Mastering the Art of Proof of Concepts
Mastering the Art of Proof of Concepts
Love em or hate em it'll be your turn soon.
In the competitive landscape of Software as a Service (SaaS), a well-executed Proof of Concept (PoC) can be the difference between winning or losing a potential customer. A PoC is more than just a product demonstration; it's a critical phase in the sales cycle where the customer gets to experience your product in a real-world scenario. This article will delve into the intricacies of running a successful PoC, providing a comprehensive guide for SaaS account executives.
Understanding the Proof of Concept
A PoC is a trial run that showcases how your software can solve the customer's problem. It's a hands-on experience where the customer gets to test your product, often with the support of your team. The primary goal of a PoC is to secure a commitment from the prospect to purchase following a successful trial period.
Unlike a simple product trial, a PoC is not self-guided by the prospect. It's a joint effort that builds on a pre-existing relationship they have with your sales team. A PoC typically requires a significant investment of time and resources from both the seller and the prospect to ensure a successful outcome and justify the cost as part of the sales process.
When to Run a Proof of Concept
A PoC is not always necessary for every sales process. However, there are specific scenarios where a PoC can add substantial value:
Highly Technical Products: For complex products that require significant work to implement, a PoC helps ensure there's mutual agreement about the expected outcome. Engineers may need to set up API integrations, databases, or other architectures, and legal and security teams need to ensure the product will be compliant.
Startups: For startups, a PoC can help reduce the fear of investing time in a product that is unproven and not market-tested. It provides a platform for startups to align around success metrics while also gathering valuable user feedback.
Product-led Growth (PLG) Companies: For companies that rely on PLG, a PoC can be a powerful way to get your foot in the door with a new logo before expanding. You could run a PoC project with one team or one product before expanding organization-wide or introducing new products.
Best Practices for Running a Successful Proof of Concept
1. Pitch the PoC as a Mutual Success Plan
The first step in running a successful PoC is to pitch the idea to your prospect. Position the PoC as a mutual success plan rather than a sales trial. This approach helps build a shared project plan that leads to mutual success.
To get a "yes" on running a PoC, anchor the conversation around your prospects’ success metrics. Ask questions like:
"If we were to run a proof of concept program with you, what would you need to have happened to consider it a success?"
"What use cases are most important for you to test in our product right now?"
"After the proof of concept period is over, and assuming it is successful, would there be any other roadblocks on your end to continuing working with us?"
2. Run Your PoC from a Single Workspace
Once you have a commitment to start a PoC, keeping track of progress against your stated goals in one centralized workspace is critical. This workspace should include:
Overview: A statement of the problem being solved during the program and the approach the selling team will be taking to implement the pilot program.
Stakeholders: Outline both the partner team (your team) and evaluation team (your client’s team) stakeholders and decision-makers.
Success Criteria: These are the specific metrics (usually about 3-4 items) fordetermining whether the PoC was a success. These should be co-created with the client, not dictated by one party to the other.
Milestones: This section contains all the required inputs and expected outputs, along with formalizing the success criteria to determine when the goals of the program have been met. You should also include a project plan section for tracking when these milestones will be hit with specific dates.
Solution Overview: Include all relevant resources, sales materials, walkthroughs, documentation, and other content that shows the value of the product to the client.
3. Execute the Proof of Concept Program
Once your PoC program is underway, the real work begins. Here are some tips for executing a best-in-class PoC program:
Stay Consistent: Don’t deviate from the dates you’ve committed to in the milestones section of your PoC document—this is the quickest way to lose trust. Schedule routine check-ins with an agenda shared ahead of time, and keep notes in your centralized hub to make sure items are followed up on by your partner team.
Over-Communicate: Never assume that silence from the client during the PoC program means they’re having a seamless, enjoyable experience free of questions—chances are it’s the opposite. Proactively reach out to make sure they aren’t silently struggling with some aspect of your product, and quickly work to get rid of any obstructions.
Surprise and Delight: If you're seeing roaring success ahead of schedule, look for opportunities to show additional product functionality, demo beta features, or provide additional hands-on help that will build a lasting relationship and strengthen your alignment on your goals.
Conclusion
A well-executed PoC can be a game-changer in your SaaS sales cycle. It not only demonstrates the value of your product but also builds trust with your potential customers. By understanding the concept of a PoC, knowing when to run one, and following these best practices, you can increase your chances of closing the deal and growing your business. Remember, a successful PoC is not just about showcasing your product, but about demonstrating your commitment to your customer's success.
Keep Dominating,
Dingo