Everybody Wants Change, Nobody Wants TO Change

Change Comes From Challenge In the words of Dilbert creator, Scott Adams, “Change is good…you go first!” For most of us, this resonates. We all want to see it, but many fewer want to do it!

In Sales & Marketing, the impact of this reality is having devastating effects as their messages fail to compel prospects to break from status quo.

Spoiler Alert: Presenting benefits does not qualify as a compelling reason to break from status quo.

The Problem…

In a recent survey from just a few years ago, CEB researched the commercial impact of the rep’s message with senior executives and decision makers from a variety of industries that regularly interact with sales representatives.

Astonishingly, the results showed that 86% of the time, the rep’s message had no commercial impact whatsoever. This meant that only 14% of the time, the rep communicated their message in a way that suggested a reason for change.

Executives and Decision Makers from this survey commented that the reps they deal with believe their biggest enemy is their competition when in actuality, their biggest competition is what prospects are currently doing.

Tim Riesterer from Corporate Visions describes it by saying, “You walk in and throw up all over me about your products and services, but I’m not ready to hear about that yet. Your trying to convince me of ‘why you’ and I’m asking myself, ‘why change at all’?”

It Happens All the Time…

Some time ago, I was working with a rep that had called in to report on his progress after meeting with an important prospect. Our coaching in the previous week stressed the importance of making the case for change with the prospect. His style as a relationship builder was to encourage prospects to buy based on benefits and opportunities, but this was failing to yield meaningful results.

The minute I answered the phone and heard his voice, I knew that he had not succeeded. He proceeded to describe how “deeply entrenched in status quo” this prospect was, and therefore how impossible it would be to get him to change.

“Bringing about change is difficult,” I said. “Tell me what you said that specifically suggested there was a detriment to his business because of a circumstance or condition he previously didn’t understand or anticipate until talking to you?”

After 5 very uncomfortable seconds for the rep, he replied, “I wasn’t really focused on that. I was trying to get him to see how much better his business could be if he used our services.” Sound familiar?

There were a number of problems that needed to be corrected in his brief reply, but I pointed him to the fact that if the prospect had no idea how bad the problem was, he had no basis from which to evaluate “how much better his business could be.”

I also refocused him on the fact that his prospect was not alone in not wanting to change. He too, was failing to make a change that would bring him better results. I reminded him that it wasn’t this ‘opportunity to do better’ that initially caused him to engage my services. It was the imminent threat of him going deeper into performance counseling followed by separation of employment if he wasn’t willing to pursue a new way. He knew this was true and assured me he was serious about pursuing a new path.

UPDATE: To demonstrate his seriousness, the next day, he followed up with the same prospect, apologized for dancing around some things he wanted to share that concerned him about the path the prospect was on. The prospect gave him “5 minutes to make his case” over the phone.

That’s all he needed, so the rep took it, and showed the prospect how based on his current action, they were likely experiencing increased and unnecessary costs in an area that most companies don’t think to look. He gave the ranges for underperforming companies that experienced this, then directed the prospect to where he could find this data and validate for himself.

He then requested that if the prospect found his own company’s spend to be outside the acceptable range, to invite him back to make a more compelling case to the technology review board for a different way to eliminate the spend within 45 days. He received a call back that afternoon from the prospect confirming the findings [which were worse than they thought], and within 2 weeks, penned a 6-figure deal.

A Better Way…

You and I both know, not all stories like that have as happy of an ending. There are, however, three key points to doing this better and increasing your likelihood of success that apply equally to Sales AND Marketing.

Reframe Thinking. For any change to occur, the prospect must think differently about their current problem or situation. Often times they’re not even aware of a problem until you present them with one. The key to effective reframes is to focus on how they should think differently about their circumstance/condition. Many make the mistake of working on getting prospects to think differently about their product or solution. Focus them on their problem, not your solution.
Make a Rational Case. If you have successfully gotten your prospect to think about their circumstance, business, condition, etc. in a different way, you now must make a rational business case for why. Whether it be statistics, research, ROI calculator, or all of the above, it is critical you know the prospect’s economic drivers and make the intellectual business case for change. Identify in advance the specific outcomes they are seeking to achieve that are at risk.
Make an Emotional Case. The old adage suggests, people buy emotionally, but justify the purchase logically. The previous step gave them the logical reason to rationalize their purchase, now you must connect emotionally. This is the critical place for making sure that the story your telling is the prospect’s story. One effective way to do this is to share a recent example/story based on what you’ve learned from your prospect. When done well, I often times have the prospect finish my story with their own. In other words, they are giving me the punchline for how the story ends, because it just happened to them.

A Message for Marketers…

It is common for Marketers to dismiss this approach as there can be a real reticence to create too much negativity or concern in the Marketing. Following are two different visual examples of companies that aren’t afraid to go there, and as a result, are causing people to think differently about the problem their products/services solve.

Example 1: Ameriprise Financial

Example 2: TaylorMade Golf

In the Ameriprise example, they ask a simple question that terrifies many people – those that are nearing retirement…and those that weren’t thinking about it at all.

The TaylorMade example does a great job of showing how everybody, including themselves got it wrong when trying to solve the problem of more distance off the tee.

In Conclusion…

While there is certainly more to the process, the key for this article is to call attention to the often overlooked cause for reps failure to progress in the sales cycle.

If you don’t challenge the status quo and make a case for change, the prospect’s dollars will be spent later with the competitor that actually does make a case for change.

To prevent this, it is critical that you learn to bankrupt their status quo account. Doing so will bring about very different results in intentional, predictable and repeatable ways.

For more articles on similar topics, follow me on Twitter Follow @IntendedResults

B2B: Why Thought-Leadership Falls Short

When it comes to thought leadership, an image like the one to the left often comes to mind for people. The recent thinking goes something like the following…

Customers want to be presented with new ideas and learn from thought leading subject matter experts before making a purchase. As they are educated by the SME, they are gradually sold.

But is thought-leadership enough? I would maintain that it threatens to be an expensive path for free consulting. Allow me to explain…

The Research

A few years ago, ITSMA conducted research finding that 57% of B2B buyers would like to see thought-leadership from sales reps. The conclusion they had drawn, like for so many others, was that if buyers want thought leadership, sales and marketing must give it to them. Important to note is ITSMA’s official definition of thought leadership is as follows:

More recently, Omobono joined forces with the Business Marketing Association to research marketer’s top priorities. The results showed that not only did ‘Strengthening Thought Leadership’ rank as a Top 3 priority at 63%, 8% higher than ‘Deepening Customer Relationships,’ and 19% higher than ‘Raising Brand Awareness,’ but it ranked as marketer’s first priority.

The focus and emphasis on thought leadership is not surprising, and can be a good thing. That is, if thought leadership is the goal and your sales and marketing model is to offer free consulting and therefore derive no commercial benefit. Tweet This

For the CMO and CSO, this is an unaffordable luxury as accountability to the board and stockholders would never permit such an expensive endeavor with no associated RO[M]I.

Standing in contrast is the work and research conducted by CEB, which shows that ‘thought-leadership’ is several steps removed from meeting the criteria that results in having commercial impact. Let’s look at their definitions for each of the five areas in their hierarchy of messaging.

Hierarchy of Messaging

General Information – General Information is simply information that covers generally just about everything. It’s that overwhelming flood of information out there, that we spend more time filtering out rather than taking in.
Accepted Information – Accepted Information is credible, it’s relevant, but often, it’s not terribly interesting. It doesn’t necessarily teach anything new. An example might be, “90% of CIOs are concerned about what cloud computing means for their organization.”
Thought Leadership – Thought Leadership is interesting, newsworthy, incremental information that customers themselves likely couldn’t have discovered on their own. So, unlike accepted information, thought leadership provides new perspectives or new data that teaches, and doesn’t just confirm.
Insight – Insight is designed to disrupt the customer’s view of their business. It juxtaposes the cost of current behavior against the potential of an alternate action. This breaks the customer’s frame of mind.
Commercial Insight – Commercial Insight has the highest bar, and ensures we are not simply providing free consulting to customers. It’s Insight that meets the “frame-breaking” bar but simultaneously leads the customer specifically back to us as the sole supplier, enabling them to actually take action on that Insight.

In light of the definitions, let’s now go back to the originally cited research from ITSMA to understand why giving buyers what they want (‘thought leadership’) is bad for business. There are three perspectives to consider:

Three Limitations of Thought Leadership

1. The Buyer’s Objective with Thought Leadership

From the buyer’s perspective, they truly want to understand trends and conditions that may impact them or their business negatively. But, they don’t care where it comes from, nor if it results in a sale for you or credibility for your brand. That was never their aim, as they care about protecting the interests of their business first and foremost…and that is perfectly reasonable. Therefore, the goal of the buyer(s) is to become as informed as (s)he can so that the best decision can be made when selecting between suppliers.

According to CEB, when it comes to thought leadership, “the real limitation is it doesn’t necessarily drive action. That’s because most thought leadership is largely focused on presenting a new idea rather than undermining an existing one. Thought leadership often has little lasting impact for this reason. It fails to disrupt the customer’s thinking.”

2. The Marketer’s Objective with Thought Leadership

For marketers, of key interest is creating disproportionate mind-share for the brand, which requires establishing credibility, which leads to engagement and subsequently, reliance upon the brand. According to the study, thought leadership is seen by marketers…AND BUYERS…as a way to do so.

I am not claiming the research is wrong. But I am suggesting the conclusions drawn from the research are not only off-base, but potentially detrimental to the marketer’s stated goals that led them to pursue thought leadership in the first place.

As marketers, we can often fall into the trap of inserting ourselves [or our brands] into the center of the story. For example, the term ‘thought-leader,’ puts the person delivering the ‘thought’ at center stage. What we all have learned over the years, however, is that the only way to change a customer’s behavior, is to stop telling our own story to build credibility, but instead, tell theirs and help them see themselves in the story.

Therefore, instead of pursuing thought leadership to earn credibility, be credible in demonstrating you understand your audience.

3. The Sales Rep’s Objective with Thought Leadership

While marketers certainly have their own challenges of getting attention and responses, given the rise in popularity of content marketing, sales reps too, have some tough sledding to get responses to their emails and phone calls.

Reading the research from ITSMA, reps are left with the natural, but wrong conclusion that if buyers want thought leadership, they should provide it to them. The problem with this approach is that sales reps can tend to overlook one very important element.

In their pursuit to provide thought leadership, their point of view, insight, etc., no matter how profound, fails to lead uniquely and specifically back to them as the sole supplier in a way that enables the buyer to take action. The following article discusses more on this concept here (Where are you Leading?).

In other words, the thought leadership merely provides the buyers with a perspective that could apply to any number of suppliers. This results in the buyer determining that their choices of suppliers are relatively equal, so they look for a tie-breaker. Too often, that tie-breaker becomes ‘price.’

To change this outcome, I will refer to a friend of mine, Bob Apollo. He argues in his article, that there are three primary questions that need to be answered before customers will buy from you, Why Change? Why Now? Why You?

Regarding the order of the questions, both Bob and I would contend that the order of the questions [as written] is paramount as well. Reversing the order, as so many have done for years, merely results in prospects remaining with the status quo 60% of the time.

In Summary…

While demonstrating thought leadership is certainly better than simply offering general or accepted information, as we see it still pales in comparison to the kind of insight that is frame-breaking and provokes an action that leads distinctly and uniquely to your solution.

With that said, let me provide a different picture of what sales and marketers need to be doing to provide the most value for a customer.

Disruption

I love what this picture represents. By virtue of the fish (i.e., Marketer, Sales Rep, Content, etc.) swimming against the flow, others can’t help but redirect their path (i.e., Thinking) to adjust for the disruption to their current path (i.e., Status Quo).

As for thought leadership, presenting new ideas that others have never heard before often produces a pattern like the first picture. What that picture doesn’t represent, however, is how long they stay on that path. The hope or belief is that they remain on that path to purchase. But thought leadership does not require them to purchase your product to still value you as a thought leader (i.e., Free Consultant).

Therefore, to avoid this, whether you are producing content, a campaign, or delivering messaging to prospects as a sales rep, ask yourself the following questions about what your message delivers.

Does your message:

Break the customer’s frame of mind about what they have been doing?
Juxtapose the cost of current behavior against the potential of an alternate action?
Lead the customer specifically back to you as the sole supplier?
Enable them to actually take action on that Insight?

Answering “no” to any of those questions puts you at risk of providing free consulting for your competitors.

3 Steps to Reframe Prospect’s Thinking

Capturing the attention of a prospect has become increasingly more difficult. We’ve all heard the numbers:

100 billion business emails were sent and received per day in 2013 – Radicati Group
86% of sales rep’s messages have no commercial value to buyers – CEB
67% of the buyer’s journey is now done digitally – SiriusDecisions

With the bombardment of ineffective messaging battling for your prospect’s attention, it’s no wonder why 6 out of 10 prospects end up in no decision. That number is likely to rise with a 31% increase in email and 44% increase in social media users expected over the next 4 years.

Many Sales Reps are trying to solve this through increased activity levels while simultaneously looking to improve their efficiency. Unfortunately, this will only result in adding to the noise, and lead reps to believe even more activity still is necessary.

Interestingly, as sales reps work tirelessly to get in touch with prospects to convince them to depart from their status quo, reps are equally guilty of their own status quo. Some are approaching prospects in the same ineffective way that they have done for years.

What so many fail to realize is without changing their approach and message, it is nearly impossible to generate enough activity through voice mails and emails to prospects, to make up for the poor response rates. Look at the recent statistics from The Blaire Group and Direct Marketing Association (DMA), respectively:

“Surprisingly, we’ve never seen a sales team that could achieve more than a 3% callback rate from voicemail messages. The average callback rate is less than 1%.” – Kraig Kleeman, The Blaire Group
Yory Wurmser of DMA reports, “Email’s average response rate is 0.12%”

There is a better way to approach prospects in order to reframe how they are thinking about solving their problems. But doing so requires a complete abandonment from generically contacting and emailing prospects en masse.

The C.E.B. Model for Better Reframes

After spending significant time in evaluating the Challenger choreography, not only in face-to-face sales conversations, but also in written form and in everyday interactions, I developed the following easy to remember acronym…C.E.B.

Challenge. The first step in your opening communication to a prospect is where you begin establishing credibility (Warmer Statement) by clearly articulating the ‘challenges’ your prospect is likely experiencing. The goal of this opening paragraph or statement is for the prospect to say, “Yes, I agree. You really understand my world.”
Example. The second step of your communication is to provide an example, demonstrating the traditional or conventional wisdom that everybody else uses to address these issues. This is where you lay the foundation to transition the prospect from Warmer to Reframe. At this stage, the goal is to have the prospect nodding, as if to say, “We’ve tried that approach too, and it doesn’t work.” Of course, they are expecting you to advise just like every other rep…but that is not what you will do as you are about to start the ‘bankruptcy’ proceedings.
Bankruptcy. The third step in your process is to demonstrate the insufficiency, or ‘bankruptcy,’ of traditional thinking and why it hasn’t worked. Your articulation and presentation of the problem with the conventional wisdom is paramount in preparing to offer your unique perspective that they hadn’t thought of before. This is the Reframe. The goal of this stage is to get them thinking, “I never though of it that way before.”

I can’t stress enough the importance of absolutely bankrupting the prospect’s investments (e.g., arguments) for remaining in their status quo. Sales Managers and Reps alike need to recognize that if the prospect has any ‘capital’ remaining in staying the same, they won’t budge until they have completely depleted their investment.

Repeatable Success Prospecting Tip

If a prospect’s “status quo fund” isn’t completely bankrupted by the end of their conversation with you, their fund will run out with a competitor…and they will earn their business. For the Challenger Sales rep, your job is to ‘defund the prospect’s argument’ for remaining the same.

For more articles on similar topics, feel free to follow me on Twitter Follow @IntendedResults

Challenger Marketing: TaylorMade

Following is an excellent Challenger marketing example from TaylorMade, that takes the conventional wisdom and turns it on its head. Of course, this is requisite for disrupting the status quo.

I’d be remiss in not calling out Corporate Visions who first brought this example to my attention in their post titled A story “TaylorMade” to win.

A Challenger Rep’s Rise to #1

As we closed our second full year in our Challenger implementation, we saw another year filled with breakout performances as reps started refining their Challenger Sale skill-sets. The following article highlights one of the year’s success stories. The story is about a new rep hired in to one of our larger divisions, who successfully transitioned from Relationship Builder to Challenger, delivering the top sales performance of his division for the year. Following is an excerpt from my interview with Phil Daily as we debriefed his performance for the year…

Interview with Phil Daily

Jeff: You came into the organization brand new last year, and not only learned Challenger selling, but learned a new industry, all while earning the position of top sales person of the year on your team. What was impressive about this is that the person who had typically been #1 for nearly 20 years had another great year as well. For those outside the organization, they may wonder if it was just a matter of a ‘hot’ territory, a fast growing industry, or some other circumstance not directly related to your performance. Honestly, did Challenger have anything to do with this, or were there other contributing factors like inheriting a favorable territory? Phil: Our industry is one that is slow to change and steeped in tradition. The customers care deeply about their purpose and “getting it right,” and I believe the more purpose one sees in their vocation, the more powerful Challenger can be. Coming into my territory last year, I used Challenger to confront the status quo and the “way it’s always been done.” As a result, I saw positive growth in regions of the country that are traditionally thought of as declining markets with declining growth. Jeff: What is your impression for why these markets had been in decline? Phil: When sales reps used traditional product-centric and relationship building approaches, it caused our solution to blend in like ‘white noise.’ Challenger brought a constructive tension, which was sorely needed for change. Jeff: Prior to beginning your Challenger journey, which of the five profiles best represented your own sales approach? Phil: A mixture between Relationship Builder and Challenger. Jeff: Interesting. Those two approaches are often diametrically opposed. How did these two profiles manifest themselves in your approach? Phil: Deep down I believe I had some Challenger qualities and behaviors. However, before understanding what a Challenger message looked like, I would back off as I felt uncomfortable with the constructive tension. As a result, I would default back to relationship building and try “friending” customers into the sale. Trusting the process of Challenger has really helped me in overcoming this barrier. Jeff: Often based on the name “Challenger” alone, people can have some reservations about the approach. Did you have any initial reservations when introduced to Challenger? Phil: Yes. Intentionally creating ‘Constructive Tension’ can sound scary. However, I was most anxious about how to execute. There is a lot of information to take on when learning Challenger, especially through the transitions. Jeff: Describe what you mean by transitions? Phil: Struggling through transitions relates back to my lack of familiarity with Challenger choreography. For example, I would be so focused on Reframe, when it came time to progress the conversation into Rational Drowning, I would struggle with a ‘transition’ statement that was conversational and natural. My supervisor helped me with transitional phrases such as “the interesting thing is” or “to solve this issue…” Over time, making this conversational became second nature. Jeff: What was the hardest part of the Challenger process for you? Phil: I was so focused on the Reframe itself, that I was having a hard time setting it up properly. I found myself having very long conversations before I could move forward.

It was difficult at first, because I was so used to looking for areas of agreement to build the relationship. However, setting up and delivering the Reframe is about turning the head of the customer, which can create moments where they don’t always know how to respond. Jeff: What would you advise others to do that struggle with that same area? Phil: Don’t be overly anxious to get to the Reframe before you get to the Warmer. Demonstrating credibility cannot be understated. When prospects think, “He gets me,” it builds the critical foundation of trust, but it’s not based on being nice. Rather, it’s based on providing valuable commercial insight with industry knowledge. Jeff: What do you know now, that you wish you knew when you first began your Challenger journey a year ago? Phil: Jumping to solution before the appropriate time is a very easy mistake to make. Fight the temptation to lead with product and trust the Challenger choreography. Jeff: I receive emails from sales reps all over the world that are contemplating Challenger, and one of the common concerns is their fear that customers won’t respond well to the approach. How have your customers/prospects responded to your Challenger conversations? Phil: My customers believe, and have told me, that they have gained valuable insight to their challenges. This insight prompts them to reach for solutions that are uniquely designed to confront these ‘new challenges.’ When teaching customers to think about their industry in a new way, the same old way of researching and buying product won’t do. But with the Challenger approach, customer’s often share with me that our “resources are specifically designed for their issues.” Jeff: What advice would you give to those sales reps considering the Challenger methodology? Phil: Learning Challenger concepts is not easy. However, the potential for greater performance and purpose is definitely a worthwhile endeavor!

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In an upcoming article, I will be asking these same questions of our top sales rep from another large division that applied the Challenger approach to his acquisition efforts, and had breakout results.

Challenger Sale Reframe: Two Missing Frames

Challenger Sale Reframe New to Challenger? Are you struggling with the Reframe? If so, this article is for you.

For Challenger Sale practitioners, the Reframe is that pivotal moment in the conversation when you have disrupted a person’s belief system and have them thinking differently about their situation.

But for the person newer to Challenger, it isn’t that easy yet. You are likely to find yourself in a position of trying to remember what to say and when to say it to get them to think differently. If you are like many people, you come away feeling that Reframing was much easier in training as the scripts went so smoothly.

One of the most memorable moments where I had my thinking ‘reframed’ was in 1997 with the controversial film, ‘Wag the Dog.’

In the film, less than two weeks before a president’s reelection bid, the media broadcast his involvement in a sex scandal in the White House. Seeing the threat to the president’s reelection bid, Washington’s greatest spin doctor, Conrad ‘Connie’ Brean (Robert De Niro) is summoned. His solution? To create a bigger story than the scandal, that would dominate the media until election day.

One of the memorable quotes De Niro makes in the film is, “What’s the thing people remember about the Gulf War? A bomb falling down a chimney. Let me tell you something. I was in the building where we filmed that with a 10-inch model made out of Legos.”

I remember the moment well. It was quite unnerving to think that the filters by which I was walking through life, may have been wrong all along. Now that, is a reframe!

The Reframe’s Two Missing Frames

One of the most common questions I continue to receive is how to Reframe. As important as the ‘how’ is, this article focuses on ‘when’ to Reframe.

A couple of years ago, as I was meeting with sales leaders in the beginnings of their Challenger implementations, there was one point I continued to reinforce when working through reframe competencies…

With that in mind, following are two ‘frames’ that must precede every Reframe:

Pre-frame. The Challenger is not an arrogant, assumptive, all-knowing rep that just tells prospects how it is, and that’s that! CEB refers to that person as a jerk, not a Challenger. Therefore, in order to avoid coming across this way, it is imperative to validate with whomever you are talking with, that the issues you are seeing in their industry, are in fact their issues too. Pre-frames start a bit more broadly, focusing on industry, for example, and serves to calibrate the rep’s insights with the prospect before zeroing in on the customer’s business. This helps to prevent walking through the choreography in a misguided fashion.
Frame. Whereas the Pre-frame focuses more broadly on industry, the Frame narrows down to ‘customers just like them’ within the industry.This is what we have come to know as ‘The Warmer.’ It is used to build credibility by demonstrating you know a lot about customers like them, and sets the stage for a Reframe by framing the conventional wisdom that customers like them have been using to think about their issues.
Reframe. Finally, this is followed by the Reframe, which takes them in a completely different, and unexpected direction. Furthermore, it undermines their rationale for sticking with the conventional wisdom that has yet to move 60% of prospects out of their status quo. This begins the process that CEB refers to as ‘unteaching.’

Putting it All Together

Let’s use the opening of an article CEB wrote on ‘Traditional Strategies of Driving Customer Loyalty’ to show the Pre-frame, Frame, and Reframe in action.

[Pre-frame] Over the last few years, sales organizations have seen a fundamental shift in customer buying behavior. Not only do deals face greater scrutiny, but higher consensus requirements increase the likelihood of a “no” decision.

[Frame] Frequently heard strategies for driving customer loyalty include:

Product and service differentiation
Improving brand impact
Improving perceived product value

[Reframe] Conversely, our analysis finds customer loyalty impact does not squarely fall on these traditional drivers, rather it increasingly falls on the sales experience. However, this is not the product of a generically good sales experience, but rather a sales experience that delivers insight to the customer.

While this example is one-way communication in article form, turning it into a conversation would be quite easily done. At the Pre-frame stage, whether meeting with someone in person or over the phone, you are looking for visual and/or audible confirmation that this is aligned with what they are seeing and experiencing.

At the Frame stage, the same holds true, and a validation question or statement can help to confirm this is their experience too. For example, after sharing the three frequently heard strategies for addressing loyalty, if they respond with, “Exactly right,” you may respond by saying, “it sounds like you have taken a similar approach?”

Their response to that gives you better insight into exactly what you are Reframing. As we all know, customers don’t follow scripts, so preparing in a scripted manner as if those are the only three possibilities for the customer can set you up for an awkward moment.

In Conclusion

As you prepare for your next discussion with a prospect or customer, consider these two often over-looked frames before you attempt to reframe how they were thinking about their problems.

Following are three sentence-starters to aim towards crafting your own Pre-frame to Reframe.

Pre-frame: “One of the biggest challenges we are seeing… [Insert industry challenge that they are likely experiencing and significantly impacted by]
Frame: “Some of the typical ways customers similar to you have tried to address this is…[Insert the industry’s conventional wisdom tactics here]
Reframe: “What may surprise you is that…[Insert your insight that controverts conventional wisdom and gets them to think differently about their problem]

As one final example, I will use the sentence starters above to show what I might say to a retailer that is struggling with sales growth and discounting to improve results.

“One of the biggest trends we see affecting retailers is virtual show-rooming, whereby customers use the physical retail store to identify what they will purchase elsewhere online.

Some of the typical ways retailers similar to you have tried to address this is by price matching, discounting, or increasing their promotional activities.

You might be surprised to learn that the research we recently conducted in conjunction with the NRF showed that these three activities actually have the exact opposite effect on sales from what retailers were trying to accomplish.”

While this is just an example, what is important to remember is that you must tailor specific to the customer, and know that even the most perfectly scripted Pre-frame to Reframe will not ensure prospects also follow the script. They rarely do, so prepare accordingly!

3 Minute Rule for Customer Insights

3-Second Rule for Customer Insight I am going to take a guess here that if you are reading this post, your reason falls into one of two groups. The first group believes that no meaningful customer insights can come within 3-minutes, and you are reading to confirm your belief. The second group is hoping against all odds that insights truly can be gleaned that quickly.

The 3 Minute Rule for Insights

When speaking with your current customers, ask them this simple question…

“What are you doing three minutes before using our product?”

The answers you receive may be quite different from what you expected. What I have found over the years is that this very question gives specific insights into the circumstances that customers find themselves in when preparing to use a product, service or solution. As I would continue to ask the question of different customers across a variety of industries, similar patterns began to emerge. Let me share a few examples.

Example 1: Computer Accessory Company

In working with one organization that made computer accessories, one of their products was a Presentation Remote. I conducted a number of in field interviews and focus groups, and one of the most common responses to the ‘3-minute’ question was that they were looking for their flash drive with the presentation and loading it onto the laptop, then ejecting the drive to replace with the dongle for the presentation remote.

The result not only led to a better understanding of how customers used their products, but it also resulted in a whole new product that turned the presentation remote dongle into a flash drive as well. The perceived value was huge, and subsequently led to further points of separation in the marketplace.

Example 2: Curriculum Resources

Once again, applying the same process with another organization that creates Sunday School curriculum, I was leading a workshop at a national event and asked the ‘3-minute’ question to a room full of teachers and leaders. A pattern emerged in that one of the most common activities they do right before using Sunday School curriculum is to scramble to the supply closet to gather all the supplies necessary for the lesson.

This is a distraction from what they are supposed to be focused on…and with distractions, comes opportunity. Once again, I was able to gain valuable insight into the circumstances customers find themselves in when using the company’s products. These customer insights are what led to the creation of a Curriculum that includes everything they need “in the box.” The marketing reinforced this message and drove the point home by saying that, “The only thing you need to prepare is your heart.”

Summary

When you understand the nuances of the circumstances in which your customers are dealing day in and day out, you will find that you have increased your credibility when speaking with prospects.

For the aspiring Challenger Sale rep, if you are going to have any chance at getting prospects to think in new ways about their status quo (i.e., Reframe), establishing credibility (i.e., Warmer) is critical. Without credibility, even the most brilliant Reframe will be dismissed as quickly as your introduction was.

Challenger Sale: Three Types of Tension

Tension or Constructive Tension? Whether you realize it or not, every sales call produces tension. But only one type of tension contributes to successful outcomes. Which of the three types most closely represents your approach?

Following is a question I received today on Quora regarding Constructive Tension that I thought others might find of interest…

“I am interested in who has used the business insights approach in The Challenger Sale approach? What has been their experience in how it sits creating constructive tension?”

Following is my response to this question.

‘Constructive tension’ is exactly that…constructive, IF it has been created appropriately and the opportunity to do so has been earned. While there is much more to this question than I can respond to here, the following three keys are critical to creating the ‘constructive’ kind of tension:

Establish credibility – Without this, there is no need to proceed further.
Reframe thinking – Once you have established you are credible with insight about matters affecting their business and/or industry, you help them think differently about a problem that they previously misunderstood or didn’t anticipate.
Appropriately placed tension – When creating constructive tension, it is imperative that the tension is between the prospect and their status quo. When inappropriately done, the tension is between prospect and rep. This is not constructive, but rather destructive tension.

I commonly refer to three types of tension based upon CEB’s model of ‘constructive tension.’

Constructive. Tension created between the prospect and the problem they are currently facing. What makes it constructive tension is when prospects find living with their problem no longer tenable.
Destructive. This kind of tension inappropriately causes tension between wrong parties…the prospect and the rep. This typically presents itself in its destructive form with a rep-centric agenda.
Unproductive. This type of tension occurs when a rep offers nothing of value to benefit the prospect warranting a meeting in the first place. As a result, the tension occurs in the form of the prospect ending the meeting as quickly as professionally possible.

In summary, constructive tension is great. It serves as the catalyst for change and if guided properly and appropriately ending in your solution, it will be tremendously valuable to the prospect.

Challenger Sale: The Truth About ‘Insight’

Insight Selling and Challenger Sale With the rise in popularity of The Challenger Sale, there is one particular attribute of CEB’s research that has captured the attention of reps, consultants and sales training companies alike…and that worries me!

The attribute I am referring to is insight.

To be clear, their research is not the concern, but rather the interpretation by the aforementioned.

Insight is a critical component to successful selling, but there are three particular areas that need to be properly understood in order to have repeatable success in sales.

3 Truths About ‘Insight’

Insight does not make you a Challenger. If it did, organizations could quickly and easily transform sales teams into Challengers by simply creating brilliant insights, and emailing them out to the sales teams. Insight in the hands of a Challenger is golden, but it is not the insight that makes them a Challenger. It’s what they do with the insight and how that truly causes them to outperform their peers.
Insight is not the key to increased sales. A couple of points regarding this assertion:
1. Not all insight is earth shattering. When determining what your message will address with a prospect, CEB categorizes the messaging addressing one of two types of insights — 1.) Misunderstood Cause, or 2.) Unrecognized Problems. With the misunderstood cause, prospects are familiar with the problem, but are content living with it or see it as the cost of doing business.
2. Insight is not the same as Commercial Insight. This is one of the most important points. A rep can deliver a powerful insight that either teaches the prospect the misunderstood cause or an unrecognized problem, and still lose the sale. It’s actually quite common, especially in Challenger implementations. The mistake is made when insight does not uniquely lead back TO the supplier exclusively. In other words, you are teaching the prospect of a problem that needs to be resolved, but they perceive that any supplier is capable of doing so.
Insight is not a Reframe. For starters, ‘Reframe’ is a verb, whereas the word ‘Insight’ is a noun, defined as...

When reps take their insight (noun) and intend it to be a verb, the responsibility of getting a prospect to see things differently rests squarely on the insight. Challengers properly understand the role of insight, but see themselves as responsible for teaching prospects to see things differently, but to do so, they first need to ‘unteach’ what the prospect believes they already know. This is the function of the reframe done through Commercial Teaching, which is not a thought-provoking sentence or question, but rather a process. Being able to reframe is a competency that needs to be developed.

Repeatable Success Tip

It’s no secret that Challengers do things differently, and the results, particularly in a more complex, B2B selling environment, stand in stark contrast to those of different profiles. As is typical of my articles, I care little about the incidental successes sales reps have, but care much more about creating repeatable successes. Following are three areas to focus on in order to do so.

Develop your reframe competency. Learn how to reframe anything. Practice this in your personal and professional interactions in order to make reframes a natural part of how you think and speak, rather than the ‘thing you do’ when selling. Tweet This
Don’t abdicate responsibility for insight development. CEB rightly calls out that the best organizations develop insights organizationally so that reps aren’t out making things up on the fly with prospects. That said, this does not mean wait for marketing to deliver. Reps have unique insights from a different perspective than the rest of the organization. Insight development isn’t the responsibility of a single department. It’s the responsibility of all. Tweet This
Make your insights count. Take the time to test your insights and teaching. In order to make sure that your insight and teaching leads uniquely and exclusively back to you as the supplier, CEB refers to this as the ‘logo test.’ The question is if you were to remove your company logo from your pitch deck, would the prospect point exclusively to your company as the solution? If your teaching and insights could apply to you AND your competition, more refinement is needed. Without this, you are providing free consulting. Tweet This

1-Question Test of Sales Effectiveness

Sales Effectiveness and Status Quo | Repeatable Success As a general principle, we in the profession of Sales seek to disrupt the Status Quo of our prospects. This is good…and appropriate. Too often, there is one behavior that sales reps exhibit, that can completely undermine their effectiveness in closing the sale.

Following is a simple, one question test. Your answer to this one question will help you determine if you too, may be exhibiting the same behaviors and at risk of compromising your effectiveness in the sales process.

What does the Orange ball represent?

If the picture above were representative of you selling to prospects, what does the orange ball represent? Before racing to find the right answer as so many of us performance-driven and competitive sales people are inclined to do, I would encourage you to pay more attention to your gut response to the question, and less on solving ‘what’s the right answer.’

Common responses to this question typically include:

“Standing out from the competition”
“Differentiating our solution from others”
“Being seen as a Trusted Advisor”

None of the aforementioned answers are bad, nor are they wrong for any sales professional to desire. But key to understand is that these are all byproducts of something much more important.

Misplaced Focus

In each of the representative answers above, notice what was the intended focus for the prospect — Company, Solution, Rep. What did we start out with saying was our primary aim in the sales process? Disrupting the status quo! For the Challenger Sale rep, this is reframing how prospects see the unanticipated or underappreciated aspects of their business problems through commercial teaching and insight.

If that is our primary aim that is critical to making the sale, then why on earth would we want to distract their focus from seeing their business problems with absolute [and painful] clarity. To prematurely talk about or point to anything other than the business problems that are currently, negatively impacting the prospect, causes the prospect to shift focus from resolving their status quo to resolving in their mind, “Relative to other companies, solutions, reps I have dealt with, how do I like this one?”

Seller’s Paradox

While we certainly want to be seen as trusted advisors that stand out from the competition with our differentiated solutions, the more we keep the focus on those aspects about ourselves, our solutions and our organization, the more we look and sound just like everybody else.

There has been tremendous research and studies done on how we make decisions. The layman’s version of the findings is that prospects tend to see more similarities between organizations, solutions and reps than differences. Therefore, when we focus on these aspects about ourselves, here is what the prospect sees…

Disrupting Status Quo | Repeatable Success

Question — If this is truly how prospects see suppliers and their products, what do you suppose becomes the differentiator for how to make their decision? If you said “Price,” you are absolutely right. The answer is not in differentiating ourselves through solution or organization.

Repeatable Success Tip

To stand out in the ‘sea of sameness’ is not to point out how different you are, especially since the majority are already doing that. To repeatedly stand apart from the competition with a differentiated solution is to help prospects see their problems differently. When you effectively do this, the byproduct is that they will see you differently.

Key to this whole process, though is to keep your solution out of the conversation until the end when they have clearly understood the problem. To insert ‘solution’ between you and their problem forces a feature and benefit comparison to what they have already looked at. As my good friend from Sandler constantly says, “Focus on the Problem, not the Solution!”

That’s a good tip for leading to Repeatable Success!

The Problem…

It Happens All the Time…

A Better Way…

A Message for Marketers…

In Conclusion…

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The Research

Hierarchy of Messaging

Three Limitations of Thought Leadership

1. The Buyer’s Objective with Thought Leadership

2. The Marketer’s Objective with Thought Leadership

3. The Sales Rep’s Objective with Thought Leadership

In Summary…

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The C.E.B. Model for Better Reframes

Repeatable Success Prospecting Tip

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Interview with Phil Daily

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The Reframe’s Two Missing Frames

Putting it All Together

In Conclusion

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The 3 Minute Rule for Insights

Example 1: Computer Accessory Company

Example 2: Curriculum Resources

Summary

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3 Truths About ‘Insight’

Repeatable Success Tip

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What does the Orange ball represent?

Misplaced Focus

Seller’s Paradox

Repeatable Success Tip

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