Do Challenger Sales Reps Do Demos?

Product Demos | Challenger SaleInspired by a very good question in the CEB Challenger Sale forum, I decided to write an article on the topic of product demonstrations relative to the Challenger Sale, addressing some of the questions around this particular subject.

The question posed to the group, was in essence, “What conditions would need to be in evidence before a good Challenger sales rep would initiate a product demonstration?” Excellent question!

Derivatives of the question throughout the forum discussion evolved into whether or not Challengers should conduct product demonstrations at all. Equally good questions! Following is my take on the two questions — Do Challengers do product demonstrations, and if so, where in the sales process would be the appropriate time to do so.

Do Challenger’s Demo?

The short answer to whether or not a Challenger Rep does product demonstrations is a qualified “Yes,” but with some caveats. Let’s look at a couple of them.

  1. Demos don’t define Challengers. Challengers define demos. Not all products require demonstrations, which you already understand. When they are pertinent as part of the sales process, the Challenger conducts at the appropriate time, anchoring back to what the customer didn’t understand about their business or industry in the first place. To be clear, the Challenger Rep is not defined by whether s/he does a demo. They are defined by their behaviors throughout the sales process …with or without a demo.
  2. Challengers don’t win the sale with demos. This will be, perhaps the most important point I make here. If the sale were won at the point of product demonstration, something went wrong earlier in the process as this has just become the Features and Benefits sale. True Challengers shape demand before a prospect ever knew they wanted or needed a solution, then continue to expose problems, consequences, etc. through commercial teaching/insight. Challengers effectively win the sale by selling the problem prior to a product demonstration. Furthermore, the effective Challenger rep will have been leading TO their solution throughout the sales process, thereby making the product demonstration merely ‘confirmation’ of the sale.

When Do Challengers Demonstrate Products?

As a quick rehash of the Challenger choreography, following are the key stages:

  1. Warmer – Prospect Response: “S/he knows my industry/business”
  2. Reframe - Prospect Response: “I never thought of it that way before”
  3. Rational Drowning - Prospect Response: “I’m familiar with the story s/he is describing”
  4. Emotional Impact - Prospect Response: “S/he is telling my story”
  5. A New Way - Prospect Response: “What should I do?”
  6. Your Solution - Prospect Response: “Will your product address these problems?”

With my paraphrase of the Challenger choreography above, the answer to when a Challenger rep should do a product demonstration is quite straight-forward…At the end of the choreography.

To add a little bit more color to this though, following are a few key elements of Intentionality that must have taken place with your prospect prior to a product demonstration occurring:

  • You taught them something about their business or industry (commercial teaching/insight), that they didn’t appreciate or anticipate before
  • You effectively led them to the center of their own story (Emotional Impact) and created a compelling need to change
  • You remained disciplined and left product/solution out of the discussion in stages 1 – 5 of the choreography

There is certainly more to it than these three areas, but these tend to be the primary areas where lack of intentionality and discipline show up in a rep’s process. That said, when a rep has effectively met the aforementioned criteria, the prospects are prepared to confirm their selection of you as their supplier once the demo is complete.

As a bit of an exaggerated visual picture for what this looks like, consider what the audience members looked like each time Steve Jobs was unveiling a new product. It was the Jerry McGuire version of, “You had me at ‘Hello’!” as the audience, both physical and virtual, has already said ‘yes,’ and are merely waiting to see what they have said yes to.

Repeatable Success Tip

Intentionality. Staying disciplined to the process, despite the prospect’s tendency to try to remain outside of their own story and talk about product requires tremendous intentionality on the rep’s part. In fact, for a great illustration on commitment to the process, see the following article on Zappos’ CEO, Tony Hsieh.

To practice intentionality in this area, consider doing the following. In your next conversation with a prospect, pay specific attention to how quickly you begin speaking about your own product/solution. It doesn’t matter if the prospect initiates discussion on product. If you engage and proceed to discuss your solution, prior to the other 5 stages of the choreography taking place it counts. Furthermore, it will typically cost you for reasons I will describe in my upcoming article on The Consequences of Introducing Solutions Prematurely.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Challenger Sale: Moving Beyond Rational Drowning

Rational Drowning to Emotional Impact

Growing up on the coast of Southern California, I was no stranger to the rip currents we would often see. For those unfamiliar, a rip current (a.k.a. ‘Riptide’) is when the wind and waves push water toward the shore, which then causes the water to travel sideways along the shoreline from oncoming waves until it finds an exit back out to the sea. Some rip currents can move as fast as 8 feet/second.

On one particular day at the beach, I remember seeing a grown man get caught in the rip current. Most of us have been caught in a number of them, and the solution was easy if you knew what to do. We knew to relax and ride the current until it equalized with the rest of the shoreline. It just meant a longer swim and a walk from where you were, that’s all. But for this gentleman, he chose a different course of action.

He began by waving off the lifeguard who was warning him of the strong current. With a wave, in pride he yelled back, “I’m fine.” His plan was to swim against it. Bad call!

It didn’t take long for him to be completely exhausted whereby holding his head above water became difficult. He began swallowing and choking on seawater. In a flash, his once prideful face that rejected help, now showed desperation for anybody to save him. The lifeguard made his way to him in no time as the current led him right to the victim.

I will never forget the look in the man’s eyes – The first look was the look of pride in the face of a dangerous situation. The second look was when he realized he was in over his head.

Temptation to ‘Keep it Above the Surface’

Prospects can have similar expressions, when they have that defining moment. For some, it’s an “Ah Ha!” moment, and for others, an “Oh no!” moment where they realize for the first time how severe the implications are of remaining in their circumstances.

In conversations where one seeks to change the behaviors of another, whether as parents or in sales, there is that point where the person first acknowledges the risks or consequences you are speaking about. When speaking with children, their response may sound like, “I know, I know.” For the business person, this sounds much more rational as they confidently proclaim, “Yes, I am aware of the risks and am taking precautions.” This is code for Status Quo.

This happened recently when I was speaking with the President of an organization about consequences he didn’t realize, and he would be facing in the upcoming months. At one point in the conversation, this President jokingly commented that he needed to do something different or the board would come after him.

He began to move on, but I stopped him dead in his tracks and asked, “Before we move on, in all seriousness, what will happen if we don’t solve this?” At first he chided me for taking things so seriously when he was simply making a joke, but I held out for the answer. I told him, “I’m the serious type, so seriously, what will happen?” He looked down at the table soberly, then slowly back up to me and stated, “I’d probably be fired.”

Within 30 days, he was fired. He had acted too late. His eyes told me a lot, much like the man’s eyes in the rip current. In an instant, pride turned to fear and desperation, and then he was gone.

Rational Drowning vs. Emotional Impact

When working through the Challenger Sale choreography, the third and fourth steps, Rational Drowning and Emotional Impact, are tightly intertwined. I describe these two stages as follows:

If a person fell overboard in the middle of the ocean, Rational Drowning looks like treading water. The victim initially says, “I’m alright,” which ‘feels’ true at that particular point in time. Not until they realize they can’t continue this way for long, will they pass from Rational Drowning to Emotional Impact.

This is not a place most prospects will go willingly. They would rather stand outside of the story…their story…like a casual observer, who can see things factually…logically, and yet remain unmoved, while mired in their own status quo.

Our role as professionals, is to care enough about them to be willing to expose them to the truth about their circumstances.

Tips to Lead to the Center of Their Story

In the aforementioned story of this President who was subsequently fired, I recognized that he was intentionally seeking to avoid getting deeper. I have seen his situation hundreds of times before, but simply telling him so would merely serve to keep him on the outside of his own story.

I could have told him, “You need to change or you’ll be fired” and would have been accurate. But his response would more likely be defensive than if he recognized aloud, as he did, when he said, “I’d probably be fired.” Asking intentional, targeted questions allowed him to begin narrating his own story as his pronouncement of the consequences carried more weight than mine would have. I just had to lead him to recognizing this reality.

Following are a few tips to remember when leading a prospect through these critical stages:

  • Prospects aim for the surface. Like a balloon filled with helium, so it is with prospects. There is a tendency to want to rise back to the surface as going deeper into the center of their own story is never comfortable.
  • ‘Comfort’ is not the aim. If you are not prepared [and skilled] to respectfully lead prospects to uncomfortable places…such as the center of their own story, you will continue to struggle with selling.
  • Don’t tell the prospect’s story for them. According to a study done by the University of Texas (Metzger, 1997), a person will remember approximately 20% of what they hear, but remember up to 80% of what they do and say. In aiming for the uncomfortable center of their own story, ask questions that lead them to tell their own story.
  • Ask targeted questions. Nothing is more maddening and exhausting to a prospect than questions that appear exploratory and aimless. Know where you are leading the prospect in your questioning.
  • Lead TO your solution, not WITH. Your questions, when asked appropriately, should ripen the prospect to a New Way. Don’t jump to your solution yet, as they need to be prepped with what will resolve their issue. This ‘new way’ should aim squarely at what your product or solution can uniquely solve. BUT DON’T TALK ABOUT YOUR PRODUCT/SOLUTION YET.

One final note about these two very important areas of the Challenger Sale choreography – Because these two areas are so tightly connected, there can be a tendency to confuse one for the other. Over the years, I have seen countless reps struggle to even get into uncomfortable places with a prospect. When they do, the most common tendency is to resurface and provide ‘relief’ to their uncomfortable prospect.

Doing this will likely result in the loss of the sale as the prospect merely learned that you make them uncomfortable, but offer nothing but a product solution. They will avoid you going forward. Therefore, remain disciplined and stick to the choreography.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Constructive Tension through Insights

Constructive TensionIf you are anything like me, I learn best from real life examples. This morning, I was reflecting on a conversation I had with a major retailer a number of years ago, that not only got them to think differently, but caused them to adjust their whole strategy. Below is an abbreviated transcript of that conversation.

Background:

A major retailer saw themselves as ‘The Headquarters’ for our type of products and as such, having a broad assortment was a key part of their strategy. Regardless of how they perceived themselves, their sales in the category continued to decline. They had the wrong strategy, and  it was costing them sales and market share.

Following is an excerpt of my conversation with them:

Me: As I understand it, your corporate strategy for [X] category is to provide a broad assortment of brands and give a fair representation of each brand’s line. Is this still a key part of your strategy?

Buyer: Absolutely. Customers have depended upon us as their HQ for years.

Me: I would imagine carrying the top 3 brands in this category is important too…

Buyer: Definitely, it’s critical.

Me: Do you know who is #1 in market share for this category?

Buyer: If you are asking, I am sure it is you.

Me: You caught me, how about #2?

Buyer: (The buyer and Division leader make 3 incorrect guesses, naming our competitors)

Me: I’m afraid not. The three you just named only make up 8% of the market combined. #2 on the list is X [private] and they only sell through their own stores, so as you know, you aren’t able to carry their products. Any guesses on who #3 is in market share?

Buyer: Not if it is someone different from who we already mentioned.

Me: It is. The 3rd largest segment in the market is WYO (an industry-specific term), which rules you out altogether of carrying two of the top three that you said was critical to your strategy.

Buyer: Hmmm.

Me: Do you know what your $/Kit sold is for the other product lines?

Buyer: Do you mean how much in kits we sold?

Me: No. I mean how much ancillary product you sell for every kit sold.

Buyer: No, we don’t track that.

Me: Hmmm. That’s important to know. The reason is that with each of the other lines you carry, the purchase of the kit is all you will make of that sale since they don’t offer ancillaries. Were you aware that for every one of our kits sold, the typical sales on ancillaries are 9 times greater than the kit alone? In fact, that’s what is lost every time you sell another brand. Let’s multiply that by # of kits sold per store times number of stores.

[Figure calculated and presented]

Buyer: Wow! I had no idea. We hadn’t looked at it that way before.

Me: Can you name another category in your stores that achieves this same level of revenue and profitability during this same season?

Buyer: Nothing comes close. The other categories are down when you guys hit your peak.

[Light-bulb moment for the customer with new insights and discovery]

Me: Exactly right.

[The President enters the conversation]

President: What should we do?

Me: You currently have a strategy focused on promoting breadth and fairness to ALL brands. Research shows that 54% of consumers have predetermined the brand they will use before purchasing…

President: Is that your brand?

Me: …It is, and another 34% will compare with only 1 to 2 other brands. You carry 16. In just 2 months time, your strategy of ‘brand breadth and fairness’ cost your stores $xM in sales & $xM in profit. Even worse is that you have lost 7 points of market share. So, in answer to your question, I recommend a strategy change if you want to remain in this category, or otherwise allow us to help you successfully exit the business altogether.

[President pauses and is now at the crossroads with the Status Quo]

The President, after dismissing the buyer and division leader, asked how quickly we could reset the category and serve as category captains.

Doing so would require concessions, if they were serious. He assured me he was. We ended up getting key placement and dedicated signage in the stores, along with many other things that they offered to help them earn back market share and profitability. That following year, they had grown their business with us nearly 30%.

On a related note, we took this same approach with two other major players in the market who achieved even better results that year – One achieving 71% category growth, and the other in triple digits. They remain the market leaders today in their categories.

Summary

The questions I asked revealed that they did not know the answers to key questions. They were looking at things the wrong way. The questions helped to prepare them for a series of commercial insights that created a rich environment to hear a hard truth…that their key strategy was amiss, costing them market share, sales and profitability.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Challenger Tip: Practice what you preach when coaching

Practice what you preach when Sales CoachingSales Leaders were gathered around the conference table to debrief the progress of each respective team’s reps in The Challenger Sale.

There were some great successes shared, with one story of a Relationship Builder who was consistently ranked last, rising to #1 for the last 7 consecutive months. All because she changed her behaviors.

The discussion then centered around those reps that have yet to embrace the Challenger Sale. It was a few minutes into the debrief and diagnosis when we realized we had fallen into the very trap we were advocating against…

Battling the Status Quo
It wasn’t that the sales reps struggling with the Challenger implementation were blatantly resistant to change. They just weren’t sure it was necessary. Their performance was relatively strong, with nearly all achieving quota. Yet there were points in their daily discussions with prospects that were not effective. Their leaders knew it and they knew it.

Reps would approach their respective sales leader with the problem…or vice versa. The leaders would then point to the corresponding Challenger behavior that would address the problem, then coach to the behavior.

Seems reasonable, right? Wrong! We were circumventing the process in order to speed up coaching and performance. They had a known problem. We had the solution. The Challenger Sale!

A New Way
At the heart of the matter was that the reps with their very legitimate problems, were hearing the ‘solution’  from their leaders. In the Challenger choreography, this is the equivalent of going straight from Warmer to Our Solution. See my previous post on the consequences of doing so.

When we don’t adjust our prospect’s thinking (or in this case, our reps), and expose the problems with the status quo, we fail to ripen their appetite for a new way. For these reasons, the Reframe followed by Rational Drowning into Emotional Impact are critical, especially when teaching new behaviors.

Challenger Tip
When coaching, don’t assume you can jump to the solution because reps have sufficient information. What is not needed is more information. What is needed is a different way of thinking about their problems. Therefore, always follow the choreography. The choreography’s brilliance is that it uncovers and exposes faulty beliefs. Beliefs that lead to complacency in the Status Quo zone.

Take the time to do it right by setting a foundation for a reason for change. Then lead them as a Challenger would do. As a leader, you will benefit by reinforcing your Challenger behaviors (not theories). Your reps will benefit from seeing it in action and the effectiveness in bringing about change.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Challenger Sale: Is it okay to let prospects struggle?

Butterfly struggles to emergeHe watched every day, waiting for the butterfly to emerge. One day it happened, a small hole appeared in the chrysalis and the butterfly started to struggle to come out.

At first the boy was excited, but soon he became concerned. The butterfly was struggling so hard to get out! It looked like it couldn’t break free! It looked desperate! It looked like it was making no progress!

The boy was so concerned that he decided to help. He ran to get scissors and snipped the chrysalis to make the hole bigger. With that, the butterfly quickly emerged!

As the butterfly came out the boy was surprised. It had a swollen body and small, shriveled wings. He continued to watch the butterfly expecting that, at any moment, the wings would dry out, enlarge and expand to support the swollen body. He knew that in time the body would shrink and the butterfly’s wings would expand.

But neither happened! The butterfly spent the rest of its life crawling around with a swollen body and shriveled wings.

Don’t Lessen the Prospect’s Initial Struggle
I am not the author of this story, nor will it be a new story for most of you. But it appropriately sets the stage for this very important question. Is it okay to let a prospect struggle?

We hate to see anyone struggle, and for many, the temptation to bail prospects out after asking a difficult question is more than some can bear.

For The Challenger Sales rep, this is most common at the point of the Reframe. In fact, this is intentional as this triggers the Constructive tension that needs to occur in order for the Status Quo to be disrupted. But for the rep that is still learning the Challenger Sale, you may feel your Reframe was inappropriate because the prospect squirms to answer or respond.

Sure, after hearing our different point of view, we would love to hear them say, “I never thought of it that way before” as they look upon us with amazement for our brilliance and intellect. It rarely happens that way.

The veteran Challenger knows that the aforementioned phrase more often sounds like, “I am not so sure I agree with you,”  or “Hmm. I need to get my mind around that.” 

These are signs of constructive tension as the prospect begins to struggle with their current circumstances and that which you have just shared that caused them to rethink everything. Allowing this early struggle to happen is a great sign as it ripens people to hear truth.

For example…
Last week a colleague and I met with the owner of a very successful organization. She is about to release a ground-breaking book, and asked for us to consult on her launch plans for a successful release. In evaluating the initial plans for release, I quickly saw that the current course would result in a book launched on an ill-prepared audience.

She immediately disagreed, sharing that the audience has been dying for an answer, and the research they had done would be the solution to their problems. As difficult as it was for her to hear, I shared honestly with her that she had the wrong perspective as her focus was too squarely placed on selling the book. She agreed that it was with a hint of, isn’t that why we are meeting.

I shared that I was more concerned in establishing her as an authority on the issues that she would address in the book. Without doing so, the book would be introduced to readers that didn’t know they should read it. She still pressed that this audience was ready for the answer.

I responded that while the target audience was indeed, ready for an answer, they were not ready for her solution. I proceeded to lay out some action items that would build a foundation and a platform for her to speak. This would be followed by a hungry audience clamoring for her solution by the time of release.

She listened intently, pressing back at points, but like most high-powered owners and Chief Creative Officers, they are doers. “Give me the action items and timeline necessary to sell my book!”

When debriefing with my colleague after the meeting, he asked me questions around her hesitancy with our proposed next steps. I explained that the hesitancy was that she is trying to sell a book, and we are trying to sell her as a credible authority to have written the book.

She sees herself as credible and an authority from her own perspective, but her perspective is still narrow. In order to broaden her view, I had prescribed steps that she committed to, which would expose the vulnerabilities in her thinking.

Simply explaining what will happen won’t work. She needs to experience that and struggle with that to ripen her for what she really needs to do. Reducing her struggle would result in a poor book launch and threaten her credibility as the authority in this area.

Don’t keep prospects in the Biosphere
As one final illustration of the benefit of the struggle, I would like to share a story stemming from the Biosphere 2 project erected in Oracle, Arizona in 1987.  Following is an excerpt from Dr. James A. Danoff-Burg, Associate Research Scientist at Columbia University, on the unintended consequences to plant and tree life due to the absence of wind.

There are many beneficial effects posed by wind for plants. Wind helps to pollinate many species of plants, spread seeds, remove harmful gasses, bring in many species of animals that are wind-dispersed, and many other forces. Wind is also necessary for creating hardy and strong trees. When it was first created, there was no wind inside of Biosphere 2. Plants grew relatively quickly, but they frequently fell over before they were of reproductive age. After some intensive observations and experimentation, it was determined that the lack of wind created trees with much softer wood than that species would normally make in the wild. They grew more quickly than they did in the wild, but they were harmed in the long run as a consequence. — By Dr. James A. Danoff-Burg, Columbia University, original article here

In summary…
What does it look like to shelter prospects? This may come in the form of answering [or changing] your question to the prospect because they appeared uncomfortable. A more subtle form of sheltering a prospect from the ‘struggle’ is to keep the conversation agreeable throughout your dialogue. Remember, the Biosphere was agreeable and as a result, also detrimental. The lesson of the trees from the Biosphere is that quick and fast growth, does not mean sustainable growth.

Question: Are you sheltering your prospects in the same manner the trees in the Biosphere were sheltered? If so, the consequences to them can be quite severe.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

A Metaphor for The Challenger Sale

Reframe HooksIn my post, Challenger: Reframing the Reframe, I spoke of the common struggles many organizations are having with the Reframe that are implementing The Challenger Sale.

The aim of this post is to provide a picture of how the Reframe functions and the role it plays within the context of Commercial Teaching and Commercial Insight.

While I hate the negative connotations that can be associated with ‘sales’ and ‘lures,’ I saw some constructive applications that may help to make the point. So let’s all agree up front, that none of us are intending the imagery to be derogatory towards customers nor the way responsible Sales professionals behave.

The Role of the Reframe
The authors of The Challenger Sale make reference to the Reframe as being the “Headline” of the insight. The goal, of course, is to attract the customer’s attention and ‘set the hook’ with an unexpected viewpoint (insight), thus the imagery of the lure.

It is at this point where the differences between Insight and Reframe can be confused as many would define the lure as the Reframe. It may help to recognize that Reframe is a verb, not a noun, but let’s define this further in the metaphorical sense. Keep in mind that no metaphor is perfect, though I hope we can have some fun with this.

A Picture of the Challenger Sale
To help get a clearer picture of how the Challenger Choreography functions with respect to Commercial Teaching, Commercial Insight and The Reframe, following are definitions and descriptions cast within the context of a fishing metaphor.

  • Lure = The Warmer: It appears attractive and familiar; Operates within and relates to the customers world
  • Hook = Commercial Insight: A part of the lure, tailored to the customer; Creates discomfort with status quo
  • Setting the hook = The Reframe: The customer is hooked unexpectedly, compelled to go a different direction
  • Line = Rational Drowning: The fishing line, or business case, ties the insight to the customer’s story
  • Reel = Emotional Impact: The reel is symbolic for drawing the customer into the center of their own story
  • Pole = Commercial Teaching: The fishermen uses a pole to skillfully deliver insight at the right place and time
  • Flex = Constructive Tension: Pole flex represents tension when drawing customers to the center of their story

The Metaphor in Action
So now that we have definitions set, here is how this looks in action.

You, the skillful Sales professional cast your lure into the specific area of the lake where your customers are known to swim. It is a place where not many other people fish, as they seem to prefer where the waters narrow. The locals call it The Funnel. You prefer being upstream, at the top of the funnel where your customers aren’t use to seeing what you fish with.

You cast your insight right on target so as not to intrude, but rather to meet them where they swim together to be social (Social Media). The others fishing the Funnel, create a splash every time their lure hits the water. They refer to this as their ‘prospecting call.’ It sends the fish into hiding every time. Those fishing are not dissuaded though, as they are known to spend inordinate amounts of time just looking for any customer that is attracted to their lure.

However, the customer you are looking for is specific and is currently entertaining your lure. Upon seeing your lure, it feels immediately  familiar and agreeable to them (The Warmer), looking like it belongs in their world and was made just for them (Tailoring). In fact, it looks quite appealing.

The customer likes what they hear as you describe the waters in which they currently swim and they start to nibble at the lure. Normally, after a nibble they drift off, but rather than needing a nap, they are engrossed with what you just shared (Commercial Insight). After all, what you just shared was that the waters where they currently swim are having a direct impact on their growth.

Being somewhat disoriented by what you revealed, and fearing you are correct as you give a little tug to set the hook, they find they are hooked (Reframe) and going in a different direction than they thought they were originally going to go with you.

You let out a little bit of line as you continue to make the business case (Rational Drowning), but never so much as to let the flex in your pole (Constructive Tension) go back to slack (Status Quo). Too much line can allow them to go in unproductive directions, getting tangled in the roots and rocks of the lake bed (False Positives).

This could cause harm to them, which was never your intention and is why you don’t reel them in too fast either (Destructive tension). In fact, you care so much for them that you are willing to endure some initial discomfort, because you know their future is better with you than without.

As you skillfully reel them to the center of their own story, they come to realize that fighting to remain where they are at…their status quo…is now untenable. They know the consequences of remaining are detrimental. There just has to be a different way… or even a New Way out of this mess.

With confidence and care, you compassionately share that which you couldn’t wait to talk to them about earlier. Your Solution. But you knew, bringing this up any earlier would be too soon for them. It would have sent them racing to the center of the Funnel to find comfort with their peers. That is why you patiently led them in a way they could follow.

In Summary…
As a humorous way to demonstrate the rest of the metaphor relative to the customer’s Status Quo and Our Solution, I thought this would fit with the metaphor…

Disrupting Status Quo | Repeatable SuccessIt has been said that the fish can only grow to the size of its fishbowl. There’s a better way. Wouldn’t you agree?

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

 

Sales: Beware of False Positives

What are False Positives?
As a term often used in the medical community, a False Positive is defined in the Medical Dictionary as, ‘A result that indicates that a given condition is present when it is not. An example of a false positive would be if a particular test designed to detect cancer returns a positive result but the person does not have cancer.’
False Indicator

In sales, when prospects self-diagnose and present a symptom as the issue, this is a false positive. As a general rule of thumb, the earlier they surface in the discussion, especially when unsolicited, the greater the likelihood you are dealing with the symptoms, not the root cause.

Beware of the Trap
As research from CEB and others have shown, customers are deep into the purchasing process before they choose to engage a sales person. For all intents and purposes, consider this as the customer’s process of self-diagnosis.

The problem comes when rep’s respond to issues raised as if it is the root cause, without recognizing it is a false positive. Doing so will derail your conversation rather quickly, and will likely result in introducing products or solutions prematurely, as if that is the cure. It is not, however. It is a trap, that both parties enter into unwittingly all too often.

Here is an example of how it might look:

Customer:  “We are struggling with [insert problem], and are looking for a product to solve that.”

Rep:  “Our products have been designed to solve exactly that and are rated #1 in customer satisfaction!”

Implications of Pursuing False Positives
The example above shows just how quickly conversations can go to product or solution. The prospect demonstrates what appears to be ‘pain’ and points specifically to something the rep’s product can solve. Why not proceed?

Two reasons:

  1. The rep would likely be solving the wrong problem
  2. The rest of the conversation will center around the product’s features and benefits, leading to price

In the example above, the prospect is framing the discussion to be about product. It is all too easy to answer the prospect’s questions, which will continue to keep the focus on product features, benefits and price.

Some reps will be excited by the interest shown and are just positive the prospect will choose them over their competitors. Chances are, the prospect will see all the differences pointed out as similar [enough] to the competitor’s products, therefore it is simply a matter of best price.

This, from my perspective, is a disastrous conversation which could have been prevented by identifying the false positive, and reframing the prospect’s original premise into a new way of thinking about the issues they are really struggling with.

How to Identify False Positives
It is said that when the FBI trains agents to identify counterfeit money, they begin with and focus primarily on what genuine bills look like. As a result, agents are quickly able to identify counterfeit money because they know the identifying characteristics of authentic bills. To train otherwise would require knowing the characteristics of every counterfeiter. Impossible!

Now consider the sales professional. Customers present endless combinations of  characteristics of their issues, many of which are ‘counterfeit,’ or not the real issue. Sales professionals have been trained for years to dig for customer’s pain points, but if you don’t know what you are looking for, there are two resulting problems:

  1. Anything resembling “pain” will lead reps to believe they have successfully uncovered the problem
  2. Exploratory digging for pain, when you don’t know what you’re looking for, is cruel to prospects

Responding to false positives  as true positives, shows itself in close rates. So how can you tell if what they are surfacing is the real deal – a True Positive? The answer is simple, but not easy.

In the example of detecting counterfeits, there is a standard (i.e., the genuine bill), by which counterfeit bills are held up to. Anything that doesn’t match the genuine bill stands in stark contrast.

When it comes to customers using your unique product offering or solution, what does genuine or authentic look like? Be careful not to focus on product or solution, but rather the customer relative to your product or solution.

Customers that use your product/solution should function differently…uniquely…optimally from those that don’t. Understanding in what ways, and what are the characteristics of ‘genuine’ or ‘authenticity’ in your organization will be critical.

This is the part that isn’t easy. It requires investment of time by you and your organization, cross-departmentally, to determine these answers.

The investment of time in this area is well worth the effort as it will change the trajectory of your next conversation.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Challenger Sale: Do you Reframe in 3-D?

Magic EyeDo you remember when the Magic Eye pictures were all the rage back in the 90′s?

For those unfamiliar with Magic Eye artwork, a 3-D image was embedded into a picture that otherwise appeared to be nothing more than colorful, repeating patterns.

However, to the trained eye, when looked at in a different way, the 2-dimensional image would suddenly, and magically, ‘pop’ into a stunning 3-dimensional reality right before your very eyes.

There were two camps with these Magic Eye pictures – Those that could see the images and those that couldn’t. For those in the latter camp, they found it difficult…frustrating. In fact, it reminds me of how prospects often feel when Reframed to see a radically different picture of their own circumstances. They can really struggle at this stage…which can be very good!

A Different Picture of the Reframe
When considering Magic Eye art and comparing to the Reframe, there are some great parallels that may bring clarity to your understanding of what the Reframe does and how it feels to your prospect when they finally see what you want them to see. But first, a lesson on how to see the picture in this Magic Eye image above.

Viewing the Magic Eye Picture

There are two prescribed methods for seeing the picture in 3-D (i.e., A clipper ship in this case), although knowing you are looking for a clipper ship will not help as much as you think. Regardless of the method you choose, start by clicking the picture to enlarge and open in a separate tab of your browser.

Method 1: Relax your eyes and get real close to the screen as you stare at the picture. Don’t try to focus on the picture, but simply gaze through it in the same way that you do when you daydream. Begin to back away from the picture slowly after 5-10 seconds. You should start to notice your eyes feeling almost as if they are crossed as you move back, because the image will be out of focus. Once you are about 12″ away from your monitor, the hope is that the image will snap into view for you.  If not, be patient.

Method 2: This is the method I prefer. Position yourself approximately 12″ away from the image and look through the image, rather than at the image. For example, if there is a wall directly behind your monitor, look upon the image as if you were able to see through it like a window to the wall. This will relax your eyes and allow the magic to happen. Give it 5-10 seconds without blinking. One trick that helps me recognize when the image is about to snap into place is I slightly move my head from side to side (i.e., just an inch or two). If the image is still appearing flat, like a 2-D image, your side to side motion will reveal nothing. However, if your lateral movement starts to show some depth in the picture, it is about to happen for you.

For those that experienced the mysteries of the Magic Eye artwork for the first time, congratulations! It is truly amazing! For those that still can’t see it, practice. Most people fail to see the image because their natural tendency is to focus on the detail of the flat image itself. It will come once you start to learn the skill of looking through the picture.

Similarities between Magic Eye and the Reframe
What I love about this illustration of the Reframe is how analogous it is to conversations with prospects. From our perspective, having been trained for what to look for in our prospect’s circumstances, we see things more clearly…more deeply than they are able to see.

We may even be inclined to get frustrated ourselves because what is so clear and obvious to us, our prospects just can’t see in the same way. It is as if they are staring at the surface of the Magic Eye picture and all they can see are repeating patterns. But seeing the patterns alone will not move them off the status quo. It is deeper than that. See the similarities to a Reframe?

One Final Note about Reframes….
Being able to properly Reframe a customer is important, but it is not the goal. It is the entry point to getting deeper in conversations. If we don’t practice discipline in this area and recognize that fact, we can take a perfectly great insight and not move any further through the choreography.

Focusing on the insight alone is like staring at the surface of the Magic Eye picture. It is 2-D. Instead, look at the Reframe as looking through one stage to another…from how they have inaccurately seen their picture (Warmer) to the consequences of not changing their picture (Rational Drowning).

Here are a few tips to keep in mind:

  • Focusing on your insight puts you at the center of the story instead of the prospect
  • Instead, use the insight to focus on teaching prospects a new and different way to see their picture
  • Prospects will see the deeper picture at different times and in different ways; Be patient
  • Seeing the deeper picture for the first time requires discipline in looking at things differently
  • It is possible for a Reframe to be 2-D; This happens when you try to tell prospects what to see
  • Concentrate your Reframe instead on how to see for a 3-D experience they will never forget

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Challenger: Reframing the Reframe

Challenger ReframeWhether you are in the process of becoming a Challenger organization, or just about to implement Challenger, you will quickly recognize that one of the most important aspects is the Reframe. Not surprisingly, it is the area your reps will likely find most difficult. The reasons are perhaps different from what you might think.

According to the authors of The Challenger Sale, the Reframe “is the central moment of the Commercial Teaching pitch, as the entire conversation pivots off of what you’re about to do next.” 

I completely agree, and given the import of such a topic, I have decided to break this topic up into several posts. The aim of this particular post is to help identify one of the key reasons why people may get hung up on the Reframe.

Framing the Issue
As a member of CEB’s Sales Leadership Roundtable, and a contributor to The Challenger forums, I have the opportunity to sit among and interact with hundreds of organizations in various stages of contemplation or implementation of The Challenger Sale.

One of the most common things I hear is how difficult it is to teach reps to reframe, as getting customers to think about something an entirely different way is difficult. I also commonly hear beliefs that, “If my organization would just provide Sales with the Commercial Insight, then my reps would be able to Reframe successfully.” When I probe deeper, I often find that the interpretation is that Insight = Reframe.

Insight Alone Isn’t Enough
Unfortunately, this interpretation will put unfair expectations on your Marketing department or organization. Once they finally deliver the insight you have been seeking, reps will quickly find there is a lot more to the Reframe than simply delivering someone else’s prepared, commercial insight.

I don’t mean that organizations shouldn’t develop and provide Sales with commercial insights leading to [not with] their unique strengths. On the contrary, this is a critical step, but it won’t solve your Reframe issue. For those in the heart of your Challenger implementation, you have likely already experienced this.

Reframe: A Case of Mistaken Identity
What may be at the heart of the overemphasis on insight is a misidentification of how the Reframe actually functions. For instance, the section of The Challenger Sale that speaks of the Reframe states, “…the Reframe is simply about the insight itself.”

After reading that quote, if you were to single out one word as being most important, what would you choose?

For some, it might be ‘Reframe,’ but for most, they would say ‘insight’ is most important. I would argue that ‘about’ is the single most important word in that statement. The removal of that word alone not only changes the complexion of the statement, but leads to the misperception that, “…the Reframe is simply about the insight itself.”

This understanding undermines the key points the authors make on customer loyalty when they say that, “the best reps win that battle…by teaching them a new way of thinking altogether.”  Regarding customer loyalty, for a rep to teach customers a new way to think altogether, delivering the marketing team’s brilliant insight [one time] won’t achieve the rep’s longer term goal of teaching them a new way to think.

The shelf life of a commercial insight for the same customer is one use!

Think of it this way. Once the rep delivers the insight prepared by Marketing, the customer says, “Wow, I never thought of it like that before.” Two months later, the rep is invited back. What is the Reframe then? Reps can’t keep running back to marketing to develop new insights before every meeting as the reps need to stand on their own, which does not mean make up everything on their own.

Therefore, reps will need to develop competencies in a number of areas leading to and following from the Reframe. Here are a few of those areas. They need to be able to:

  • Clearly demonstrate they know the customer’s world (The Warmer)
  • Have the ability to distinguish between symptoms and root causes to avoid traps (False Positives)
  • Be agile in their comprehension to connect a variety of symptoms back to its root cause (False Positives)
  • Have the knowledge of how to wield Commercial Insight to teach customers to think differently (Reframe)
  • Understand how to continue to build the business case from the Reframe (Rational Drowning)

In summary, while Commercial Teaching, Commercial Insight and The Reframe are highly interrelated, they remain separate and distinct from one another. My next post will aim squarely at bullet points 2 and 3 above regarding False Positives as I see this as one of the biggest threats to derailing your whole choreography between the Warmer and the Reframe.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.

Implementing the Challenger Sale, Visually

Making a Powerful Impact, Visually

In January 2012, I was giving a keynote address on becoming a ‘Challenger’ to a room full of highly competent sales reps, who were self-described as Relationship Builders in their selling approach. In fact, this approach was reinforced by the whole organization as it had been centered around relationship building for more than three decades.

To create an impetus for changing what had been endorsed as the preferred selling approach (a.k.a., status quo) for decades, I had to create a constructive tension in a visually compelling way.

This post is aimed  at showing how I did so in a way that resonated with 5 different sales teams that didn’t know this was a problem.

Background: The Sales Team’s Profile
As aforementioned, the 5 various team types (i.e., B2B, B2C, B2I, 501(c)(3), and licensing/franchise sales), were comprised of highly competent professionals. Most of the team had tenure between 5-20 years and knew their customers, their issues and aspects about how the products, services and solutions would benefit customers more significantly than any competitive offering.

Due to a very unique, well-defined marketplace that is not very large, the relationships that had been formed over many years with customers were very strong. From the customer’s point of view, the reps were highly regarded. Furthermore, these reps were instrumental in taking market share from competitors year after year.

Why Change?
After a deep dive into the metrics, processes and behaviors, I saw an opportunity to go from good to great, especially after identifying that the intentional behaviors were not leading to predictable and repeatable results. As a side note, whenever I see leaders and/or teams that don’t have these 3 characteristics (intentionality, predictability and repeatability) in their performance, I see risk and ripe opportunities.

Additionally, having worked years ago with a 100 year-old company who mistakenly believed that relationships were key to their successful sales, I saw this as the Achilles heel, that not only would bite them, but already had some overlooked signs of performance drains.

Relationship Builders
When it comes to the Relationship Builder, statistically, this sales profile has the lowest probability of success for becoming high performers, particularly in a higher complexity sales environment. According to the Sales Executive Council’s research, only 4% of Relationship Builder’s are likely to be high performers in a complex sales environment, whereas the Challenger profile, at 54%, was very likely to succeed in a complex sales environment. (See Fig. 2.4 from the SEC below).

Challenger Sale Effectiveness

A Visual Case for Change
As with any change effort, it is never just one thing. There are many aspects to leading a successful change effort, much of which is not described in this post. That said, I wanted to share of one specific and practical way to illustrate your point in an experiential and visual way.

With the data shown above in Fig. 2.4, and my diagnosis of where these teams stood to make transformational improvements in their performance, I did the following. I made a life-size bar chart on the stage as the backdrop for my keynote address. I used stacks of the company’s products to make the representative bars for each respective sales type (i.e., One stack for the Relationship Builder, one for the Problem Solver, and so on for the Hard Worker, Lone Wolf and Challenger).

Each product represented 5% within the stacked bar . I took the organization’s most iconic product, which measured approximately 14 inches high in its package, and made the graph with the Relationship Builder profile at 4% on one end and the Challenger profile at 54% on the other end.

There were two aspects of the visual representation that made the effectiveness of each sales profile particularly hit home:

  1. First, the Challenger bar stood over 10 feet high, towering over me as I made my points
  2. Equally as stunning, was the Relationship Builder bar – The fact that I had to cut 20% of the product off the top to accurately represent 4%, since each product represented 5%, had a sobering effect

The stark contrast between the two ends of the life-sized bar chart not only was visually stunning, but resonated with each of the reps who recognized the gaps between what had been and what should be for them.

Challenger Profile Statistics

Life-size bar chart of Challenger statistics

The Results?
A year after The Challenger introduction and implementation, performance improved across all teams. Following are some stand out achievements from three different teams:

  • Team A had a 22% performance improvement from the year prior with all reps far exceeding quota, and within 1-2 points from one another
  • Team B sells registrations, of which post-sale cancellations are also expected. They used the Challenger approach to reduce cancellations, which led to the lowest cancellation rates they had ever seen
  • Team C had an individual from the team that went from being ranked dead last in performance, to consistently #1 or #2 for 6 months in a row by changing to Challenger behaviors

Reflections:
Many leaders wait until they see problems before they initiate a change effort. How about you?

  • Do you know what to look for?
  • If so, do you know what to do about it?
  • Are you challenging the status quo?
  • Does your team know which behaviors to be intentional about that lead to predictable, repeatable results?

An answer of “No” to any of the questions above can have dire consequences if not addressed. If that describes you, seek out a trusted resource, colleague or other business professional with a solid track record of improving performance in these areas.

If you would like to receive other insights on The Challenger Sale and how to get intentional, predictable, repeatable results from your team, follow my blog.

Jeff Michaels | Repeatable SuccessJeff Michaels is a Sales & Marketing Executive that has worked with executives, leaders, & teams for 25 years to create repeatable success regardless of industry, economy or circumstance.