What are the best practices for measuring proof of value (POV) in solution selling?

1 POC vs POV

POC and POV are both ways of validating your solution with the customer, but they have different goals and scopes. A POC is a technical demonstration that shows that your solution can work in the customer's environment and meet their functional requirements. A POV is a business demonstration that shows that your solution can deliver value and return on investment (ROI) for the customer. A POC is usually done before a POV, and both are usually done before a final proposal or contract.

2 Why POC and POV matter

POC and POV are essential for building trust and credibility with the customer, as well as for differentiating your solution from the competition. A POC can help you overcome technical objections and risks, and show that your solution is feasible and compatible with the customer's systems and processes. A POV can help you align your solution with the customer's strategic goals and priorities, and show that your solution can generate tangible and measurable benefits for the customer. Both POC and POV can help you create a compelling business case and justify your pricing and value proposition.

3 How to prepare for POC and POV

Before you conduct a POC or a POV, you need to do some homework and planning. First, you need to understand the customer's pain points, needs, expectations, and decision criteria. You can use tools like discovery questions, value maps, and stakeholder analysis to gather this information. Second, you need to define the scope, objectives, success criteria, and timeline of your POC or POV. You can use tools like project plans, test cases, and evaluation forms to document this information. Third, you need to communicate and collaborate with the customer and your internal team to ensure alignment and commitment. You can use tools like kick-off meetings, status reports, and feedback sessions to facilitate this communication.

4 How to execute POC and POV

When you execute a POC or a POV, you need to follow some best practices to ensure a smooth and successful outcome. First, you need to focus on the customer's pain points and value drivers, and tailor your solution to their specific needs and goals. You can use tools like use cases, scenarios, and stories to illustrate how your solution can solve their problems and create value. Second, you need to measure and quantify the impact of your solution, and compare it to the current state and the alternatives. You can use tools like metrics, benchmarks, and ROI calculators to demonstrate the value of your solution. Third, you need to involve and engage the customer throughout the process, and solicit their feedback and input. You can use tools like demos, trials, and surveys to interact with the customer and validate their satisfaction.

5 How to follow up on POC and POV

After you complete a POC or a POV, you need to do some follow-up actions to move the deal forward. First, you need to review and document the results and outcomes of your POC or POV, and highlight the key findings and benefits. You can use tools like reports, presentations, and testimonials to summarize and showcase your POC or POV. Second, you need to address any gaps, issues, or concerns that emerged during your POC or POV, and propose solutions or next steps. You can use tools like action plans, proposals, and contracts to resolve and close any open items. Third, you need to ask for the customer's commitment and agreement, and move them to the next stage of the sales cycle. You can use tools like trial closes, closing questions, and negotiation techniques to secure and finalize the deal.