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How Appian Navigates Federal Sales: Challenges and Opportunities for Product Companies

In Chamber Blog by StaffEntry

“How Appian Navigates Federal Sales: Challenges and Opportunities for Product Companies,” is provided by NVC member Fred Diamond, President, Institute for Excellence in Sales (IES). 

Selling to the U.S. federal government is a journey filled with distinct challenges but equally rewarding opportunities for those who can navigate its complexities. I recently featured Jason Adolf, Public Sector Leader at Appian, on my award-winning Sales Game Changers Podcast. He shared insights on the obstacles product companies face and the strategies they can employ to succeed in this competitive market.


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The Complexity of the Federal Landscape

Product companies entering the federal market often encounter an intricate web of rules and processes that differ greatly from commercial sales. As Adolf explains, “What’s interesting when you sell to the federal government is it’s fiscal-year-dependent. It’s also budget dependent.” This environment requires companies to be agile and knowledgeable about government-specific hurdles, such as continuing resolutions and fiscal constraints that limit new project starts.

Each fiscal year’s end brings a unique rush as agencies strive to allocate the remaining budgets. Adolf likens it to a critical event, saying, “The September Q3 is the Super Bowl of selling to the government.” This urgency often creates substantial business opportunities for established vendors, but new entrants must understand the nuances of this budget cycle to capitalize on it effectively.

COTS and Customization Needs

Federal agencies’ demand for Commercial Off-the-Shelf (COTS) products that are also customizable presents another challenge for product companies. COTS solutions provide tested foundations, yet federal customers often need configurations tailored to their unique mission requirements. “The government wants COTS but needs configuration,” Adolf clarifies. Product companies offering low-code solutions, like Appian, can provide a middle ground by offering adaptable COTS products that fit specific agency needs without the high costs of custom-built solutions.

This balance appeals to federal buyers looking to reduce their total cost of ownership while retaining the flexibility to address complex requirements. Low-code solutions are particularly well-suited for agencies with unique demands. “There’s a really happy medium with low-code where they’re getting the benefits of COTS because we support it,” Adolf notes.

Competing with Industry Giants

Appian’s competition includes formidable players such as Salesforce, ServiceNow, and Microsoft. Yet, Adolf emphasizes that Appian competes by maintaining a nimble approach, focusing on niche markets, and identifying specific agency needs. “I would tell you that we’re a little bit of David and Goliath,” he says, noting that Appian has found success by honing in on cases and procurement where its product excels.

For product companies aiming to break into federal sales, specialization and agility are crucial. “We’re going to pursue what used to be custom-coded applications that are due for modernization,” Adolf explains. By targeting specific use cases like procurement and case management, Appian maximizes its value proposition and avoids head-to-head competition in broader offerings where the giants excel.

Understanding Agency Signals and Influencing Strategy Early

One of the most essential aspects of federal sales, according to Adolf, is understanding when and how agencies indicate their future purchasing plans. Federal agencies often telegraph their intentions well in advance, allowing product companies to anticipate needs and establish a presence early. Adolf suggests that companies monitor trade events, senior leader presentations, and strategic plans that outline multi-year initiatives. “How do I connect the initiative to the mission owner and influence that when they’re trying to figure out what’s the approach?” Adolf asks, stressing that early engagement is key.

By positioning themselves before official Requests for Information (RFIs) are released, companies can influence the purchasing strategy in their favor. This proactive approach helps build trust, which Adolf identifies as crucial to winning government contracts. “That advisory consultation, meeting that mission owner before the acquisition strategy’s been determined—that’s 60%, 70% of the battle in our game,” he states.

Navigating Agency-Specific Needs and Long-Term Relationships

Appian has carved out a niche in addressing unique agency-specific needs, such as FDA regulatory processes and Department of Defense acquisitions. “We do a lot of work with the FDA,” Adolf says, explaining how the company’s software supports regulatory approvals for critical public health products like drugs and infant formula. By aligning its offerings with specific agency missions, Appian builds relationships that go beyond transactional sales, fostering trust and ongoing partnerships.

Product companies that understand and respect the specialized requirements of each agency can create lasting value and position themselves as mission-critical partners. This focus on long-term relationships rather than quick wins can be especially beneficial in a government market where past performance and reliability carry significant weight.

The Need for Consultative Sales and Education

Unlike commercial clients, many federal buyers are unfamiliar with modern enterprise technology, making consultative sales essential. Adolf underscores the importance of guiding these buyers, who may lack experience with certain types of products or solutions. “What you’re selling might be life or death for that company. Sometimes what we’re selling is actually just life and death,” he notes, illustrating how Appian’s work can impact benefits distribution or even the safety of soldiers in the field.

Federal sales teams must serve as advisors, educating customers on the technology and the best approaches for meeting their mission goals. This consultative approach not only builds trust but also positions the company as an essential partner in mission success. “If we do a good job of it, the outcome tends to favor us,” Adolf says.

Challenges and Opportunities for Product Companies: Final Thoughts

In the post-COVID era, Adolf emphasizes that in-person engagement is essential for companies looking to make an impression in federal sales. “For the folks that are selling to government, we’ve got to shed the COVID mindset,” he advises, urging companies to re-engage with in-person events, trade shows, and industry days. This direct interaction keeps companies top of mind for potential clients and strengthens industry connections, which can be vital in the highly networked federal space.

The U.S. federal government is one of the world’s largest markets, offering abundant opportunities for companies equipped to navigate its challenges. As Adolf highlights, success in this market requires more than a good product; it requires an understanding of unique purchasing cycles, the ability to tailor solutions to agency needs, and a willingness to engage early and often. Companies that can effectively build trust, educate their clients, and adapt to the federal sales landscape stand to gain lasting partnerships and significant growth.

By following the principles that Appian has championed, product companies can increase their chances of thriving in the federal market. As Adolf summarizes, “If you’re not out there, somebody else is.”


Fred Diamond, Institute for Excellence in Sales (IES)Fred Diamond is the host and producer of the award-winning Sales Game Changers Podcast and the co-founder of the Institute for Excellence in Sales (IES). He is the author of Insights for Sales Game Changers: Lessons from the Planet’s Top Sales Leaders, which features sales improvement tips and ideas from over 450 Sales Game Changers Podcast episodes. He is a member of NVC.

 


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