Driving Software Sales

Stanford University
Course Lectures
  • Tzuo talks about how despite the importance of traditional events diminishing with the creation of an online experience, there is still a human factor involved in the customer's decision-making process. They want to see the product, interact with sales reps and talk to other customers. Creating this experience is important for any software company, he adds.

  • Tzuo explains that with a free trial product model, a high percentage of customers don't end up buying the product. However, it is still important to provide post sales service.A good point of sustainability is when customers have been using the product for some time and it is difficult to unplug them from it, he says.

  • Tzuo believes that as a company grows in revenue and complexity, it is important to have a metrics driven sales model. Factors such as the number of people visiting the company's website, effectiveness of search engine marketing, qualification rates, close rates and average size of deals are all important metrics which help in building a baseline. Tweaking these metrics can improve results and lead to a deeper understanding of the market, he adds.

  • In the internet business, the threat from competitors for small and mid-sized organizations is very high, says Tzuo. For this reason, companies like define the battlefield by not competing with big names. Instead, they cooperate with them to build barriers to entry by investing in technology. Acquiring the right talent from the industry further strengthens these barriers, he adds.