three value conversations - san francisco, ca. executive insights session with tim riesterer
DESCRIPTION
You can do everything right as a company…design, develop and launch killer products, refashion your go-to-market strategy to seize growth opportunities, and acquire other companies to drive inorganic growth. But there’s a gap between all of these great strategies and your prospects and customers actually agreeing to buy from you. Your salespeople, with their lips moving, are attempting to bridge that gap. Unfortunately, most are failing. According to sales managers surveyed by SiriusDecisions, your salespeople’s inability to articulate value is the #1 reason they’re missing their quota…and you’re missing your growth targets. Learn how companies like ADP, Cisco, GE, Motorola, UPS and DuPont are creating compelling stories and enabling their salespeople to deliver them in a remarkable, memorable way.TRANSCRIPT
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3 Conversations You Need to Win
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Q: #1 Reason Don’t Hit Quota?
A: Inability to Articulate Value!
Leads
Products
Process
Training
CRM
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Good Intentions. Wrong Instincts.
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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”
“
“
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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
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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
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Status Quo Buy
60
“Why Change?” “Why You?”
%
-3 -1 +1 +2 +3 -2
NO DECISION 60
%
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Declared Preference
Revealed Preference
Status Quo Buy
60
“Why Change?” “Why You?”
%
-3 -1 +1 +2 +3 -2
NO DECISION 60
%
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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
• Make the status quo unsafe • Define new set of needs • Align w/ your Strengths
• Here’s what you say you need • Here’s what we do different • Here’s the benefit you will get
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Identified
NEEDS
CAPABILITIES Specified
Commoditized Conversation
Creating a Buying Vision
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NEEDS
Identified
Specified CAPABILITIES
UNKNOWN STRENGTHS
UNCONSIDERED NEEDS
Commoditized Conversation
Creating a Buying Vision
Distinct Point of View
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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
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New Brain Designed for Analysis
Old Brain Designed for Survival
Decision-Making Engine
Neuroscience
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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”
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Customer Status Quo
Identify executive desired outcomes
and strategic objectives
Reveal potential threats, problems and
missed opportunities that put those
outcomes at RISK
Define a new set of needs and
requirements that point to your relevant
and advantaged strengths
Describe how your strengths RESOLVE
to the situation and generate positive
business change and value
Define your target “status quo” why
it’s safe and where there are gaps
Threats
Misses
Ne
w N
ee
ds
Desired
Outcome
Problems
Strengths
Value
Story
RISK
RESOLVE
Point of View
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CFO
CMO
CIO
More than typical Personas
M
Old Automation SS & DB New Competitor
SIT
UAT
ION
DISP
OSIT
ION
Point of View ……………………………….. Lives Here!
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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
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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
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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
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80% decisions
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10% executive contacts
80% decisions
FEAR
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PRODUCT KNOWLEDGE BUSINESS EXPERTISE
EXECUTIVES VALUE 4X MORE
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EXECUTIVES VALUE 4X MORE
88% PROFICIENT
24% PROFICIENT
4X LESS LIKELY
PRODUCT KNOWLEDGE BUSINESS EXPERTISE
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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
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Business Knowledge
Customer Insight
Financial Acumen
ROI/ Business
Case
Executive Engagement
Executive Conversations core competencies
1 2 3 4 5
Identifying the key industry
business trends, topics, and
emerging issues impacting
companies in that market
Determining the prospect’s top
initiatives, how those connect
to business trends and
ultimately tie to your solution
Knowing the “metrics that
matter” most to determining
budgets, building a
business case and triggering
a decision
Building a simple,
compelling financial story that shows how your solution will
drive positive business impact
Experience telling your story to a real executive decision maker
and what it takes to deliver
engaging conversation
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Business Knowledge
Customer Insight
Financial Acumen
ROI/ Business
Case
Executive Engagement
Executive Conversations core competencies
1 2 3 4 5
Identifying the key industry
business trends, topics, and
emerging issues impacting
companies in that market
Determining the prospect’s top
initiatives, how those connect
to business trends and
ultimately tie to your solution
Knowing the “metrics that
matter” most to determining
budgets, building a
business case and triggering
a decision
Building a simple,
compelling financial story that shows how your solution will
drive positive business impact
Experience telling your story to a real executive decision maker
and what it takes to deliver
engaging conversation
Fluency target
50%
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Close the Business Value Gap
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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
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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
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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
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Your Price I% increase in discounting
9% decrease in operating
margin
A SLIPPERY SLOPE
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Your Price
Their Price
TYPICAL VIEW OF DISCOUNTING
Negotiating Tactics
Selling to business buyer
Deal moves to purchasing
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Your Price
Their Price
WHAT’S REALLY HAPPENING
Negotiating Tactics
Selling to business buyer
Deal moves to purchasing
Value Leaks
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Demonstrating Value?
CHECKING BOXES
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Demonstrating Value?
Giving Away Value
CHECKING BOXES
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Exchanging Value
PIVOTAL AGREEMENTS
CHECKING BOXES
Demonstrating Value?
Giving Away Value
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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
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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
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Malcolm Gladwell
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Scientist for Tipping Point Morton M. Grodzins
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What was the difference?
Gladwell told a better story!
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BEFORE AFTER
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Show clear CONTRAST to show value for change
Tell them something they didn’t know to create CONCERN
Make status quo unsafe to create CONTEXT for urgency
Tell COMPARABLE story to prove they can do it too
Your Point of View
Insight
Unsafe New Safe
Proof
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BEFORE AFTER
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10% 65%
Picture Superiority Effect
88% Conversation
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70%
20%
100% Hot
Spike
Hot
The Hammock
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AVOID THE HAMMOCK
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Which Picture is Superior?
1 2 3
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Which Picture is Superior?
1 2 3
IMMEDIATE RECALL
83% 75% 66%
10%
better
25%
better
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Which Picture is Superior?
1 2 3
More Interesting
Thought More Deeply More Credible Data
More Trustworthy
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