What are the benefits and challenges of using proof of concept vs proof of value in solution selling?

While Proof of Concept focuses on technical feasibility, Proof of Value (POV) centres around demonstrating a solution's business value and return on investment (ROI). It involves showcasing how the solution can deliver tangible benefits, such as increased efficiency, cost savings, or revenue generation.

I have usually seen proof of concept (POC) to be a pilot project mostly focused on technical aspects. It usually involves process of identifying requirements, designing solutions, implementation, testing, demo and finally taking feedback. A robust technical scaled down version. In my experience, POV is a far more useful and better way in solution selling. Its primary goal is to provide evidence and quantifiable results that showcase the value and benefits of the solution in addressing the customer's business challenges. POV usually involves defining business objectives, designing of solutions, measurement and data collection, analysis of performance, quantification of ROI and business impact.

POCs also need to demonstrate value - such as validating a technical risk or unknown. There is minimal value for either party when a POC simplify verifies the most basic or common capabilities of an already proven platform or solution.

In my view, an ideal solution selling phase should involve POV followed by a POC to strengthen the value proposition of the solution. POVs help in conveying solutions' values, how it benefits the buyer in terms of time, effort and cost primarily. These 3 pillars when conveying while value selling helps build a strong foundation. These aspects are then proved in a POC for the solution sold. This could be testing the product in the stakeholder environments, demos, and assessing technical capabilities. While POCs are limited to enabling capabilities, POVs help in cross selling features, use cases and business opportunities.

Indeed, both POC and POV does provide customers benefits in making better and informed decisions. I would add that things differ from industry and sector. POC will provide a good technical fit but lacks in broader appeal for businesses. For example - while deciding/buying a CRM for a sales organisation, a POC will show you the fit with current systems and functionality, but a POV would be far better way in deciding. Every $/￡ counts and seeing a solution’s wider impact on business objective should always be kept in mind. I have seen this first hand and would always go for POV

Absolutely both POC and POV does have challenges in practice- POC is time and resource intensive. It has limited scalability too as usually it’s conducted in controlled environments. POC also suffers from decision bias. POV on the other hand face Subjectivity in measurement since defining & measuring can be subjective and may vary from org to org POV always have limited scope and time frame. It can also face complexity in business alignment as many parties’ involvement and addressing their needs certainly will be very challenging.

This is on dot, understanding the needs and pain points are of paramount importance. Customer should always be in focus during whole process. Salespeople tend to go towards feature and function rather than its benefits to customers or their fit with customers company/systems. Getting feedback and refinement followed by smoothing of whole experience is a must. Doesn’t matter if it’s POC or POV. Both these processes should eventually lead to closing of deal or at least an effort towards closing.

Indeed, they are not interchangeable/suitable for every solution. The best way to provide right method to customer will depend on how well they have been interviewed/ their needs identified. That becomes most critical step in the whole process as our offering/method and further steps will be determined by that. If the first part is not done properly or is incomplete the whole process may be jeopardy. My personal belief that in today’s environment where customer’s want exact solution to their problem + risk appetite for risqué ventures is less. They always look for better ROI and a solution that solves business challenges. POV is better and effective strategy in solution selling.