Everybody Wants Change, Nobody Wants TO Change

Change Comes From ChallengeIn 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.

  1. 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.
  2. 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.
  3. 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 


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

Advertisements

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

Phil Daily Challenger Sale RepJeff: 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.

I finally discovered the Warmer allows me to find the customer’s ‘frame’ so I can begin to redirect their thoughts.Tweet:

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!

–––––––––––––––

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.

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.

Don’t Sabotage Your Challenger Sale Implementation

Sabotage Challenger Sale ImplementationIn January 2012, as I began my first Challenger Sale implementations across several of our SBUs, there were certainly things I would later change in subsequent implementations. One thing that remains the same to this day, however, is in identifying my true goal for Sales Reps and Sales Leaders.

After sufficiently making a compelling case for departing from the status quo, I make one point abundantly clear with sales leaders and teams:

“My goal is NOT for you to become a Challenger! My goal is to help you achieve your goals with intentionality, predictability and repeatability. If you are currently not experiencing this in your sales performance, I can train you to any of the five profiles as each are capable of producing high performers. But only one has nearly a 14x higher likelihood of producing high performers! Therefore, in which of the five would you like me to aim my training?”

Should Challenger be Mandatory?

It’s understandable why leadership would want to make mandatory something as important as Challenger, especially given the organizational importance of meeting revenue and margin objectives. But doing so, can often have the exact opposite effect of what is intended. Following are three reasons why I would recommend avoiding the ‘mandate’ for anyone looking to implement The Challenger Sale.

  1. Mandates lessen value. Whenever you take someone’s choice away from them, which is what making something mandatory does, you risk creating a perception that whatever is coming, can’t be that great. After all, if it were, people would want to participate without the requirement.
  2. Mandates shift ownership. By default, when an organization makes something mandatory, the onus for the outcome lies squarely with the organization. Is this where you want the ownership for outcomes to be for the rep, or would you rather have the rep own their own outcomes?
  3. Mandates don’t equate to buy-in. Anyone with children will quickly recognize this reality with the following example…“Tell your sister your sorry…like you mean it!” Just as mandates don’t equate to buy in, neither does compliance equate to behavioral change.

Not all mandates are bad. They definitely have their place, but using them in your Challenger implementation will start things off on the wrong foot. Furthermore, it is unnecessary if you properly frame the need for change before trying to reframe.

Regarding my original point on ‘making people Challengers,’ be careful of the message you are sending when implementing Challenger. Sending a message such as, “We are going to turn everybody into Challengers” will cause a lot of unnecessary anxiety and resistance. It will wreak of being the “next new program” and to many reps, will suggest you are taking a blind and blanket approach to selling. Their defenses will be primed to make impassioned pleas for why their current approach is sufficient. This is what happens when you lead WITH the solution, not TO the solution.

Important to remember is what CEB’s research didn’t show.

The research did not show Challenger as being the only successful profile. Sometimes, proponents of the Challenger research and methodology, can appear more like zealots than advocates. What the research did show, however, is Challenger as having the highest success rate for complex selling environments.

Therefore, if you are contemplating a Challenger implementation of your own, honor your team members by not elevating the importance of  a “program” over their value as an individual.

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.

3 Minute Rule for Customer Insights

3-Second Rule for Customer InsightI 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.

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: 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:

  1. Establish credibility – Without this, there is no need to proceed further.
  2. 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.
  3. 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.’

  1. 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.
  2. 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.
  3. 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.

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: The Truth About ‘Insight’

Insight Selling and Challenger SaleWith 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’

  1. 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.
  2. 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.
  3. Insight is not a Reframe. For starters, ‘Reframe’ is a verb, whereas the word ‘Insight’ is a noun, defined as...

in·sight (noun \ˈin-ˌsīt\)
: the ability to understand people and situations in a very clear way
: an understanding of the true nature of something

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.

  1. 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
  2. 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
  3. 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
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.

1-Question Test of Sales Effectiveness

Sales Effectiveness and Status Quo | Repeatable SuccessAs 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?”

The orange ball should represent the prospect’s focus on their business problem, not your solution!

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!

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.

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 Tip: Don’t Sell Solutions

Solution Selling vs.Challenger SaleIn the day and age where the conventional wisdom of selling has migrated from product selling to solution selling, I would like to provide a different perspective on the topic, particularly for the aspiring Challengers.

Can You Relate?

In exasperation, my wife walks through the door grumbling. I ask her what’s wrong, and she proceeds to describe another frustrating conversation with a friend. She describes the situation to me, and I offer the solution. Fixed, right? Wrong!

Many of you already know the end of this story and can relate, whether being on the delivering end or the receiving end of similar types of conversations.

I wrongly assumed that the reason she told me about her problem was because she couldn’t solve the problem on her own. As an incredibly bright and capable woman, she didn’t need me to solve her problem. She needed me to understand the source of her exasperation.

Instead, I came with a ‘solutions-based’ approach to her problems and created even more frustration for her. Characteristics of this scenario play themselves out every day in sales as well.

Selling Solutions is a Mistake!

The mistake is understandable. Organizations have problems and they need solutions. Suppliers manufacture/create/publish solutions. Therefore, match problems to solutions and voilà! Not quite, as this is more a recipe of how to look and sound like everybody else.

At the heart of this problem is the belief that since prospects buy solutions, we should sell solutions. As long as we continue to believe this and behave this way, we will keep the prospect’s focus squarely on a product…or solution…comparison (i.e., “whose product will adequately solve my issues at the best price?”).

For prospects to buy our solution, we need to sell them on the problem!

By now, everybody is familiar with the CEB statistic that buyers (on average) are 57% of the way through their buying process before they engage a sales person. Sirius Decisions reports an even higher percentage at 70%. Don’t get distracted by the number, or the industry that the number applies to, as you will miss the point of the research. The point is that there are myriad ways in which buyers can AND DO, self-educate today.

The problem with consumers self-educating is that they often times don’t get it right. One of the primary reasons for that is that they look too narrowly at the problem. They are looking from the perspective of their own organization (n=1), whereas suppliers see things from the perspective of hundreds or thousands of prospects just like them, that deal with similar problems. Incredible insights can be derived from this perspective and from the immense pool of data.

Challenger Sale Reps Don’t Behave Like Other Reps

Unfortunately, the common sales reps inadvertently set all of these valuable insights aside as they are more focused on selling their solution. The typical choreography of the common rep…if you can call it, that…is to identify needs, ask some validating qualification or disqualification questions, then listen for key words in which your solution addresses,and BAM! Present your solution to their problem.

The Challenger Sale trained reps pay specific attention to the insights gathered from their prospect’s industry, and as a result, teach prospects something new about their business that they hadn’t considered before. Before they teach them something new, they will often have to unwind their current beliefs about their problems. CEB refers to this as “unteaching.” This is critical, because as aforementioned, prospects often get it wrong.

Repeatable Success Tip

Predictability. A key characteristic of Repeatable Success is predictable outcomes, stemming from the best repeatable behaviors that are intentionally applied.

For a predictably bad outcome, continue selling solutions. On the other hand, for consistently, and predictably better outcomes, concentrate on selling the prospect on solving the right problem, if you want them to buy your solution. Doing so requires “leading TO your solution, not WITH” through the use of ‘commercial insight.’

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.

The Wrong Question: PowerPoint or Whiteboard?

Whiteboard PowerPoint PresentationsA question I frequently hear raised in sales forums is whether a person should use PowerPoint or a whiteboard for their presentation.

I would like to suggest a different question, as asking which tool to use places inappropriate focus on the tool.

Lesson from the Woodworker

Imagine approaching a skilled woodworker and asking him, “which tool should I use, a hammer or a saw?” His response would be quite predictable…”What are you trying to build?” Depending on your answer, he may suggest one, both or neither. The key, of course, rests upon what you are trying to ‘build.’ So a better question is, “What are you trying to build?”

The Presentation Trap

Let’s look at a common scenario. A prospect or customer asks you to come and deliver a presentation to their team. We won’t get into it in this post as to why this might be a yellow flag, if not a red flag. For this example, let’s assume it is appropriate for you to meet with their team to present.

The prospect, knowingly or unknowingly, predetermined your communication to be a “presentation.” As a result, you are enticed to look through the lens of “presentation” and subsequently question whether you should use PowerPoint or a whiteboard. If this sounds familiar, you have fallen into the presentation trap.

TIP: When asked to do a presentation, don’t be hemmed into the same format your competitors will use. Ask the prospect if by “presentation,” (s)he means the ‘tool’ you should use (e.g., PowerPoint) or instead, means to effectively achieve the mutually predetermined outcomes in a way that will resonate with the audience. The question alone, begins to set a refreshing contrast between you and the competition.

Reps can get so excited by the opportunity to ‘present’ that what gets emphasized is the presentation, subsequently compromising your opportunity to present the case for change.

Common Mistakes

As a result, sales reps invited to do presentations will often prepare by addressing three areas – The audience, the message and the presentation. The three areas aren’t the problem, but rather the focus within those areas and the amount of time given to each is generally the bigger problem. For example, reps I encounter across a variety of industries often place inappropriate focus and time to each area:

  • 60% on Presentation: Building/designing the presentation, provided the same message isn’t used for everyone
  • 30% on Message: What’s intended to be communicated (e.g., Info about your company, product, solution)
  • 10% on Audience: Identification of audience members (e.g., Who will attend and what is their title/role?)

While the percentages are merely illustrative, not recommendations, I often see even lower time given to the audience with much greater time given to designing presentations.

Change the Focus

Instead of focusing mostly on the presentation and tool, and the least time on your audience, change your focus and amount of time spent in each area. Consider something more along the lines of the following:

  • 60% on Audience: While knowing titles/roles is necessary, it is not the goal. Know your audience well enough that even with a mixed audience of finance, operations, sales and marketers, you can tailor and speak specifically to the problems they face from their respective areas.
  • 30% on Message: The message should clearly demonstrate that the pain of staying the same is greater than the pain of change. The proposal for change should ultimately lead to the areas your organization is uniquely able to solve.
  • 10% on Presentation: Shift your focus from building presentations to building a case for change (i.e., The message). The presentation of your message should heighten the case for change. If the tool doesn’t do so, don’t use it.

Important to note is that if you have not created a core message* that demonstrates the pain of staying the same is greater than the pain of change that generally addresses the problems of the industries you work with, the percentage of time spent goes up greatly for the message the first time you create that. This is not only appropriate to spend more time here, but is critical to your success.

*By ‘core message,’ I mean that given the industry you work in and the common issues those within your industry struggle with are at the core of the industry. The representative ‘30%’ indicated above is therefore, referring to the amount of time it will take to tailor your core message into a specific message for your prospect, given the audience and unique problems they face.

In Summary

Don’t think and act like your competitors. When they hear “presentation,” they think ‘tool’ or ‘output’ (i.e., What do I want to present and in what format?). Instead, when you hear “presentation,” you think about the unique problems each of your audience members are facing from their respective areas, and ask, “What will be the most effective way to build the case for change that will lead directly, and exclusively back to my solution?”

Upcoming Posts on Presentations

Over the next two days, we will take an unconventional look at the unintended consequences of using PowerPoint and whiteboards for presentations. For quick reads on each, see the posts here:

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.