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Agenda
Introductions Are you selling or listening? War story: medication management Pricing as a listening exercise
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Know What You Know
Some things I know Technical product design Enterprise computing Network security Pricing for rational organizations
Some things I don’t know Consumer electronics and home computing Non-tech markets Fashion-driven buying behavior Large-scale advertising
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Selling & Listening
Can’t do both at the same time
Some roles are mostly selling Sales & Marketing Recruiting Personal trainer PR, Investor Relations
Some roles are listening (then solving) Tech support Doctor Order admin Reporter
“Sellers” need to make time to listen and learn
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Selling or Listening?
You are selling when you… Do most of the talking Anticipate objections Plan your arguments Understand material Have a goal in mind
You are listening when you… Ask open-ended questions Take notes Repeat for clarification Use silence Expect to be surprised
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Example: Pitching Press & Analysts
Completing a product roll-out 30 press calls, 15 industry analysts
I already have an agenda “Great company, important customers…” “New versions has breakthrough features…” “We know where the market is going…” “Here’s an amusing anecdote…”
Pitching, not listening
A few analysts may actually know something How to sincerely ask their opinions?
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Example: Trade Show
Goal: pull in wandering attendees Quick qualification, scan their badges
I already have an agenda “Do you have a wireless network?” “What kind of security are you using?” “Can we get you more information about…”
Mental shift for (rare) knowledgeable visitors Existing customers Potential business partners Serious prospects
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When Selling Fails
Truly not a prospect -or- seemingly not a prospect?
What if you had… Mis-labeled benefits Alternate product configuration Wrong market or audience Less likely application Wrong pricing model
Can’t know until you get inside their heads Critical in new and evolving markets
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Making Time to Learn
Who: Members of your target audience
but not current sales targets Friends of friends Willing to be blunt
Value their time Make a formal appointment Buy lunch? Token gift? Promise not to market/sell for 90 days
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“I can’t stop for gas or I’ll be late for the party.”
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Extended Interview Format
Get inside their heads 1+ hour intensive in-person interviews Open-ended questions, lots of listening Record session if possible
Ask about… How their business works Terminology Natural units of work What keeps them awake at night (pain) Current solutions, alternatives, shortcomings,
competitors Unstated requirements Pricing and ROI dimensions
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Example: What's the Unit of Work?
Hospitals are sized in “beds” Airlines in “passenger-miles” Pharmacies in “prescriptions” Hotels in “room nights” HR departments in “employees” Assembly plants in “trucks per day” Chip fabrication in “yield” and “wafer size” Sales force automation software in “seats”
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And Listen For…
Their concerns…not the concerns you wish they had
How they describe their needs Motivators and blockers Customer’s idea of competitors Do features matter? Word of mouth, reputation Emotional climate
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How Much Listening is Enough?
See “natural” market segments Understand customer’s internal logic Silently anticipate answers Priority of requirements are obvious
Established markets: one or two “listening sessions” per month
New markets: until you see the patterns
?
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Quiz
Q: What are the four most powerful words in Marketing?
A: “A customer told me…”
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Agenda
Introductions Are you selling or listening? War story: medication management Pricing as a listening exercise
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War Story: Healthcare
Concept-stage start-up Application to manage inventory and
re-ordering of patient medications
What should application do? Is there a market?
Wide-ranging one-on-one interviews… Long-term nursing facility Leading private-practice spinal surgeon Large acute care hospital
Lots to learn, many surprises
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Long-Term Care Facility
Stable group of 15-30 residents (patients) Elderly, chronic illnesses,
complex mix of medications Residents each have own doctor
Families often pay for meds Several local pharmacies,
varied ordering lead times
What keeps operator awake at night? One patient runs out of something Lost meds, refused meds, stolen meds Notifying family of status, problems Low-wage workers, high turnover
Dream solutions: auto-renew each Rx as needed, auto-notify families of changes in resident status
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Spinal Surgeon
Private practice, 100+ active patients Mostly on-the-job, Workmen’s Comp Chronic back pain notoriously hard to verify
Skilled and stable staff Doctor, 3 nurses, office manager, receptionist
Most meds are controlled substances Therefore, no refills without an office visit
What keeps them awake at night? No-shows, appointment reminders Drug seekers Scheduling office hours, surgery, pro bono
Dream solution: auto-confirm appointments
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Large Municipal Hospital
Serves broad community Paying and non-paying patients
Many departments, complex processes Legacy systems
Doctors prescribe, pharmacy dispenses
What keeps them awake at night? HIPAA: Health Insurance Portability
and Accountability Act Litigation Cost containment, supply “stock-outs” Can’t “restock” meds if unused
Dream solution: secure, integrated patient information tied to real-time dispensing & costing
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What Did I Learn?
Initial concept was very limited
Healthcare is very complicated Looks like one segment Endless opportunity to be surprised
Postponed design for more research More interviews or narrower target?
8 hours well spent
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Post-Course Corrections
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Some Take-Aways
Assume you don’t know everything
Set aside time to listen, learn
Let the world surprise you
Climb into customers’ heads
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Agenda
Introductions Are you selling or listening? War story: medication management Pricing as a listening exercise
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Exercise: Pricing for Consulting
Your last start-up just closed, so you are suddenly a consultant. A prospective client needs some market analysis
What are your pricing objectives?
How to structure a project?
Risks for you? For client?
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Possible Objectives
Work at any price Food on the table
Loss leader Underprice first assignment, get follow-on work Good reference for other clients
Become indispensable Push for a full-time position later
Gain market experience What will the market bear? OK to lose assignment
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Possible Models for Consulting Project
Per hour, no limits Per project Fixed price for initial sizing
(“pay me to estimate”) Per hour with project ceiling Milestones (progress payments) Equity (pre-IPO stock) Customer sets value at end Shared savings (portion of ROI) Free (experience, reference, try&buy) Barter
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Risks in Consulting Models
Client’s Risk Consultant’s Risk
Straight HourlyUnlimited cost,
quality, completionNone
Fixed project price (pay on completion)
Timely completionUnlimited effort, defining “done”
Fixed price milestones
Partial work not valuable, inspecting
Upfront analysis
Equity, portion of ROI
May overpay laterNo immediate cash
value
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A Few More Take-Aways
Assume you don’t know everything Set aside time to listen, learn Let the world surprise you Climb into customers’ heads
Innovators may have to invent markets Pricing models should match solution Listening is the first step Not a one-time effort
