New the 2 Factor

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Copyright 2000-2012 Demonstrating To WIN!, LLC, All rights reserved

The 2% Fa c to r

The SituationAfter working with a prospect for nearly a year,they decided to engage a consulting firm to helpthem define the requirements for their softwareselection. The consultants created a 120-pagerequest for proposal (RFP) and sent it to tensoftware companies. We painstakingly answered

the RFP and were one of three software vendorsto make the short list. As finalists, the next stepwas a two day long software demonstration.Now was when the fun began. The consultantsprovided us a script of specific scenarios theywanted us to demonstrate, along with very clearinstructions: Dont deviate from the script inany way! Each element of the script wasweighted to reflect its importance to theprospect. Each element would be scored fromzero to five, with zero meaning we couldnt offer

a solution and a five meaning we exceeded theirrequirements. (Sound familiar?)

Our sales team spent long hours preparing forthe demo. We customized our data. Wetailored our software options to address everyscript element. We created special presentationsto address elements that would require softwaremodifications. We were careful to follow theirscript precisely. We established good rapportwith their executives and had a solid

understanding of their politics, power structureand influences. We even had the luxury of beingscheduled to do the final demonstration. Ourstrategy was set. A thorough demo that

adhered to their script was the final step, and wedelivered! On the ride to the airport after thepresentation, we congratulated ourselves for a

job well done. (Sound familiar?)

Three days after the demo, on a beautiful Fridayafternoon, I received a call from the consultant. I

thought, all right, this order is going to put meover the top for the year. Bob he said, First,let me congratulate you and your team for yourhard work in preparing for and providing a gooddemonstration. Unfortunately, your team camein second place. While this probably wont makeyou feel any better, you should know that thescoring was extremely close. In fact your totalscore was within 2% of the package we selected.I was speechless. My initial thought was to startselling, persuading or pleading for another

chance, but I knew it would be futile. Why arguewith a police officer over a speeding ticket hesalready written? I was left with many questions.How did this happen when we were in such aposition of strength? Was our strategy flawed?Did we adhere too closely to the script? Did wehave a competitor who suddenly innovated pastus? What went wrong? After a depressingweekend, I called one of our allies at theprospect. Heres what she told me. Bob, yourcompetitor did a better job of grabbing and

holding our attention. The selection teamenjoyed their demonstration more than yours. Ithink people actually had fun in theirpresentation. They just seemed to connect witheverybody. I still believe your software is abetter fit, but to be honest, either one will work

The 2% Fac torBy Bob Riefstahl, 2WIN! Global Founder, Principal

& Author of Dem onstrating To WIN!

Have you ever rec eived a c all from your prospec t only to lea rn that youlost the d ea l by just 2%?
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The 2% Fa c to r

for us. Im sorry. I argued against the vote, butit didnt do any good. (Sound familiar?)

Analysis Of What HappenedHeres the harsh reality. If a prospect begins asoftware selection by evaluating ten companies,by the time they get to three, there arent goingto be many differences. Software has matured toa point where all the good packages have verysimilar capabilities. In todays competitive world,its no wonder that we win or lose by 2%!

So, how does your sales team gain a 2%

advantage over your competitor? Its not withfeatures and functions or providing a thoroughdemonstration that adheres to their script. Theyhave to win over the audiences emotions. Now,if your software has deficiencies, connecting withtheir emotions is not going to swing a prospectsscore on an individual element in the demo fromone (poor) to four (very good), or two to five.However, by having a positive impact on theiremotions, its very possible to slide theprospects score from a two to a three or a

three to a four. If your sales team can shiftenough scores in the right direction, youll win by2%. Ask yourself these questions to see whichside of the 2% Factor your people often fall.

1. Are They Adapting to the ProspectsWorld? Are they trying to impress theprospect by talking in technical terms, analystterms and your companys jargon or are theyusing language and examples that make itclear they understand the prospects world

and challenges? Are they always presentingfeatures, functions and capabilities the sameway, even though your prospects selectionteam has a wide variety of personality types(e.g. value oriented vs. process oriented)?

2. Are They Employing Solid PresentationFundamentals? Is your team using a themefor the demo or presentation to help theprospect remember the material? Are theymixing their modes of delivery by using awhite board or flip chart to illustrate theirpoints? Are they varying their presentationtechniques to keep the demo interesting?While demonstrating a script element arethey completing that element, by stating abenefit or measurable business value?

3. Are They Avoiding Crimes? Is your teamcommitting the common mistakes that peoplemake when presenting or demonstrating acomplex solution (crimes)? For example, arethey committing the PowerPoint Crutchcrime? Are they Data Dumping on theprospect? Do they cause confusion by failingto Finish That Thought? (More on this in amoment.)

4. Are They Bridge Demonstrating? Isyour team leading their prospect across a

metaphorical bridge from their existingsolution to yours? Like it or not, a number ofpeople on the selection team are afraid ofchange. Some people will go across the

bridge to your software willingly while othersstop and run back to the relative safety of


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The 2% Fa c to r

their existing solution or worse, yourcompetitors.

Lets focus on demo crimes. In my bookDemonstrating To WIN! I highlight 28 crimes Ihave either committed or witnessed in my 20+years of selling software. Remember, one ofyour teams primary goals in a software demo isto convince the prospect to cross the Bridgefrom their existing solution to yours. Whenyour people commit demo crimes, bad thingshappen.

Crime #17 The PowerPoint Crutch Have you ever sat through a PowerPointpresentation that was so painful you stopped thepresenter from continuing? If you did it wasprobably because the presenter had too manyslides, too many words on slides, read the texton the slides, wasnt sure what some of thebullet points meant or even skipped someslides because the information on it didnt applyto you. Welcome to the PowerPoint crutch.

Technology is everywhere. It touches everything.Its pervasive! You know what Im talking about.You used to call into your administrative assistantand pick up less than ten messages in a day. Nowyou receive 22 voicemails, 87 emails and 15 textmessages each and every day. Consider how thissame condition has infiltrated our presentationtechnology.

If youre old enough, take yourself back to apresentation where the salesperson dimmed the

lights, turned on the overhead projector andbegan displaying black and white transparencieson the wall. The first thing you did was strainyour eyes to see the thickness of the file folderholding the transparencies. This was your gaugeas to how long the suffering would last!

Then the technology improved. We bagged thisarchaic approach and began to produce colortransparencies. What an improvement!However, in a few months you were back tocringing when the salesperson brought out thefile containing those dull, out-of-datepresentations.

Ah, but then we graduated to Microsoft

PowerPoint. Another improvement! Theoverhead was still there but now a liquid crystaldisplay flat-panel was placed on top of it. It was

great! OK, the lights were still dim and theresolution was awful, but presentations couldchange on the fly, which made them moreinteresting and applicable.

At the same time, the PowerPointpresentations grew longer. The information onthe screen got busier. Cute little graphicsappeared in the corners of the screen. The newpresentation equipment became moresophisticated so you could leave the room lights

on. But the audience ran into an even biggerproblem. There was no longer a thick file foldercontaining transparencies, only a huge, invisible

disk drive. With PowerPoint, there was noway to gauge how long the suffering would last!

Many salespeople and demonstrators use

PowerPoint presentations as a crutch and mostprospects dont appreciate it in the least.Prospects want to see a software demonstrationfrom a real person who can lead them across the

Bridge from their old system to a new, highlyproductive one. Theyve spent a lot of money tosit through your presentation and they wantsteak, not just sizzle. Gone are the days ofmaking a visual point by using a white-board orflipchart but, so too are highly interactive,


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The 2% Fa c to r

focused demonstrations of the software that fitstheir needs. Theyve been replaced by canned

PowerPoint

presentations. Well, if thats whatyour sales team has been doing, they need torethink this kind of presentation.

Theres nothing wrong with an organized,

focused PowerPoint presentation. I use themin every demonstration. However, they shouldnever:

Be more than 30 minutes long. Contain more than 25 slides. Have more than six bullet-points on a slide. Use an over abundance of cute graphics. (Theonly exception to this, of course, is if youre

selling PowerPoint!)

On the other hand, if youre sales team is going

to use PowerPoint in their presentation, theyshould always:

Use graphics that are professional andpertinent. Whenever possible, avoid usingthe clipart that comes with PowerPoint.

Launch into your software at several pointsthroughout the presentation. This helps keepthe presentation interesting and varied.

Include video clips and ScreenCam in yourpresentation. Just make sure they fit thetopic at hand.

Use a flipchart to illustrate points and engagethe audience.

Check with your prospect during theDiscovery to make sure they arent anti-PowerPoint. If they are, material should bepresented using notes or a flipchart.

Lengthy PowerPoint presentations have atendency to lure sales people and demonstratorsinto teaching the prospect about your software

instead of effectively demonstrating how it willimprove their situation. Its very common fordemonstrators to spill out the raw capabilities of

your software in a PowerPoint presentationwithout focusing on benefits that specifically applyto this prospect. Obvious you say? I challengeyou to look at your sales teams existing libraryof presentations and review the date they werelast changed.

Crime #2 The Data Dump - Have you everwitnessed your software demonstrators ramblingfrom one software feature to another? When

they do this theyre performing a data dump onthe prospect. You know the situation. Theystart out showing someone a particular softwarefeature, and it quickly manifests itself into sixrelated but different features. By the time theyfinish (five minutes later), you look at yourbewildered prospect and they have no idea whatyour team was just attempting to demonstrate.They just committed the Data Dump crime.

Assume for the moment that your demonstrator

is selling a nurses information system. Theprimary purpose of your software package is toallow nurses to enter products and services theyhave provided to a patient in the hospital.Theyre about to demonstrate a feature in yoursoftware that allows the prospect to scan thepatients chart in order to begin the process ofentering the products used for billing purposes.They start by saying, At this point, Im going toshow you how you can walk up to a patients bedand accurately and efficiently enter materials

against her bill. What I can do is pick up thepatients chart and scan their ID number. I couldalso scan the ID number from a wristband. If Ineed to, I can enter their numbers on the keypador find them by name. In fact, from this samehand-held unit, you can find any patient in any


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The 2% Fa c to r

bed across the entire hospital chain! Anyway,now that Ive entered the correct patient into thesystem I can begin entering the materials againsttheir hospital bill. If the patient is still in theroom, I enter the products by scanning them.However, if I get interrupted during the process,I can stop what Im doing and begin enteringnurses time cards if I need to. At this point, theprospect stops the demonstrator and says, Waita minute, I would never allow a nurse to entertime cards for other nurses. Why in the worldwould you let them do that? Yourdemonstrator now begins playing defense, and 20

minutes later the prospect has no idea what theyset out to demonstrate to them!

Data dumping has a number of causes. First,your demonstrators feel compelled to showanything and everything your software can doright nowbecause:

This is the one and only chance they have toimpress this prospect with their software.

The prospect might interrupt and ask them toexplain the software more thoroughly.

The competitor has this feature so theybetter explain your software has it also.

The prospect might not be impressed withthe feature they set out to demonstrate, sothey feel compelled to reach further andshow more.

Second, data dumping comes from a lack ofproper preparation. If your people dont knowwhat is, or is not important to the audience, how

can they possibly focus the demonstration on theprospects primary needs? This is one reasonwhy a Discovery of your prospect must be doneprior to each demonstration.Third, data dumping can be a byproduct of sheerexcitement. Your demonstrator is so excited

about the depth of features in your software theydiscuss each one of them at every possibleopportunity. Their knowledge of the softwareisnt in question. Your prospect knows theyunderstand the functionality of the software. Theprospect simply cant digest it all.Finally, data dumping is caused by not following afeature with a benefit. Your demonstratorsshould always Tellthe prospect what they areabout to see, Showthat segment of software andfinally Tellthe prospect the benefit.

Data dumping achieves one clear result: it

confuses the prospect and stops them fromcrossing the Bridge during a demonstration.Weve all been there, havent we?

Its counter-productive for your demonstrator todata dump on the prospects. Tell your people todemonstrate a feature of your software anddemonstrate onlythatfeature. They spent hourspreparing for a reason. Tell them to stick withtheir original plan.

Crime #3 Would You Please Just FinishThat Thought? - Want to know somethingthats even worse than data dumping? Howabout when your demonstrator starts to show afeature, but jumps to something else before theyfinish showing that one thing? If theyre datadumping, at least theyre presenting a completefeature of the software even though they left outthe benefit. Contrast that with the rambling andmeandering that occurs when they dont evenfinish a thought.

This crime is driven by a fear that they wonthave another opportunity to show the prospectthe other important features later on in thedemonstration. They may be baited intocommitting this crime because they think the


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The 2% Fa c to r

prospect will surely understand the benefits ofthe breadth of your software. This is no way todemonstrate software. Prospects cant relate tothis kind of meandering thought. They needconcise thoughts, benefits and closure.For example, assume your demonstrator isshowing an order-entry system to Chris who isthe telephone sales manager for an auto partsretailer. Chriss company has many locationsacross the country. His telephone salespeopleusually sell parts from local stock but they canalso sell from other locations. On occasiontheyll even authorize one of their suppliers to

ship parts directly from the manufacturing facilityto their customer. Your demonstrator wants tosupport these needs by showing the flexibility inyour order-entry software. The dialogue mightgo something like this, OK, Chris, Im going toshow you all the different ways you can fulfill acustomers request for a new water pump overthe telephone. As I request the item from myinventory, which by the way, I can find via a partnumber, a manufacturer ID number, his partnumber or all or part of the description. Anyway,

I find the item he wants and check my localinventory for the item. I dont have it in my localinventory. I know this because the system givesme this warning message, and if I look on thescreen I see I have none available. If I have theitem in stock, I can also see on the screen hisprice for the water pump, which by the way, isdetermined by a price matrix. Our price matrixis really powerful 45 minutes later, Chrisfinally learns how to source his water pump!What do you want to bet Chris had just a few

unrelated questions along the way? Plus, hes gotto be thinking, Man, this order-entry system isreally complicated!

Your demonstrator set out to show Chris howhe can source a water pump from either local

stock, another location or direct from thefactory. He should demonstrate that andonlythat. Do not under any circumstance allow themto meander to other subjects. If Chris asks himthe question, Bob, how did the systemdetermine the price for the water pump for thiscustomer? tell them to delay the answer with aresponse like, Chris thats a good question andone Ill be covering in great detail a little bit later,if thats OK with you. Nine times out of tentheyll say, No problem, as long as yourecovering it later.Some key phrases will warn your people that

youre about to begin meandering:

Which by the way... In addition to Oh by the way We also can I forgot to mention Another feature we offer is Not only can weHelp your people to listen for these phrases, and

coach them to STOP! If they have troublerecognizing when they do this, tell them to ask ateammate to flash a non-verbal signal when theystart committing the crime.

Think of each feature in a demonstration as acomplete thought. Tell your demonstrators toconcentrate on demonstrating featuresassociated with one process flow from beginningto end. Have them stick with their flow as theydemonstrate a piece of functionality. Failure to

do so will frequently result in taking one stepforward across the Bridge and three steps back.


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The 2% Fa c to r

ConclusionsFace the brutal fact that very few software

companies today have the good fortune ofsecuring a significant, innovative advantage overtheir competition. Most competing products dobasically the same thing. If you really want to winby 2%, dare to be different. Be adaptive. Becreative. Be crime free. Be a BridgeDemonstrator.

About the AuthorBob Riefstahl has spent over 20 years selling anddemonstrating software to all sizes of companies

and audiences. His firm 2WIN! Global providessales anddemonstration training for companieswith complex product offerings. The trainingfocuses on winning tactics that compliment yourexisting sales strategy (e.g. Solution Selling,Strategic Selling, etc.) in customer facingevents. Sessions have a 1-2 day duration and aredelivered on a global basis in a variety oflanguages. His book Demonstrating To WIN!has been enjoyed and delivered in over 30countries. It is available

atwww.2WinGlobal.comand all major on-linebook sellers.
mailto:[email protected]:[email protected]://www.2winglobal.com/http://www.2winglobal.com/http://www.2winglobal.com/http://www.2winglobal.com/mailto:[email protected]

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