Proof of Concept Lifecycle
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In the world of B2B SaaS, companies often go through a proof of concept (POC) phase before fully committing to a product or service. This phase allows both the vendor and the customer to assess the product's fit for the customer's needs and to identify any potential issues or challenges.
For most B2B SaaS companies, there is some level of proof of concept, proof of value, or pilot phase in the product or service that they're offering. It's important to have stages designated for this process alone so that you can track progress and measure success.
The first stage in the POC process is designating whether a prospect is moving into this phase or not. This decision is often made by sales engineers or the customer success team. It's important to track how many prospects are going into the POC process and to assess whether this process is paying off.
Once a prospect is in the POC process, you'll want to outline a few operational steps that designate the type of process that you go through. These steps should be clear and concise, and they should help you measure progress and identify any bottlenecks. Some common operational steps in a POC process include:
Technical integration phase
API connection phase
Data transfer phase
At the end of the POC process, you'll need to assess whether or not the POC showed value. This assessment should be independent of the closed won or closed lost stages that you had earlier. You want to know if your POCs are able to show the value that you're expecting to show, and if so, whether that's related to closed won business.
The entry criteria for the POC process will vary depending on your company and your product or service. However, it's important to have clear and documented entry criteria so that all teams are following the same process. Some common entry criteria for a POC process include:
A minimum number of users
A certain level of revenue
A specific industry or vertical
When you move a prospect to the "able to show value" or "unable to show value" stage, it's important to document the reasons for either of those cases. This information will help you improve your POC process and increase your chances of success.
The POC process is an important part of the sales cycle for B2B SaaS companies. By following the steps outlined in this guide, you can increase your chances of success and improve your overall RevOps efficiency.