Many companies are tightening their belts right now, and one of the first places they’re looking for savings is their tech spend. Of course, there was a compelling business reason technology was purchased in the first place, a productivity gain for individuals, teams, or departments.
So how can executives reduce spend without hampering productivity?
From recent conversations with customers, board members, and our own executives involved in the revenue process, I’ve found four key factors driving decisions around sales tech stack investments in the current macroeconomic environment. Buyers and decision makers are applying some combination of these lenses to their tech stack to determine what’s essential—finding ways to get leaner while maintaining team performance and productivity.
1. Minimize context-switching, maximize productivity
The whole purpose of software is to help people do more with less. Software that maximizes productivity with purpose-built workflows for its users maximizes the time people spend actually doing their job. This increased focus equates to increased productivity.
Executives are increasingly aware of how technology is being used, how well integrated the stack is, and where workflow inefficiencies exist. When any inefficiency is ferreted out, the technology responsible is called into question and often put on the consolidation chopping block.
Buyers are associating the cost of tool-switching and context-switching with point solutions. When a single product streamlines workflows, users and budget owners are happier.
2. Show me the ROI
A return on investment conversation is happening for every single dollar spent right now. The technology that clearly articulates the use cases it solves and the ROI of solving them is the tech that survives consolidation cuts.
Executives expect their vendors to deeply understand their business, from their organizational structures to their strategic goal and growth plans. Vendors should leverage that knowledge to wrap a compelling value story around their tech and its functionality. If vendors are unable to prove ROI or alignment with key initiatives, they won’t last long.
3. Outcome driver vs. influencer
Is the technology directly responsible for driving meaningful outcomes, or does it exist on the periphery? And by meaningful outcomes, I mean outcomes that are measurable, repeatable, and help run revenue.
Champions of the product are expected to show the outcomes the tech drives and that those outcomes are shared across all users (not just power users). The closer these outcomes are to revenue, the more compelling the case will be to executives.
4. Beware the point-solution
The 80/20 rule comes into play here. For a lot of technology, 80% of the value is in 20% of the core capabilities. Everything else is bells and whistles. The result these days? Buyers gravitate away from technology that solves only one problem, what we call point solutions, and toward one-stop-shops, like a revenue platform.
Paradoxically, the bells and whistles are often what make a point solution seem attractive in the evaluation cycle. But in practice, those features are rarely used to the fullest extent that would add true value. A single vendor that can support a number of outcome-driving processes becomes more attractive to executives considering tech consolidation, often via more attractive commercials.
Where Clari Comes In
I’m proud to say that every customer conversation I have reinforces my confidence in Clari’s impact and value. Ours is the only platform that is purpose-built to run revenue for executives and everyone who contributes to the revenue process.
Clari streamlines all of the key workflows that drive true revenue outcomes, including:
- Pipeline management and analytics
- Conversation intelligence
- Mutual action plans
- Account engagement
If you’re curious to see the platform in action, check it out here.