In previous articles, we described how SaaS and recurring revenue growth does not operate within the traditional marketing funnel, but a more complex, bow-tie model. We also looked at the effects of recurring rational and emotional impact.
SPICED is a uniform framework based on the fundamental principle that recurring revenue comes from recurring impact. Using SPICED as a framework, you can find and organize information systematically to ensure you understand your prospects' background, pains, desired impact, and how and when they will commit to your solution.
The beauty of the SPICED framework is that it is flexible to meet your customer at the point of impact. It is not a one-time diagnostic tool for lead or deal qualification. It is a framework that applies throughout the customer journey, at each stage of the Bow Tie.
Uses for the SPICED Framework
1. Marketing
Marketing teams can use SPICED to identify their ideal customer profile (ICP), create a value proposition for their website, and provide guidance on SEO terms.
2. Lead Generation and Development
Lead generation teams can use SPICED in their email campaigns, addressing prospective users based on emotional impact and organizing webinars on topics close to decision-makers' hearts.
Note: The order of the letters in which the SPICED acronym is organized reflects the urgency of the customer need; it also matches up with lead gen campaigns. For example, the "Situation" is static information that can be obtained from public sources, whereas "Pain" and "Impact" reflect a more urgent need, and "Critical Event" connects directly to an "Intent" to buy.
Lead development teams can use SPICED with qualified customers based on the impact and critical event. They can also use SPICED to hand them off to the assigned sales professional.
3. Sales
During a discovery call, SPICED can be used by sales teams to diagnose a customer and help determine which impact will benefit the customer most. It can then be used to perform a demonstration of the product, highlighting how features were developed to help the customer achieve the desired impact.
Note: Thanks to its simplicity, the SPICED framework can be used by the seller to help a customer navigate the internal buying process by matching the impact and critical event to the customer's business requirements.
As the customer comes to a decision, sellers can use the critical event to ensure the customer is aware of potential consequences—or, if a customer has gone dark, to help in re-establishing communication.
Note: Historically, B2B one-time hardware products sold against budget. In software, that shifted from budget to return on investment (ROI). Recurring revenue, however, by its very nature, has a 10x ROI and fits into most budgets. Therefore, recurring revenue services are sold successfully against priority: "Is this a priority for you right now?" A critical event diagnoses a customer on priority, and, unlike budget, priority fluctuates over time.
4. Customer Service and Success
When a customer tells a sales professional about his or her situation and pain points, those pain points and the context can be passed along to the customer success manager for a smooth handoff and less repetition needed by the customer.
Once a seller and buyer have committed to the impact, the team responsible for onboarding can verify with the buyer whether he or she understands the situation correctly, and whether the impact and critical event match up with the customer's expectations.
As a customer achieves the impact, a member of the customer success team can proactively identify where more impact is feasible based on a changing situation, and then report back on the impact that was achieved to help a customer feel comfortable with renewing or expanding their contract.
