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What’s wrong with 90 day evaluations? Everything!

  
  
  

I got a call from Eileen the other day, concerned because her month was ending and she hadn't yet met her sales quota. She wanted to know what I'd suggest to accelerate the sales process. It turned out she had several prospects on 90 day product evaluations and they weren't scheduled to be up for two more months. In fact, 90 days was her company's standard evaluation policy. And because of that policy, many sales were delayed two months beyond what they would be if the company instead only offered 30 day evals. Let's do a little probing into the issue, and come up with a better way to increase sales faster.

Whether you call them evaluations, pilots, or proofs of concept, the idea is to let the prospect "try and buy." It's a great closing technique, because sometimes prospects need to test user interface, ease of use, requirements compatibility, and other elements. We discuss closing by evaluation in our sales courses, too. But rarely does it take them more than 30 days to do it. In fact, they can usually do it in less than a week. Sure they'd love to take 90 days on an eval, because they get to use it free or can let it sit on the desk for a few weeks, no reason to buy!

There is no logical reason to offer a prospect a 90 day eval, even if your prospect needs to show it to others on the decision team. Instead, make it your (and your company's) policy to offer a 30 day eval as standard. If the prospect asks for more time after the 30 days is up, I usually will grant the prospect 48 more hours. I tell him or her that during that time, I can provide unlimited tech support and access to me (the same he or she gets in the 30 days, by the way).  I also mention that evals are on allocation, and that since my company can realistically handle only a fixed number at a given time, extending my evals prevents other prospects from getting theirs in a timely fashion. This provides some urgency, and builds the value of my product in the mind of the prospect. If the prospect insists on more time beyond that, and I don't consider the additional time a valid request, I'll suggest stopping the eval and firing it up again at a future date closer to the time needed for implementation. This prevents the prospect from using my eval to finish a project then not buying it, even though it performed to spec.

I've already blogged on techniques to close an eval, and if you missed it, it's at www.alextrain.com/inside-sales-telesales-tips-blog/?Tag=Evaluations+%26+Demonstrations , and well worth visiting if you use evaluations as a closing strategy. Of course there are times when a prospect will need more than 30 days to see a product, but these should be the exception, not the rule. By shortening your eval time, you'll compress your sales cycle, add urgency to the sale, value to your product, and prevent prospects from using your product rent-free. Add the 30 day maximum evaluation period to your Best Practices playbook to reach your sales quota faster.

Comments

Geoff: I fully agree that 90 days is too long; however, there is an even better approach than the 30 day trial. How about offering a full money back guarantee for the first 90 days after they purchase the product? This way you can get the customer to move forward with the purchase with the feeling they they still have "a way out" if it doesn't work out. In my experience, almost no customers will every use this option and you'll be able to close more deals faster. 
 
 
- Dr. Jim Anderson 
The Accidental Negotiator Blog
Posted @ Wednesday, October 29, 2008 8:27 PM by Dr. Jim Anderson
You're absolutely correct, Jim. In fact, I advocate taking your approach, but asking with a 30 day right of return rather than 90 days, and I've blogged about do just that at http://www.alextrain.com/inside-sales-telesales-tips-blog/bid/5161/Close-Sales-by-Evaluation-Faster-through-this-Process  
 
 
 
Several of my client companies frown on this, though, because returns goof up their accounting structure. Any financial whizzes out there that can shed a little more light on this?
Posted @ Thursday, October 30, 2008 11:05 PM by Geoff Alexander
My belief is that the problem with evaluations is not in the time period, but in the "controls." 
 
Most evaluations are set up on the flimsiest of circumstances -- the primary killer being the rep just simply wanted to get the product in the door. 
 
This is not completely bad, they prospect may actually like it and purchase.  
 
However, for the most part, everything is put into the customer's hands -- including control of the sales cycle/process. 
 
Wrong. 
 
Evaluations should only be set up when one knows before installing the evaluation that it will pass the test required to get the business. Or, that if it is going to fail in some way, specifically what that is, and then handle it up front with the prospect (before the eval). 
 
If the salesperson doesn't know the requirements for success and understand how their product will perform, they have no business setting up the evaluation. 
 
Evaluations are lost because of lack of purpose and focus much in the same light as the concept -- Failure to plan is planning to fail." 
 
Evaluations are for new customers to VERIFY they want what they've seen or understand, not for salespeople to pray for some luck and a sale, or for prospects who want to take a look. 
 
Don't ask the question if you don't know the answers. 
 
Some may dispute the above idea, but you can accomplish this by correctly helping the customer find a solution instead of trying to sell them yours.
Posted @ Friday, November 21, 2008 5:16 PM by Flyn Penoyer
Good observation, Flyn, you're absolutely correct. Understanding requirements beforehand is essential before agreeing to an eval. Same for many webinars too, and I've got a good whitepaper on this atwww.alextrain.com/online-conferencing
Posted @ Friday, November 21, 2008 8:46 PM by Geoff Alexander
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