Defining Your Differentiating Value

The first step moving from a features & benefits-based, go-to-market model to a Differentiating Value (DV) approach is defining your Differentiating Value.

In B2B revenue models, the first question to ask is: How does my product / service improve the customer’s business? Forget the traditional quality, service and support pontifications. In B2B, quality, service and support are simply expected and all three are claimed by every competitor anyway so you get no differentiating points on these issues.

Look at the transaction from the prospect’s world and define how their overall performance is improved by having your product / service. That is your Differentiating Value and you can never have too much DV. Most prospects are already buying from someone else today so the more DV-based improvements your products deliver to the prospect’s business, the better platform you have for revenue growth.

The question always comes up…“What if they are happy with a competitor’s product and there doesn’t seem to be a benefit to making change?” This happens every day in sales. Our observation is one of two situations typically applies. If your product delivers substantial, compelling DV to your market and the sales rep has asked all the Critical Qualifying Questions for Motivation but the prospect is not responding, your rep is 1.) not connecting with the emotional buyer or 2.) the prospect is not a ‘fit’ for your DV. Assuming the prospect is not a fit for your DV, it is better to know that as early as possible in the sales cycle so you don’t waste time pursuing and forecasting dead end deals.

Brand is NOT Differentiating Value

We spend a lot of time helping clients understand their Differentiating Value – what they bring to the market that is unique and/or better than the competition. The process is straight forward.

Differentiating Value is not:

1. Features and benefits
2. Value platform
3. Brand
4. Quality, service or support proclamations

Sales people have been trained to memorize and mimic the slogans and sound bites that always accompany these concepts. STOP! These exist in your world but not the prospect’s. If you base your positioning on these items, you will always enjoy longer sales cycles and perpetual discount requests – especially if your sales people lead with “We are the #1 brand in the market.”

Differentiating Value only exists in the prospect’s world – not yours. It is what the prospect is buying and that is typically not how you get paid. One of our clients is a materials science company that manufactures polymer pipe for the plumbing industry. Their engineered products allow homeowners to operate all water consumption devices (dishwasher, clothes washer, lawn sprinkler, etc.) concurrently and still have family and guests able to use all the showers in the house. Prospects are buying a convenience life style but the payment transaction is based on linear feet of pipe purchased. This is Differentiating Value.

5 Brutal Leadership Comments

Whatever you do, avoid these statements.

After decades of working with companies to improve their revenue performance, we have heard a litany of comments from leadership teams that will cause any engaged employee (or outside resource) to urgently start the quest for another opportunity.

The 5 most atrocious are:

1. The only job the sales department has is to keep manufacturing running at 90+% capacity.
2. Customers would be “stupid” not to buy this.
3. Forecasting should only happen after sales writes the order.
4. Sales needs to find smarter customers.
5. If we have to downsize, sales will be the first to go.

If you encounter one of these…Good Luck!
Regarding your next opportunity – contact us and we will connect you with one of our CRO RoundTable member companies.

Revenue-savvy leadership is never a commodity.

The Sales Funnel is Dead!

The new age of digital disruption is re-engineering the world of sales.

Many companies today are doing “OK” selling more to long established customers where they have inside traction but their new-logo business is best described as underperforming (aka nonexistent). The tough question Chief Revenue Officers address in planning sessions is: Why can we sell to our current base but we can’t grow new base? The real answer is – the game has changed and new rules apply.

Consider the new B2B prospect profile:

►74% of B2B buyers conduct MORE THAN HALF their research on-line before talking to a salesperson (Forrester)

►90% of B2B buyers say they NEVER RESPOND to cold outreach (HBR)

►75% of B2B buyers NOW USE SOCIAL MEDIA to research vendors (IDC)

►74% of buyers choose the sales rep that was FIRST to add value and insight (Corporate Visions)

Now apply this profile to your business. Obviously the first obsolete concept is the dinosaur sales funnel and all associated sales/marketing programs that reference it as a productivity metric. The new revenue models are based on digital merry-go-rounds. Prospects can get on and off anytime (welcome to the 24×7 revenue day) and will leave no tracks indicating they were ever there if your digital platforms lack effective engagement offers and Contact Us is not an effective offer.

At RoundTable, we work on getting the new basics right including:

• Sales cycle & productivity tracking tools
• Lead generation & routes (channels) to market
• Talent profiles for inside/outside sales roles
• Merry-go-round platforms for creating new logo opportunities

We are experiencing a time of rapid change within the sales paradigm. You, as a CRO, will have to make significant adjustments to continue to stay in a revenue-leading market position.

We can help.

Analog vs Digital - the Contrast of Operations vs. Sales

The gap between operations and sales in organizations is always obvious and can be explained by their respective measurement cultures.

In operations, improving a process from 93.4% successful performance to 93.9% can be cause for an over the top celebration. Even improving it to 93.5% confirms positive progress is being made and everyone gets knuckles for their positive efforts. If the number drops to 93.2%, everyone goes into do-over mode to drive the process % higher. The model is totally analog in terms of everyone’s focus on evolving improvements.

In sales, there are no 93.5% orders. Orders are binary outcomes meaning you win or lose (commission plan gets a 1 or 0 multiplier). Everyone with a 0 multiplier finished “second” and there are NO do-overs. This fundamental measurement (and celebration) difference requires totally different employee profiles and leadership cultures to perform successfully. What works inside never works outside – the circuitry is wrong…it is that simple.

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If you would like to learn how the RoundTable can help you win in the digital world of sales, please consider attending one of our upcoming briefings.

The 5 Must-Have Components for Revenue as a System in 2018

After 6+ years of hosting monthly roundtable meetings with revenue leaders from a diversified combination of businesses, it’s clear there is a core list of components CRO’s need to have in hand at the start of the year for maximizing success and driving revenue growth. 

The core components of Revenue as a System:

1)  Lead generation system – Differentiating Value (DV) is defined by target segments and campaigns are loaded for launch through all media channels.  It is never about what you say, it is more about what the prospect remembers about you.  The DV messages are 100% translated into the prospect’s world.   Response systems operate under time-is-of-the-essence priorities so nothing goes past a couple hours, worst case, without a direct engagement (not an auto-responder).  The goal is always a response time in minutes to connect in the prospect’s “window of interest.

2)  Revenue team roles – The right mix is a combination of inside and outside resources with the new business development goals assigned to specific hunters and not diluted across everyone’s goal sheets.  The hunters have line of sight vision to the targets and the tools to pursue them.  The right talent means trained and ready to handle all levels of communication - especially qualifying.

3)  Structured sales process based on your Differentiating Value – Selling is a communication process and your Differentiating Value (DV) is why prospects decide to do business with you.  As such, a CRO cannot invest the time to learn the unique qualifying approach of every sales rep in their organization.  I have tried it – it doesn’t work and the individual process I was exposed to were totally ineffective.  Qualifying is all about asking the right questions.  Every sale typically consists of 4-6 Critical Qualifying Questions (CQQ’s) that objectively determine if, how and when the deal comes together.  Sales reps never want to get a “no,” but the reality is getting more no’s than yes’s is the way it works.  It is far better to get the no before you invest a lot of resources into deals where you are not even on the list for consideration.

4)  Structured forecast process – Forecast accuracy is the report card of your qualifying system.  Sales reps know it is always better to be optimistic vs. realistic when forecasting.  Due to that approach, management does not know exactly what’s in their pipeline.  This is a common survival technique to buy more time without going under a formal “get-well” plan.  A bankable forecast process can be achieved - the challenge lies with your qualifying execution.  The key is to hold your salespeople accountable to qualifying suspects for motivation, money, methodology and market before moving prospects on/through the forecast.

5)  Properly-aligned incentive systems – Incentives are the most underutilized tool in the CRO’s arsenal.  The days of one-size-fits-all spreadsheet plans never really worked…and they still don’t.   It is important for plans to both recognize behaviors and reward results.  Incentive plans can include a variety of components – forecast accuracy, mix of sales performance by product and/or accounts, new logo accounts, etc.  No two businesses are identical so no two plans have the same focus.  It starts with understanding your specific sales model and building the incentive plan around key performance thresholds.  In the end, much of successful selling comes down to doing the right behaviors consistently.  Your incentive plan should creatively incent those behaviors.

This is just one of the revenue-focused topics we discuss at the RoundTable.  If you would like to learn more about the executive peer group, register to attend one of our upcoming briefings in the Twin Cities or Chicago.  Visit our Executive Briefings page here.

What Matters Most in Selling

Photo by imagesthai.com

Qualifying.

That’s it.  End of post.  No, we’ll go a bit deeper.  I write this post as I sit at a Caribou Coffee right next to an actual sales interview.  It is fascinating to observe as the candidate is doing fairly well.  He is qualifying the position which is excellent.

He is falling down in that he is asking the right questions and then answering them HIMSELF.  Disappointing.

There is an elegance to strong qualifying…almost an artistry.  The questions flow in a conversational manner, the prospect is comfortable in answering and the information is gained by the salesperson.  It is enjoyable to watch from my perspective.

When you are interviewing sales candidates, it is important to watch for more than just the answers they provide.  Pay attention to their questions, their strategy in answering, their conversational approach, etc.  Even watch for candidates who are able to ask difficult questions.  Imagine them selling for your company – will your prospects buy from them.

In the end, the salesperson’s ability to qualify, a job, a prospect, a deal, is the backbone of all good selling.

Top 10 Revenue Rules

Down from the revenue mountain and written on stone...

1. When you are telling you are not selling – it is all about asking the critical qualifying interview questions.

2. Prospects buy for their reasons – not yours. Features & benefits are your reasons – not the prospects. Differentiating Value exists only in the Prospect’s world – that is what they are buying.

3. Humans make emotional decisions (pleasure or pain basis) and justify those decisions intellectually.

4. Good sales people can ask any prospect any question about any topic at any time.

5. A “no” is rejecting your Differentiating Value – not you.

6. Give the prospect control – keeps them in the OK chair plus they have control anyway. No “Why” questions. Third party stories shorten the prospect discovery process.

7. Anything you bring up, prospects cannot use on you. It keeps the playing field level without creating a “not ok” barrier.

8. You can’t lose something you don’t have. When you don’t know, re-qualify – never assume.

9. Forecasts are the report card for your qualifying process. If forecast data is flawed, so is the qualifying process.

10. 4 Aces are the goal and the audit trail. Do-over’s are better than lost orders.

Why Do Executives Join Peer Groups?

After 6+ years of interviewing candidates for the Chief Revenue Officer (CRO) Executive RoundTable, the primary business reason most join is clear – Leaders listen to employees and experts but believe peers.

Leaders know they have to make good decisions for their business to prosper and grow. Most have 3 primary sources of input:

Direct Reports – employees have good tactical knowledge about the business today but typically have limited bandwidth regarding growth possibilities on the horizon.

Outside Experts – experts bring knowledge, but applicability is always a “fear of discovery” concern.

Peers – experience brings the “been there, done that” tribal knowledge of how the real world works…and they don’t work for you or want to sell you anything. That is the core reason why executives value a peer group membership.

CRO Executive RoundTable – we help members take the guesswork out of growth options and revenue strategies.

Why Would a Sales Person Ever Say No?

Successful sales leaders and sales people are the ones who are skilled at moving through the prospect stages of KNOW – LIKE – TRUST.

Let’s begin with the underlying belief that it is always best to tell the truth. In any situation whether personal or professional - never tell a lie. Not only is this good for your stress level, heart, blood pressure, etc. but also because, in the words of Mark Twain, “if you tell the truth you never have to remember anything”.

For sales leaders and sales people, when in the sales process there are many situations that arise where it seems that the flat-out truth is the obvious response and it seems also obvious that telling the truth is very detrimental to winning the sale. In such situations, it is very tempting to avoid giving a direct answer like ‘no, we cannot do that’ and instead respond in a manner that stretches the truth so that the sales process stays alive and you can still hope to close the sale. Tempting as this might be, it is not a long-term success formula. One should never tell a lie. “A single lie discovered is enough to create contagious doubt over every other truth expressed” – author unknown. When you are found to have stretched the truth (or worse) your credibility takes a negative turn that is hard, if not impossible to recover from.

Ideally, you will always have the best product with perfect capabilities and be the clear leader in the prospects consideration. For many that is not the case and so sales training, skills and ability to ‘think on your feet’ become critical to the sales process and ultimately winning the sale. When you know your product capabilities, understand the competition and their strengths and weaknesses, have done your research on the prospect and the prospects business/industry, then you are in a strong position that minimizes the temptation to stretch the truth or even to have to say "no."

Although one should never say never, I believe strongly that in the sales process a sales leader/sales person should never say "no."  Why? Here are the primary reasons you will find yourself in a position to respond ‘no’ to a prospect, even though you have worked hard to identify a good prospect and qualify the opportunity:

Competition is doing their job! If the competition is any good, they will know your weaknesses versus their own strengths and weaknesses. The competition will work to put themselves in good standing and create ‘Fear, Uncertainty & Doubt’, or FUD, about you and your product/solution.

Prospect has partial or inaccurate information! Information received from well-meaning friends & family, peers & workers, or internet research often results in a biased view of your product/solution.

Prospect is focused on a symptom not the real issue! The humorous saying ‘When you are up to your *** in alligators, it is difficult to remember that your objective is to drain the swamp!’ applies here. Often the challenges of the day and resulting pain points drive a prospect to want to just fix the immediate pain.

Prospect is positioning for a concession! While not as common as the first three mentioned, there are times when the prospect wants your product/solution and this is a way of negotiating for a better price.

Encourage the prospect to talk about why they want to make a change and not just focus on a specific item that may not be in your favor. Rather than stretch the truth or say ‘no, we can’t do that’ or similar phrasing, it is best to bring the prospect back to the positive by reframing the opportunity in the context of the strengths you and your product/solution have for the prospect. Offer an answer on why the prospect benefits more from you and your product/solution than from any other option. Remaining positive throughout the sales process greatly enhances your credibility with the prospect and thereby enhances your chances of closing the sale.

CRO RoundTable is focused on revenue growth and the strategy, leadership and execution necessary to improve skills such as this.