Will Gartner's Latest IT Forecast Put a Chill in your Growth Plans?
Frugalnomics in Effect
- In-Control - Highly empowered by access to incredible amounts of solution research and information via the Internet and social media, buyers have taken control of the decision making process with sales reps being invited later to the game, and ever more competition for each deal.
- Cautious – buyers are Risk averse, afraid of making a wrong decision, not willing to spend as much per project, and more often than not, choosing to remain with business as usual / status quo rather than considering projects they view as too risky.
- Economically Focused – buyers are more frugal, with over 95% of technology purchase decisions now requiring a solid business case with significant ROI and fast payback according to IDC. CFOs are also more involved through all stages of the purchase decision.
These are the trends of Frugalnomics, and as a result we expect that IT spending growth for 2015 and beyond will remain challenged, with little reason for optimistic spending growth predictions.
Surviving Frugalnomics - The 3 Things You Must Do Now to Win in 2015
- Why Consider a Change? - the Prospect has a pain worth addressing and a significant cost of “Do Nothing”.
- Why Change Now? – the Prospect should not wait to address the issue because every day is costing them, they are leaving good money on the table (significant bottom-line impact, ROI and fast payback), and they are falling behind competitively (illustrated through peer comparison benchmarks).
- Why Your Solutions?– that your solutions / services can deliver unique and superior value at a lower total cost of ownership (TCO).
So how well does your current content marketing help answer these 3 key decision making questions, in a compelling and quantified way?
- Over 75% indicating significant decision making involvement,
- 41% indicating being the main decision maker for IT investments.
From the CFOs we talk to, they indicate that proposals:
- Won't be considered a priority without a business case, and the larger the proposal, the more detailed and formal the case has to be,
- Won't be advanced unless you show that the issue being addressed is a priority with a high cost of “doing nothing”, quantified savings / benefits from the proposed solution, and a significant ROI and fast payback,
- Won't be approved unless you can prove your solution has a lower total cost of ownership (TCO) / better value than competitive offerings.
Although IDC indicates that 95% of proposals require an ROI business case, the research also indicates that 2/3rds of your prospects don’t have the metrics, research, knowledge, tools and time to prepare the business case themselves, leaving it up to you to stand up and deliver if you want their business (or have your proposal approval significantly stalled and delayed).
- Break the ICE - Engage Frugal Prospects with Provocative Marketing
- Empower Sales with Value Storytelling and Quantification
- Close the Deal with CFO-Ready Business Cases
To learn more about our suggested best practices get the book: Frugalnomics Survival Guide – The definitive guide on using your unique value to market better, stand out and sell more.