Selling the truth at SAP

by admin on February 2, 2007

Steve Mann has revealed the results of a customer study aimed at helping SAP figure out a new design for ‘experiencing’ its products. The interviewers used a deep dive technique called ethnographics. It’s not a technique with which I am familiar though it sounds an aweful lot like the conversations I have with customers pretty much on a daily basis. I gather the exercise was conducted in the context of sales. I reproduce the entire list because each comment holds interest:

  • Get to the point – give me the info I need right away and in a no-BS fashion
  • Stay away from the SAPanese
  • I want to make a decision on whether to explore further or to go away… and I want to make that decision quickly
  • KEEP THE DESIGN SIMPLE
  • They threw up all over the content
  • Show me exactly what the components are and how much they cost
  • Overall, give us a buyer’s view not a technologist views of the world
  • As far as the products themselves, tell us what they do right away
  • Communities.. get me right into the forums and I want to see references and case studies, events calendar, and they want to be tied geographically to other users and partner offerings

I don’t know why anyone should be surprised at the general tenor of the comments. And definitely not inside SAP. I am surprised that SAP found it necessary to conduct a specific study to elucidate this information.

Surely, their own library of recorded case studies should have provided some insights from the notes made by those who conducted the original interviews? Don’t the bag carriers report back about how customers are feeling? Doesn’t pre-sales get a sense of how customers are responding to SAP? I cannot believe that a company like SAP doesn’t know what’s really going on in the customer base.

I hope I’m not being unfair on SAP. But when its own people are openly critical of SAP’s press releases and where SAPanese means SAPs jargon, there are clear opportunities for immediate improvement at virtually no cost. Similarly, I don’t know how many times I’ve heard/seen Shai Agassi banging on about the size of the SDN community – now up to 750,000 I’m told. But clearly those developers are not in touch with those who write cheques. If they were then these questions wouldn’t arise.

As I’ve said before, SAP is the only global packaged application vendor I know that has such a vibrant developer community. There’s a lot that could be done to make it much easier to navigate around SDN. But I’m willing to give SAP full credit for what it has achieved so far. Especially as much of the information it contains is available on a come-all-ye basis. In other words, SAP is not hiding. Well, not much anyway.

I discussed this with a senior marketing VP in another company. He made an incredibly incisive comment:

Once you’ve sold the functionality, the rest is about the service. The trouble is – and we’re all guilty of it – we forget that customers have real business problems. Instead we try and dazzle them with our technology. Because by then it is all about ME. And not about the customer.

That strikes me as about right. When writing a story, I’ve insisted on speaking with customers for more than 10 years now. To me, a customer’s voice will ‘sell’ 10x the amount of ‘stuff’ that even the best bag carriers might achieve.

Thomas Otter says:

Now this is seriously radical, because it means we are actually, shock horror gasp, starting to ask folks how they would like to be sold to. Clearly with all the stuff going on with new products, we need to figure some new ways to sell and communicate with the market. Reducing cost of sales, yet delivering a better experience is important and not just because it will give Vinnie one less thing to moan about.

I don’t read the customer words that way. Almost none of the remarks are about software per se but about making the buyer’s life easier in the decision making process. However, I do agree with Thomas about the component parts to a potential new way of selling.

I think there are important points that Thomas may not quite see.

  • Customers are asking for service which includes references and case studies. In other words they want to ‘see’ and interact with their peers whenever they need. SAP will have to get out the way.
  • Its job will be to facilitate discussions.
  • SAP may own the network, but won’t control it.
  • SAP service will need to be embedded in the sales process. Because they’re going to be dealing with less than perfect news.
  • Customers will bitch and moan so get used to it and be prepared to respond.

If SAP is prepared to bite those kinds of bullet, then we will see the start of something innovative and new. SAP has always endeavoured to take the moral high ground with its sales techniques. IMO – this is but one more step in that direction. But to be truly effective, SAP will need to put serious effort into getting the attention of purse holders. That will be much harder than they imagine although there are ways of overcoming that barrier.

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  • http://theotherthomasotter.wordpress.com Thomas Otter

    Dennis,
    Thanks for the link and insight.

    I see precisely what you say everyday as my day job involves exactly what you mentioned.

    We bring customers together to talk to each other about how to run their businesses better. It isnt about selling, but about sharing and relationships. Having company A chat to company B how they do fast close, IFRS or manage global performance management is a whole lot better than us preaching. The attendees are not IT, but senior folks from HR and Finance. My boss describes it as helping them get the best out of what they have already bought.

    Check out the networks here. http://www.sap.com/community/pub/private/hbpn/ind…
    and http://www.sap.com/community/pub/private/fbpn/ind…

    and as examples of an agenda http://www.sap.com/community/pub/campaign/2007_06…
    and http://www.sap.com/community/pub/campaign/2007_02…
    and

    We've scheduled a session for the HR folks on performance management in Berlin at the beginning of March, there are about 18 companies coming so far. Should be fun.

    Thomas

    ps. most research, ethnographic or otherwise states the obvious, it doesn't mean though that it is a waste of time to do it.

  • http://www.accmanpro.com Dennis Howlett

    In which case Thomas isn't Steve/your good self illustrating one of the big issues for SAP (and other large companies) namely a waste of valuable resource when the company is already tapping into its customer base in the way you describe?

    For instance, I'd be really interested in hearing about some of the general outcomes from the sessions with which you're involved. Doesn't have to be names etc but a flavour of what those customers are thinking would make a refreshing addition.

  • http://theotherthomasotter.wordpress.com Thomas Otter

    Den,
    We tend not to publish all the details, as the network members often prefer to keep the discussions between 4 walls.No sales folks attend, and development only attend if the customers want them to.

    Juergen Daum often publishes summaries of panel discussions on the finance side. I'll send you some.

    I'll blog what I can from the next meeting.

  • http://ablebrains.typepad.com Steve

    oh… and i completely agree with these sentiments:

    * Customers are asking for service which includes references and case studies. In other words they want to ’see’ and interact with their peers whenever they need. SAP will have to get out the way.
    * Its job will be to facilitate discussions.
    * SAP may own the network, but won’t control it.
    * SAP service will need to be embedded in the sales process. Because they’re going to be dealing with less than perfect news.
    * Customers will bitch and moan so get used to it and be prepared to respond.

  • http://ablebrains.typepad.com Steve Mann

    Dennis… thanx for your comments. Let me shed further lite on what we are doing…

    Regarding ethnography… is never done in a sales situation.. its done to observe behavior and what the rules of that behavior are… the participatory interview we did afterwards confirmed our insights into customer behavior.

    Why we did this? It was NOT to improve the experience of our products, although a very worthwhile endeavor (both Microsoft and Intel employs teams of business ethnographers to enhance the customer experience). It was to get feedback on new user experience designs for the web which are being developed. The feedback is important…EVEN if intuitively obvious to you for a number of reasons.

    1. Your marketing executive said it:
    …we forget that customers have real business problems. Instead we try and dazzle them with our technology. Because by then it is all about ME. And not about the customer.
    That's exactly correct… for years, SAP has created an "US" experience on the web as well as in our products.. more about us than our customers… while not completely devoid of customer input, it certainly has not had enough… you know the rap.."you'll learn to use the software no matter how counter intuitive it might be, you'll find the information you need no matter how buried it is…" It needs to be a ME experience… a me experience is an engagement that empowers customers and delivers them tangible value every time. Its a focus on the individual…because only individuals have perceptions.

    2. No one inside of SAP found it necessary to find this information… however, it it weren't done, the resulting user experience would have been a disaster…why? Its not in our DNA to create a ME experience for individuals. Customer at SAP = the Coca Cola company NOT the person John/Jane Smith, CFO, father/mother, amateur chef and blogger.

    3. When was the last time you spoke to a customer? Asking that question inside of SAP yields vastly different answers… but most folks involved in the design of the customer experience…whether involving the design and communication around an invoice, to the design of the web experience or product, don't speak to customers often enough… granted some groups much more than others… but the key is not just to speak to then but to actually co-innovate on the solution with them… that's what we are attempting to do… Engage and Co-innovate.

    Thanx again for your comments.
    Steve

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