Thursday, January 24, 2013

The Sales Learning Curve

Summary: 

For new products that just hit the market, it takes time for the products to be mature. Scalix is a company that just launched its new product based on Open mail systems. Unexpectedly, the product didn't get sold as good as Scalix thinks it will be. The reason include that the CIO of a company is not the one to make decisions, large companies need to adapt to linux, and that the product is not in its prime time. These reasons introduced the notioin of sales learning curve. The solutions to the problem lies in a new marketing strategy, which includes hitting linux users first and so on. The company ended up succesful with its new strategy. 

Key reason for failure:
1. CIO is not the primary decision maker for purchasing email systems even if he appreciate it.
The CIO is not the right person to talk to when the company wants to make a decision. They need to talk to the person who has the money and the authority to make the purchase. 

2. Many large companies need time to adapt to Linux systems
Linux is a system that works differently from Windows and needs time to adapt to the change. The company should work on the Linux community first and help teach people use Linux. 

3. The software is not ready for its prime time.
The prime time for the software is not now. The software is not really of great need now. In a few years, people will realize that need more and that is when the software should be put into market extensively. 

Solutions:
1. hit linux users first

2. Hire two in-house telesales people to lead sales . 

3. Save scare resources and focus on smaller market first. 

Seller's Point 
We have this awesome product which is technicallly advanced. However, it cannot get sold as we want it to be. The reasons are that the sales learning curve makes it slow for a new product to hit market successfully. Thus, we focus on what we can do and what we have. Start smalll and grow gradually. 
Buyer's Point
This email product is great but it could take too long for us to adapt into the system. Linux system is too novel for our employees. CIO's opinion matters but could not convince us to use this product when it take so much effort to implement. We may hold on for now and see if people with linux background can use it well and use the product when the time is right. 

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