For technology companies, customers (and prospects) have two types of spend – ‘involuntary’ and discretionary.
‘Involuntary’ spend – it’s rare for a customer or prospect to have no choice at all (which is why we use inverted commas). But sometimes spending offers the most practical approach for a customer.
Examples of ‘involuntary’ spend for a software company might include –
- A customer reaching the limit for number of seats contracted
- Changes in regulations that necessitate more software
- Mergers and acquisitions – the acquiring company may require the acquired company to change software
To identify revenue opportunities, you need to identify potential triggers. For example, you can
- Track usage of your software in each customer
- Track regulations affecting your customers
- Track the business media to identify mergers and acquisitions
Having identified a trigger, you will contact decision-makers. Some will be aware of the trigger. You can guide them on what to do next.
Others may not know of the trigger. You can help them understand why they need to act. And then guide them on what to do.
‘Involuntary’ spend is usually the easiest to close. But you need programs to look for the triggers.
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