The 5 rules for winning AI proofs of value

The proof of concept is dead. Long live the proof of value. 

SaaS companies continue to make the mistake of using proofs of concept to prove that their technology works. Does the integration work? Can it handle the data volume? Does it meet the security requirements?

These are important questions to ask, but they're not the questions that close deals.

What buyers really want to know is, what does this mean for me? Both personally and professionally. 

Your buyer isn’t going to get promoted because they successfully validated a vendor's API. They get promoted because they delivered measurable business value. They boosted revenue. They improved customer loyalty. They solved a problem that was keeping executives up at night.

The companies that successfully turn proofs of concept into repeatable revenue are those who use this period to prove the value, not the concept.

Trading short sales cycles for higher conversion rates

Sales leaders often resist POCs because they worry about lengthening sales cycles. And they’re right. POCs or POVs will lengthen the sales cycle by the length of the POV period. 

But what most sales leaders overlook is the fact that POVs drastically improve conversion rates. 

A typical opportunity moving from S1 to closed-won converts at 10-20%. 

But an opportunity that progresses to a POV? In my experience, conversion rate jumps to over 80%. 

Yes, your sales cycle gets longer. But if you get in first, you lock competitors out. Most companies won't run multiple POVs simultaneously. Get in first, prove value fast, and you've effectively closed the door behind you.

What if your POV fails?

The simple answer is, don't let it.

This is about going all-in on customer success in a way most vendors won't. Throw your forward-deployed team at it. Embed your people with theirs. Make their win your only job for the duration of the POV. 

Because if you don't, someone else will. 

Now, sometimes things still don't work out. Maybe there's team misalignment. Maybe there's a tech issue you didn't anticipate. Fine. Figure out what happened, tell them directly, and reset the POV. 

Don’t mark it as closed-lost and give up. This is your chance to prove that your product delivers the value you say it does. Try again.

The 5-step POV playbook

Here's how to win consistently with proofs of value:

1. Get there first - When it comes to POVs, speed matters. Be the first vendor to propose a POV, and you'll close the door on competitors who are still scheduling demos.

2. Study their POV history - Do your homework. What did they pay for similar pilots in the past? What worked? What failed? Understanding their POV track record gives you a massive advantage in structuring yours for success.

3. Find their approval threshold - Know exactly how much they can spend without requiring CEO or CFO sign-off. This number determines your pricing strategy and timeline.

When in doubt, charge double the last successful pilot price. Most companies leave significant money on the table during POVs. 

4. Win fast - Once you’re in, you need all hands on deck. Embed your team with theirs. Prove value as quickly as possible. The faster you demonstrate results, the faster you close, and the less opportunity competitors have to interfere.

5. Get the testimonial immediately - The moment you win the POV and close the deal, capture a testimonial. Use it to win your next POV. Then repeat the process.

POV customers are way less likely to churn than those who buy without a POV. They've already experienced your value firsthand. They've invested time and political capital in bringing you in. They've built internal momentum around your solution. 

The POC is dead. Long live the POV.

If you’re not running POVs, you can be sure somebody else will. If your competitors get in first, they’re going to close the door on you. Don’t let them. 

Winning companies will be the ones proving value in the shortest possible time, locking out competitors and creating customers who succeed - and who stick. 

So stop proving your technology works and start proving what it means to the people who matter.

Get back to growth

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