Josh Melick is an expert when it comes to business and sales and he has recently written a phenomenal blog post about the trick that so many software developers are missing when it comes to sale. Josh has been speaking recently about the third dimension of sales which he believes that many companies are ignoring, which can in fact offer a huge range of benefits to them. Today we are going to have a look into exactly what Josh has been talking about, as well as focussing on what exactly this kind of sales structure can bring the business.
What Is The Third Dimension?
What Josh is referring to when he discusses the third dimension is the way that software developers differentiate the benefits which each of their sales packages offer. For most companies they break down the various software packages in bands, such as standard, extra and premium, or bronze, silver and gold. In most cases companies will use two dimensions to separate what these packages are able to offer. The main two dimensions are the number of users offered and the amount of usage, yet the third dimension unlocks more. What Josh is talking about is adding a time limit to the package, and this has a range of benefits.
Upselling at The End of The Term
One particularly great benefit of this is that companies can use the expiry date of the package as a perfect way for companies to upsell to their clients. This could involve offering deals for an upgrade such as lower price or extended time. If there is no time limit, upselling is made a little bit more difficult.
Each year comes with new prices for the software developer and this is why they so often have to increase their pries, in order to cover costs. This can be something which is difficult to navigate for most companies, as it can put the customers off. When there is an end of term which the third dimension offers however, it is an opportune time to get those prices up without shocking the customer. Your sales teams should focus on smoothly transitioning the pricing of current customers during renewals. In most cases the business can actually give the customer fair warning about the new prices.
The more positive communication that you can have with your customers, the better the loyalty that you will have from them. This has been proven time and time again through the years, with a range of businesses. This is exactly what this expiry date will give you, the chance tis peak with your customers and to offer them upgrades and deals. This kind of communication is great for increasing the loyalty and trust which your customers have with you. All told this is very good for improving the reputation in the business.
These are just some of the benefits which Josh discusses with regards to the third dimension of sales which he recommends that companies take on.