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Summarized by Satoshi Takano
In a Downturn, Provoke Your Customers
Harvard Business Review
Written by Philip Lay, Todd Hewlin, and Geoffrey Moore
The companies you serve are slashing their budgets – but you can still make a sale
Do you hear your
customers telling you…
“No budget.”
“No budget.”
“CUTS Across-the-board.”
“No budget.”
“CUTS Across-the-board.”
“We’ll do with what we got.”
Or, you may soon hear
this…
Or worst case…
“I’m no longer the sole
decision maker.”
So, what do I
do?
things.
“1. You MUST find a way to reach the customer’s resource owners and motivate them to allocate the necessary funds.”
“1. You MUST find a way to reach the customer’s resource owners and motivate them to allocate the necessary funds.”
“And 2, persuade them that your solutions are not just nice but essential.”
This is called,
“Provocation-based Selling.”
This is called,
“Provocation-based Selling.”
“And it goes beyond the conventional consultativeor solution-sellingapproach.”
“Product or solution-based selling pushes features, functionality, and benefits in a generic manner.”
“Product or solution-based selling pushes features, functionality, and benefits in a generic manner.”
… while provocation-based selling helps customer see their competitive challenges in a new light that makes addressing specific painful problems …
Unmistakably URGENT.
So, how do I
learn to become
Provocative?
So, how do I
learn to become
Provocative?
(Without the customer becoming defensive?)
Steps
Identify a critical issue1
Identify a critical issue
Formulate your provocation
1
2
Identify a critical issue
Formulate your provocation
Lodge your provocation
1
2
3
Identify a critical issue1
“Identify key issues that matters so
deeply that even in a downturn the
money will be found to fix it.”
Once identified, subject those
issues to 3 sets of questions.
Would it meet the CEO’s “keeps me up at
night” threshold? That is, does this problem
seriously jeopardize the organization’s ability
to compete?
1
Is it being ignored, neglected, or ineffectively
addressed by existing processes, systems or
services?
2
Are you a credible source of advice on the
issue?
3
Here’s some advice…
Here’s some advice…
“Observe what the security analysts have said
about the target company or industry.
If analysts have an issue, you can assume that investors are pressuring management to
resolve it.”
Formulate your provocation2
“Develop an original point of view
about it. Otherwise no senior
executive will give you time.”
One way to do this is to go
to…
Our customers and industry
analysts.
Then compare the target
customer situation with their
peers.
Then compare the target
customer situation with their
peers.
(AKA - Gain extremely deep understanding of the industry-level issues)
Lodge your provocation3
Here’s a caveat… do this
carefully.
Here’s a caveat… do this
carefully.
(Provocation should not be seen as an invitation to behave disrespectfully)
So, here is one way to
approach it…
“We’ve worked with companies in your
peer group and have seen how the
leading players are experiencing this
painful problem.”
“We think it’s possible that your
company is at risk in this area as well.”
“We think it’s possible that your
company is at risk in this area as well.”
Your statements should clarify the challenge and demonstrate
knowledge of the customer’s current approach to it.
Then follow up and say…
Then follow up and say…
“We believe that if you can’t stem the
bleeding, you risk losing up to 4% of
your market share within the next six to
12 months.”
Then follow up and say…
“We believe that if you can’t stem the
bleeding, you risk losing up to 4% of
your market share within the next six to
12 months.”
The goal here is to disturb the equilibrium and status quo – without
putting him or her on the defensive.
Proving your point involves some
detective work
Once your report is completed, construct the sales proposal in 3 phases…
Once your report is completed, construct the sales proposal in 3 phases…
1. What your company can deliver
right away – most often primarily services.
Once your report is completed, construct the sales proposal in 3 phases…
1. What your company can deliver
right away – most often primarily services.
2. What your company can deliver
within the year – usually a customized, solution-oriented adaptation of the offering.
Finally…
Finally…
3. Everything else the customer wants or will need over
time to fully address the problem. (If these additional elements cannot wait, you must look for a partner – even if that means working alongside a competitor. Your ability to bring the components will earn you the status of a trusted advisor.)
1. Gain access to senior executives, typically with
P&L responsibilities – can reallocate resources to create the budget for the offering.
1. Gain access to senior executives, typically with
P&L responsibilities – can reallocate resources to create the budget for the offering.
2. Find their acquaintance, and ask for referral to
present to the executive.
(can also be through seminars to rigorously find a referral.)
1. Gain access to senior executives, typically with
P&L responsibilities – can reallocate resources to create the budget for the offering.
2. Find their acquaintance, and ask for referral to
present to the executive.
(can also be through seminars to rigorously find a referral.)
And oh, ya…
Social networks ain’t so bad either…
Here’s the key…
“During an economic downturn, the more you make your customer see something that they never knew existed, the process picks up speed, and you WIN.”
“During an economic downturn, the more you make your customer see something that they never knew existed, the process picks up speed, and you WIN.”
AKA - The budget gets reallocated to your project.
“While, in an economic downturn, most solution-selling strategies tend to lose momentum at each phase of the Sales Cycle.”
Here’s a simple way to differentiate
Here’s a simple way to differentiate
Solution Sellingvs.
Provocation-Based Selling
Solution Selling Provocation-Based Selling
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then
builds a business case
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then
builds a business case
Begins with the business case and then
provides technical proof
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then
builds a business case
Begins with the business case and then
provides technical proof
Starts as an IT of line-of-business
dialogue
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then
builds a business case
Begins with the business case and then
provides technical proof
Starts as an IT of line-of-business
dialogue
Starts as an executive level dialogue
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then
builds a business case
Begins with the business case and then
provides technical proof
Starts as an IT of line-of-business
dialogue
Starts as an executive level dialogue
Asks questions to identify needs
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then
builds a business case
Begins with the business case and then
provides technical proof
Starts as an IT of line-of-business
dialogue
Starts as an executive level dialogue
Asks questions to identify needs Uses an insightful hypothesis to
provoke a response
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then
builds a business case
Begins with the business case and then
provides technical proof
Starts as an IT of line-of-business
dialogue
Starts as an executive level dialogue
Asks questions to identify needs Uses an insightful hypothesis to
provoke a response
Responds to issues described by the
customer
Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget
Compels project investment outside an
existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then
builds a business case
Begins with the business case and then
provides technical proof
Starts as an IT of line-of-business
dialogue
Starts as an executive level dialogue
Asks questions to identify needs Uses an insightful hypothesis to
provoke a response
Responds to issues described by the
customer
Is proactive and leading, forcing issues
out
“These differences don’t imply the death of solution selling, which is still the right approach when the customer understands the challenges to be faced….
“These differences don’t imply the death of solution selling, which is still the right approach when the customer understands the challenges to be faced….
…and has the budget in place.”
“While provocation-based selling is most effective when the customer’s problem is unacknowledged or poorly understood, the budget doesn’t exist, and the customer’s main question is….
“How can we change our approach to this problem, because we haven’t yet managed to deal with it effectively?”
In Summary…
“In a severe downturn, provocation-based selling may be the only way to move past the ‘buy nothing’ mantra emanating from customer organizations.”
Thank You
stakano@gmail.com
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