why demos fail - entaktics report

ORIGINAL RESEARCH:

Why demos fail

OBSERVED – CUSTOMER DISSATISFACTION

“Buy Side” organizations in a state of malaise with the sales-driven “Customer Engagement” experience

IMPETUS

Discover: Is there a problem? What is the root cause?What to do about it

APPROACH

LEAN SIX SIGMA AND LEAN START-UP PRINCIPLES

Discussed scope of challenge with 7 industry peers from leading technology and client companiesConducted comprehensive survey to achieve a minimum viable sample of 125 respondentsProvide frame of reference on modern sales and marketing practices (The Sales Funnel)

““PEOPLE RUN TO DEMOS BECAUSE THERE IS NOTHING ELSE TO DO”

Key problem interview insight:

TTHE NEW SALES FUNNELThe impact of Social Media, Content Marketing & SEO

MORE LEADS, SMALLER RETURNS

SOCIAL MEDIA, CONTENT MARKETING & SEO

Current state as express by industry “sell side”

More leads than ever due to efficient, web-based marketing toolsHigher levels of activityInterested parties requesting multiple demosMajority of buyers do nothing, meaning no decisionBuyer dissatisfaction with the customer engagement experience

ORGANIZATIONAL RAMIFICATIONS

Budgets are competitive in “Buy Side” organizations. Unfortunately, seller stories degrade into feature fests that do NOT address the customer’s business challenge

BEHAVIORAL SHIFT

INFORMED, TIME CONSTRAINED CUSTOMERS EXPECT MORE

WHY THE SURVEY?

Evolving Customer Engagement experienceMisalignment in expectations between buyers and sellerChanging business models

The need for evidence to make a new case for improving next business practices

SURVEY SAMPLE

160 respondents

WHO WERE THE RESPONDENTS?

An array of roles, verticals and organizational size:

Account ExecutivesBusiness Development CEOS Channel PartnersConsultantsCTOsDevelopersDirectorsMarketing DirectorsPractice DirectorsProduct Managers Process LeadersSales Engineers Sales ManagersVice Presidents

WHERE RESPONDENTS WORK

REVIEW

Survey Results

BASED ON WHAT YOU HAVE LEARNED, DO YOU BELIEVE THAT THERE ARE OPPORTUNITIES TO IMPROVE HOW HIGH TECHNOLOGY PRODUCTS ARE SOLD?

Do you concur that there is room for improvement?

EEXAMINING THE CUSTOMER ENGAGEMENT EXPERIENCE

Solution fit

THE STATED MARKET CHALLENGE IS THAT DEMONSTRATIONS DON'T ALWAYS RESONATE WITH CUSTOMERS. WHAT CONTRIBUTES TO A LACKLUSTER EVENT?

Mis-alignment between the presented solution against the customer’s unique business situation or circumstance is a primary cause of demo failure

WHAT ARE THE PRIMARY ACTIVITIES FOR A TECHNICAL SALES TEAM TO PREPARE FOR A SUCCESSFUL FIRST DEMONSTRATION OF A HIGH TECHNOLOGY PRODUCT?

Buying facilitation techniques deployed earlier in the sales process can drive mutual satisfaction and success

WHAT ACTIONS SHOULD THE TECHNICAL SALES TEAM PERFORM DURING THE DEMO?

Prospects see an array of technologies and solutions in a given month. Have a clear “What is it” statement that is simple and understandable is essential.

WHAT ACTIVITIES SHOULD THE TECHNICAL SALES TEAM PERFORM POST-DEMONSTRATION?

A problem for the product team. How to interpret reams of feedback in narrative form? Customer engagement teams need to summarize input in a digestible format.

WHAT CUSTOMER ENGAGEMENT ACTIVITIES ARE IMPORTANT POST-DEMO?

The Sales Engineer is quickly becoming the “rock star” in the new sales process. Beyond technical competence, what business advisory knowledge and skillsets are required? Who is responsible for devising the solution to solve the business problem?

UNDERSTANDING

The Demo Experience

THE PHYSICAL EXPERIENCE OF DEMO CAN'T BE OVERLOOKED. DIFFERENT PERSONALITIES ABSORB CONTENT MORE READILY FROM VARIOUS COMMUNICATION METHODOLOGIES. HOW DO YOU BEST RECEIVE INFORMATION IN A DEMONSTRATION?

Consult books “Presentation Zen” and “Slide:ology” for solutions and approaches. TED talks are a model of excellence.

WHAT OF THE FOLLOWING DO YOU BELIEVE ENHANCES THE DEMONSTRATION EXPERIENCE?

A demo is like a Theatrical Event where the customers are cast members. Details are important. Actors must rehearse and also be prepared to improvise.

WHAT DO YOU THINK IS WORTH SHOWING IN SLIDEWARE?

Give materials that can help the prospect make the case with their boss. Enroll them in being your advocate.

MANY CUSTOMERS SAY THAT THEY HAVE TO SIT THROUGH TOO MANY SLIDES. HOW MANY SLIDES DO YOU THINK MAKES SENSE? IS SLIDEWARE NECESSARY?

The message must simply be complete. It’s not the number of slides that makes a difference. It’s about how you can solve the customer’s problem.

UNDERSTANDING

The Sales Engineer Role

DO YOU BELIEVE THAT THE TECHNICAL SALES ENGINEER IS A CRITICAL CONTRIBUTOR IN THE SUCCESS OF A HIGH TECHNOLOGY ORGANIZATION?

So much emphasis is given to conventional selling skills. Very little is written about technical selling. The professional development of the sales engineer is becoming more critical.

WHAT COMMUNICATION SKILLS ARE IMPORTANT FOR A TECHNICAL SALES ENGINEER TO DRIVE DEMO SUCCESS?

Sellers need to revaluate staffing. The expectations for a strong communication skillset is more important than pure technical ability for today’s Sales Engineers. More importantly, domain expertise, buying facilitation techniques & business advisory capabilities will be required.

WHAT PERSONAL ATTRIBUTES OF A TECHNICAL SALES ENGINEER ARE IMPORTANT FOR DEMO SUCCESS?

Competence, knowledge and trustworthiness are critical characteristics for hiring managers. Consider a RoundPeggassessment as part of your fit review.

DO YOU THINK THERE IS AN OPPORTUNITY TO PROVIDE SERVICES THAT WOULD HELP IMPROVE THE CUSTOMER EXPERIENCE OF BUYING HIGH TECHNOLOGY PRODUCTS?

Peer coaching and professional development are necessary programs to create a strong, sustainable Customer Engagement culture

AADAPTING TO THE NEW SALES FUNNEL

Next Practices

EVOLVING ACCOUNTABILITIES

Duties of Sales Engineers must change

RE-CASTING THE SALES ENGINEER ROLE

Technical Sales Consultant

TEAM-BASED SELLING

EVOLUTION OF ORGANIZATIONAL STRUCTURE

Selling organizations will need to re-align and introduce a variety of roles to engage the marketplace and meet client needsNo single job function will “close” the deal

Team accountabilityEvolving job titles with sales responsibilities

Business Development SpecialistSocial Media Engagement SpecialistBusiness Advisory DirectorEngagement Manager

TECHNICAL SALES CONSULTANT -CHARACTERISTICS

CommunicatorConsensus builderEfficientEnergeticEmpatheticKnowledgeableMeasuredOrganizerSelf-starterTechnically savvyThorough

TECHNICAL SALES CONSULTANT

ATTRIBUTESBroader AccountabilitiesSolutioneeringSales Proficiencies & Technical Skills

DUTIESBuying Facilitation

TOOLSMeasured Procedures & PracticesStructured Conversations/AnalysisRapid Prototyping

MEASUREMENTSDemo to CashCustomer Success

ATTRIBUTION

YOU MAY REFERENCE THE RESULTS OF THIS SURVEY

Data subject to Creative Commons license– Attribute to Doug Liles, Entaktics LLC– The Sales Funnel diagrams were co-authored with Michael J.

Moon of Gistics– Sale of content strictly prohibited without license

Images are licensed from Fotolia and iStockPhoto– Stock photos and graphics are not sub-licensable

Preferred linkback:http://www.linkedin.com/in/dougliles

DOUG LILES - CREDENTIALS

High technology focus

Buy SideVice President TechnologyMarketing Manager

Sell SideConsultantBusiness Development DirectorAccount Executive, Agency

ChannelDirector, Partner ProgramsSr. Manager, Partner Relations

THANK YOU

ENGINEERING SALES DIFFERENTIATION

ENTAKTICS = ENGAGEMENT

Lean Six Sigma Customer Engagement principles applied to business development, product marketing and service delivery for high technology companies

TAKT means cycle time

Want to improve it?

Call Doug Liles

VOIP: 303-800-6430M: 303-547-5846

CONTACTDoug Liles, dougliles@entaktics.com

HOW ENTAKTICS CAN HELP

RESULTS FOCUSED PROGRAMS– Training

Modular approach to customer engagement– Demo script development

WritingRehearsalCoaching

– Recruiting SupportProfile DevelopmentScreening

– Sales Operations OptimizationProcess mapping and measurement

SPECIAL THANKS - MICHAEL J. MOON

CEO, GISTICS– Think Tank for Innovations in

Customer Engagement and the Entrepreneurial Imagination

Co-Founder of CIO Salon– Trust Network for Executive

Education and Peer Coaching

Michael J. Moon– moon@gistics.com– 1 415.509.5023 mobile

GISTICS Incorporated– 1 510.450.9999 tel

www.gistics.com

Editor in Chief 2004 to 2011

Author of widely acclaimed book

400+ Keynotes and Webinars

Author of 30+ white papers

YouTube: São Paulo 13 April 2011