salespeople move from job to job on average every sixteen months so vendor interaction many times is inconsistent.

But, I think one of the most important reasons why C-level executives don't trust IT salespeople is because salespeople consistently use sales techniques that are designed for the insurance, car and real estate industries - not for the technology space.

Most IT salespeople have read various books on sales, attended sales training seminars that are designed for all industries or participated in some corporate training program. When they complete these generic sales training programs, they start interacting with executives in person using sales techniques that are not designed for technology sales.

Example 1

Do you think sending a letter to a C-level executive telling them that you are going to call them next week at 2:00 p.m. is going to work with the Senior Vice President of Operations of a Fortune 100 firm?

Do you think they will be waiting by the phone for your call?

Example 2

Do you think when you talk with a CIO on the phone for the first time that you are going to build respect by probing them with thirty questions immediately?

No wonder IT executives don't like us! Technology salespeople continually use sales techniques designed for other industries.

ISSUE 2
Most C-level executives do not understand
the IT sales cycle process.

Let's be honest.

CIO's come from a technical and advanced educational background, where life is based on scientific notation and a structured thought process.

Selling IT is not science.

It is an ever changing, dynamic business model that is continually adapting based on your firm's and your prospect's changing business environment.

So, by the very nature of the differences of the prospect and vendor's backgrounds, successful IT sales interaction takes knowledge, training and mutual respect.

But, what was surprising to me during my conversation with Jerry was his lack of awareness of the IT sales cycle as a business process. During our chat, he communicated his frustration about IT salespeople and blamed them for many of the woes of the technology industry. Bad software, incomplete technology delivery and systems that did not interface.

This is unfair.

In large companies and small, IT salespeople must deal with multiple checks and balances when selling to prospects. All IT firms have standard business procedures on proposals, pricing, delivery and installation of technology and professional services. IT salespeople are not independent silos selling to prospects, but instead are regulated communicators of their company's capabilities.

Most firms have some standard sign-off procedures required by their operations and finance executives before their salespeople can submit a proposal.

Being upset with an IT salesperson a year after a purchase was made seems unfair when the prospect bought the company's capabilities - not the salesperson's.

IT salespeople are the communicator, not the manufacturer, of the corporate message.

ISSUE 3
Most C-level executives do not know
how to buy technology.

Based on the above observation, it is clear many C-level executives do not know how to buy technology.

As an IT salesperson, how many times have you had an IT buyer change the specs after the purchase, reassign the project manager dedicated to your sale to more important responsibilities or just freeze the program because of funding - and then who does the buyer blame when the technology doesn't work or is not delivered on time - the salesperson of course.

Buying and installing technology is the responsibility of the buyer as well as the seller.

Buying technology and professional services is not like buying a car. You don't just take delivery and turn on the key. Buyers need to perform greater technical due diligence, better reference checking and supply committed resources to the project to make the installation process more successful.

Buying technology successfully today is based on both the prospect and the vendor committing to paper their expectations and then both committing to work together to ensure its correct delivery.

The key to successful technology sales and implementation is mutual respect by C-level executives and IT salespeople.

I enjoyed my conversation with Jerry. We both have different backgrounds and skill sets but he was open and communicative as I challenged him on some of his IT sales perceptions, and I think we both learned a lot.

To read the CIO Magazine's article about our book How To Sell Technology, visit http://www.cio.com/archive/050102/observer.html