Conversations that Win

Twitter: @TRiesterer

Q: #1 Reason Don’t Hit Quota?

A: Inability to Articulate Value! SiriusDecisions

Leads Process

Products Training

CRM

By Accident or On Purpose?

30,000 ft

3 ft

70-90% UNUSED

No Brand’s Land

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

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

ENGAGE

YOU

THEM

No Decision

WHY YOU?

60%

24%

16%

ENGAGE

YOU

THEM

No Decision

WHY YOU?

60%

WHY CHANGE?

MISSING!!

24%

16%

Identified

NEEDS

CAPABILITIES Specified Commodity Conversation

NEEDS

Identified

Specified CAPABILITIES

UNKNOWN STRENGTHS

Distinct Point of View =

Unexpected Urgency and Unique Value

UNCONSIDERED NEEDS

Commodity Conversation

DIFFERENTIATED CONVERSATION

Status Quo Threatened

Identify New Needs

Define Solution

Identify Viable Vendors

Review Approaches

Make Decision

65

“Why Change?” “Why You”

COMMODITY CONVERSATION

35 % % 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

New Brain Designed for Analysis

Old Brain Designed for Survival

Decision-Making Engine

Neuroscience

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”

Behavioral Economics

Analyze Think Change

SEE FEEL CHANGE

The Heart of Change. Kotter and Cohen. 130 companies across the globe

10%

65%

Enhancing the Spoken Word

Picture Superiority Effect

88% Want Conversations

NOT Presentations

Conversational Selling

49 0 --

Retained 92% of sales team

123%

72%

26%

% of budget

Sales at quota

Flat growth

Differentiation Case Study

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

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

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Capture Value

Your Price I% increase in discounting

9% decrease in operating

margin

A slippery slope…

Your Price

Their Price

Typical View of Discounting

Negotiating Tactics

Selling to business buyer

Deal moves to purchasing

Your Price

Their Price

What’s Really Happening

Negotiating Tactics

Selling to business buyer

Deal moves to purchasing

Your Price

Their Price

What you need to do

Negotiating Tactics

Selling to business buyer

Deal moves to purchasing

1. Identify Unconsidered Needs

NEEDS

Identified

Specified CAPABILITIES

UNKNOWN STRENGTHS

Unexpected Urgency and Unique Value

UNCONSIDERED NEEDS

Commodity Conversation

Your Price

Their Price

What you need to do

Negotiating Tactics

Selling to business buyer

Deal moves to purchasing

1. Identify Unconsidered Needs 2. Exchange Value

Demonstrating Value?

CHECKING BOXES

Demonstrating Value?

Giving Away Value

Exchange Value

PIVOTAL AGREEMENTS

CHECKING BOXES

Demonstrating Value?

Giving Away Value

Your Price

Their Price

What you need to do

Negotiating Tactics

Selling to business buyer

Deal moves to purchasing

1. Identify Unconsidered Needs 2. Exchange Value

3. Embrace Tension

Discount Reduction Programs

Price Increases

Discount Reduction Programs

Price Increases

Comp Threats

Commodity Pressure

Discount Reduction Programs

Price Increases

Comp Threats

Commodity Pressure

Flee! Customer Advocate Give Away Too Much

Drop Too Soon

Discount Reduction Programs

Price Increases

Comp Threats

Commodity Pressure

Discount Reduction Programs

Price Increases

Flee! Customer Advocate Give Away Too Much

Drop Too Soon

Price Increases

Discount Reduction Programs

Comp Threats

Commodity Pressure

Embrace! Acknowledge/Defer

High Targets & Trades Concede to Plan

Counter-intuitive Behaviors

Flee! Customer Advocate Give Away Too Much

Drop Too Soon

Your Price

Their Price

What you need to do

Selling to business buyer

Deal moves to purchasing

1. Identify Unconsidered Needs 2. Exchange Value

3. Embrace Tension

Maximize Value

Maximization Case Study

Untrained Regions -1.8% Pilot

Training

Trained Regions +1%

2.8% Net Improvement

$1.8M Return

in 30 days Discounting

Problem

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Capture Value

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

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Elevate Value

PRODUCT KNOWLEDGE BUSINESS EXPERTISE

EXECUTIVES VALUE 4X MORE

EXECUTIVES VALUE 4X MORE

88% PROFICIENT

24% PROFICIENT

4X LESS LIKELY

PRODUCT KNOWLEDGE BUSINESS EXPERTISE

EXECUTIVES VALUE 4X MORE

88% PROFICIENT

24% PROFICIENT

4X LESS LIKELY

BEST IN CLASS

FOCUS 2X MORE

AVERAGE COMPANIES

FOCUS MORE

3 CHALLENGES -COMPETENCE -CONFIDENCE -COMPELLING

PRODUCT KNOWLEDGE BUSINESS EXPERTISE BUSINESS ACUMEN GAP

COMPETENCE Fluency target

core competencies

1 2 3 4 5

ROI Finance Insight . . .

COMPETENCE

50% average current competence

Fluency target

1 2 3 4 5

core competencies

ROI Finance Insight . . .

COMPETENCE

50% average current competence

Fluency target

10-40% lift

1 2 3 4 5

Industry Benchmarks

core competencies

ROI Finance Insight . . .

CONFIDENCE

80% decisions

CONFIDENCE

10% executive contacts

80% decisions

FEAR

CONFIDENCE

10% executive contacts

80% decisions

toe-to-toe executive consultant

vs. sales trainer

FEAR

CREATE URGENCY

INSPIRE CHANGE

COMPELLING

CURRENT STATE

FUTURE STATE

CREATE URGENCY

INSPIRE CHANGE

COMPELLING

CURRENT STATE

FUTURE STATE

60% no decision

CREATE URGENCY

INSPIRE CHANGE

COMPELLING

CURRENT STATE

FUTURE STATE

60% no decision

+92% close rate

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

-3 -1 +1 +2 +3 -2

TERMS AND CONDITIONS

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Elevate Value

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

Malcolm Gladwell

Scientist for Tipping Point Morton M. Grodzins

What was the difference?

Gladwell told a better story!