Case 15 Salesoft, Inc. (A)

7475 Words 30 Pages
Register to read the introduction… TH provides with an opportunity to penetrate a customer account faster and more economically. A good TH product will also facilitate and ensure future sales of other products to the customer. For the customer, TH offers an opportunity to reduce the risk and the investments involved. The customer is able to use the TH product and experience the benefits fro that product before making any further investments. It also gives the customer a chance to assess the capabilities of the vendor to support and serve them over time. TH also provides the vendor with an opportunity to make some money relatively quickly. Vendors can use TH to create a barrier to entry for competitors by increasing the switching costs to the customer.

Designing the TH product involves the integration of
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The instructor can build a column, (or, a line) of benefits to a customer. With the customer value line developed, the instructor can get details on costs to a customer of buying PROCEED. The instructor can then summarized by saying something like “With these kind of numbers and a pay back period of less than a year, customers should be lining up at SaleSoft’s door to buy the product. But that’s not what is happening. What’s wrong with our analysis?” This leads to the idea that it is not enough to come up with these value lines, it is also important for the firm to figure out how it is going to sell these benefits to the customer. Will a customer see this value? Are there other factors that were not

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