Paid Discovery: How to Monetize the Discovery Process

In non-commoditized business-to-business (B2B) and business-to-consumer (B2C) markets for products and solutions that cost thousands of dollars or more, building trust is a crucial component of the pre-sale phase.

Prospects don’t make big-ticket investments without a lot of confidence in both the solution and the company. You can’t close a $50,000 to $100,000+ deal on the strength of an initial consultation or even a demo.

For software vendors and manufacturers, prospects may not even want to see a demo because they don’t want a sales rep conducting a dog-and-pony show for something they’re not even sure they need.

The Value of Solid Due Diligence

A paid assessment, on the other hand, serves as both an intermediate step and a service that your prospects can use to clarify the problems they are trying to resolve before making a more significant commitment.

It’s an opportunity for them to begin with a much smaller investment of time and money, and to gain an understanding of how your solutions will work for them. It’s also an opportunity for you to determine what it will take to solve their problems and whether they are a qualified prospect.

This assessment, or other form of due diligence, will establish:

• An understanding of what the prospect really needs, so that you know if your solution is a good fit and can price it accordingly – things you don’t learn by just doing a demo
• Determination of how good a fit your solution is, so you can identify how much impact and value your solution can have for the prospect, and how you should price it
• An estimate of the payback period and the return on investment (ROI) to help justify the purchase
• What the prospect will need to see as part of a demo, if you sell a product, or the most relevant case studies if you’re a service provider, so they understand your solution’s value

Due diligence also typically requires the prospect to provide access to their information and systems, which helps you to become more familiar with their needs and their goals.

Consulting Report

To be perceived as a consulting service, a best practice is to prepare a formal report that captures key findings and recommendations, incorporating the elements of your brand identity. It’s an informative and clarifying start to the project and a relationship builder.

Pricing

When this report provides the value that it should, you should not be reluctant to charge for it. If a prospect is deterred by a service that costs a fraction of what your solution will cost, it may be a sign that they are not a qualified prospect. Conversely, if they’re willing to pay for due diligence, it’s a sign they are serious about investing in your solution.

You can always provide a free, less comprehensive version, but you may find that free due diligence is less likely to convert to a closed deal.

Examples

Paid due diligence can take many forms and be called by many names. Here are some examples:

• An industry-leading healthcare analytics company offers a healthcare data analytics assessment
• A human relations firm conducts an HR MRI to help prospects understand their HR challenges, opportunities, and compliance with all relevant employment laws
• A consulting company conducts a financial assessment that is highly useful in buy-side and sell-side due diligence
• At Innovaxis Marketing, our team conducts a marketing audit and plan to identify what’s holding your marketing back and provide recommendations on how to generate sustainable, double-digit growth for years

Getting Started

If you need help monetizing your discovery process, contact us. We can help you determine where prospects will see the most value from some form of assessment or consulting service, how to price it, and how to create the resulting report with your branding.