Jeremy Coyle has observed that his average deal size has tripled compared to his previous role in telecommunications, while the sales cycle remains around 60 to 90 days.
Joshua Feinberg highlights the challenge of long-term colocation contracts, which can tie customers into inflexible agreements.
Both agree that building trust and proving the value of services over a short period is crucial to securing longer contracts.
They discuss the balance between ensuring the provider's financial stability and offering customers flexibility in their contracts.
This video is excerpted from the podcast Ep. #64 Jeremy Coyle, Account Manager of Management Science Associates | Data Center Go-to-Market Podcast.
Action Items
- Educate and build trust with customers early in the sales process, rather than just getting the meeting when they are at the "last mile" of the journey.
- Build a proof of concept for a specific amount of time (60-90 days) to demonstrate the solution's functionality and viability.
Outline
Average Deal Size and Sales Cycle Length
- Jeremy Coyle mentions that the average deal size in his current role is three times larger than his previous employer in the telecommunications space.
- The average time to close a deal has remained consistent, ranging from 60 to 90 days.
- Joshua Feinberg highlights the challenge of long-term colocation contracts, which can tie customers' hands for months or even years.
- Jeremy Coyle acknowledges the difficulty of long-term contracts but emphasizes the need to cover costs, such as rack space and power accessories.
Challenges with Long-Term Contracts
- Joshua Feinberg discusses the issue of long-term contracts, which can prevent customers from making decisions due to their duration.
- Jeremy Coyle agrees, noting that while long-term contracts are challenging, they are necessary to ensure the company's financial stability.
- The conversation touches on the balance between providing flexibility for customers and ensuring the company's financial viability.
- Joshua Feinberg suggests that educating and building trust early in the sales process can help mitigate these challenges.
Building Trust and Proof of Concept
- Joshua Feinberg emphasizes the importance of being involved in the early and middle stages of the sales process to build trust.
- Jeremy Coyle believes that demonstrating the product's functionality and value over a specific period (60-90 days) can lead to longer agreements.
- The discussion includes the idea that customers are more likely to sign longer-term agreements, such as 36 or 48 months, if they see the value.
- The conversation highlights the strategy of proving the product's worth through a proof of concept to secure longer-term commitments.
Resources
Watch the full podcast Ep. #64 Jeremy Coyle, Account Manager of Management Science Associates | Data Center Go-to-Market Podcast
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