Category Archives: Insight Selling
Competing against an incumbent provider is one of the more challenging sales situations that we encounter. The existing account holder likely has a stronger relationship with the client, first-hand knowledge of the client’s business, and enjoys the benefit of being a known entity. Remarkably, even with mediocre performance, an incumbent can be difficult to unseat, and a lot of the reason why is attributed to psychology. There are a few neuroscience concepts that give us some insights as to why customers hold on so tightly and how a challenger might loosen the grip.
Loss aversion is the simple idea that the fear of losing something is much stronger than the joy of gaining something — in fact, it is about twice as strong, according to research. In a competitive sales environment, that means that the value proposition of a challenger needs to be significantly stronger than that of the incumbent if the challenger hopes to win the business. Loss aversion is how even relatively weak providers maintain accounts. So why is our fear of loss so strong?
It is human nature to overvalue what we already own; this is called the endowment effect. It is evident when people are reluctant to part with something they own for its cash equivalent, or if the amount that people are willing to pay for something is lower than what people are willing to accept when selling it (Kahneman, Knetsch, & Thaler, » Continue Reading.
In sales, we hear them all the time — objections from our customers that just don’t make a lot of rational sense… not to us, anyway. We don’t say it out loud, but we’re thinking, “What? Where did that objection come from?”
The irrational objection is one of the tougher challenges in Sales because we know that there is something deeper that the customer is not comfortable sharing. Also, the customer may not be fully aware of some of his/her deeper drivers. Since the sale will not progress until we resolve the objection, we need to discover what is causing the objection — but how?
Our brains — ergo, our customers’ brains — are wired with biases that cause errors in judgment. Because we may not be aware of these cognitive biases, even skilled questioning may not reveal them. During the sales dialogue, we need to identify and understand biases and get good at using “debiasing” techniques to move the conversation forward.
The Status Quo Bias
The status quo bias is at the root of many irrational objections. It’s really simple to understand — our brains don’t like change. Essentially, we have a preference for things to remain the same until the status quo becomes too uncomfortable to accept. This bias is a powerful and normal reaction for us in response to anything new and » Continue Reading.
Part 1 of my series on insight selling reviewed the importance of maintaining a focus on the rest of the pursuit, while part 2 took a quick look at the traps of insight selling. Today, I close out my 3 part series on the risks of insight selling with a post that discusses the value of not only focusing on the dynamics of the new selling environment, but also making sure that you focus on what has worked in that past.
What hasn’t changed in the buying and selling landscape is just as important as what has changed. While buyers are savvy, busy, pressured, risk-averse, and more demanding, they still need guidance to make the best business and personal decisions. Even though customers have unprecedented access to knowledge, they face the difficulty of sorting through what matters most and finding the value among all of the options. More information doesn’t always translate into accurate, clearer understanding; they still need sellers to accurately diagnose their unique situation and identify the best solution to make an informed buying decision that drives the results that they need.
While sellers also have access to more information on the Internet, they still need the information gained through dialogue with the buyer to tailor their solution to differentiate themselves and win business on something other than price. Trust is still the number-one factor in making a buying decision. Sales Professionals must still connect with the customer on » Continue Reading.
An insight-based selling approached can help a seller differentiate themselves, drive business outcome-based discussions, create a sense of urgency in the buyer, and provide value to a customer or potential customer. But providing insights for the sake of insights can create risks that can have an adverse effect on the potential deal. Today we start a series of blog posts that will review three potential risks of adopting an insight selling approach. In my first post I will look at the importance of staying focused on the pursuit.
There is no doubt that leveraging insights in the sale is important today. You have been living under a rock if you are in sales and haven’t read about or experienced the changes in buyer behavior — they are more informed, have increasing demands, have set higher expectations, etc. The use of insights at the right time and in the right way can truly help a seller. Sellers can encourage customers to think about their business issues and needs in a new way. This includes helping the customer to get past their own misunderstandings and misperceptions in order to make the best decisions for the business. Sellers must bring relevant insights and ideas to create value in the buying experience itself rather than just in the solution that the seller delivers. If sellers themselves do not become a point of differentiation, they will find themselves responding to a set of requirements defined » Continue Reading.
Can micro-moment sales and marketing help restore balance in the playing field?
Mobile devices and 24/7 access to information have certainly changed the way business is conducted. Case in point: More than half of all searches on www.Richardson.com are done on mobile devices, the numbers rising to 52% from 19% in less than a year.
In a B2C world, such a dramatic and rapid shift would make more sense, driven by on-the-go searches by consumers looking for restaurants or best product prices. But for a B2B company like Richardson? It’s hard to imagine someone waiting in line for a latte to suddenly tap her iPhone and say, “Siri, I need to implement a sales training transformation for my 5,000 global sales reps — which providers should I call?”
Andrea Grodnitzky to Present on Selling with Insights at the 2015 ATD International Conference and Expo
Andrea Grodnitzky, Richardson’s Senior Vice President of Global Performance Solutions, will be speaking at the ATD 2015 International Conference & Exposition in Orlando, FL on May 20.
Grodnitzky’s session will cover how, globally, organizations are implementing a selling with insights sales approach. She will discuss how these organizations are using insights to guide their clients to make the best decisions for their businesses. Buyers today are equipped with unprecedented access to data and information, but Grodnitzky believes they need knowledge and context to help them sort through the noise. This session will discuss how now, more than ever, the sales dialogue is a critical part of achieving sales success with this type of selling approach and what it really means to deliver an insight that will add value to clients.
“We are all aware of just how dramatically the selling landscape and buyer behavior has changed in our information-rich, always-accessible, digital world,” says Grodnitzky. “In this session, I will discuss not only why a selling with insights sales approach is necessary in today’s selling landscape, but more on what this approach really entails and how to roll it out in your organization.”
She continues: “This type of selling approach creates value, value creation builds trust, and trusted advisors influence today’s ultra-informed buyer. I hope that attendees will gain an understanding of how » Continue Reading.
Challenger® Selling: “Courageous Questions” Differ from “Grenades”
Many sales leaders are urging their salespeople to adopt CEB’s Challenger Selling™ model to ask “challenging” questions to have effective sales meetings with prospects and clients. The intent is to be more provocative, create differentiation in a crowded market, provide insight, and hopefully add more value to the conversation. This post is designed to share some mistakes I have been seeing with this approach and to offer suggestions for properly asking “courageous questions” in an effective sales meeting.
Insight Selling: Essential Skills for Shaping and Creating Sales Opportunities
Opportunities to grow your business with a major account come in three different modes: Respond, Shape, and Create.
When you respond to an opportunity, the customer has already identified the issue, the solution, and the expected outcomes. Now, a provider is sought. This is the most reactive style of account development. The scope and budget are usually already set. Pressures on both price and competition are often high. By no means should you ignore such opportunities. Flexibility is a key element of business. You have to be able to respond as well as initiate. But, responding is not the best way to develop and grow a business relationship.