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7 Sales Mistakes Software Development Companies Make (And How To Avoid Them)

on September 12, 2018

When you’re running a software company, you have to take the necessary steps to drive revenue for your business. But many software companies make common mistakes that result in missed sales opportunities or that stalls or tanks their current sales.

Enterprise sales can be challenging, but you don’t have to run into these same issues. Take into account these seven mistakes that custom software development companies make and learn how to avoid them:

1. Not Staying Ahead of Competitors

The software development market is crowded with tons of competitors, and one of the biggest mistakes software development companies make is not progressing with time.

Oftentimes, software consulting firms or companies developing software stick with what they think is working and fail to further develop or make changes to the system to improve it and keep up with the competition. This can easily be done by creating prototype of the software as an experiment and based on the results, create the full feature or product.

Take a page from Google’s book to stay competitive. While Google started off as a search engine, the company incorporated email and all-encompassing collaborative tools to ensure that their users were constantly using their products. Be innovative and reinvest your funds in your sales process and products so you can stay ahead of the competition.

2. Too Broad of a Focus

Focusing on many product features and benefits can be overwhelming for customers. When you don’t know how to focus, you risk losing the sale. Instead, narrow down the information you provide to the prospect and focus on a few key elements that address their issues.

For instance, you can focus on selling three key benefits that your software provides for users who need help with getting fit, such as tracking their workouts or counting calories. By doing this, you’ll increase the likelihood of closing your sales and can later expand offerings for upgraded services or cross-selling products.

3. Poor Timing

In the world of sales, timing is everything. If you come out with an innovative product too early or if your sales cycle takes too long, you risk losing the sale altogether. That’s because poor timing can mean your competitors may already have a large share of the market, your target customers don’t understand the product or may get frustrated with the sales process.

This leads to hard-to-close or lengthy sales. You can accelerate slow sales by marketing it correctly and have a team in place that has experience successfully procuring. Consider using social media and explainer videos to help with product demonstrations. Carefully time product launches and shorten the sales cycle.

4. An Undefined Sales Process

When you don’t define your sales process, you set your sales up for failure. That’s because a sales process that is defined provides a clear vision of how your software development company will attract prospects, nurture leads and retain customers.

Without this mapped out plan of the sales process, it’s easy to be unorganized. For example, when software sales consultants don’t have a process for following up with leads, their prospective customers can easily lose interest. That means missed sales opportunities. Instead of potentially forgoing sales with an undefined sales process, outline what you should do at every step of the customer’s buying journey.

Your sales process should include a plan for attracting your target audience, following up with them with an assigned platform, such as a customer relationship management (CRM) system, and the different elements to coordinate the workflow.

5. Competing on Price

It’s tempting to enter the market at a price lower than that of your competitors when you’re trying to attract new customers or entice existing customers to upgrade their services by constantly lowering your price.

But competing on price is not sustainable. If you keep lowering your price, you not only undervalue your product and devalue the work you put into your sales, you can set up customers with the incorrect expectations and even turn them off. For instance, if you’re constantly discounting your services, customers or leads may only buy your services or product when it is on sale.

To rectify this issue, it’s important to price your product correctly from the start. You also want to ensure your adding value by creating a value proposition that justifies your higher pricing and helps you outshine your competitors.

6. Trying to Do Everything Without Help

Attempting to handle every aspect of the sales process on your own is a rookie mistake. A great sales process requires a great sales team and support from experts that know how to get it done. That’s why it’s important to know when to call for help when you most need it.

A new software company that develops a platform but an experienced team to sell the product may miss sales opportunities, especially if sales members sell the features instead of the benefits and value of the product. Instead, consider hiring sales experts or outsourcing the process to save time and energy so you can focus on the parts of the sales process your sales team does very well.

7. Making Buying Complicated

A complicated buying process can make finalizing the sale difficult. From landing pages that lack a clear call-to-action or payment button to inconsistent content across sales documents and channels, when prospects encounter friction in the execution of buying the product or getting the information they need, it can hamper sales opportunities.

As a solution, ensure all of your information is consistent and complete across all your channels and sales material. Also, ensure that buying your product is easy, including verifying that customers know where and how to buy the product.