The cost of the latest technology is rising, and combined with the ongoing tightening of budgets, it has created a situation where businesses are holding onto old—and in some cases outdated equipment and technology longer. This often results in a negative impact on a customer’s business performance in many ways.
#SalesStrategies: The power of selling with monthly payments
|23-08-2023Blog
In our #SalesStrategies series, we are exploring the real challenges B2B sales leaders face and sharing sales strategies that can help solve them. Check out more articles like this one from DLL sales leaders on payment plans with upgrade paths and cashflow management solutions.
As a program manager, I work closely with tech resellers across Europe. It is my job to know the challenges and opportunities in the market. I learn about my partners’ goals and challenges—and offer strategies to help them increase sales and meet the needs of their ever-evolving customer base.
Market challenges
Recently, it has been increasingly challenging for resellers to close a deal when the customer is focused on the total cost—a figure that can include the cost of the equipment, accessories, software and/or service.
The cost of the latest technology is rising, and combined with the ongoing tightening of budgets, it has created a situation where businesses are holding onto old and outdated equipment longer."
Overcoming challenges
In such situations, offering flexible payment options in the form of a 24-to 36-month lease can be an effective way to help your customers meet their technological needs and budgetary restrictions. Flexible monthly payments can also help you close more sales and potentially capture additional revenue through additions such as accessories, service or software. These add-ons—when presented in the form of a monthly payment typically only add a few euros or dollars to the payment, which can reduce pricing negotiations with your customer.
Offering payment flexibility does more than help close a deal.
- It can help shorten the time until the customer’s next upgrade (sales cycle).
- It helps close future deals faster.
- It creates a more predictable pipeline and makes it easier to engage the right customer at the right time.
Overall, it is an easy and fast way to increase customer retention and revenue.
Want to know more about the value of flexible payment options? Download this overview to see how our solutions can help your business.
Sales impact
In many cases I have seen this strategy of selling with a monthly payment help in shortening sales cycles for resellers. From waiting 5 years for the customer to upgrade, to now just 2-3 years. As a bonus, this strategy has helped our partners sell more total solutions and increase profitability in the long term.
Using a monthly payment strategy has helped in shortening sales cycles from 5 years to 2-3 years in many cases. As a bonus, this strategy has helped our partners sell more total solutions and increase profitability in the long term"
If you have similar business challenges, I would be happy to collaborate with you. Please reach out to me on LinkedIn.
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