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Does Your Customer Know Your Offer is Mission Critical?

If the statement below should resonate with your customer, you probably operate in a mission-critical sales environment.

 


“(What I sell) is Cheap. It’s Trouble that’s Expensive”.

 

The mission critical sale is when your offer can affect your customer’s business or operations in some significant way. Note the emphasis on “should” and “can”; I’ll get to that later on.

Examples might include:

  • Complex/Technical capital equipment
  • Medical tech and new technology
  • Custom & Semi-custom products & services
  • Differentiated components
  • Corporate software, including SaaS/cloud delivered.

The Mission-Critical Sale Moves Beyond Consensus Selling. 

Full disclosure: I’ve been selling and consulting in “the complex sale” (aka consensus selling) for decades. I understand it and am a huge fan.  I’m beyond “drinking the Kool-aid”. I’m marinated in it.

I also know what consensus selling methodologies are and aren’t.

They are for organizing opportunity pursuit strategy when a buying ecosystem — multiple personas – is making a group buying decision. Usually, this ecosystem is made up of personas somebody thinks should be included. Unfortunately, complex selling methodologies often assume that “somebody” defined the group properly.

Complex sales methodologies aren’t for expanding a buying ecosystem strategically (methodologies accommodate expansion just fine, they just don’t teach it). Typically, companies buy in organizational silos, applying a self-imposed set of blinders to their decision. Thus, they buy too narrowly, engaging prospective vendors constrained by their own narrow perspective. It’s not your customers’ fault: they aren’t experts in your offer’s capabilities and don’t understand all of its implications.

When One Silo Has Budget, But Many Silos Benefit

Unfortunately, selling organizations who blindly accept a predefined buying ecosystem almost always overlook potential stakeholders. This is for a variety of reasons, but the result is that sellers miss potential differentiation leaving value unrecognized. Consequently, opportunity strategy under-powered…a potentially mission-critical sale is reduced to a run-of-the-mill complex sale.

  • Imagine this scenario: You’ve gained consensus from your regular personas, to the point of mildly irritating the purchasing agent. Proudly, you know what every persona wants, and each feels your offer fits their needs. It’s smooth sailing until your coach calls: you’re on the outside looking in. Astonishingly, a competitor has penetrated throughout the organization — to departments you didn’t even know cared — and somehow to executives who told you that the personas you were working with were “the right team”. Worse, their proposal was higher priced than yours, but articulated business outcomes just too compelling to ignore. You followed your “consensus selling methodology” perfectly, but the competitor boxed you into a corner that you couldn’t even discount your way out of.

Again, consensus selling methodologies help organize all personas you identify. Unfortunately, they don’t teach anticipating and proactively adding new players to an ecosystem. In contrast to methodology, “buyer enablement”: helps customer organizations make better, more well-informed decisions.

Admittedly, expanding the buying ecosystem increases decision complexity. However, don’t make the mistake of thinking that’s always a bad thing.  Adding the right people means adding allies…packing the court in your favor.

As I said, I’m marinated in complex selling methodology. It does its job (organizing a given group decision dynamic) really well. For the mission-critical sale, though, today’s methodologies need a specific boost: understanding when, where, and how, and why to change the decision dynamic — and to what.

It’s Not Harder or More Complex. It’s Just Value-Focused

In some ways, value-focused selling is easier. For example, coaching simplifies down to one question “what’s the value?” (OK, sometimes asked over and over like a child asking “why?”) . If your sellers can articulate a complete value picture, they’ve probably performed all of the selling methodology steps just fine. Focusing on value yields a deep understanding of the motivations behind the consensus decision.

  • I’ve analyzed and coached perhaps thousands of Miller Heiman Group Blue Sheets. A recurring rep shortcoming is understanding persona-specific Business Results and Personal Wins. Critically, not understanding desired outcomes, and how customers value those outcomes means reps can’t genuinely understand the group decision.
  • Similarly, experienced TAS practitioners echo similar deficiencies in users of that methodology. Typically they uncover missing/incomplete Unique Business Value, Critical Success Factors, Compelling Event, and Economic Value Proposition. Again, these are all failures to understand customer value.

I could repeat for other methodologies, but the trend is clear. Salespeople capture groups, but not the value that drives their decision. Worse, they don’t build complete value high and wide in customer organizations.

What if, instead of switching to a new methodology (when the ones out there are fine for organizing a group buying decision)…what if you could just incorporate the missing value conversations into your existing process? Wouldn’t that be a high-value, low interruption, easy-adoption initiative? In fact, this is the elite selling behavior most mission-critical salesforces are missing.

Separately, for those without a methodology in place, what if you start your team at the core of sales–value–then work outward to managing the customer’s decision dynamic as needed? Remember, customer value is what moves all buying decisions — from transactional to mission-critical. Developing your sellers’ “nose for value” is the pivotal skill in any sales environment.

Not All Mission Critical Sellers Act Like It

Earlier, I promised to come back to the words “can/should” in “your offer can affect your customer’s business…”. Here’s the thing: many organizations who sell potentially mission-critical offers don’t sell like their offer is mission-critical. They don’t make it mission-critical for the customer(a la the seller in the lost deal scenario above). Rather, they go through methodology-mandated motions without connecting solution to value, building value, and extending value organization-wide. This leaves deal-winning value – and pricing power – on the table. I’ve managed too many P&Ls to accept this shortcoming.

One of the reasons I focus on the mission-critical sale is that the ROI on “increasing pricing power” is staggeringly high. Notably, this is because pricing dollars are profit dollars. Gaining pricing power is a conversation that CEOs, CROs and COtBs want to have, and I find those conversations a lot more rewarding (OK, valuable) than ones with sales enablement and L&D professionals comparing complex sales methodologies. One sounds more mission-critical than the other, no?

So, want to talk about it? Contact me.

To your success!

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Best Practices Entrepreneurship Investing Management Marketing Negotiations Sales Skills Women In Business

Dirty and Cruel Negotiator Tricks That Will Blow Your Mind

“Magic tricks can be mind-blowing – until the other negotiator blows your mind by making your favorable outcomes disappear.” -Greg Williams, The Master Negotiator & Body Language Expert

Have you been in a negotiation that you thought was over – only to discover that it wasn’t – there was one little thing that needed addressing? It might have been, someone wouldn’t sign off on the deal. Or, maybe it was, ‘the last one was just sold.’ Your reopened negotiation might have taken on any variation of the last two excuses. More than likely, the excuses were contrived, already baked into the negotiation plans of the other negotiator. If you let such tricks bother you, they can blow your mind.

The following is how some negotiators use such tricks and how you can protect yourself against them.

The Cheat: Someone that’s dishonest or someone that uses the deal, no deal strategy

Challenge – Some negotiators are downright scoundrels. Their main strategy is figuring out how they can cheat you. They’ll use such tricks as concluding a deal, waiting until the covenants of the agreement are due, and then back out or request slight concessions. You can sue them for not abiding by the agreement but that means you’ll waste more time dealing with them.

Response – This person can be extremely difficult to deal with – if possible don’t deal with him. As in any negotiation, you should have background information about the other negotiator. Part of that due diligence should be uncovering his negotiation style based on his past negotiations. If he’s used cheating tactics in the past, they should be easy to uncover.

If avoiding him is not possible, observe how he responds throughout the negotiation. Such individuals may be very accommodating when engaging you – they’re setting you up for the cheat to come. Use time as your ally – stretch the negotiation out. At intervals, have deliverables that he must meet before the negotiation can occur. If he welshes at any interval, let that serve as consideration to abandon the negotiation. To better insulate yourself, front-load his deliverables to guard against you investing unnecessary time in the negotiation.

Moving Target:  That’s not what I/you said.

Challenge – The negotiator that employs this tactic can use it in different forms. She can play the confused person, “I don’t know what I was thinking – that’s not what I meant.” Or, she can attempt to paint you as the bumbling idiot – “how in the world could you have inferred that? I would never make such an offer.”

Response – When she uses either form of this tactic, stop her – explore how the point of miscommunication occurred. Then, note to what degree, if at all, it occurs again. If it does, ask her if she’s intentionally miscommunicating with you. If she becomes flustered, so be it. Get the tactic out and in the open. You’ll disarm her use of it by doing so.

Time Delayers: I’m sorry. I’m not ready to continue. Can we postpone until next week/month?

Challenge – Every good negotiator knows, the more time you put into a negotiation, the more energy you’ll spend in seeing it to its conclusion. Therein lies the trap. Because, the more time you spend, the more likely you are to make concessions.

Response – Note the reasoning behind the request to delay the negotiation – seek its validity. You might consider raising the question about your negotiation counterpart seeking other offers, etc. Observe how he responds. The point is, test his request for an extension to assess its validity and to prepare for what may lie ahead. Don’t get sucked into the black hole vortex of time. You may regret it if you do.

Conclusion: Protect yourself.

The above strategies are acceptable forms of negotiating in some environments. Thus, what might be a dirty cruel trick in one arena might be thought of as a normal way of doing business in another. Therefore, be aware of the customary negotiation practices of the environment you’re in. Doing so will allow you to heighten your sense of awareness per that environment … and everything will be right with the world.

Remember, you’re always negotiating!

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here https://www.themasternegotiator.com/greg-williams/

#Tricks #Blow #Mind #Negotiate #Process #Power #Powerful #Emotion #Business #Progress #SmallBusiness #Negotiation #Negotiator #NegotiatingWithABully #Power #Perception #emotionalcontrol #relationships #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions

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Entrepreneurship Investing Management Marketing Negotiations Operations Sales Skills Women In Business

Influence: How to Surprisingly Win More in a Negotiation

 

“To win more negotiations, use the power of influence.” -Greg Williams, The Master Negotiator & Body Language Expert

During a negotiation, you, and the other negotiator attempt to influence each other. Thus, you should always place a high value on using influencing strategies. You can increase the value of your negotiation outcomes by using the influence techniques that follow.

Psychologists have identified six forms of power that you can use as sources of influence in your negotiations. They are:

1. Coercive power

(threats & punishment) – With this form of power, you can force the other negotiator into a position of acceptance. But you should be mindful that you’ll more than likely not make a friend of him. Plus, by using threats and punishment as incentives for acquiescence you may become perceived as a bully – this may heighten your opponents need to seek pay-back. If that’s not a concern, recognize when this source of power is a viable influence tool. Just be aware of its blowback danger and how you use it.

2. Reward power

(ability to offer incentives) – Reward power can be very temporary. Its value will decline as the perception of the reward devalues. When using rewards as a source of influence, do so from two perspectives.

  1. Positive – “This is what you’ll get, something pleasant if you give me what I want.”
  2. Negative – “This is what you’ll lose if you forego my offer.”

3. Legitimate power

(influence based on your position or title) – The challenge with legitimate power is, one must accept it before it has authority. Therefore, if you have a position or title that’s not perceived as being valid, you’ll have little influence when attempting to use it in a negotiation. When using this source of power for influence, be sure to cast it in the light of perceived validity before the negotiation. That will enhance the respect and appeal of this power.

4. Referent power

(influence based on your likability or admiration) – People that possess an affable personality tend to become better received by others. While reverent power has its place on the influence scale, some negotiators will dislike you for possessing this attribute. To have this influencer serve you better, balance it based on what’s occurring in the negotiation. When it suits your position, be reverent. When it doesn’t, discard it.

5. Expert power

(influence based on your knowledge and skills) – The perception of expert power can be fleeting – because it’s situational. It lasts for the time that your knowledge is needed. In a negotiation, if a seller or buyer can acquire what she seeks from another provider, your power erodes. When using expert power, be strategic. Use it sparingly in situations that are warranted.

6. Informational power

(not tied to your competence) – This can be power derived from ideas, opinions, access to thought-leaders, and influential people you meet and have access to. This form of influence is most powerful when the other party wants access to the information you possess. Its power becomes enhanced when you’re the only source that can grant access to what’s sought.

As in any negotiation, the manner of influence you use should be determined by the personality type that you’re negotiating against. Thus, to be more influential, you must know what will motivate that individual. One way to determine that is to evaluate whether the person is a giver or taker – the giver seeks power for the sake of helping others – the taker does so for the benefit of himself.

Once you have that knowledge in hand, you’ll have the key to which combination of influence to use. That will lead to more winning negotiation outcomes … and everything will be right with the world.

Remember, you’re always negotiating!

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

#Influence #Negotiate #Process #Power #Powerful #Emotion #Business #Progress #SmallBusiness #Negotiation #NegotiatingWithABully #Power #Perception #emotionalcontrol #relationships #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions

 

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Best Practices Body Language Entrepreneurship Human Resources Investing Management Marketing Mergers & Acquisition Negotiations Sales Skills Women In Business

Shoulder Shrugs Can Expose Scary Secrets in a Negotiation

“Shoulder shrugs expose secret information. Notice them to detect their secrets.” -Greg Williams, The Master Negotiator & Body Language Expert

Have you heard the cliché, “what you don’t know can’t hurt you”? If you have, do you subscribe to it? If you do, you shouldn’t. Because, a lack of knowledge can expose you to scary secrets in a negotiation – secrets that can bite you at the most unsuspecting points in the negotiation. But, there’s one way you can protect yourself. How – by accurately interpreting the meaning of shoulder shrugs when you negotiate.

Shoulder shrugs convey secret information. They expose hidden thoughts of the person that’s attempting to hide those thoughts.

Observe the following shoulder shrug examples. You’ll obtain hidden information that those shrugs attempt to conceal.

When a person displays a shoulder shrug, it can represent a multitude of hidden meanings. It can be a sign of reluctance (i.e. what more do you expect of me) – a sign of protection (i.e. I’m not going to stick my neck out) – it can also be a sign of exasperation (i.e. I’m getting tired of this). Regardless of the hidden meaning, it gives additional insight into the thoughts of that person.

Single Shrug: A single shrug can denote a lack of full commitment in response to a question or statement made.

Leaning Preference

  • When displaying a single shoulder shrug, a person will tend to favor their dominant side. This is important to note – because it adds additional meaning to the shrug. As an example, if someone that’s right-handed shrugs their left shoulder, he may be displaying less of a commitment to the response that caused the gesture. As with everything related to reading body language, you must establish someone’s body language foundation before you can accurately assess the validity of their actions.

Double Shrug: A double shrug (both shoulders elevated) can connote more commitment to a reply or statement.

As an example, if one elevated both shoulders while stating, “I didn’t do it”, she’d be displaying more commitment to the statement then if she displayed a single shrug – note: to discern the probability of the truth you should still probe deeper. The act of the shrug is that person’s commitment to her pronouncement at that moment – it can change with further probing.

Leaning Preference

  • When someone performs a double shrug, that person’s hands provide additional insights. As an example, if an offer is made consisting of two items and the recipient says, “I don’t care”, while shrugging with one hand higher than the other, he’s nonverbally expressing a preference for one of the items – the preference lies in the order the items were offered or their proximity to the hand that’s higher.

Additional Shrug Meanings:

Hands: The movement of someone’s hands lends insights into their thoughts. To gather additional awareness per the meaning of a shrug, take note of …

  • hands close to the body – indicates they’re guarded
  • hands palms-up – signals they have less to conceal
  • hands palms-down – they’re less accepting
  • hands palms-up-and-out – says, keep away from me

Head Tuck: To observe how threatened someone might feel when they shrug, note the degree they protect their head when …

  • head extends forward – says, I’ll challenge you
  • head to one side – denotes preference
  • head straight up – states, I’m willing to expose more of myself
  • head tucked – says, I’m making myself less of a target

Of course, the additional shrug meanings can conceal someone’s real intent. That’s because good negotiators can affect this maneuver to add perceived emotional credibility to their effect.

Shrug Time:

Always note the length of time a shrug lasts and the number of times they occur. The length and number of times will indicate a person’s ever-changing degree of angst or determination to get you to back off. In all cases, they’ll be signaling information that you can use to enhance the negotiation.

Action Item:

Start noticing when, under what circumstances, and how frequently people shrug their shoulders. Doing that will increase your attentiveness and skills about this behavior. That will allow you to become a better negotiator … and everything will be right with the world.

Remember, you’re always negotiating!

 Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

#ShoulderShrug #secrets #NegotiationStrategies #negotiator #BodyLanguage #Liar #Beware #Negotiate #Process #Power #Powerful #Emotion #Business #Progress #SmallBusiness #Negotiation #NegotiatingWithABully #Perception #emotionalcontrol #relationships #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions #BodyLanguageSecrets

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Accounting Best Practices Economics Entrepreneurship Industries Investing Negotiations Sales Technology

Bitcoin’s Highs and Lows: Where to Next?

Since the critical acclaim of Bitcoin and digital currencies in 2017, there has been a lot of talk about its future. Bitcoin was the first digital currency to attract mainstream attention, and after that, 2018 was less than glamorous, with the price plummeting.

Are cryptocurrencies a thing of the past already, or a Hard Trend of the future?

A Bitcoin Overview

Cryptocurrency uses peer-to-peer technology, similar to the file-sharing technology of the early 2000s. Bitcoin was the first cryptocurrency, it being virtual and decentralized. This means no one is in charge of it and it isn’t backed by the government. Bitcoin’s value is protected only by a distributed network that maintains its ledgers and protects its transactions by means of cryptography.

The concept behind Bitcoin first emerged in 2009 by an anonymous programmer (or programmers) using the pseudonym Satoshi Nakamoto. A single Bitcoin is today valued at $8,204, while the market cap is now at $145.66 billion.

Every Bitcoin is connected to an address and every Bitcoin is sent or received by a digital wallet attached to the address. Names aren’t associated with the transactions, creating a system that is wholly transparent while remaining functionally anonymous.

Bitcoin: A Soft Trend?

What exactly can you do with Bitcoins? It’s digital currency, so saving or spending them seems to be the immediate answer. However, in order to spend them, individuals and, more importantly, businesses must accept your Bitcoins. While a growing number of businesses accept Bitcoin, such as Overstock.com, most popular merchants and service providers including Amazon do not.

Let’s first discuss my Hard Trend Methodology and the differences between Hard Trends and Soft Trends to assess Bitcoin’s longevity.

A Hard Trend is a trend that will happen and is based on measurable, tangible, and fully predictable facts, events, or objects. They are future facts that cannot be changed.

A Soft Trend is a trend that might happen and is based on an assumption that looks valid in the present, and it may be likely to happen, but it is not a future fact. Soft Trends can be changed.

While Bitcoin itself grew in popularity, its future success is still a Soft Trend. During 2017, Bitcoin was treated by many as more of an investment than actual currency and likewise faced backlash when it was used for illegal online transactions.

However, the concept of cryptocurrencies is a Hard Trend, and here’s why:

Cryptocurrency: A Hard Trend

Cryptocurrencies are here to stay, including the underlying technology (blockchain) that enables them to function. Cryptocurrency, as well as blockchain, represents a radically new idea in finance: a decentralized system for exchanging value. Due to its open-source nature and its copyright-free core program, there will always be room for improvement. Programmers around the world have already developed military-grade encryptions and new ways to trade, thus stabilizing the prices.

Cryptocurrencies exist as mere entries in a blockchain-enabled accounting system. That system acts as a transparent public ledger that records transactions among “addresses.” Owning cryptocurrency isn’t analogous to having paper money in your pocket. Instead, it means a personal claim to an address, with your own password, and the right to do with it as you see fit. Over time, this will increasingly disrupt traditional models and global currencies, playing a role in a number of future digital transformations.

The Future of Currency: Digital Payments

Imagine you want new shoes, and your favorite shoe store accepts some form of cryptocurrency. If you don’t already possess cryptocurrency, you purchase some from a crypto-currency kiosk or an online exchange and assign it to your online account, known as a “wallet.”

When paying for your new shoes, you open your “digital wallet,” which is unlocked with passwords and/or biometrics, and the currency network is publicly informed that you’ve transferred $100 worth of cryptocurrency to the store. This happens fast, and there are almost no fees and no personal information divulged. Compare this with the slow debit or credit card counterpart, often with a third party involved. The benefits become more clear.

Other Cryptocurrencies

Bitcoin was the first digital currency, but not the last. A large number of cryptocurrencies now exist, and the list is expanding. Litecoin, for example, was launched back in 2011 on the same blockchain as Bitcoin and was meant to improve it. Ethereum was created in 2015 by Vitalik Buterin and is a blockchain-based platform that can be used for developing decentralized apps and smart contracts. The list of cryptocurrencies is actually quite large and, as I said earlier, growing. And the enabling technology, blockchain, is being applied to a rapidly growing number of industries creating both disruption and new opportunities.

In Conclusion

Bitcoin versus the technology category of cryptocurrency gives us a clear example of the difference between Soft Trends and Hard Trends. Cryptocurrencies will continue to evolve and integrate into our economy and everyday life, as will the enabling blockchain technology, making cryptocurrency a Hard Trend, while the future success of individual cryptocurrencies like Bitcoin is a Soft Trend: It may or may not have a bright future. When you’re able to distinguish between the Soft Trends that might happen and the Hard Trends that will happen, you will dramatically improve your ability to understand and manage risk as you become more anticipatory.

Learn how to accurately manage risk with my latest bestselling book The Anticipatory Organization.

Categories
Best Practices Investing Marketing Negotiations Sales

The Five Kinds of Differentiation

Sales professionals know to find and leverage differentiation.  The problem: far too few know that not all differentiation is equal.  Yep, differentiation is differentiated

Remember, differentiation only becomes value once a customer understands it and connects to a customer-desired outcome. It only turns into differentiated value — that moves a buying decision – when that value is offered by only one seller…when it’s different.

A key point that many sales and marketing professionals often miss is that non-differentiating information drowns out your unique aspects. If you squirt a little valued differentiation within a geyser of “same as everyone else” features and benefits, you’re asking your customer to play “Where’s Waldo” with your value.  What do you expect them to do with that…buy?

Perhaps most importantly, my clients learn that a single product advantage often drives value in multiple value “landing points” throughout an organization. For example, several departments (not just the one with a budget to buy) care that your product lasts longer, and for different reasons. Unfortunately, most sellers work to leverage only the most conventional and expected of these “landing points” in their selling strategies, and never discuss or leverage the other value points.

A quote from my upcoming book:

If you differentiate using the same properties as your competitors, you aren’t differentiating as much as you think. 

If you differentiate only in ways your competitors have countered before, you aren’t doing much better…

Companies – and sales professionals – fight commoditization with differentiation.  They often lose sight of the fact that some differentiation is more effective with a customer than others.

Five Layers of Differentiation: 

The graphic above represents different ways that organizations differentiate their value. I refer to them as layers. Let’s go through them from left to right.  As you read these, give yourself a good hard look in the mirror.  Do you recognize and use all of these layers?  Purposefully?

Table Stakes Differentiation

Confirming the basic function of your product or service often a part of selling; for example, in RFI/Q/P responses.  There are personas (Buying Influences) who need to verify that your offer “checks the boxes”.  Such requirements are only “differentiation” insofar as they prevent you from being excluded; hence the term “table stakes”.  They have little role in a final buying decision, because they don’t differentiate you in the final decision.

To keep from having all other buying personas “geysered” in decision-clouding sameness, partition your sales approach whenever you can.  Enter sales conversations and demonstrations with table-stakes personas separately if possible – including offering to take those specific questions offline.  Best practice:  get these out of the way early, so that you can report to other personas that your offer meets basic requirements.  “Yada yada” these differentiators as much as you can, then move quickly to decision-moving value.

“3 Sellers, 3 companies, Same Product”: False Differentiation

This kind of differentiation is like being a hipster: you’re different…just like everyone else.

I often hear customers (and insightful sales leaders) complain that the main competitors all claim the same advantage.  A customer once told me  “I have three different reps’ business cards on my desk, but they all sell the exact same product”. Brochures and websites are often big culprits: “decades of experience” and being “an award-winning leader in this market”, aren’t differentiation when multiple companies can claim the same basic thing.

A leading provider of sales training to Realtors tells students to claim some version of “leading producer” or “most experienced” at the same point in every client’s script.  I once got 39 calls from 39 different people who were all the best realtor in Arizona…in less than three hours.  By all being some version of “the best”, none of them differentiated themselves.

Sellers lulled into using False Differentiation messages harm their chance in two ways:

  • False differentiation communicates a dangerous message to a prospect. Best case, it’s “I’m proving to you that I don’t offer any real advantages. Feel free to grind me down on price.  We both know that’s my only hope.”
  • At best, false differentiation crowds any true differentiation out, forcing the customer to pick your genuine value out of a pile of sameness. You’re making them play “Where’s Waldo” with your value. That’s making them work too hard to buy from you.

False differentiation actually harms your chances…it has a negative value in your selling process. Stop. It.

Fist fighting In a Phone Booth: Conventional Differentiation

The middle layer represents selling to obvious/conventional advantages.

  • The obvious advantage: customers easily absorb conventional pitches because they’re well-trained in them. You don’t have to work very hard to get even a newbie purchasing agent to comprehend them.
  • The pitfall: Your competitors are usually expert in countering conventional differentiation. When all competitors use a predictable approach, selling has the feel of fist fighting in a phone booth. Nobody can land a solid punch, and buyers start using price to decide.

You can win sales in this area, but seldom at satisfactory margins, because “value premiums” of the different offers are small enough to be vulnerable to competitor discounting.

It gets even worse.  In complex selling, sellers often try to find a person or people in the buying organization to provide leverage/insight into the group buying dynamic. These people are called guides, coaches, champions and the like. Question: If your differentiation is merely “in the phone booth”, who at the customer cares enough about small differences to become your guide that they’ll risk their internal credibility on you?  (cue the crickets sound effect here.) Without strong internal advocates, your tough sale gets even tougher.

That’s the trap of the middle layer:  easy to sell, hard to differentiate. Its yellow color denotes the hazards of selling in the phone booth.  This is your basic, least imaginative…yes, mediocre…value proposition. It is one level better than table stakes: the minimum acceptable requirements to play, but at least it fights through the delusion of false differentiation.  You can win deals in this layer, but seldom at impressive margins, or with high customer preference for your offer.

Trusted Advisor: Predictably Finding Unconventional Value

The fourth layer is where greatness starts. Elite selling organizations build the muscles to operate consistently in this differentiation layer.

In this layer, sellers leverage unconventional, yet predictably-found differentiation. Combining general business acumen with an understanding of their offer’s differentiation, sellers find more “landing points” for value. Value networks (an entire chapter in my upcoming book) help sellers predict ways in which their product or service’s unique attributes affect a customer’s business. Some landing points will be conventional and fit in the layer described above. Many, though, address previously undisclosed (at least by your competitors) value. This layer is all about uncovering fresh selling approaches that your sellers can use predictably, with many of your customers. Any tool which makes unconventional value discovery more systematic and predictable will help your sellers improve results.

Because uncovering unconventional value puts a seller’s general business acumen on display, they build credibility as a trusted advisor, someone who can provide insight and perspective into the customer’s broader business issues. This creates a cycle of credibility-building for both the seller and the selling organization.

Differentiators that produce compelling value for the customer invite somebody in the buying ecosystem to become a decision lever. Thus, you can build marketing and predictive sales strategies around them.

Elite Selling:  Personalized and Situation-Specific Value.  

Far right layer refers to differentiation and insight that wins opportunities, but rather than predictable, systematically replicated value propositions like in layer four, sellers uncover and leverage personalized, or situation-specific differentiation.  Often, these differentiators are personal rewards or wins.

An example: A commercial real estate loan was structured to save a business owner almost $80,000 in resolving a particular estate-planning issue. Obviously, this had nothing to do with his business, the property, the underwriting criteria or the structure of the loan, but had a huge personal impact on one (highly important) persona.

Individually, this category of differentiators aren’t anything to build a repeatable business on, but, sellers who know how to consistently uncover and recognize them are able to take advantage and use them to win opportunities. They are just as leverageable as layer four impacts when they are uncovered, but uncovering them takes slightly different skills. These highly individualized value drivers further cement the seller’s credibility as a true partner:  somebody with deep insight into the business as well as the individual interests of those involved in the decision dynamic…and who brings value to the client.

So…How Are You Differentiating?

A Seller’s job is to find value that competitors don’t, and sellers with a keen “nose for value” regularly go into upper layers to bolster the Full Value Picture (read the book), and achieve higher win-win prices with stronger customer preference.

The interplay between these differentiation layers and business acumen. That is sellers who rapidly assess high-probability value hunting spots can efficiently position themselves as trusted advisors and true partners.  Each selling company has its own hi/low/obvious layers, and you and your company need to figure those out (although I’m happy to help you work through it).

Share your thoughts below, and reach out if you would like to discuss if more detail.

To your success!

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Best Practices Entrepreneurship Human Resources Investing Management Negotiations Sales Skills Women In Business

Not Thinking Right Can Lead to the Wrong Outcome

“You affect your thoughts by the order in which you think. Always think about the way you think.” -Greg Williams, The Master Negotiator & Body Language Expert

He was flying to Toronto from the U.S. He noticed a $250 difference in the airfare when flying into one airport versus another. He also noted that the two airports were only 13 miles apart. So, he thought, for a $250 savings, I’ll fly into the less expensive airport. That was the beginning of a bad decision! It was not the #right #outcome that he’d hoped for.

When you think about maximizing your outcomes, do you consider the order of your thoughts and how that influences your thinking? At what point do you consider you’ve received enough information before deciding to take action? Those are very important questions to ponder. Because, based on the order of your thoughts, you’ll adopt one action versus another. That, in turn, determines the degree of value you add or subtract to the outcome.

To improve your thought process, consider the following.

The Story:

In the situation with the airports, the ground transportation from the less expensive airport was $250 roundtrip, to get to the hotel and back to the airport. That negated the savings of flying into the less expensive airport. Plus, more time was required to get from the less expensive airport to the hotel. Yuck!

Mistakes in Thinking:

Our friend made the following misjudgments in his thinking:

  1. He figured, since the airports were only 13 miles apart, ground transportation wouldn’t be more than $60 roundtrip – he made that assessment based on travels he’d undertaken in the U.S. – he missed that guess by $190 – ouch!
    • A lesson to observe – everyplace is not like every other place. Unless you have factual data, don’t assume what was true in the past will be constant with the situation you’re considering.
  1. Our friend did not consider calling the hotel and asking for information about its proximity to airports and ground transportation.
    • Had he sought further information – our friend would have received feedback that led him to make a better decision. He would have recognized the value he thought was in the less expensive hotel was a mirage.
  1. Our friend was in a hurry to book the flight and move on to other activities.
    • Sometimes, you should let information simmer before acting on it. In that time, you may consider additional thoughts that alter the value of that information. Our friend’s hasty decision created more angst than he initially realized. Don’t let that happen to you.

Action item:

The lesson offered from this information yes, when making important decisions, you should take note of your thinking process. Pay special attention to outcomes that may leave you in a place that you’d rather not be in – or one that could have been better.

Before committing to an action, consider thoughts you might engage, the order of those thoughts, thoughts that might serve you better, and why you weren’t thinking about those thoughts before the outcome you arrived at. Doing so will lead to more fruitful and happier outcomes … and everything will be right with the world.

What does this have to do with negotiations?

If you’re unprepared for a negotiation situation, your assessment, and the way you respond may later become deemed as being irrational. Thinking about situations you might encounter ahead of time and preparing for them will temper possible negative outcomes – it will also give you more opportunities to consider how to think differently and/or better about the situation.

Therefore, in a negotiation, the order of your thoughts will have a drastic effect on the actions you take per the offers and counteroffers you make – that will determine the outcome of the negotiation. Thus, you should consider what’s motivating your thinking, why you’re motivated to think that way and where those thoughts may lead. By doing that, your thought process and how you order your thoughts will become your greatest assets.

Remember, you’re always negotiating!

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

#right #outcome #wrong #Negotiate #Process #Power #Powerful #Emotion #Business #Progress #SmallBusiness #Negotiation #NegotiatingWithABully #Power #Perception #emotionalcontrol #relationships #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions

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Best Practices Investing Management Marketing Personal Development Sales

The CEO Blues: “Winning Sales”​ vs. “Winning Profitable Sales”​

The “winning more sales” industry is huge, crowded, and noisy; the “winning more profitable sales” industry is, well…disturbingly quiet. There are a few sales performance companies who put terms like “profitable sales” into their advertising. Unfortunately, precious few know how to turn tagline into the profit line.

To a sales leader, the difference between those two may be a secondary concern.  However, there is nothing a corporate leader cares about more. Corporate leaders:  here are the organizational differences between the two.  Sales Leaders:  I want to prepare you to have this conversation with your CEO.

World Class Sales is a Real Achievement.

Building a winning sales organization isn’t easy. According to CSO Insights, “world class” sales organizations make up only about 5-9% of companies each year. Without diving into research methodology (I’ll admit, I’m a bit of a research wonk), suffice it to say that I think this year’s definition of “world class” is as good as any they’ve ever come up with. This year, the world-class label applies to companies who (I’m paraphrasing below. If you want a copy of the report, contact me):

  • Add value to every customer interaction, every channel.
  • Build persona-specific customer value consistently, through the customer’s journey.
  • Align Cross-functionally (although CSO Insights takes a narrower view than I do of which functions they include ) to deliver a consistent experience.
  • Continuously learn and improve by building a great coaching infrastructure.
  • Enforce rigor around call planning and forecasting.
  • Leverage their sales analytics as a sales improvement tool, not just a sales monitoring tool.
  • Use a purposeful talent strategy.
  • Have built a system of finding, harvesting, and replicating best practices.

Building an organization with all of these characteristics is a challenge. Disappointingly, achieving “world class” might simply be causing the CEOs Blues: winning sales, but not profitable ones. While world class is a huge achievement for many companies, most CEOs want more.

Selling Profitably Isn’t Much Harder. But it’s Very Different.

Selling profitably means selling at a win-win price reflecting customer value. Most sales training companies help sellers build enough value to win a sale, but not to win it at a value-based price. When done correctly, the higher value-based price actually coincides with higher customer preference.

Let’s look at some of the differences between world-class sales, and world-class profitable sales. Comparing/contrasting with the list above:

  • “Adding value during every interaction” goes from “figure perspective out for yourself” or “use the persona-based value propositions we give you” to developing a deep organization-wide understanding of customer value and specific tools for salespeople to build it.
  • The entire customer experience evolves beyond providing persona-specific value messages. Besides messaging, value-enabled sellers gather customer insights and build customer value from first web click-through customer’s end of product life.
  • Cross-functional alignment extends beyond the walls of the sales and marketing silos. In contrast, everyone who touches a customer has a value-building and value-insight-gathering role.
  • Great coaching culture is equally valued. What’s coached, plus who all is coached expands.
  • Customer value shapes call planning and forecasting more directly. Think about it: if you know clearly just how highly a customer values each offer you will make next month, how much more accurate do you think forecasts will be?
  • Sales analytics are even more focused, emphasizing how sellers focus on value.
  • The talent strategy is every bit as important.

A few years ago, a VP of sales with a Fortune 500 company described this as “elite level” selling. I can’t argue and maintain that it’s within the reach of most sellers. As your organization begins building a value culture, it takes on these characteristics.

Pricing is Profit. Value Shapes Pricing.

As your company masters elite selling, you have the tools to price with confidence, with your customer’s blessing.

Ask your CEO if he/she’d like more profitable sales. In preparation, do yourself a favor and do a quick exercise: calculate 1% of your company’s revenue, then add that number to your net income line. Next, calculate that increase in profitability as a percentage. You just calculated what your CEO could report to your company’s owners if your sellers simply added just 1% to your company’s pricing. Phrased differently, this is how profits would increase by discounting just one percent less.  Heck, do the same calculation for a 1/10th of 1% reduction discounting.

When your CEO indicates that it seems worth pursuing further, dig a little deeper. Ask:

  • Does everyone who touches my customers (aka sellers) regularly conduct commercial/value conversations with their customer contacts?
  • Do my sellers know how my customer makes money…and all the ways my offer can help them (hint: most “world class” selling organizations don’t)?
  • Do my sellers know how to measure customer value with a customer?

Contact me with your answers, and let’s see if we can have some fun together building your business…profitably.

To your success!

Categories
Best Practices Entrepreneurship Human Resources Investing Management Marketing Negotiations Sales Skills Women In Business

How Does This End?

“Always assess whether you should attempt to influence outcomes. It may be more beneficial not to.” –Greg Williams, The Master Negotiator & Body Language Expert

You should always attempt to accurately assess a situation before attempting to influence it. That assessment will leave clues to how it might end. And, if you don’t like the possible ending, you may be better off not doing anything at all.

The Story:

The leader of team one was engaged in a negotiation against two other teams – they were negotiating the extension of a contract worth $10,000,000. To subvert the efforts of team three, the leader of team one offered a silent payment of $20,000 to the leader of team two if he could get team three to withdraw from the negotiation. After the teams haggled for several weeks, team one won the contract.

With glee in his heart and dollar signs in his eyes, the leader from team one gladly remitted the $20,000 bounty to his team two confederate. When team one’s leader asked the leader of team two how he convinced team three to drop out, he said, “it was easy. There was a clause in the current contract that stated the three teams had to negotiate in good faith for the extension renewal. The fact is, neither team two or three wanted the extended contract.” With that, the guy from team one said, you mean I could have saved my $20,000? The team-two leader said with a smile on his face, “that’s right!”

Survey:

If you knew something would end badly before engaging in it, would you go through with it? When a few hundred people answered that question, some of the answers were surprising. Some of them said they’d embrace the situation because it would prepare them for other activities – thus, they would learn from the bad situation, which would allow them to be better prepared to address a greater situation in the future. One would think that thought process goes against conventional wisdom. But it may not, depending on who you’re dealing with.

Assumptions:

How can you predict how someone will act if you don’t know their source of motivation? It’s a difficult assessment to make. You can’t even assess an accurate probability of how they might act.

When dealing with people, you should always attempt to predict how they might respond based on their interest. Don’t assume they’ll act in a prescribed manner unless you’ve received direct input from them or another reliable source. Even if it comes directly from them, you still must verify what they say through another source. To do less is to set yourself up for possible foolery. Adopt the perspective that people may not act in their best interest if you don’t know what their best interest is.

What does this have to do with negotiations?

Don’t assume you know how people will act or react. When negotiating, understand what the other negotiator wants, why he wants it, and the reasoning behind his desires. To do that, solicit his honest input – tell him, the only way you can give him what he wants is to know exactly what that is.

It’s of equal importance to know what the other negotiator doesn’t want. This, combined with what he wants, will give you a more complete picture of what may drive his actions. With that insight, you’ll have a better idea of how the other negotiator wants the negotiation to end. Then, all you need to do is assist him in walking down that path. At the end of it, there will be a winning combination that’ll make him embrace the outcome of the negotiation. The point is, you will have known the answer ahead of time as to how does this end … and everything will be right with the world.

Remember, you’re always negotiating!

Listen to Greg’s podcast at https://anchor.fm/themasternegotiator

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

 To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

#end #Negotiate #Process #Power #Powerful #Emotion #Business #Progress #SmallBusiness #Negotiation #NegotiatingWithABully #Power #Perception #emotionalcontrol #relationships #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions