How Win Loss Re-energized a Software Training Company

Overview

A software training company (the Company) in the Boston area engaged R² Strategy Partners to analyze why they were losing new business and to define winning strategies that would improve their bottom line. The Company has national coverage and has been in operation for 25 years. Knowledgeable training, high quality service and a recent foray into online training are perceived by management to be positives relative to the competition. 

While the Company appeared to have a solid base of customers, others were turning to the competition for their training needs. Senior management believed that the most important purchase criteria are quality of service and price, yet this was never proven through formal research. More recently, due partly to the recession, management has felt that lower priced competitors and offsite training have been chipping away at their business potential. 

Our Approach

To better understand the perspective of both Wins and Losses, we surveyed two groups - existing customers and companies who considered but did not hire the Company.  We asked unaided and aided questions about the decision-making process, purchase criteria, company vs. competitor ratings, satisfaction with the Company and future trends.

As suspected, existing customers were very pleased with the Company. They were happy with the quality of service, felt that training was tailored to their needs and responsiveness was strong in the sales process. Companies who did not hire our client had a different perspective. They felt The Company did not show a clear understanding of their training needs in the sales process and were concerned that training would not be tailored effectively. Some felt the Company’s price was high. Both put our client at a disadvantage relative to the competition. 

R² Strategy Partners tested some new growth concepts such as webinars, web 2.0 training and 'soft skills' training. While most were not of immediate interest, other ideas were mentioned. One was Windows 7.0 training. The Company is evaluating new ideas within a framework of act, monitor, and eliminate. 

Recommendations

Based on our research, we determined that there were three main areas that the Company needed to address to improve its market position:  

Price training according to market position: Does product offering (quality of service, experience of trainer, and reputation) warrant a premium price or is the target audience more price sensitive, thus requiring a low price/service approach? The Company needed to define its target market, their training needs and price elasticity to be more focused and competitive in the marketplace. 

 

Demonstrate business insights early in the sales cycle:  The Company typically has a solid understanding of clients and tailors training well, as evidenced by the Wins.  However, in some cases, our client does not bring forth that expertise early enough to be convincing.  We recommended that knowledge of the customer, industry and operations be communicated clearly in the sales process and proposal.  

 

Turn trainers into assets and make an integral part of the sales team: Trainers are contractors who typically get involved once the sale is made. The uncertainty about the trainer creates risk in the client’s mind. Given that the Wins rated trainers very highly, they can actually be an asset rather than a risk. We recommended that trainers be involved early in the sales process and that their approach mirrors the Company’s overall strategy.

Results

In a few short weeks our client took action.  Proposals, cover letters and sales approach were updated to focus on customizing to industry and company needs.  And, trainer background descriptions were depicted to more closely match the client’s industry.  Early results reveal that business close rates are improving significantly with these changes.