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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.

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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 Economics Entrepreneurship Industries Management Personal Development Technology

Use Anticipation to Turn Disruption Into Opportunity

For the longest time, cable television was a miraculous technology that not everybody had in their homes, mostly because not everybody could afford it. Now, not everyone has it in their homes because YouTube TV, Sling TV, and other new, emerging technologies have disrupted the broadcast industry. So why didn’t Spectrum think of it first? Why did they become the disrupted and not the disruptor?

At some point, Spectrum and many others established a cash cow — a product or service that generates the majority of your income and profits — and got comfortable building a successful business around it while protecting and defending it. The fact that most of us are all busy, focused, and need to meet or exceed our quarterly numbers keeps us from looking far enough ahead in our industries to see disruption.

In order to thrive in this time of exponential change, it is imperative to actively scan far outside of your industry looking for new ways to disrupt yourself first. When you discover a new technology or disruptive technology-driven trend, it is important to separate what I call the Hard Trends that will happen from the Soft Trends that might happen.

Anticipating disruption before it happens defines whether you’ll be the disrupter or the disrupted, using predictable Hard Trends to create the new cash cows that will disrupt your competitors and grow your future.

Another reason so many companies fail to see disruption is that the strategy most often invoked is to protect and defend the status quo. The amount of time and money organizations spend protecting and defending their current cash cows is astounding, as in the past, this was a valid strategy producing good results. However, digital disruption is different, as it tends to be game-changing with a low cost of entry.

A key to success for an established company that’s facing early-stage disruption is to adopt a strategy of embrace and extend. Spectrum continues to spend millions on bringing in customers for cable, Internet, and phone packages, mostly campaigning on the grounds that you can’t watch sports without cable. Unfortunately, Spectrum and other cable providers saw Internet TV like YouTube or Sling as a Soft Trend, much like Blockbuster viewed Netflix, that could be protected and defended against. It was definitely a Hard Trend. YouTube and Sling have conquered broadcast sports and are quickly leaving Spectrum in the dust.

The assumption that disruption won’t happen to you and your business is dangerous. Today, there are many industries still ripe for disruption. Taking the time to look outside of your industry at the Hard Trends shaping the future will amaze you. Understanding that digital disruption will happen to you if it has not already happened is important.

Ask yourself if you are looking inside and outside of your business. What are your blind spots? What fundamental assumptions about the “way things will always be” do you operate on? And what are you doing to become your own disruptor?

What is a hotel? What is a taxi? What is a bookstore? Companies like Marriott and Barnes & Noble, and even government agencies like New York’s Taxi and Limousine Commission, though they knew the answers to those questions, and Spectrum and other cable providers are currently thinking the same way.

What do you think you know about your industry?

The connectivity of the Internet has changed so many industries. The emergence of Netflix, Hulu, and even Spotify for music has not only revolutionized the entertainment media industry and consumers’ consumption of said media, but it has also closed up some of the loopholes that fostered piracy of content. They are problem solvers, and now they are solving the problem of customers having to pay exorbitant fees to companies like Spectrum and DirecTV to merely cling to one favorite sports channel.

If these cable providers offered a cost-effective alternative with a price and framework similar to YouTube TV’s, they would be using this current disruption to their advantage. But is it too late for them? Are the days of cable as we know it over? Better yet, will Spectrum shrink exponentially until it’s merely an Internet provider? If so, it’d be foolish to ignore the possibility that a more affordable means of accessing the Internet is on the horizon as well.

Letting your ideas about consumers calcify and ceasing adapting or anticipating is when you start inadvertently digging your own grave, no matter how outlandish the disruption may seem. Believing that your business is immune to changing circumstances is the common thread between all disrupted organizations. The fundamental assumptions of so many industries have turned out to be wrong.

You need to become your own disruptor, your own best competition. Don’t get comfortable. Disrupt yourself, or someone else will.

Which technology innovations could be a game-changer for your industry? Learn how to tell with my latest book The Anticipatory Organization.

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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!

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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

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Best Practices Economics Entrepreneurship Industries Leadership Marketing Personal Development Sales Technology

Marketers Must Learn to Anticipate Content Trends

Do you remember when MTV was the best way to get in front of the teen and young adult audience? Once mobile technology became popular, it didn’t take long for that age group to be on the move.

In no time, videos were streaming on iTunes. Though teens continued to watch, viewership dropped. Then came instant messaging, followed by social media. For a time, Facebook gave advertisers their niche audience of young consumers congregated in one place.

That is until Snapchat and Instagram came along.

To add to the challenges of the last couple of decades, smart speakers are now in about one-quarter of U.S. homes, and podcasts are gaining popularity. In fact, about 50 percent of households now say they listen to podcasts, with a majority of them joining the trend in just the last three years.

According to whypodcasts.org, 38 percent of listeners are age 18-34, and 64 percent listen on their smartphones.

What’s Next in Target Marketing?

As technology-driven change changes direction, it is easier, and far more profitable, to change direction with it. “It’s easier to ride a horse in the direction it is going.” That’s what my grandfather told me as a little boy working with him on his farm in Texas.

Every company, regardless of size, knows they must advertise if they are to grow. Yet with all the money that is being spent, it is increasingly difficult to get your message to the right audience.

This is where it pays to be anticipatory. Using the systemic method outlined in my Anticipatory Organization Model, you can ready your organization for the disruptive transformations ahead.

Three Hard Trends and Two Tech Trends to Watch

In my work as a technology and business futurist, I have found the most effective way to approach becoming an AO is to focus on demographics, government regulations, and technology. In addition, it is always good to know which consumer technology trends will stick around. I call these Hard Trends (as opposed to Soft Trends, which may come and go).

  • Demographics drive opportunity. There are nearly 80 billion baby boomers in the United States. Not a single one is getting any younger—a definite Hard Trend.
  • Government regulation is a constant. As a general rule, will there be more or less government regulation in the future? Of course, there will be more, and that’s true regardless of the industry or organization. That’s also a Hard Trend.
  • Technology will continue to grow. From the ever-increasing functional capabilities of our smartphones to the growing use of 3D printing, technology is inevitably going to become more functional, more sophisticated, and more widespread. That’s another definite Hard Trend.
  • Multi-layered media is here to stay. According to research, our attention spans are shorter than ever, and consumers demand instant gratification and quick fixes—not a litany of product features and benefits.

Today, content channels such as social media, Apple Watch, and Google Home provide the perfect vehicles for interactivity at any time, in any place, and with any person.

  • Consumer attention is likely to stay at a premium. At least for the foreseeable future, multi-layered media is here to stay. Consumer attention remains at a premium.

Advertisers know the harsh reality: Running an ad on a major television network and supplementing it with web banner ads is no longer a guarantee of reaching the audience.

If you use my Hard Trends Methodology to look ahead to the future of marketing, you’ll be able to anticipate the fast-moving innovations to come. New devices are likely to be developed, and their connectivity doesn’t show signs of slowing any time soon.

Learn to be anticipatory—start with my book, the Anticipatory Organization, available on Amazon.com.

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

Negotiator: How to Detect Hidden Danger in a Handshake

“Danger lurks in many forms. Don’t let the concealed danger of a handshake endanger you.” -Greg Williams, The Master Negotiator & Body Language Expert 

“I didn’t come here to learn about handshakes. I came because I wanted to become a better #negotiator.” Those were the unfortunate comments of a seminar attendee. He didn’t realize that he’d overlooked a huge gambit in the negotiation process.

A #handshake conveys important information. The more people exchange them between one another, the more information they convey. It can say, I’m feeling overly optimistic today. It can say, my mood is somewhat deflated. It can also say that I’m going to dominate you because I feel superior today.

Very few people understand the value transmitted when they clasp someone’s hand. Are you aware of such messages when you shake someone’s hand?

After gaining insights from the following information, you’ll never look at, sense, or interpret a handshake as you’ve done in the past.

Wimpy:

Some people equate a weak or wimpy handshake with someone of the same character. Be careful of the assumptions you make.

A weak or wimpy handshake may send a silent message of subservience. It can also be the disguise of someone that’s significantly stronger in character than the handshake conveys. It’s one tactic that good negotiators use to dupe the other negotiator into perceiving a false sense of weakness. That’s done to acquire insight into what the other negotiator might do once she sensed that she was dealing with a mentally weaker opponent.

If you wonder about the validity of such a person, shake hands several times during your interactions. Note the slightest degree of change in the firmness of their handshake. To the degree change occurs, it’ll serve as a barometer indicating a change in character.

Bone-Crushing:

The delivery of a bone-crushing handshake can be an attempt to display strength and dominance. It can be someone’s lack of recognition of their strength related to the hand they’re shaking. It could also be an attempt to conceal weakness.

I recall a business associate telling me that I shook his hand too hard. I knew I possessed a firm handshake but I’d not considered it to be bone-crushing. My associate reiterated his statement a few times. After that, I was always more attentive to not shaking his hand with the prior degree of intensity that I’d used before.

The point is, if you do have a firm handshake, know when to moderate it based on the circumstances. If someone delivers a bone-crushing handshake upon you, and it’s painful, consider saying something. Then, note if any change occurs. If it does, the person is displaying more alignment with you. If it doesn’t, the person doesn’t care how you feel. In either case, you will have gained valuable insight into the person.

Releasing:

The person controlling a handshake is the one that releases it last. A handshake on average last about five seconds. Thus, the person holding the hand of the other individual the longest is stating that they’re not ready to release that person.

Take note when someone extends a handshake pass what’s normal for the situation. They may be sending a subliminal message that they’re superior. They might also be holding your hand longer to comfort you or themselves. Therefore, note when such occurs and the situation in which it happens. Doing so will allow you to gain additional insight as to why they’re committing that act.

Conclusion:

In every negotiation, note its beginning through the information sent via a handshake. If you become attuned to its intent, you’ll have greater insight into that person. That insight will add additional information about how you can negotiate better with them … 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/

#Danger #Handshake #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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Best Practices Investing Management Marketing Negotiations Sales

Does Your Sales Approach Blow Off Profits?

Many experts agree that selling with perspective/insight improves selling performance, but most ignore the role played by business acumen.  Business expertise is foundational to perspective selling success. Ignoring it is a mistake; best case, you can win some more opportunities, but at suboptimal margins.  Worst case: your insight selling investment won’t get you anywhere.

Perspective selling can be a huge difference maker. CSO Insights found that companies who incorporated perspective into their approach had 12% higher win rates.  This rose to 23% higher win rates for companies who master perspective. The data was conspicuously silent on profit margins of those won deals. Thus, selling with perspective can be powerful, but your mileage can vary widely, depending on how you implement.

Unfortunately, some sales training companies cover business expertise with little more than a vague hand wave. Their treatment: “Take your business acumen…you know, that business acumen that you have (right?)…and use it to provide some valued perspective”.  Apparently, hope is a strategy.

Others tell us to apply our business acumen to expose an unrecognized problem, unrecognized solution, unforeseen opportunity, or to bring a third party’s capability to bear.  Those are great suggestions for how to use already-established business acumen.

Business Acumen is a Serious Discipline, not Some Buzz Word.

I’ve heard business acumen (for sellers) described as “understanding how your customers make money”.  That’s a great start.  Adding “to the point you know how your offer can help them make even more” should become the standard for every customer-facing person in your organization.

SWOT (strengths, weaknesses, opportunities, and threats) analysis is better than nothing but doesn’t help a seller develop very meaningful insights.  It doesn’t help your people meet the standard above.
“Understanding growth drivers” sounds helpful, but don’t you need business acumen to for that level of understanding?

Sellers need a set of tools which help them understand how business works well enough to look at a prospect company with a “mechanic’s eye”:  ability to diagnose what’s working well, what’s not, and how their offer can help.  My business acumen framework covers a business in enough depth to help sellers do just that.  Here’s a diagram of the major parts of a customer’s world: What elements of their environment shape a business, internal elements that shape their world view.  On the right, is a list of some of the major outcomes you might be able to help them change.

Customer's World Business Acumen copy

Because this framework is about your customer’s world, it works with any sales training system or methodology. Contact me if you’d like to learn more about this overview.

Business Acumen Shapes an Entire Pursuit, it isn’t Just a Process Step

I’ve seen leveraging business insights to “provide perspective” and “provide insight” as one step in the selling process.  I reject this; such a suggestion shows a fundamental misunderstanding of business perspective.

Business acumen helps a seller throughout the arc of the customer experience:

  • Secure an initial appointment by showing that the seller has valuable business advice to give.
  • Shape discovery by uncovering new value and expanding known ones.
  • Expand the decision ecosystem by connecting unanticipated outcomes with your offer.
  • Expand the total value of your offer by adding outcomes all over the company.
  • Earn executive meetings by connecting to executive-level concerns.
  • Negotiate win-win pricing by walking your customer through the monetary value of all of the outcomes you help them achieve.
  • Explore even more outcomes as all of your people engage with a customer post-sale.
  • Capturing all of these value insights helps your marketing team produce content that targets the customer outcomes that win most of your deals, generating leads that self-qualify for your differentiation.

That’s why I promote a company-wide “value culture”.  In a value-focused culture, a lot of roles participate and several loops get closed.

How Business Acumen Fits into a World Class Sales Culture

Business acumen is a backdrop to a phased process, each phase of which blends into the next. Thus, Business acumen is foundational to professional selling.

Perspective selling 3 circles2

Initially, a seller should uncover needs, value gaps, and potential customer outcomes.  I have a tool called value networks which helps guide this process more efficiently (these are company-specific).  In this phase, sellers need to envision all of the parts of a customer organization the selling company’s offer might impact. As customers have become more siloed, this job has become more challenging.  My value networks help make this easier, and work with any sales training system or methodology.

During this process, a seller should be able to develop value (build the desirability of various outcomes) in the mind of various buying personas.  The diagram in this middle circle reminds sellers that they need to develop value while they can.  Once a prospect has decided you’re on the shortlist, it gets increasingly difficult to “sell value”.

Ability to sell value vs discounting

To begin the closing process, a seller needs to connect their solution to customer-validated outcomes, recap the value of those outcomes, and then position the solution based on that value. Pricing – even premium pricing– should reflect the value of those outcomes and share a win-win philosophy.  I have often experienced higher customer preference at premium prices once the customer-validated value is used alongside the price for context. 

Venn Diagram

Selling with Perspective is Good.  Selling with Value Perspective is Profitable.

Perspective selling is powerful.  It increases close rates and strengthens customer relationships.  With a few simple additions, it can do all of those things more effectively…and more profitably.  That is, you can close more deals at a higher – and more customer-appreciated – price. Since pricing power is profit power, those small adjustments make a huge difference.

Comment below.  If you found this valuable, like this article and/or share with your network.  If you’d like to learn more, please contact me.

To your success!