
Market-led innovation selling faces unique challenges in the Business-to-business (B2B) and business-to-government (B2G) landscapes.
The status quo is notoriously sticky; decision-makers often prefer the safety and comfort of established practices over the risks associated with adopting new technologies. Commonly, the, “this is how we do things here” approach to procurement.
In fact, the entire concept of Business Transformation refers to the fundamental changes an organisation needs to make to improve performance, adapt to market changes, enhance its environmental and social disclosures and outcomes, or achieve financial sustainability and longer-term growth.
In the context of market-led innovation selling, business transformation is ideal - it compels organisations to reconsider their status quo, embrace innovation, and navigate the complexities of change.
Mirror that with a business-as-usual hesitation - rooted in a desire to avoid disruptions and the fear of backing an innovation that might fail. This is particularly the case when many innovators are start-ups or small to medium enterprises (SMEs) with uncertain longevity or future shareholders.
The Dual Sales Challenge
As a result, market-led innovation selling has with it a nuanced approach, involving two critical sales phases.
The first sale phase involves persuading internal stakeholders, specifically an “advocate”, within an organisation.
These advocates need to be convinced that the innovation not only aligns with emerging market trends but is also reliable enough to warrant a departure from what went before.
This is particularly difficult when dealing with organisations that prioritise stability and compliance with established standards. In almost all cases, there needs to be a key strategic rationale to be acting now – i.e. an opportunity to be going early.
In this phase, the seller must initially focus on the compliance-driven aspects of the innovation and eek out precisely where the additional value to an organisation can be accessed before their competitors.
Via the advocate, the buyer needs to be able to make strong internal pitches, providing leadership teams with the motivation to make a specific transformational change. Demonstrating how the product meets and exceeds shifting regulatory requirements can provide a compelling case for change – and the Seller-Advocate relationship is crucial here.
In government procurement, where compliance with evolving policy standards is paramount, demonstrating the innovation’s ability to meet and exceed these standards can be a decisive factor having the innovation outlined in an Invitation to Tender (ITT). How many ticks can be made to a checklist of must-haves and nice-to-haves, all inside the same budget?
In commercial buying, what is the upside that implementing an innovation might bring? Let’s meet the compliance requirements, but what other advantage can we obtain that leads to: (a.) more revenue, (b.) increased recurring revenue, and/or (c.) increased profitability? Ultimately, what is the payback and what are the residual risks?
Once internal buy-in is achieved, the focus shifts to the external market - the second sale. Now, the innovation must be sold against the emerging competition, making differentiation a key factor.
It’s at this point, the value proposition needs to be clear, addressing the specific needs and pain points of the target market better than any competitor.
The ability to adapt the pitch based on ongoing customer feedback becomes vital. Any influence on the arising Request for Proposal (RFP) or ITT puts the Seller in a stronger position at the point of award.
The second sale is not just about “making the sale” but also about selling its continued relevance and superiority in a dynamic market.
This dual-selling process is a hallmark of market-led innovation. It requires sales teams to be agile, deeply knowledgeable about market trends, and capable of continuously refining their sales approach.
In doing so, they ensure that the innovation not only meets market needs but also stands out in a crowded field, securing long-term success.
Navigating the Risks and Building Trust
One of the key obstacles in B2B and B2G sales is the concern over the innovator’s stability. With many innovators being start-ups or SMEs, potential clients may worry about the risk of the provider not being around for the long haul or being bought by a competitor who may be undertaking an acquisition to bolster its vertical integration.
This is where the seller needs to build trust by demonstrating not only the innovation’s value but also the company’s commitment to long-term partnerships and independence and financial resilience. Providing evidence of financial stability, growth potential, or strategic partnerships can help mitigate these concerns.
Callala’s Approach: Bridging the Gap
Callala, works closely with technology companies that sense strong policy shifts and position themselves at the forefront of market changes, especially around ESG-related factors.
These companies often engage in market-led innovation by anticipating future demands, sometimes even before organisations fully recognise the need for change. Callala excels in this environment by partnering with these forward-thinking companies and helping them navigate the complex sales process in B2B and B2G markets.
Through this partnership, Callala not only assists in the initial sale—convincing organisations of the innovation’s potential —but also supports the ongoing process of securing long-term adoption.
By focusing on compliance, market trends, and the strategic advantage of early adoption, Callala helps technology providers and their clients succeed in a changing ESG landscape.
Aug 15, 2024
4 min read
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