Why Now?

Define a Compelling Event to Close the Deal

“Why now?” and “What happens if you don’t?” are two simple questions that have the potential to uncover the true timing of an enterprise SaaS deal.? Are they really simple, though?? When asked to the wrong people, these questions are too often met with blank looks, confused facial expressions and responses such as, “My boss gave me this deadline” instead of an answer that divulges financial consequences of inaction.??

These two questions uncover what’s commonly referred to in sales circles as the “compelling event” — a circumstance which incentivizes the deal to occur in order to avoid financial consequences.? Often, it is only the decision maker (executive sponsor) of the deal that knows these answers, so it is yet another reason for the sales rep to have a relationship with that person in addition to his/her coach and IT enabler.

So, if "my boss told me to do it by this date" is not a compelling event, then what does qualify as such?? The key point is the financial consequence for failure, as companies rarely make strategic software purchases/subscriptions "just because"; generally, they buy only when forced into it.? For example, perhaps the software they are using is being sunsetted and the alternative to buying is paying an exorbitant amount for extended support.? Maybe the existing vendor is preparing to charge a tremendous upgrade fee that is driving the desire to change.? Maybe there was an accident on the job and the insurance company is requiring action or else premiums will skyrocket and/or lawsuits will occur.? There are unlimited reasons that qualify as compelling, as long as they are date specific and there are substantial financial consequences for failure to achieve by that date.

Not uncovering the "compelling date" is often the primary reason why deals slip past their predicted close date.? It also can negatively affect pricing.? In fact, it is a key indicator as to if there is a deal happening in any timeframe; as noted, deals usually don't happen without it.? Another likely by-product of not uncovering the compelling event is the likely impact on pricing, as the pressure to increase discounting will take place.?

The odds are that if a deal closes without you knowing the compelling event, one existed; the sales rep just didn't uncover it.? If you are having challenges determining the compelling event in your deals, I suggest you use Virtual Dave for guidance or email [email protected].