Vendors must fight to set themselves apart in a competitive market landscape. There can be an overall mismatch between the sales compensation model that many software companies embrace and the way insurers buy software. For some vendors, sales employees work on a 12-month commission cycle. But it often takes 2-3 years for an insurer not only to become aware of the potential of a technology partner but also to have an acute need that necessitates engaging in a buying process.
With these challenges in mind, Novarica hosted a Vendor Virtual Town Hall featuring a panelist of three insurer CIOs who shared some general advice for software and solution providers based on their experiences and observations.
Demonstrating Value With First Impressions
While every interaction with potential insurer clients is important, it all begins (and could very well end) with the moment of initial contact. The first point of contact is about building awareness of who you are and what gaps you can fill. Vendors should keep the question of “which business problem(s) does our solution/service solve for an insurance company?” at the forefront when leading the introduction of a company. By focusing on the business need being addressed, rather than high-level technical specifics, a company can help clearly demonstrate the value added to insurer clients.
One panelist also advised vendors to do their homework about the types of problems an insurer may be facing. It was also recommended that vendors keep their pitches concise—perhaps have a one-pager describing your value proposition. This makes it easier for the vendor and prospect to reach a conclusion about whether there is a match. Speaking to specific capabilities and experiences sounds more convincing than a broad “we can figure it out… we do it all” marketing approach, so vendors should make their language as sharp as possible.
Communicating Clearly for Great Impressions
Once a company has passed the first impression test, the initial discussions are another opportunity to demonstrate how a vendor can be a partner to the client. Less well-known vendors should emphasize business drivers and success stories (or a plan for creating success stories). Vendors cannot push a prospect into buying something that they didn’t already know they needed, so they should have a clear message to the CIO or other execs about support and integration provided along with how the vendor’s products/services address their pain points. Showing deep industry knowledge and expertise around the space, as well as an awareness of competitors and differentiators is key to making a great impression. A solution should be supported with as many stats, figures, and client testimonials as possible. Case studies, even if they are anonymized, are also great descriptors of value.
During demos, vendors should stay focused on primary use cases and bring in specialists who truly know the business. Though technology is secondary to the business value in the conversation, technical experts should be prepared to answer deeper questions about security, infrastructure, the data model, and other IT issues. When scoping/planning with a client, be sure to understand the prospective client’s workflow and how the vendor can fit into the existing workflow or make it more efficient.
One key piece of advice shared by a panelist was don’t “people-please” to make the sale; be transparent about challenges and push back when things are mentioned that aren’t best practice. True partnership means saying no occasionally. Lastly, when in contracting discussions, allow for flexibility on both sides when negotiating the terms and conditions. Remember that the end goal is to create a mutually beneficial partnership.
The next Virtual Vendor Town Hall for Novarica clients and invited guests will take place on April 7. To register, or to learn more about the event, please reach out to Jeff Goldberg or Tom Benton.
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