Quick video message: "From Free to Fee" - 4 March 2023 - Watch Video

One of the most debated topics in B2B software sales is the charging of an implementation fee. There was no fee for implementation in just about every situation where I have come in to help set up or fix the team.

I posted it about this week, and it got over 50K 60K views, so it is obviously a hot topic. I will include that link and another article that I have written here.

Today I will share the process that I did to convince an organization to create a separate implementation team AND charge money for implementation fees- with some fees being $75K! This immediately added $1MM to the bottom line in the first year.

Problem:

It was apparent from Day 1 that there was a big problem in how customers were onboarded. The product was very technical in the background, and there was no easy way to launch a customer. The CSM team was burnt out, and sales were being affected because they were constantly being escalated to after the first month of every signed deal. Churn was an issue, and customers canceling contracts in the first month and moving to competitors.

Analysis/Research:

In talking to all of the CS team, they consistently said the same thing. Every implementation was like a “bomb that went off” in their life. It may have been 2-3 months since their last implementation, and the product was also being re-platformed, so there was no way they could be expected to launch customers effectively.

Another data point was that implementation was EXPENSIVE. This product was complex, with lots of data and security requirements, as well as lots of travel (the best way to get users onboarded was to have booths at company health fairs - remember those?!). Some of this was due to the large employee populations this product was rolled out to. We also needed to write customer marketing campaigns, buy signage, and devices.

When I added up the costs, it was obvious that we needed to create paid implementation packages and tier the pricing. We decided that customers could purchase a basic package (which included the basics: security, data, and onboarding) or opt for an additional package with more features or services.

The tiers were :

Low - $15K

Medium $25k

Enterprise - $75k

Notes/Tips:

• Implementation was mandatory

• A contract was not able to be sent from the contract system unless an implementation fee was added. This was managed in SFDC with flags from the RevOps team.

• A 1 Pager for the sales team that lists the demonstrable benefits and deliverables of the product should include details about the product's ability to help customers more effectively. It should explain that implementation is necessary and comes at a cost associated with travel, writing customer marketing campaigns, buying signage, and devices. The 1 Pager should also mention that customers must agree to the cost before entering into a contract. By including pricing tiers, customers have the option to choose which package and fee they prefer. Doing this will help customers understand their investment and how it will benefit them in the long run.

• By offering these packages, it also provides peace of mind for both parties as customers are aware of what they’re getting and can ensure customer satisfaction.

The Sales Whisperer

“I have a deal for you,” I said to the VP of Sales over a coffee. “What you do if I told you that I can increase commissions, add $1MM in revenue and reduce all of the phone calls that your AE’s are getting to complain about implementation?”

“Sign me up,” he said. “But who will talk to the customers in “pre-sales” from “Implementation? “

“I will until I have trained a team lead to be able to do it. Just invite me to the pipeline call”. It was at this point that we became the most requested resources in presales. Prospects love a non-commissioned resource that answers all questions, asks smart questions, and knows the deep inner working of the product and how to apply it to specific verticals.

As I wrote above, we were able to add $1MM in the first year, which helped pay for 3 resources. The team scaled, and eventually grew to 10 resources, with some tech and project management roles.

More to come in the book!

Let me know if you have any questions!