Wendrickx & Partners - Success stories
Customized Business Solution Increases Average Sale by 300%
This privately owned company was successful early on selling almost exclusively to the IT departments. Services Oriented Architecture is IT terminology primarily used by IT departments. They developed the Dutch Government website where all citizens can find answers to all their questions related to their relationship with the government, whether related to subsidies on building plans, university registration, public transport or road construction.
The company has a direct sales staff of 15 account managers, who are supported by 5 presales consultants and implementations are carried out by their own 50+ consultants or business partners like Ordina or Cap Gemini.
Competition comes from technology leaders such as IBM, Oracle and Cordys, but strangely enough also from Ordina and Cap Gemini.
The company could not leverage their successes at the Dutch central government to other organizations since they sold technology to IT departments and these were unaware of the value generated by the development environment, rather than selling Enterprise Wide business solutions to the ‘users’ of the SOA environment.
Average project revenue at new opportunities amounted to approx. € 60.000, and when primary project was successful the potential increased to larger agreements. Occasionally agreements of € 300-700.000 were realized.
Further difficulty was that since it was very difficult to prove value to the buyers, the length of the sales cycles could never be defined ahead. Therefore the revenue stream was unpredictable and the owners, both also managing directors, who were investing heavily in a positive cash float could not calculate their payback on the investments.
Managing Director in charge of Business Development and Sales – privately owned High Technology Development Corporation
CRITICAL BUSINESS ISSUES
Not meeting Sales Goals
The Managing Director in charge of Business Development and Sales confirmed that the reasons for this were:
1. Selling technology transactions versus enterprise wide business solutions
2. Inaccurate forecasting, ineffective resource utilization
3. Discounting during price negotiations
4. Not meeting revenue growth goals
5. Poor pipeline management, each sales person used his/her own method
6. Difficulty differentiating from other "product" companies
The Managing Director in charge of told us that he wanted to see a common sales process where when sales people were approached by potential customers that they would first evaluated the chances of winning a potential opportunity realizing that those would be active opportunities and that the sales team would primarily approach proactively the not looking market, creating value at business units instead of showing products to IT geeks.
He also wanted to reduce the selling time, number of customized proof environments and a lower intervention of presales staff during the sales cycle.
Wendrickx & Partners provided these capabilities
Within one year of the implementation of a common sales process methodology, the average sale increased by 300% to an average of € 260.000 with regular € 1 million agreements and the occasional € 10+million, based upon employing the "enterprise business solution" approach versus the single SOA transaction approach at the IT level. Revenue per headcount (sales reps, and other support) increased by ≈200%, which surpassed their overall projected revenue goals.