As we all know, software purchases are influenced by numerous factors. Understanding those influences is crucial to the successful sales arm of an IT partner, reseller or solution organization.
From the initial resolution to purchase software through to the final result, many people have a direct influence over the decision-making process: What is purchased, how much is paid and when the actual implementation occurs. Traveling through that decision process, the process can be long and arduous.
In a study of corporate end-users conducted by Info-Tech Research Group, one of the noteworthy outcomes is the struggle between IT staff and senior IT management in end-user organizations. The IT staff often determines the need for new software, but in many cases, the IT management makes the final decision. Understanding this struggle between the two forces is important for successful IT resellers. The findings were published in the Indaba’s Management Series’ Buyer Behavior Report entitled Understanding the Software Decision Process.
One of the common factors in the software purchase is the importance of input from the IT staff. In many instances, IT staff strongly influences the final software purchase decision. Stemming from that realization, one of the major questions is how did the IT staff become a trusted advisor to the IT management? Which then leads to asking how can the IT reseller community benefit from this relationship.
At first glance, the answer seems oblivious: befriend the IT staff and then influence the final decision. However, many different, seemingly unconnected, factors influence the end-user’s IT purchase decision.
One is the complexity of the IT solution. For individual client applications, the executive management is the significant factor influencing the decision, accounting for approximately 34 per cent of respondents. If the solution involves one or more, complex server applications, the IT staff and the senior IT management are the big influencers, with approximately 32 per cent and 37 per cent respectively. If the application is complex, with multiple layers of interrelated factors, the input of IT staff rises to over 45 per cent.
So all of a sudden, IT resellers must influence their customer’s IT staff, IT management and executive management – somewhat of a larger task than just influencing IT staff.
The IT department plays an integral role, especially when the software contains multiple, complex interrelated server applications, with almost 50 per cent of respondents citing the IT staff as having the largest role of influence. When the application was simple, executive management played the most significant role, with just 30 per cent. As the degree of complexity increased, the significant role of IT staff multiplied.
In smaller customer accounts, the role of executive management grew in significance, making the task of the reseller a bit easier: Less people to influence means less people to touch. However, with less people involved in the process, the touch points are all that more valuable.
Knowing the important role the IT staff, management, coupled with the executive management, plays in the software decision process can help a reseller organization prosper. As tempting as it is right now to tell you how to take advantage of this information in your business, without knowing the intricacies of your particular business model, it is tough tot make a broad sweeping statement. Only you know for sure what will work for your company, but knowing your customer is definitely a critical first step on the path to success.
Michelle Warren is senior research analyst in the Indaba Division of Info-Tech Research Group in London, Ont.
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