Three value conversations - San Francisco, Ca. Executive Insights session with Tim Riesterer

3 Conversations You Need to Win

Q: #1 Reason Don’t Hit Quota?

A: Inability to Articulate Value!

Leads

Products

Process

Training

CRM

Good Intentions. Wrong Instincts.

Changing someone’s mind isn’t a question of pushing new information on people and trying to explain it in words. It’s more about helping people see the inconsistency in themselves and then all of a sudden the mental model will shift naturally and easily.

Gary Klein, scientist and author “The Power of Intuition” and “Seeing What Others Don’t”

“

“

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Create Value

Elevate Value

Capture Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Create Value

Status Quo Buy

60

“Why Change?” “Why You?”

%

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

NO DECISION 60

%

Declared Preference

Revealed Preference

Status Quo Buy

60

“Why Change?” “Why You?”

%

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

NO DECISION 60

%

DISTINCT POINT OF VIEW

Status Quo Threatened

Identify New Needs

Define Solution

Identify Viable Vendors

Review Approaches

Make Decision

74

“Why Change?” “Why You?”

COMMODITIZED CONVERSATION

26 % % BUYING VISION BAKE-OFF

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

• Make the status quo unsafe • Define new set of needs • Align w/ your Strengths

• Here’s what you say you need • Here’s what we do different • Here’s the benefit you will get

Identified

NEEDS

CAPABILITIES Specified

Commoditized Conversation

Creating a Buying Vision

NEEDS

Identified

Specified CAPABILITIES

UNKNOWN STRENGTHS

UNCONSIDERED NEEDS

Commoditized Conversation

Creating a Buying Vision

Distinct Point of View

12

Didn’t appreciate…. The problem is as big or coming as fast as you say?!

Didn’t realize… there was even something to fix that issue or annoyance?!

Didn’t know… that was a problem I was having until you pointed it out?!

Under-Valued

Un-Met

Unknown

New Brain Designed for Analysis

Old Brain Designed for Survival

Decision-Making Engine

Neuroscience

Social Psychology

Kahneman, D. and Tversky, A. (1984). “Choices, Values, and Frames.”

American Psychologist 39 (4): 341–350

Gain Loss

Value

3X stronger preference to avoid loss vs. acquire gains = “Loss Aversion”

Prefer risk that might mitigate a loss = “Risk Seeking”

Outcome

“PROSPECT THEORY”

Customer Status Quo

Identify executive desired outcomes

and strategic objectives

Reveal potential threats, problems and

missed opportunities that put those

outcomes at RISK

Define a new set of needs and

requirements that point to your relevant

and advantaged strengths

Describe how your strengths RESOLVE

to the situation and generate positive

business change and value

Define your target “status quo” why

it’s safe and where there are gaps

Threats

Misses

Ne

w N

ee

ds

Desired

Outcome

Problems

Strengths

Value

Story

RISK

RESOLVE

Point of View

CFO

CMO

CIO

More than typical Personas

M

Old Automation SS & DB New Competitor

SIT

UAT

ION

DISP

OSIT

ION

Point of View ……………………………….. Lives Here!

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Create Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Create Value

Elevate Value

Capture Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Elevate Value

80% decisions

10% executive contacts

80% decisions

FEAR

PRODUCT KNOWLEDGE BUSINESS EXPERTISE

EXECUTIVES VALUE 4X MORE

EXECUTIVES VALUE 4X MORE

88% PROFICIENT

24% PROFICIENT

4X LESS LIKELY

PRODUCT KNOWLEDGE BUSINESS EXPERTISE

EXECUTIVES VALUE 4X MORE

88% PROFICIENT

24% PROFICIENT

4X LESS LIKELY

BEST IN CLASS

FOCUS 2X MORE

AVERAGE COMPANIES

FOCUS MORE

PRODUCT KNOWLEDGE BUSINESS EXPERTISE BUSINESS VALUE GAP

Business Knowledge

Customer Insight

Financial Acumen

ROI/ Business

Case

Executive Engagement

Executive Conversations core competencies

1 2 3 4 5

Identifying the key industry

business trends, topics, and

emerging issues impacting

companies in that market

Determining the prospect’s top

initiatives, how those connect

to business trends and

ultimately tie to your solution

Knowing the “metrics that

matter” most to determining

budgets, building a

business case and triggering

a decision

Building a simple,

compelling financial story that shows how your solution will

drive positive business impact

Experience telling your story to a real executive decision maker

and what it takes to deliver

engaging conversation

Business Knowledge

Customer Insight

Financial Acumen

ROI/ Business

Case

Executive Engagement

Executive Conversations core competencies

1 2 3 4 5

Identifying the key industry

business trends, topics, and

emerging issues impacting

companies in that market

Determining the prospect’s top

initiatives, how those connect

to business trends and

ultimately tie to your solution

Knowing the “metrics that

matter” most to determining

budgets, building a

business case and triggering

a decision

Building a simple,

compelling financial story that shows how your solution will

drive positive business impact

Experience telling your story to a real executive decision maker

and what it takes to deliver

engaging conversation

Fluency target

50%

Close the Business Value Gap

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

Customer Conversation Continuum

Elevate Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Create Value

Elevate Value

Capture Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Capture Value

Your Price I% increase in discounting

9% decrease in operating

margin

A SLIPPERY SLOPE

Your Price

Their Price

TYPICAL VIEW OF DISCOUNTING

Negotiating Tactics

Selling to business buyer

Deal moves to purchasing

Your Price

Their Price

WHAT’S REALLY HAPPENING

Negotiating Tactics

Selling to business buyer

Deal moves to purchasing

Value Leaks

Demonstrating Value?

CHECKING BOXES

Demonstrating Value?

Giving Away Value

CHECKING BOXES

Exchanging Value

PIVOTAL AGREEMENTS

CHECKING BOXES

Demonstrating Value?

Giving Away Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Capture Value

STATUS QUO THREATENED

DEFINE SOLUTION

REVIEW VENDORS

CHOOSE SOLUTION

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

TERMS AND CONDITIONS

DIFFERENTIATION

IDENTIFY NEW NEEDS

MAXIMIZATION

Customer Conversation Continuum

Create Value

Elevate Value

Capture Value

Malcolm Gladwell

Scientist for Tipping Point Morton M. Grodzins

What was the difference?

Gladwell told a better story!

BEFORE AFTER

Show clear CONTRAST to show value for change

Tell them something they didn’t know to create CONCERN

Make status quo unsafe to create CONTEXT for urgency

Tell COMPARABLE story to prove they can do it too

Your Point of View

Insight

Unsafe New Safe

Proof

BEFORE AFTER

BEFORE AFTER

10% 65%

Picture Superiority Effect

88% Conversation

70%

20%

100% Hot

Spike

Hot

The Hammock

AVOID THE HAMMOCK

Which Picture is Superior?

1 2 3

Which Picture is Superior?

1 2 3

IMMEDIATE RECALL

83% 75% 66%

10%

better

25%

better

Which Picture is Superior?

1 2 3

More Interesting

Thought More Deeply More Credible Data

More Trustworthy

More Expert SPEAKER ATTRIBUTES