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The Challenger Sale - Commercial Excellence Forum

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Use the sales experience to create customer loyalty.
Since 2008, the buying environment has changed dramatically in B2B sales. The sales and marketing organisations are facing more complex decision processes and increased competition, which influence all aspects of the go-to-market approach.

Based on the most extensive research ever conducted in B2B sales, our partner, the Corporate Executive Board, identified the characteristics of the top performers in today’s sales environment. At this event, we will take a closer look at the extensive global study, exploring how businesses drive sales and customer loyalty in a rapidly changing buying environment.

Veröffentlicht in: Business
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The Challenger Sale - Commercial Excellence Forum

  1. 1. 1 Commercial Excellence Forum The Challenger Sale
  2. 2. 2 Commercial Excellence Forum 2015 Meetings 2015 March 6, 2015 Challenger Sale June 12, 2015 Differentiate to outperform competition October 2nd , 2015 Sales Acceleration
  3. 3. 4 About CEB Who We Are CEB is the leading member- based advisory company. By combining best practices with advanced research methodologies and human capital analytics, we equip senior leaders and their teams with insight and actionable solutions to transform operations. CEB enables executives to harness peer perspectives and tap into breakthrough innovation without costly consulting or reinvention. The CEB member network includes more than 16,000 executives and the majority of top companies globally. 25+ Years of Experience 50+ Countries Represented 5,300+ Participating Organizations 225,000 Business Professionals 50% of the Dow Jones Asian Titans 50 85% of the Fortune 500 70% of the FTSE 100 Marketing & Communications Innovation & Strategy Information Technology Finance Legal, Risk & Compliance Human Resources Procurement & Operations Sales & Service
  4. 4. 5 Challenger Sale – Based on Research and Hard Facts Source: CEB research 2011 Quant snapshot: 6,000 B2B customers across geographies and industries to test the drivers of loyalty, including: ■ Willingness to repurchase and pay a premium price ■ Willingness to consider new offerings ■ Willingness to recommend the supplier +250.000 questionaires and interviews conducted. 4.960 samples from loyal customers further analyzed. +30.000 sales reps representing all major industries and geographical areas, to test the drivers of performance, including: ■ Attitudes ■ Skills/Behaviors ■ Activities ■ Knowledge 717 individual buyers across geographies and industries to test their approach to driving purchase decisions within a group. Research Book Authors: Matthew Dixon & Brent Adamson
  5. 5. 6 CEB Sales Effectiveness Solutions Not Just Theory/Proven Implementation Success 250+ Challenger Implementations 60,000+ Sales Professionals Trained 300+ Commercial Insights Created Direct Measurable Impact Billions of Euros in Documented Revenue Increase
  6. 6. 7 Some facts about value proposition that you might not know…. COMPANY Value Proposition CUSTOMER Value Perception • Only 47% of the information used during customers’ purchase decisions comes from a supplier. • Only 14% of Customers perceive a real difference between supplier offerings AND value the difference enough to pay for it. • Only 13% of CMOs agreed that “If I Removed the Identifying Information for Our Commercial Collateral and Pitch Material, Our Customers Could Easily Determine It Came from Us.” Source: CEB Research
  7. 7. © 2014 CEB. All rights reserved.8 A Different Kind of Buying Customer Due Diligence Begins Customer’s First Outreach to Supplier Customer Purchase Decision 57% Complete  Customer Needs Well-Scoped  Priorities Set  Requirements Mostly Defined  Providers Compared  Prices Benchmarked Customer Purchase Timeline
  8. 8. © 2014 CEB. All rights reserved.9 What Drives Purchasing Decisions Company and Brand Impact Product and Service Delivery Sales Experience Value-to- Price Ratio 53% 19% 19% 9% Percentage of Contribution to Customer Loyalty What customers want from sellers: • Unique perspectives on my business • Help me navigate alternatives • Help me avoid potential mistakes • Teach me about new issues • Be supported within my organization
  9. 9. © 2014 CEB. All rights reserved.10 Profile of Today’s Sellers The Hard Worker • Strong process management skills • Doesn’t give up easily • Self-motivated • Interested in feedback and development The Relationship Builder • Builds advocates in customer organization • Generous in giving time to help others • Good interpersonal skills The Challenger • Personalizes sales message to the customer • Knows how to drive the customer to a decision • Delivers new insight to customers The Lone Wolf • Follows own instincts • Self-assured • Difficult to control The Problem Solver • Reliably responds to internal and external stakeholders • Ensures that all problems are solved • Detail oriented 5 Behavioral Profiles Identified in CEB research of 30,000 sellers
  10. 10. © 2014 CEB. All rights reserved.11 Challengers Most Likely to Win 22% 14% 26% 17% 12% 7% The Hard Worker The Problem Solver The Relationship Builder 23% 15% 39% 25% The Challenger The Lone Wolf Percentage of Core Performers Percentage of High Performers Percentage of Population
  11. 11. © 2014 CEB. All rights reserved.12 Complexity Widens the Gap… 20% 54% 25% 25% 26% 10% 18% 7% 11% 4%Relationship Builder Problem Solver Hard Worker Lone Wolf Challenger Complex Selling Transactional Selling High performers are 4.7x more likely to be Challengers in complex environments. 4.7x Percentage of High Performing Sales Professionals
  12. 12. 13 The Challenger fingerprint Challenger • Offers unique perspective • Two-way communication skills • Knows customer value drivers • Can ID economic drivers • Comfortable discussing money • Can pressure the customer Builds Constructive Tension Tailors Asserts Control Teaches Leading to differentiators Relationship Builder • Forms good relationships • Builds customer advocates • Builds cross-functional relationships • Can work with anyone • Is genuine • Accessible to the customer • Gives time to help others • Respects the customer’s time Reduces Tension Gets along with Others Likeable Generous with Time Leading with differentiators
  13. 13. 14 A Challenger disrupts the customer’s thinking through 3 key skills Challengers™ deliver a unique sales experience by using specific skills to create a rational and emotional case for change for their customers. Teaches for Differentiation …delivers Commercial Insight in rational and emotional compelling way through two-way dialogue Tailors for Resonance …customizes sales messages for businesses and individuals Takes Control … guides customers to recommended action by reinforcing the value of change Source: Corporate Executive Board Leading to: Constructive Tension A productive force that compels customer action It is generated from exploring unfamiliar topics with the customer
  14. 14. 15 Are we creating constructive tension ? Sellers more often remain on the left side of the spectrum, leaving customers in a comfort zone that does not inspire action • Uses indirect accommodating language • Engages with customer in a respectful manner • Keeps to customer’s point of view • Directly pursues goals in a constructive way • Uses direct language • Engages with customer in a respectful manner but pushes to consider new possibilities • Uses aggressive, unfriendly language • Does not engage but talks at the customer • Is dismissive of customer’s point of view Passive Assertive Aggressive
  15. 15. Engaging customers through commercial teaching Café exercise ComEx Copenhagen
  16. 16. © 2014 The Corporate Executive Board Company. All Rights Reserved. © 2014 CEB. All rights reserved. COMMERCIAL INSIGHT IS UNIQUELY POWERFUL Only Commercial Insight can disrupt customers’ buying criteria in suppliers’ favor. A Commercial Insight has the attributes of an insight, but also centers on a better course of action based on the company’s unique capability or strength. Hierarchy of Information Conveyed Through Commercial Messages Illustrative Source: CEB research. Commercially insightful messages lead back to the supplier exclusively, and also challenge conventional wisdom. Commercial Insight General Information Accepted Information Thought Leadership Insight 1 2 3 4 5
  17. 17. 20 © 2014 The Corporate Executive Board Company. All Rights Reserved. DELIVERING COMMERCIAL INSIGHT LevelofCustomerExcitement Positive Neutral Negative Reframe Rational Drowning Warmer Emotional Impact A New Way Our Solution What do we want to sell? Who do we want to Teach? Customer Contact Challenger™ Messages follow the best practice Commercial Teaching Choreography. Solution Remember: Challenger Messages lead with insight that leads back to your solution, enabling your team to sell more.
  18. 18. © 2014 CEB. All rights reserved. From the SALES EXECUTIVE COUNCIL IT’S WITHIN YOUR CONTROL Case in Point: Unrecognized Driver Dentsply teaches customers about a problem that customers’ previously thought was unsolvable. COMPANY SNAPSHOT Dentsply International Inc. Industry: Health Care Products 2011 Sales (USD): $2,537M Employees: 11,800 Source: Cargill; Sales Executive Council research. Acknowledge the customer problem: Dentists have struggled with hygienist absenteeism and early retirement due to Carpal Tunnel Syndrome. That has long been considered a cost of business in the dental industry. Teach customers how the problem is more manageable than previously thought: While most dentists believe such wrist conditions are unavoidable, in most cases, they are preventable. Recent studies have demonstrated that a very specific cause: the weight and ergonomics of the instruments hygienists use. Present a new way forward, that only Dentsply can offer: To solve these challenges, hygienists need tools that are lighter and more comfortable. Only Dentsply offers ergonomically correct and light enough dental tools.
  19. 19. 22 Base your approach on differentiators that drives value for the customer VALUE TO THE CUSTOMER UNIQUENESS Low High Low High Differentiators
  20. 20. 23 From differentiator to challenging customers Differentiator 95% transport reliability Delta to competition 20% higher than second best Value driver influenced Buffer stock costs Impact % 20 % reduction Ideal customer characteristics Fashion retailers with Asian production and European sales Reference cases H&M
  21. 21. 24 The challenger pitch – the acid test  It gives the customer a new and different perspective on their business  Challenge customers assumptions  Based on facts  Linked to customer needs  It creates constructive tension  Drives toward action  Lead to your unique strengths
  22. 22. Tailoring to your customers Café exercise ComEx Copenhagen
  23. 23. 26 What does tailoring mean?  The opportunities you focus on  How you present your Insight  The metrics you use in your discussions
  24. 24. 27 Tailor your Challenger Pitch Source: Corporate Executive Board Current industry changes / trends? Company objectives? Personal communication style? Stakeholder KPIs?
  25. 25. 28 The death of sole decision making ! Facts about decision making (from CEB research); Number of persons involved in decision process in average; 1990; 1,7 2000; 2,2 2012; 5,4
  26. 26. 29 Decision makers and loyalty ! Facts about decision making (from CEB research); • Decision makers think of themselves as buying from organizations, not from individuals (aspects of the overall sales experience are nearly twice as important as individual sales rep attributes) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Widespread support for the supplier in my organization Organization is easily accessible Organization is easy to buy from Organization is willing to collaborate with other suppliers Provide the best value for the best price Flexible in adjusting to unique product needs Sales Experience drivers of customer loyalty for decision makers
  27. 27. 30 Influencers / End users and loyalty ! Facts about decision making (from CEB research); • Influencers and end users place much more emphasis on the individual sales rep selling to them, they buy from people ! 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Drivers of sales representativ loyalty for influencers and end users (indexed)
  28. 28. Taking control to achieve results Café exercise ComEx Copenhagen
  29. 29. 33 Facts about (not) taking control In average 51% of sales persons pipeline are stocked Typical reason / indicators  Repeated discussions  No vision / customer has not defined success criteria  Confusion about next steps  No action / customer neglects commitments
  30. 30. 34 Pipeline management ?
  31. 31. 35 Challengers works differently with pipeline Traditional approach  Many opportunities  Long period of disqualification  General customer knowledge The Challengers pipeline  Few opportunities  Tough & targeted qualification  Specifc in-depth customer knowledge
  32. 32. 36 How Challengers respond ValueMomentum Taking Control: Taking control is respectfully and empathetically guiding the customer to a recommended action by discussing alternatives and reinforcing the value of making a change Familiarize themselves with measures and use real numbers
  33. 33. 37 Forward motion ValueMomentum Taking control of the buying process can be done by driving…: • Set and manage deadlines and milestone • Confirm agreement and move forward • Define common goals • Suggest next step Applying pressure on the customer Being comfortable discussing money • Discuss ROI confidently • Address money/finances directly • Align company’s value to the customer • Address objections candidly Taking control does not mean being aggressive. When Challenger take control they: Appear calm, balanced and professional Remain confident, bold and a few steps ahead Possess a well articulated point of view Are prepared to discuss a strong value proposition
  34. 34. 39 We see three typical commercial barriers for truly living and executing a differentiated value proposition Company Value Proposition Customer Value perception Marketing not able to formulate differentiated value propositions and value messages truly resonating with customer’s needs and value perception” Marketing/sales not able to align and engage with each other AND not able to design powerful sales tools fit for execution in sales situation” Sales not able to convey and articulate customer- specific value of company product/services – thereby not selling the “differentiated value proposition” Most common barriers You need a complete and integrated “marketing-sales chain” to define, communicate and execute your value proposition Marketing “Translating” company product/services to differentiated insights and messages for target segments Align & Engage Alignment of sales approach and practical sales execution tools – and create sales engagement in the communication Sales Deliver insights and challenge customers. Articulate, substantiate and convey superior customer-specific value of company offering MARKETING-SALES CHAIN
  35. 35. 40 Marketing has a strong role in driving the development value propositions – in strong coorporation with Sales Company Value Proposition Customer Value perception  Drive structured market and customer insight  Mapping of segment and customer needs and challenges  Formulation of corporate and segment specific value propositions  Defining marketing and communication strategy  Prioritization of marketing and sales resources  Development of segment specific communication platform, ie. what should we communicate to whom?  Development of sales tool box targeted to relevant segments and stakeholders, i.e. dialogue tools, value calculator etc.  Building Marketing and Sales performance “cockpit” Marketing “Translating” company product/services to differentiated insights and messages for target segments Align & Engage Alignment of sales approach and practical sales execution tools – and create sales engagement in the communication Sales Deliver insights and challenge customers. Articulate, substantiate and convey superior customer-specific value of company offering MARKETING-SALES CHAIN
  36. 36. Implementconsultinggroup.com Implement Consulting Group Implement Consulting Group is a leading Scandinavia based management consultancy, specialised in driving strategic transformations with a strong differentiator on “making change happen” – delivering documented Change with Impact. Stalk us on:

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