Uncovering Opportunity Costs in Deals
If you sell software, then you likely help companies improve efficiency and productivity of their company and users.
This is done by automating manual processes, enabling collaboration within a single tool or platform, leveraging AI, and eliminating redundant tasks or steps.
Almost every organization I work with is feeling immense pressure from a labor shortage due to the Great Resignation, which requires existing workers to be more productive and efficient.
This is a GREAT time to provide solutions which save their employees time so they can focus most on what matters most to their company.
That’s one of the reasons why many SaaS companies are thriving right now.
In order to sell SaaS effectively, you MUST show your customers exactly how much time your software can save their employees and quantify those costs to justify their investment. That is tablestakes and many AEs do this already.
However, where most AE’s fall short is they fail to uncover what those employees could and should be doing with the hours they will get back.
This is called OPPORTUNITY COST, and is even more impactful than cost savings.
Customers buy software because of loss aversion, or a belief they will lose something valuable if they don’t change.
For example, they may lose their customers, revenue, employees, their job, bonus, etc if they don’t change what they are doing.
But most often they are losing valuable TIME which they could be using to grow their business or focus on strategic priorities.
In todays video, I share how to uncover that opportunity cost and share questions which you can ask your customers to find this out.
My favorite of these questions is the following:
What could your team be doing instead, and what impact would that have on your business?