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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

2540.0. "A Digital Customer has "no right" to bring 3rd Party?" by PUFFNS::ALLIN1 () Sun Jun 13 1993 18:30

     
   On a recent trip to deliver a consulting service I found a very dissatisfied 
   customer with the current and some of the previous Digital sales persons 
   assigned to this account.  

   Customer's primary complaints to me:

     1. This is a multi-national corporation and in a multi-vendor environment.
        There are internal groups aligned based on vendor preferences.  The 
        Digital people should be aware of this fact.  Instead of making it 
        easy for us to fight and win the internal battle they make it very 
        difficult: "we are being nickle and dimed even on pilot projects."  
        
        (Customer is currently piloting our PC based products.  Has thousands 
        of main frame users in the US alone, who could potentially migrate
        to our client-server environment.  He says that they are given only 5 
        licenses, need a few more but are presumably having a hard time getting 
        what they need interms of license and training for a successful pilot.) 

     2. Sales does not take the intiative nor is technical enough to keep us 
        informed on new products.  They spend all their time with senior 
        officers while the decision making process starts and is primarily 
        influenced at the systems management level.  Instead we are told "you 
        have no right to bring a 3rd party product in my account" when we buy 
        3rd party peripheral for 1/2 the price (recent purchase of a tape
       drive).
        
   At the completion of the delivery a meeting ("project completion hand-off") 
   was held (customer said he has not seen his sales person in months prior to
   this meeting) and the customer had a chance to repeat the "nickle and dime" 
   complaint to the sales team.  After the meeting I was not convinced that 
   the situation would change that much from the customer's point-of-view.  

   After hearing the sales team mention some other person's name (I assume 
   to be one of the senior officers customer mentioned sales likes to spend 
   time with) that they are working with vis-a-vis the pilot, I said to myself 
   "I wonder, if I were in the customer's shoes, I would want to hear that 
   kind of response even if it is true that someone higher up would be making 
   ultimate decisions but I have the responsibility to manage it?"  Why did 
   the sales person not just ask the customer if 10 or 12 licenses would be 
   enough and give it to me and worry about it once the product is here to 
   stay?  I also wondered if I would use the term "co-investor" for a pilot I 
   would want (as a sales person) and should give it all I got to succeed 
   especially when I know the market these days is a "buyer's market?" and the 
   competition is right around the corner.  
      
   Let me state that I am not posting this to "beat on the sales person" (I 
   doubt if I could sale you a glass of water in the middle of a desert and 
   profit from it) nor would I presume to know all the issues involved and the
   best way to "manage" this particular account.  What I saw and heard, however, 
   was enough to turn me into a "concerned employee."

   I would like to know if any of the above situation and approach deserves
   to be changed?

   					~dbk
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2540.1HAAG::HAAGRode hard. Put up wet.Sun Jun 13 1993 18:4611
    just wait a coupla weeks. this account will likely have an entirely
    different sales team or person. and they will quite likely know nothing
    of the history of the account. july 1 approaches. it's time for sales
    to pull their annual "shift logical left" with account assignments. and
    man, does this ever torque off customers. however, when it comes to
    this topic, from a customer perspecitve, DEC doesn't give a damn.
    
    i wouldn't give the time of day to a sales rep that rags on a customer
    because the customer brought in some other vendor at 1/2 the price. the
    customer is free to select whatever they feel is the best deal. more so
    today than ever before.
2540.2Unless You've Walked a Mile in my ShoesGLDOA::DBOSAKMon Jun 14 1993 11:0362
    Folks:
    
    In the sales world, there are some hard and fast rules.  One of them
    is:  "Sell high, leverage down."  The reason is that you want the
    underlings to listen to the boss. It is also a requirement to work with
    the technical recomenders.  This is where we fall on our sword -- Note
    the word "technical."  
    
    We should have a sales team in place -- The Rep is managing the
    Executive AND the business issues of the recommenders.  The
    recommenders should be handled by a Technical person -- In a technical
    discussion on a product, I can, at best, give a thirty second technical
    discussion -  And it isn't because I don't have a technical background! 
    The recommender needs more -- Sooo, without the technical person from
    DEC in the customer's face, the Rep is faced with the routine of "Tell
    me what you want and I'll get you the information -- The disconnects in
    that scenario are many.
    
    Regarding the nickel dime comment -- Customer's will drain you of time
    and money if you let them.  For the same reason the customer purchased
    a Tape drive at half the price of, we should expect AND TRAIN the
    customer to pay for what they need -- In their personal lives, they
    would never go to a store and ask for something for free.  They would
    ask for technical information on whatever it is -- That conversation is
    typically short and sweet.
    
    If the S/R was whacked about the tape deal, it may have been because
    the S/R was under the impression that he/she was in a partnership
    relationship -- That's where the customer has an understanding that if
    he/she wants hands on treatment, there's a cost for it and under no
    circumstances is it free.  That means that the customer may pay more
    for an item -- But it's done to cover the cost of hands-on service.  In
    the commodity market we can command a 15-220% premimum in that
    scenario.
    
    Regarding the comment that "DEC doesn't give a damn."  -- Here's the
    deal -- I am Digital to my customer -- They look at me and they see the
    word "Digital" tatooed on my forehead -- I care - about the customer --
    and about the level of profit we pull from a deal.
    
    I would rather walk than sell something at a loss -- The customer
    absolutely knows there's no such thing as a free lunch.  If they want
    the benefit of a very good company, then they should pay a fair price.
    
    Regarding the annual S/R shift left routine -- I'm not sure that
    happens very much anymore -- In my unit, I have been on an accoount for
    6+ years -- Other folks have been on their accounts 3+ years.  
    
    July 1 is going to be interesting -- I still have my same account and
    will be getting others -- I'm not going to be interested in doing the
    shift left routine on accounts because it means that I've lost an
    investment of my time in effort -- Most sales folks think like that --
    There is a benefit of changing accounts -- It's called getting stale --
    There are things in my account I could pursue but don't because I
    understand the account cold -- Another S/R might pursue a deal I'd pass
    on because he/she didn't know what I did -- They'd probably get the
    deal because they didn't know they were going to lose it.
    
    Regards,
    
    
    The Street Peddler
2540.3Lead, follow or get out of the way.SMOGGY::CAROLLAB.C.Mon Jun 14 1993 15:4025
    RE .0
    	Sounds like a bad situation.... here comes the pitch....
    	Drive all the customers issues to resolution. This does not mean 
    	you have to do it all, but you need to list the customers concerns
    	as you see them and comitt to resolve the ones that fall near your
    	expertise. Mail this to your boss and the sales person offering
    	your help. Involve everyone that is needed. Get commitments and 
    	follow thru. I know.... this is the account team process. Don't 
    	wait for the AIM ( Account Issue Management) process to fall on
    	you. You might be the glue to bring it all together for the	
    	customer. And NO I am not a "suit". I 'm an engineer that is still 
    	part of many account teams and AIM teams.
    
    re .2
    	Services people would love to hear from you. We have the technical
    	scoop (and if not we'll find it quickly). This is part of our jobs.
    	Don't sell from an island, involve everyone the customer needs and 
    	dont give up on internal resources.
    
    
    	When it comes time to deliver tough messages to customers, everyone
    	on the team is reading off the same page.
    
    	Lead, follow or get out of the way
    	
2540.4Not So SimpleWHO301::BOWERSDave Bowers @WHOMon Jun 14 1993 17:0235
    In a situation like this, it's all too easy for a newcomer to see
    everything as the fault of the sales rep. Not enough (free) licenses
    for the pilot...  Not enough (free) technical support...  Getting
    "uppity" about 3rd party purchases...
    
    How many free software kits had the customer already glommed?
    How much free support had already been provided?
    Did the customer have the common decency to discuss his 3rd party
    purchase with the sales rep?
    
    Yup, customers can bleed you dry.  Not only that; in my experience, the
    one's who talk the loudest and longest about "partnership" tend to be
    the worst bloodsuckers.  I've seen this company spend muchos dineros
    providing support for our "champions" only to have them:
    
    	decide that they could't beat the "IBM faction" and seek employment
    	elsewhere.
    
    	decide 3 years down the road that Sun Workstations were the wave of
    	the future.
    
    	buy third-party peripherals based on miniscule price differentials
    	without even giving the Digital rep a chance to meet the
    	competetive price.
    
    	giving a development project to a competitor (low bid) after
    	talking us into doing the functional spec well below cost (with the
    	clear understanding that the overrun would be bundled into the
    	implementation bid).
    
    Maybe we were suckers in some of these situations, but they all cmae
    from a sincere effort to develop a real partnership with our supporters
    in the customer organization.
    
    \dave
2540.5It is not a piece of cake !!!!ELMAGO::JMORALESMon Jun 14 1993 17:4230
    Re. Last Few.
    
    	A little horrow storry.
    
    
    		This customer tired because a third party distributor
    offered one of our products but have not follow-thru (have not
    delivered to the committed date) calls 'BP' Office.
    		BP Office call us and informed that this customer is not 
    happy because we have not delivered the product in early May as
    committed.   We told them, who has committed early May, please look in
    the system the S/W is not ready yet, it will be in May 27th, we will
    deliver then.
    		BP Office, calls the customer back (California Customer).
    In the meanwhile, we are expediting the S/W by Fed. Ex. P1 to deliver
    on May 27th per our commitment.    The California Customer decides to
    cancel the order, but he/she does not call us or BP Office to inform
    of their decision.   Several days latter the S/R calls us to inform
    about the incident.   We were ready to ship.
    		A two week period passed by.   The California Customer
    can not get the product thru the third party....who does he call.....
    you just guessed...us.   It is May 25th, and now desperate the
    Customer, after cancelling the order, wants the delivery...you just
    guess it....on May 27th.     We delivered on time.
    Now, I think this clearly depicts, what other noters have included
    here about customer behavior and our business saavy to work with them.
    The saying goes: 'The Customer is ALWAYS right...dont't get me wrong
    they are always right.....you have to be careful, tactful, have enough
    business saavy on how to successfully deal with them......It is not 
    a piece of cake.
2540.6SDSVAX::SWEENEYYou are what you retrieveMon Jun 14 1993 19:017
    I'm sorry, but .-1 is incomprehensible without a better definition of
    who "we/us" is, and more specifics about what was committed when.

    Rather than being a shining example of recognizing that the customer is
    right, it appears to be an example of the common internal
    mis-communication problems that have been discussed this conference for
    10+ years.
2540.7ZPOVC::HWCHOYMostly on FIRE!Wed Jun 16 1993 13:0117
    To be fair, let's not jump right on the sales rep. The customer wants
    to suck you dry absolutely exist. To be fair, there are also others
    that are fair (perhaps they were a vendor before?) and understand that
    everyone need their paycheck and there aint't no free lunches.
    
    I agree that "the customer is always right", but I also feel that
    beyond some degree of decency, it is also our right to walk away if it
    is costing us too much to do business with them. But then again, how
    many sales rep can do that? How many SUMs (Sales Unit Mgr) will accept
    it?
    
    Perhaps it would be more constructive to hear how people have
    successfully deal with such "blood-suckers" and come out alive. It
    would also be useful to hear from non-customer-facing people who might
    inject fresh thoughts and approaches.
    
    BTW, I'm a sales support techie.