3 Conversations You Need to Win

Q: #1 Reason Don’t Hit Quota?

A: Inability to Articulate Value!

Leads

Products

Process

Training

CRM

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Create Value

Elevate Value

Capture Value

Good Intentions. Wrong Instincts.

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Create Value

DISTINCT POINT OF VIEW

Status Quo Threatened

Identify New Needs

Define Solution

Identify Viable Vendors

Review Approaches

Make Decision

74

“Why Change?” “Why You”

COMMODITIZED CONVERSATION

26 % % BUYING VISION BAKE-OFF

-3 -1 +1 +2 +3 -2

• Show inconsistencies in model • Identify unconsidered needs • Align with unspecified strengths

• Here’s what you say you need • Here’s what we do different • Here’s the benefit you will get

Changing someone’s mind isn’t a question of pushing new information on people and trying to explain it in words. It’s more about helping people see the inconsistency in themselves and then all of a sudden the mental model will shift naturally and easily.

Gary Klein, scientist and author “The Power of Intuition” and “Seeing What Others Don’t”

New Brain Designed for Analysis

Old Brain Designed for Survival

Decision-Making Engine

Neuroscience

Social Psychology

Kahneman, D. and Tversky, A. (1984). “Choices, Values, and Frames.”

American Psychologist 39 (4): 341–350

Gain Loss

Value

3X stronger preference to avoid loss vs. acquire gains = “Loss Aversion”

Prefer risk that might mitigate a loss = “Risk Seeking”

Outcome

“PROSPECT THEORY”

Identified

NEEDS

CAPABILITIES Specified

Commoditized Conversation

Finding the Inconsistencies

NEEDS

Identified

Specified CAPABILITIES

UNKNOWN STRENGTHS

UNCONSIDERED NEEDS

Commoditized Conversation

Finding the Inconsistencies

Distinct Point of View

12

Didn’t appreciate…. The problem is as big or coming as fast as you say?!

Didn’t realize… there was even something to fix that issue or annoyance?!

Didn’t know… that was a problem I was having until you pointed it out?!

Under-Valued

Un-Met

Unknown

CFO

CMO

CIO

More than typical Personas

M

Old Automation SS & DB New Competitor

SIT

UAT

ION

DISP

OSIT

ION

Inconsistencies ……………………………….. Live Here!

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Create Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Create Value

Elevate Value

Capture Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Elevate Value

80% decisions

10% executive contacts

80% decisions

FEAR

PRODUCT KNOWLEDGE BUSINESS EXPERTISE

EXECUTIVES VALUE 4X MORE

EXECUTIVES VALUE 4X MORE

88% PROFICIENT

24% PROFICIENT

4X LESS LIKELY

PRODUCT KNOWLEDGE BUSINESS EXPERTISE

EXECUTIVES VALUE 4X MORE

88% PROFICIENT

24% PROFICIENT

4X LESS LIKELY

BEST IN CLASS

FOCUS 2X MORE

AVERAGE COMPANIES

FOCUS MORE

PRODUCT KNOWLEDGE BUSINESS EXPERTISE BUSINESS VALUE GAP

Close the Business Value Gap

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Elevate Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Create Value

Elevate Value

Capture Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Capture Value

Your Price I% increase in discounting

9% decrease in operating

margin

A SLIPPERY SLOPE

Your Price

Their Price

TYPICAL VIEW OF DISCOUNTING

Negotiating Tactics

Selling to business buyer

Deal moves to purchasing

Your Price

Their Price

WHAT’S REALLY HAPPENING

Negotiating Tactics

Selling to business buyer

Deal moves to purchasing

Value Leaks

Demonstrating Value?

CHECKING BOXES

Demonstrating Value?

Giving Away Value

CHECKING BOXES

Exchanging Value

PIVOTAL AGREEMENTS

CHECKING BOXES

Demonstrating Value?

Giving Away Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Capture Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Create Value

Elevate Value

Capture Value

34

Homework

Develop distinct point of view to show ‘inconsistencies’ and defeat the status quo Create business impact model that puts current state/ future state/ business change into financial context Pre-build pivotal agreements to exchange value at critical moments your prospects want you to give it away

Malcolm Gladwell

Scientist for Tipping Point Morton M. Grodzins

What was the difference?

Gladwell told a better story!