The Complex System: Story of an Entrepreneur

Deny The Demo

Completing a comprehensive demo is the most important step to selling software right? Or is it? I think this is a misconception about software sales. In the past, we've been focused on getting a demo at all costs; and I think it's been costing us. As I've discussed before, we recently began a transformation of our sales process and we're seeing that the demo is the last thing the world you want to do to get a deal done.

When we're selling to demo it means that getting a demo is the driving motivation of our conversation with a client. This leaves no space in our sales conversation to see if the prospect and the software we're selling are actually a fit. And yes, thats important. If its not a fit; it won't work in the end. For us, it really is about selling the right product to the right client and then making sure that both sides get the win. If it's not a win-win, then its a lose-lose. So it's critical that we start with the fit... if its all about the demo, then it doesn't matter if there's a fit or not.

Ok, so it's a fit, now, let's do a demo right? Well, no. Now it's about the value; we need to build a business case so both sides can see value. This can look different from client to client, so we can't assume it's the same for everyone. We need to spend the time to figure this out; that means we ask questions, lots of questions. And when a prospects says, ok, its good, just show me a demo. That's when we Deny the Demo!

Finally, we've got a fit and value has been created, now it's time to do a demo. Ultiamtely the demo is about demonstrating the fit and the value you just created on the call not about the cool features we have (and we do have cool features). The demo confirms all the hard work we've done at the beginning of the call, and now we know how to tailor the demo so we only show what we need to to. If we do the step work, the deals will follow.

What Customers Want

Here’s a simple concept that is often overlooked; what do your customers really want. Recently one of our best and oldest clients asked me that question. He asked how much time do I really spend trying to understand what our clients really want vs. what I think our clients want. I didn’t like the answer. It’s true; we spend more time speculating on what we think clients want based on our experience with them, than we do ascertaining what they really want. The big question is how do we get them to tell us? I guess we start by asking them.

Check the Power of Hybrid Software

I’m not sure if this term has been coined or not; but this is the first I’ve heard it. The concept refers to software that uses both desktop and web based capabilities. There really isn’t much in this space as of yet. It’s funny; I’ve been involved in software projects where I’ve argued both sides being the way. At Xoop, we touted the desktop app being the future. At Leads360, it’s all about the on-demand solutions in a web-based environment. But lately, I’m thinking it’s a combination of both. More than just updating a desktop app over the internet; it’s more than that. I think it’s a fully integrated desktop app that has a big web based component. Data is stored locally, remotely, or both.

Using my software TabLists has been a microcosmic experiment with hybrid software. TabLists is a web based to-do list management software, which, by the way, if you haven’t seen it, check it out. I created a simple desktop app that encapsulates it, and this gives the tool much more power.

I think we’ll see Leads360 moving this way soon. We’re working on several concepts that utilize desktop computing and would give us much more integration and control.

What’s the Real Value of A “Free” Trial?

A lot of clients ask us about “Free Trials”. Many of our competitors give them out like candy; but we don’t really offer them. If you are giving away free trials, you can’t afford to spend quality time training such clients. And if you do spend time taking care of clients in trial, you are taking away from the needs of your paying clients. We’ve found that customers often spend the first few days of a trial messing around with our software, then go away for a few weeks and check back in before it expires. If you are serious about using a lead management solution to increase your contact ratios and lead conversion, you should be willing to commit the time and resources to achieve that goal. That’s the beauty of an ASP model like Leads360. There is no software to buy, so if things don’t work out, you can just cancel. Clients that pay for a trial period get better results and learn quickly if our software fits their needs.

Getting Real About Software Development

I’m reading a great book by the guys at 37Signals. It’s exciting for me b/c their methods for the most part validate my experience and thoughts on software, especially web based software, development. It’s about rapid development; making changes on the fly; rinse and repeat. Rather than coming up with expensive and time consuming scopes that go stale before you finish them, I’ve always just “dug in” and started development. This can be dangerous, but with the web based apps, it’s so easy to fix and re-deploy changes. We let our customers drive the product and we let the ideas flow.

We occasionally let our customers drive us too far with “feature creep”. Sometimes we put to many settings, too many buttons or features. Something the guys at 37signals wouldn’t approve of. Our upcoming enterprise version of the LeadManger will really demonstrate how this works and how to get a handle on feature overload.

Premium Services are Really Worth It

As we move closer to launching some new products I think more and more about how certain features and services we offer make sense for some clients but not for others. And more importantly, clients that want more service, more support, more features and more security are typically willing to pay for it. In a recent blog post by Ryan @ 37Signals he talked about a new “premium” version of the email solution they have.

If you haven’t seen what 37Signals is doing, pick-up their new book Getting Real about software development. It’s great to see others share my thoughts on how to develop software.

He writes “What we learned from this is that people will pay for quality. Offer them something really good, and they will go for it. Our premium plan is aimed at businesses who have the need for a high-end solution, and of course, they are the ones who can afford it.” And he’s seeing a significant increase in volume and profits; I’m confident we will see similar results.

Software and the Frankenstein Solution

Frankenstein was a monster made up of other peoples parts all jumbled together. The problem was, as we all know, he didn’t work just right. Imagine a software application that was built like Frankenstein. Well it happens more often than not, I’ve even done it myself. As a software developer we often try to re-use code or applications in other solutions as to save time or money. This is fine in theory, but it can have the wrong results.

Additionally, most software applications are never done. There is no finish line, just another version. Unless a company goes out of business or the solution is bought by a competitor, that software goes through iterations of changes and updates. This is great for the end user because they are consistently seeing new features and added value. But what happens the solution?

Two areas are affected when improving a solution: 1) the front-end user interface is modified. 2) the back-end coding is added too.

Enhancing the front-end: This is great in theory, we’re going to add new features and the solution is going to be even better. But then how do we add those new features, from a user interface standpoint. Where do we put this button? How do we add that text field? Questions like this need to be answered. I think that Microsoft is probably the best company when it comes to improving user interface from version to version. Some people will argue till the cows come home the complete opposite or that it is in fact Apple that has the lock on this area, but this is my blog and I really love Microsoft. They may be the 600 pound gorilla, and as much as I don’t always speak highly of the 600 pound gorilla, but in Microsoft’s case there are some things I think they’ve done really well. Enhancing user interface from version to version is one of them.

But most companies aren’t Microsoft, and more importantly they don’t have the budgets that Microsoft has to develop the best user controls. In fact, one of the exciting changes in software development over the past 5 years has also been one of the downfalls in this exact area. Because developing a web application has become so easy and the technology is at the fingertips of so many developers, we are getting more and more software applications with horrible user interface. A software solution is truly only as good as its interface because if people cannot use it, then it won’t get used and then you don’t make money. When software companies that are made up of only developers, even if those developers are brilliant, you frequently end up with Frankenstein solutions.

Every new version and feature is just snapped on to the previous one. There is not logic, rhyme or reason for where things are placed. No attention to detail. No quality control. And what we are left with is a software monstrosity.

Adding to the back-end: If you’ve ever been in the software development business you’ll know there are many types of coders. You have slow coders and fast coders. You have the ones that comment everything and those that have no sense of naming conventions. Very few developers look at the code as a user interface for the back-end. Once in a while you will find a developer that is an artist; not necessarily a graphic designer, in fact you very rarely see that, actually, I’ve never seen that. But from time to time you get a developer that really sees the big picture and can create art in the back-end. I’ve dealt with 2 people in my life like that; let me tell you, it’s a real joy. It is what makes me continue to fall in love with the software world.

That being said, we frequently see the same problem on the back-end coding side as we do on the user interface side, Frankenstein code. And, what’s worse, when you have more than one developer making changes on top of the others, the different styles cause for a real mess back there.

That’s how you get a Frankenstein software application. This type of solution is very hard to salvage and you are often better off just scrapping and moving on. If that happens, don’t feel so bad because you can take all you learned and apply better practices the next time. I’ve done it before and I’ll do it again likely, but right now we have a Lead Management Application that is second to none I’ve ever worked on or seen.