Start your week with the stories and insights that matter most to the sales community. Subscribe so you never miss an issue.
4 min read
Welcome back to The Weekly Pitch. Is subscription fatigue setting it? If so, what does it mean for sales pros, and how can we proactively sell better with or without it? Our Feature Story unpacks it.
The Weekly Chart shows the top 10 most annoying business buzzwords. "Give 110%" while reading the list, or "circle back" to it if you need to "move the needle" with your jargon game.
And in The Closer, we share some end-of-year closing tips.
Preply Business, a corporate language learning company, dropped its business jargon survival guide. Instead of "thinking outside the box," speak with simplicity. For example, say group instead of cohort.
Mark Cuban recently said "cohort" is his most loathed jargon word. "There's no reason to ever use the word 'cohort' when you could use the word 'group,'" he said. "A cohort is a group of people. Say 'group.' You sound stupid when you use the word 'cohort' because you're trying to sound smart."
We've all lived through the subscription boom. Spotify, Netflix, DoorDash, Prime––they became more than apps; they became our daily routines. But lately, whispers of subscription fatigue have emerged. (The irony of running a subscription-based sales newsletter, albeit free, is not lost on us.)
For individuals, we're quickly racking up hundreds or even thousands of dollars a year in subscription fees. For businesses, buyers––after a year or two of hearing sellers position double-digit price increases as inflation-related––are asking, "Why are we paying so much for software we don't even own (or use that much) and looks mostly the same year after year?"
Maybe it's time to explore three options beyond the subscription model's one-size-fits-all mold.
What's the lifespan of our average customer before they choose not to renew or sever ties? If it's four years, ditch the multi-year contract for an all-upfront deal that brings in four times the revenue.
Instead of selling $30,000 in annual recurring revenue, ask a prospect to pay $120,000 upfront but never again–even if they keep the relationship going into year five and beyond.
The crew from 37signals (software makers behind Basecamp) aptly announced their intentions to sell three products in 2024 under the ONCE moniker:
If "pay once" is too daring, consider a "buy-to-own" option alongside subscriptions to cater to customers who prioritize upfront costs and long-term ownership.
Subscriptions aren't the only path to recurring revenue. Consider offering additional services on top of our core product, like training, premium support, implementation services, data analytics, or customization options.
This allows customers to choose the level of engagement that suits their needs and budget without feeling locked into a rigid subscription box. And often, these custom services make for a better customer experience.
Selling services (in many cases) also gets us out from under the distrustful eye of IT, procurement, legal, and finance teams scrutinizing budget spent on adding new and unproven software tools. The business case and return on investment for services can be much more straightforward for buyers and decision-makers.
One size shouldn't fit all, especially regarding a financial commitment. If we stick with subscriptions, make them flexible with tiers or options for customers to find the perfect fit. Think a la carte offerings or solutions that are blended subscriptions and services. The power of choice breeds loyalty and value perception.
These are just a few ideas to break free from the subscription bubble. And we'll differentiate in the marketplace at the same time.
The key is understanding that customer needs are diverse, and offering a variety of options can unlock new doors. Remember, value lies in flexibility, control, and a genuine exchange of benefits.
Create a buyer's journey where customers feel empowered to choose the engagement that best suits them, whether it's a one-time purchase, a tailored service package, or a flexible subscription.
By embracing diverse revenue streams and prioritizing customer choice, businesses can build stronger relationships, unlock new markets, and thrive in the ever-changing economic landscape.
Let's create a vibrant product and service ecosystem where value and choice, not recurring fees, drive the customer journey. The future is open, and it's ours to design.
Deadlines to sign contracts create urgency. Use them whenever possible, but keep these tips in mind to ensure we close our forecasted deals on time:
Other tools like mutual plan letters or joint execution plans can also help hold customers accountable for signing the contract on time.
Six selling days left in 2023! Let's close some deals.
The Weekly Pitch
1700 Lincoln Street
17th Floor
Denver, CO 80203
Start your week with the stories and insights that matter most to the sales community.