The software industry is experiencing a significant transformation in the way companies engage with their customers, particularly in their sales processes.
Historically, enterprise software sales involved a labyrinth-like journey where pricing often remained shrouded until prospects engaged in a lengthy, often arduous sales dialogue with a ‘sales rep’ complete with strong ‘commission breath’ that prospects can smell from a mile off. However, (and thankfully) a paradigm shift is underway, propelled by the rise of a more customer-centric approach where transparency and accessibility are proving preferable for new business attainment.
Enter the era of visible pricing, clear imagery of the solution and the eCommerce model.
Traditional Enterprise Software Sales: A Cloaked Landscape
In the traditional model, software sales involved a deliberate lack of upfront pricing (and imagery of the actual software doing its job) by design. The process typically commenced with a salesperson engaging a prospect that may have shown the mildest of interest in the (venture-backed, growth-over-profit-model) software vendor. This may be anything from an intent-to-attend a webinar (but didn’t actually do so because, well…that tea towel drawer is not going to tidy itself now, is it?) or maybe a whitepaper view, or even an indicator of possible interest provided by intent data supplied by another similar org. This tended to initiate a series of discussions, needs assessments, product demonstrations, headless proof of concepts and negotiations.
Pricing, often intentionally obscured, is then finally revealed after the prospect having invested significant time and effort into the sales journey (and only when the sales rep hopes and prays that enough value has been shown prior).
This approach, although standard practice for years, has encountered criticism for its lack of transparency, and the potential for pricing surprises, in fact pricing being completely ‘made up’ based on how much money the sales rep thinks that the prospect will part with to fix the problem. This leads to customer dissatisfaction, wasted time and frustration.
The Emergence of Transparency and Accessibility
We are seeing that the modern consumer demands a different experience, one that values their time and provides transparent, easily accessible information. As a result, the shift towards visible pricing models with clear product and service information has gained momentum more than ever, in fact the macroeconomic environment in 2023 has expedited this shift. Customers can now more than ever, visit a company’s website, explore various software offerings, review pricing structures, and understand what each package includes, all before even engaging with a sales representative, if at all.
Why transparency and visible pricing matters most:
Transparency Empowers Consumers: Visible pricing ensures customers have the necessary information upfront, empowering them to make informed decisions without the need for extensive back-and-forth negotiations.
Efficiency in Decision-Making: Prospects can self-educate and compare different software solutions at their own pace, expediting the decision-making process.
Customer-Centric Approach: The eCommerce model aligns with a customer-centric ethos, respecting their time and providing a seamless, accessible experience.
Reduced Barriers to Entry: With visible pricing, companies, especially smaller ones, can assess software options without the need for extensive resources or lengthy sales engagements.
Enhanced Trust and Credibility: By displaying clear pricing and information, companies build trust with their customer base, promoting credibility and loyalty.
Advice for potential buyers when engaging with traditional software vendor sales organisations:
Be sure to:
- Check if pricing is clearly visible on the vendor’s website.
- If not, ask the vendor for a pricelist – if they do not offer this – question why. (To keep it from competitors is a reg-flag excuse).
- Do not disclose your budget before requesting pricing.
- Investigate the mechanism as to how the pricing model is calculated (including any renewal).
- Always evaluate thoroughly against your use case(s) before purchasing.
