How to Sell Enterprise Resource Planning (ERP) to Small and Medium Business (SMB) Clients

1. SMB market situation
Big competition –The SMB market is characterized by a lot of competitors, who are trying to be market leaders. The competition is tough and we have to fight hard to get a sale.e

Little earning – At the same time, it’s a market that gives us a little earning. It is very hard to drive a consultancy firm living only from the earning from small a midrange customer.

Decision making about 1 year. The decision making does not come overnight. You have to have patience and ensure awareness. You have to keep pushing the same winner buttons: branch specific, state of the art solution and low cost price.

½ day to convince the customer. When the SMB customer wants to se you be sure that you are on immediately available. The SMB company doesn’t wait for you. You got typically ½ day to get yet another invitation into the world of the SMB company and to get the sale.

This leads and trigger white lies – It’s a hard market and we all know that when we’re pushed enough we start to make our little white lies. So everybody without exception makes these white lies or conceals the truth.

2. The characteristics of the SMB customer
Hardworking – They work 24x7x52. They know more than anybody that success in the SMB market requires hard work

Humble – They have a very humble approach to the way of running business.

Proud – They have built their business and are proud of it and remember we are only invited into.

Simple minded – they just love simple solutions. Often they cannot afford the luxury of endless meeting to make decisions

They know the art of survival – They know more than anybody the art of survival. The must be flexible and continuously change according to their business environment

Their business is their life. Once I heard a sales man propose daily fines if we didn’t succeed in meeting the go life deadline in time. He didn’t understand that they were more concerned about surviving the implementation. An implementation drains the business for energy and if its fails it will kill the customer.

3. SMB customer’s perception
It’s legal to say that Enterprise Resource Planning (ERP) is not good – Even persons on the street seems to know. We’re working uphill right from the start.

Too big – It can be difficult to maintain the overview of ERP since there are too many functionalities and constant changes. However, it is necessary to understand what is available and how it can benefit them. On the other hand it takes the customer 5 min to ask for the very deepest functionalities the ERP system. I feel sorry for the other systems. They must give up much sooner.

You’re lost in the ERP system – Nobody seems to know what is going on, there are too many bad stories and you cannot control development.

Not user friendly – ERP much be repeated again and again. The new customers haven’t heard the good news. Too expensive – It is an old story. Now it is cost effective.

4. Enterprise Resource Planning (ERP)
Superior Industry specific ERP template – It no problem to stand up and say: I believe that this is the right solution for you dear customer. The king of functionalities – This is it, I’m still amazed when I make new discoveries. ERP covers the latest best practices and process need for a specific sub industry.

The best documented system – this is in fact a unique selling point. You will get all the support you can get – Some of my colleagues just have to learn to ask within our organization or ERP politely. Just ask politely and you will get the help.

Respect – Everybody respects the ERP system. We know and the customer knows that this is state of the art. Often it is chosen in the preliminary phase only as a reference system to ensure that the cheaper system is good enough.

You have to earn the trust – You don’t immediately have the customer’s trust. You have to earn it.

5. Presales issues
Do not only use salesman. You cannot sell an ERP system with PowerPoint presentations or CATT’s alone. The customer has met too many liars.

Trust – show the system. The customers want to see the system in action in detail! They want to see it before they can trust you.

Be honest so it hurts – You have to be very honest and that may hurts. Then the customer will trust you. The point is that you don’t have to lie. Remember that you have the best solution on the market in your hand.

Trust it. Show the pain points and challenges – Show that you know their business by indicating paint points and challenges that can be eased by using the system. Often they are amazing of the possibilities in the ERP system.

Emphasize template. Repeat again and again that this is a template and that the major decision already has been taken. We don’t need 1 year of analysis phase.

Narrow the scope down. Continue to control and focus on the scope to keep on narrowing it down.

Don’t make it bigger every time the customer has a question.

Fixed price – This shows the customer that you really believe in what you’re selling.

6. How do you present the system?
Trust – show the system, they need to see it working in real life.

Focus on enduser functions. When you show it, focus on enduser functionalities. Customers often have a perception that the system is very poor in this area. Even though you might think it is so simple, show it anyway. You get acceptance right away.

Start from scratch and build up the trust. Build a relationship of trust and a common ground of understanding from scratch.

Show simplicity – Keep it simple. Don’t show 8 different approaches to a problem. Show only what you believe in is best for them. Be straight forward – Show how easily the ERP solution solves even the complex issues.

Answer “razor sharp” every time – When you get a question, answer “razor sharp” every time. Don’t say: “well it depends”. What kind of functionality do you have in mind? You are the master. You are the one bringing in the best practice show it.