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An Introduction to The Challenger Customer [Pat Spenner, CEB]

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Pat Spenner, co-author of The Challenger Customer presented to animal health marketing and sales professionals at NAVC 2016 about the changing landscape of B2B buying.

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An Introduction to The Challenger Customer [Pat Spenner, CEB]

  1. 1. An Introduction to The Challenger Customer © 2015 CEB. All rights reserved#ChallengerCustomer
  2. 2. © 2015 CEB. All rights reserved#ChallengerCustomer Customer Status Quo Agreement on a Vision Purchase Decision Two Trends Reshaping B2B Commerce Buying Trend #2: Consensus Purchase Buying Trend #1: Customers Learn on Their Own
  3. 3. © 2015 CEB. All rights reserved#ChallengerCustomer Customer Status Quo Agreement on a Vision Purchase Decision Two Trends Reshaping B2B Commerce Buying Trend #2: Consensus Purchase Buying Trend #1: Customers Learn on Their Own
  4. 4. © 2015 CEB. All rights reserved#ChallengerCustomer A Different Kind of Buying 57% Customer Due Diligence Begins Customer Purchase Decision Customer Contacts Supplier
  5. 5. © 2015 CEB. All rights reserved#ChallengerCustomer Right Answer Meets Changing World Customers rely on consultants and own research to identify needs Customers research potential solutions without suppliers Customers set prices based on comparison shopping Question the customer to surface their needs Help customer identify solutions to their needs Price deal according to scope of solution and range of needs addressed 321 Solution Selling Approach Reality of the Situation Needs Discovery Solutions Design Pricing
  6. 6. © 2015 CEB. All rights reserved#ChallengerCustomer “Good Enough” and the Path to Commoditization CUSTOMER FACES PURCHASE DECISION “What’s important?” “How much do I need?” “What’s it going to cost?” EXAMPLE Criteria: 1. Speed 2. Durability 3. Up-time Criteria: Specs: 1. Speed 10/day 2. Durability 5 years 3. Up-time 95%
  7. 7. © 2015 CEB. All rights reserved#ChallengerCustomer Challenger Sellers Win • Always goes the extra mile • Doesn’t give up easily • Self-motivated • Interested in feedback and development • Always has a different view of the world • Understands the customer’s business • Loves to debate • Pushes the customer • Reliably responds • Ensures that all problems are solved • Detail oriented • Follows own instincts • Self-assured • Independent • Builds strong customer advocates • Generous in giving time to help others • Gets along with everyone Hard Worker Challenger™ Seller Relationship Builder Lone Wolf Problem Solver
  8. 8. © 2015 CEB. All rights reserved#ChallengerCustomer Customer Status Quo Agreement on a Vision Purchase Decision Two Trends Reshaping B2B Commerce Buying Trend #2: Consensus Purchase Buying Trend #1: Customers Learn on Their Own
  9. 9. © 2015 CEB. All rights reserved#ChallengerCustomer Customer Status Quo Agreement on a Vision Purchase Decision Single Stakeholder Agreement Organizational Consensus Traversing the Solutions Graveyard
  10. 10. © 2015 CEB. All rights reserved#ChallengerCustomer n = 3,000. 0% 50% 100% 81% 55% 53% 31% 1 2 3 4 5 6+ Size of Buying Team 60% Purchase Likelihood 60% Bigger Groups, Fewer Purchases
  11. 11. © 2015 CEB. All rights reserved#ChallengerCustomer n = 3,000. 0% 50% 100% 81% 55% 53% 31% 1 2 3 4 5 6+ Size of Buying Team 60% Purchase Likelihood 60% 5.4 Average Buying Group Size Bigger Groups, Fewer Purchases
  12. 12. © 2015 CEB. All rights reserved#ChallengerCustomer Stakeholder 1: CIO Rep Angle: Minimal work- flow disruption Positioning: Seamless integration with legacy systems Stakeholder “Closed” Stakeholder 2: Financial Analyst Rep Angle: Cost savings Positioning: Write-off of existing platform Stakeholder “Closed” Stakeholder 3: Marketer Rep Angle: Deeper customer segmentation Positioning: Develop effective segmentation targeting strategies Stakeholder “Closed” 1. Accessing Individuals2.ClosingIndividuals Track Them All down, Win Them All Over
  13. 13. © 2015 CEB. All rights reserved#ChallengerCustomer 0% 8% (8%) 4% (4%) ChangeinLikelihoodofMaking aHigh-QualitySale Access to Stakeholders Evaluating Purchase Positioning Offering on Value to an Individual Stakeholder Surprising Findings
  14. 14. © 2015 CEB. All rights reserved#ChallengerCustomer Stakeholder 1 Mental Model Goal Priorities Metrics Means Stakeholder 2 Mental Model Goal Priorities Metrics Means Stakeholder 3 Mental Model Goal Priorities Metrics Means The Lowest Common Denominator
  15. 15. © 2015 CEB. All rights reserved#ChallengerCustomer The Teacher The BlockerThe ClimberThe Guide The Go-Getter The FriendThe Skeptic Seven Types of Customer Stakeholders
  16. 16. © 2015 CEB. All rights reserved#ChallengerCustomer Mobilizer™ Customers Get the Deal Done
  17. 17. © 2015 CEB. All rights reserved#ChallengerCustomer 1. Identify Mobilizer™ customers versus “Champions” 2. Engage Mobilizer customers with Commercial Insight, not Thought Leadership 3. Equip Mobilizer customers to coach customers toward collective change What Now?
  18. 18. © 2015 CEB. All rights reserved#ChallengerCustomer Finding Mobilizer™ Customers
  19. 19. © 2015 CEB. All rights reserved#ChallengerCustomer 1. Identify Mobilizer™ customers versus “Champions” 2. Engage Mobilizer customers with Commercial Insight, not Thought Leadership 3. Equip Mobilizer customers to coach customers toward collective change What Now?
  20. 20. © 2015 CEB. All rights reserved#ChallengerCustomer Break down the “A,” then Build up the “B” 0.013 (0.047) (0.096) (0.132) MagnitudeofDriverImpact Representing a Smart/Expert Perspective Being Easy to Understand Containing Interesting Facts or Anecdotes Being Accessible/ Quick to Find Non-Statistically Significant Drivers
  21. 21. © 2015 CEB. All rights reserved#ChallengerCustomer Break down the “A,” then Build up the “B” Statistically Significant Drivers 0.302 0.013 (0.047) (0.096) (0.132) MagnitudeofDriverImpact 0.446 Teaching Customer Something New about Their Business Needs/ Challenges Providing the Customer with Compelling Reasons to Take Action Representing a Smart/Expert Perspective Being Easy to Understand Containing Interesting Facts or Anecdotes Being Accessible/ Quick to Find Non-Statistically Significant Drivers
  22. 22. © 2015 CEB. All rights reserved#ChallengerCustomer Thought Leadership Is not Commercial Insight General Information Accepted Information Thought Leadership Insight Commercial Insight
  23. 23. © 2015 CEB. All rights reserved#ChallengerCustomer Current Beliefs/Behavior Desired Beliefs/Behavior Break down the “A,” then Build up the “B”
  24. 24. © 2015 CEB. All rights reserved#ChallengerCustomer 1. Identify Mobilizer™ customers versus “Champions” 2. Engage Mobilizer customers with Commercial Insight, not Thought Leadership 3. Equip Mobilizer customers to coach customers toward collective Change What Now?
  25. 25. © 2015 CEB. All rights reserved#ChallengerCustomer Source: Skillsoft; CEB analysis. Skillsoft’s toolkit provides guidance on how to navigate internal change and purchase processes Mobilizer™ Customer Toolkit
  26. 26. © 2015 CEB. All rights reserved#ChallengerCustomer © 2015 CEB. All rights reserved. SEC4512515SYN 17 HOW CAN CEB HELP? CEB equips organizations through best practices, tools, and implementation support to: ■ Source, screen, assess and develop ChallengerTM sellers ■ Develop sales talent to better engage Mobilizer customers ■ Create Commercial Insights ■ Support the mapping of customer buying behavior and verifiers ■ Create Challenger marketing content Learn more: www.ChallengerCustomer.com Find MobilizerTM Customers Engage Mobilizer Customers Drive Consensus Challenger™ and Mobilizer™ are trademarks or service marks of CEB Inc. These marks may be registered marks® in various countries. CEB Inc. claims all rights to control their use for goods and services within their field. Inquiries concerning these trademarks and service marks should be directed to support@cebglobal.com.
  27. 27. © 2015 CEB. All rights reserved#ChallengerCustomer Appendix: Commercial Insight Example
  28. 28. © 2015 CEB. All rights reserved#ChallengerCustomer Appendix: Commercial Insight Example
  29. 29. © 2015 CEB. All rights reserved#ChallengerCustomer Appendix: Commercial Insight Example

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