Ovum: honesty and transparency is what users really want from vendors

New survey* reveals that aggressive sales tactics have become ineffective

For immediate release, 15 August 2006. New research from Ovum, the leading European-headquartered analyst and consulting company, reveals that software vendors must change their pushy sales techniques, as users need a more open attitude. Ovum advises vendors to adopt an approach based on helping end-user organisations to buy and to create simple, clear and fair pricing.

"After our research note at the end of last year, Software sales: 'wonderful world' or 'crossroad blues'**, we received a litany of emotional responses about sales tactics and how they had been used for revenue extraction," says David Mitchell, Software Practice Leader at Ovum.

"We decided that further research was needed with end-user customers, but focusing on the question: 'what should vendors do to make a better job of selling to you?' "

After interviewing senior 'technical buyers' within 40 end-user organisations in North America, EMEA and Australia, it was apparent that end-user organisations are becoming immune to the sales tactics of vendors, the adoption of sales methodologies and the introduction of 'solution sales speak' in their organisations.

Vendors and sales gurus develop ever more sophisticated sales approaches, while end users and procurement gurus develop stronger and stronger defence mechanisms.

"It has become akin to an arms race, in a process of mutually assured destruction," commented Mitchell.

Ovum found that several phrases commonly used by vendor organisations cause immediate and adverse reaction within some end-user organisations - "sales cycle", "owning the customer", "solution selling" and "value proposition" are among the trigger phrases.

One surprisingly common complaint was that the sales staff from vendor organisations did not understand the functionality of the products that they were selling. In some cases, the technical staff in customer/prospects were more aware of the latest product features and functions than the sales staff.

Vendors also had a tendency to be "economical with the truth" regarding the ability of their products to deliver specific functionality. Finally, respect for ethical standards was an important factor in how vendors were viewed by the majority of the end users that were interviewed.

"In conclusion, many organisations held the view that they would prefer not to do business with a vendor that they knew would adopt sharp commercial practice," said Mitchell.

* War of the worlds: advice from end-user buyers to software vendors, David Mitchell: http://store.ovum.com/detail.aspx?ID=2113

** Software sales: 'wonderful world' or 'crossroad blues', David Mitchell: http://store.ovum.com/detail.aspx?ID=1913

For more information on these pieces of research, please contact claire.booty@ovum.com.

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About Ovum

Ovum, the analyst and consulting company, is the largest European-headquartered advisor on telecoms, software and IT services.

Resolutely independent, Ovum advises large corporates, IT and software vendors, IT services providers, telecoms operators, regulators, service providers and equipment suppliers. It analyses the commercial impact of technology and market changes, and has a real strength in advising on the developments where telecoms, software and IT services interact.

Ovum takes a global perspective on leading-edge developments from offices in Europe, North America and Asia-Pacific. Its experts spot the short-term issues that will have an immediate impact on markets and organisations, and advise on the longer-term 'visionary' aspects that form the basis of strategic planning.

More information on Ovum, its customers and its independence is available at www.ovum.com.

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For further information

In Europe and rest of the world
Claire Booty, PR Executive
Tel: + 44 (0) 20 7551 9081
Email: claire.booty@ovum.com

In Asia-Pacific
Tanisha Kuckreja, Marketing Executive
Tel: +61 3 9601 6723
Email: tanisha.kuckreja@ovum.com