A solution is a proven, integrated combination of products, services, and expertise and requires changes in customer behavior
In their enthusiasm to show value to customers, marketers often use the words “solution” and “product” interchangeably. This obscures a very real distinction. A product addresses a specific requirement or the need to perform a particular task: automate a business process, personalize online campaigns, communicate with mobile employees. A solution addresses the driver that causes the customer to allocate budget. Such drivers are often broad, strategic imperatives such as improving customer retention through more differentiated and intimate relationships, or scaling to handle a higher volume of business while maintaining service levels and controlling cost.
To illustrate the difference between products and solutions, let’s use mice—not computer mice, but live mice. Let’s say you walk into the kitchen for your 1:00 a.m. snack, and as you stare indecisively into the open refrigerator, you notice the shuffling of tiny feet along the wall and glimpse a quick-moving shadow as the invader scrambles behind the dishwasher. “Mousetrap!” you say to yourself and make plans to purchase one the next morning. Placing mousetraps in every corner and sprinkling poison behind the refrigerator will probably kill the mouse. Unfortunately, it will not keep new ones from showing up. You need a solution, not just a couple of products.
Permanently eliminating rodent infestations may require a visit by a pest control service. To prevent future invasions, you may need to adopt a cat, sprinkle cat-safe mouse repellent around the house, change the way you dispose of garbage, and adopt more stringent cleaning habits. You may need to hire a cleaning service. It will be ideal if a trusted friend shares with you her proven methods and recommendations for her favorite pest control or cleaning service.
The solution is not one product or even a combination of products. It is a proven, integrated combination of products, services, and expertise. Most importantly, its success depends on a different set of factors. A product is considered successful if it performs its functions reliably, can be put into use quickly, and is simple and inexpensive to maintain. A solution is successful when it impacts the strategic imperative that led to its acquisition. That requires integration among its components—the roles of the various parties that come together to provide a solution must be clearly delineated. A solution must be able to evolve with the customer’s evolving needs. Most importantly, the success of a solution requires commitment to substantial changes in customer behavior.
Moving from a product focus to the development and sales of solutions entails significant financial investment and the cultivation of new skills throughout the organization. Such investment can be spread out over time. Starting with reference and then moving to solution selling before making engineering and alliance investments can help you develop the required skills and assets, and lay the groundwork for a full solution offering in the long term.
Figure 7: Degree and Breadth of Solution Development