10 commandments… how to sell blockchain (or other emerging FinTech technologies)

Over the past few months I had been interacting with some blockchain, AI and communication startups from the FinTech sector.  All very well backed financially, with different business models and lots of enthusiasm to conquer the world with their breakthrough technology. And all asking themselves the same question: how the hell are we going to generate revenues before our investors’ money runs out. Apart from the obvious sales approaches, everyone tended to agree with a few core “do’s” and “don’ts”, which I thought would be great to share with others. 

1.    You are not selling technology. 

Technology is only an enabler that will help either achieve other objectives or solve problems. Do not use tech guys to do the sales pitch because nobody cares how your platform functions. Your customers care about revenues, cost savings, shareholder pressure, margins and improved efficiency and productivity. Your homepage should highlight your customers’ success stories about how, for example, they managed to add 10% revenues globally thanks to your company’s solution. Too many websites out there proudly show the technological excellence of what you do and that misses the point.

2.    You need to think like your customer. 

It is all about your customers’ needs, problems and desires. Your customers are not stupid, but you need to help them to think. You need to know everything about the company and management. In fact, you need to know more than they know about themselves, if possible. For example, try to understand what are your customers’ customers’ needs and come forward with ideas to help them to sell their products and services more successfully using your technology. I am big fan of “pain point analysis”, which is used by sales teams in other industries. This is all about mapping each stakeholder’s “pain points” to then gain focus on common interest to be solved by your offering. For example: CTO needs to achieve a 20% cost reduction over the coming 2 years, while a new CEO has been hired who has been promised a massive bonus if he/she delivers savings and manages to grow the business by 15% over the next 12 months, while the Head of Europe needs to beef up his/her customer base by 30%. You need to come up with a plan to deliver those different – and somewhat conflicting – results with your solution. And you need to make the customer feel that without you, they will not make it. 

3.    Educate your market and your customers. 

Introducing new technology is super exciting but also challenging. While our society is more used to and more adaptive to new technologies, resistance from customers toward new things comes from limited budgets, as well as, limited time, effort and people to implement new solutions. Customers are also getting somewhat tired of the “next best thing” approach from vendors. Big data and predictive analytics are examples of recent hypes that were to deliver massive savings and were absolutely “must have” items. It is important to align your solution to actual issues that people are trying to address or solve. Security, privacy, compliance (e.g. GDPR) are all very relevant topics. Nevertheless, you need to remember that your customers have not fully monetised their previous investments in new technologies so blockchain is often regarded like just another technology of a promise for which many customers don’t have the time and money, no matter how good your story is. You need to take the time to educate the market (e.g. use customers’ success stories) and keep educating your customers teams to get excited and ready for the moment when you will work with them. 

4.    Try to make your product “must have” instead of “nice to have”. 

Ideally you can find a regulatory and compliance angle which will make your offering necessary. But another good selling argument is that, “Your competition already has it!”.  Also, a business model introduced by a few startups is to have your customers as investors: this way they are self-incentivised to use your product and ensure its success.  

5.    Make sure your customers use your technology. 

The issue of companies that purchase new products and services that they don’t end up using is far too common. There is nothing worse than finding this out just before contract renewal date. Get your customers’ feedback all the time and act on it. 

6.    Your product is always in “beta” version and the whole company is responsible for the sale. 

Keep teaching yourself about the market, new trends, competition and, most importantly, constantly gather customers’ feedback. At the same time work well with the rest of the company, from developers to marketing and management. Keep feeding back all your intel from customers. Think about your product as if it has been always in “beta” version and that the whole team needs to keep improving.  

7.    Bankers are not good sales people. 

Due to the origins of blockchain technology in cryptocurrency, a majority of blockchain startups are set up and run by bankers. Then, they hire more bankers (except for developers), but when it comes to sales abilities, I am afraid bankers are often not the best. They are hired because of their network with the financial services industry and that’s how they should be used: as door openers. 

8.    Your company marketing is probably rubbish. 

This is one of the most underestimated and underinvested activities in startups. At the same time sales people need to be equipped with excellent value proposition, customers’ success stories, clear offering and pricing. The intern is not going to do it well. 

9.    Be brutal with the competition. 

Always have the intelligence on your competitors. Know who is the talent there and get to know them, you might want to hire them one day. Most importantly know their customers and try to take them away. When a company acquires a new customer there is about 70% chance that their sales guys stop thinking about that customer until just before the renewal date. Take a lead in keeping in touch with that customer, from congratulating him for committing to invest that new tech (even with your competition), to sending some relevant news or articles to them from time to time. Put simply: be attentive and have the insight into how they are getting on. Everybody likes attention and when the renewal date come up they will remember your name, not their current supplier contact/sales person.

10.  Be patient with results. 

Recently I have read in some financial news (London-based) that a certain blockchain company is still not making money 1 year after their investors poured in millions. That is just a ridiculous expectation to have. I understand that in the financial services industry, there is a strong annual cycle mentality because of annual bonuses. But with technology companies you need to be patient. If they break even after 3 years that’s already great and if they manage that after 5 years, they’re still doing very well. Here is some new vocabulary for investors in FinTech: “medium to long term”.