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ORIGINAL RESEARCH: Why demos fail
46

Why Demos Fail - Entaktics Report

Jan 14, 2015

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Entaktics

Why do demos fail in the B2B customer engagement experience? What makes a superior presentation? What should selling organizations do to adapt to the highly informed, time constrained customer?
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Page 1: Why Demos Fail - Entaktics Report

ORIGINAL RESEARCH:

Why demos fail

Page 2: Why Demos Fail - Entaktics Report

OBSERVED – CUSTOMER DISSATISFACTION

“Buy Side” organizations in a state of malaise with the sales-driven “Customer Engagement” experience

Page 3: Why Demos Fail - Entaktics Report

IMPETUS

Discover: Is there a problem? What is the root cause?What to do about it

Page 4: Why Demos Fail - Entaktics Report

APPROACH

LEAN SIX SIGMA AND LEAN START-UP PRINCIPLES

Discussed scope of challenge with 7 industry peers from leading technology and client companiesConducted comprehensive survey to achieve a minimum viable sample of 125 respondentsProvide frame of reference on modern sales and marketing practices (The Sales Funnel)

Page 5: Why Demos Fail - Entaktics Report

““PEOPLE RUN TO DEMOS BECAUSE THERE IS NOTHING ELSE TO DO”

Key problem interview insight:

Page 6: Why Demos Fail - Entaktics Report

TTHE NEW SALES FUNNELThe impact of Social Media, Content Marketing & SEO

Page 7: Why Demos Fail - Entaktics Report
Page 8: Why Demos Fail - Entaktics Report

MORE LEADS, SMALLER RETURNS

SOCIAL MEDIA, CONTENT MARKETING & SEO

Current state as express by industry “sell side”

More leads than ever due to efficient, web-based marketing toolsHigher levels of activityInterested parties requesting multiple demosMajority of buyers do nothing, meaning no decisionBuyer dissatisfaction with the customer engagement experience

Page 9: Why Demos Fail - Entaktics Report

ORGANIZATIONAL RAMIFICATIONS

Budgets are competitive in “Buy Side” organizations. Unfortunately, seller stories degrade into feature fests that do NOT address the customer’s business challenge

Page 10: Why Demos Fail - Entaktics Report

BEHAVIORAL SHIFT

INFORMED, TIME CONSTRAINED CUSTOMERS EXPECT MORE

Page 11: Why Demos Fail - Entaktics Report

WHY THE SURVEY?

Evolving Customer Engagement experienceMisalignment in expectations between buyers and sellerChanging business models

The need for evidence to make a new case for improving next business practices

Page 12: Why Demos Fail - Entaktics Report

SURVEY SAMPLE

160 respondents

Page 13: Why Demos Fail - Entaktics Report

WHO WERE THE RESPONDENTS?

An array of roles, verticals and organizational size:

Account ExecutivesBusiness Development CEOS Channel PartnersConsultantsCTOsDevelopersDirectorsMarketing DirectorsPractice DirectorsProduct Managers Process LeadersSales Engineers Sales ManagersVice Presidents

Page 14: Why Demos Fail - Entaktics Report

WHERE RESPONDENTS WORK

Page 15: Why Demos Fail - Entaktics Report

REVIEW

Survey Results

Page 16: Why Demos Fail - Entaktics Report

BASED ON WHAT YOU HAVE LEARNED, DO YOU BELIEVE THAT THERE ARE OPPORTUNITIES TO IMPROVE HOW HIGH TECHNOLOGY PRODUCTS ARE SOLD?

Do you concur that there is room for improvement?

Page 17: Why Demos Fail - Entaktics Report

EEXAMINING THE CUSTOMER ENGAGEMENT EXPERIENCE

Solution fit

Page 18: Why Demos Fail - Entaktics Report

THE STATED MARKET CHALLENGE IS THAT DEMONSTRATIONS DON'T ALWAYS RESONATE WITH CUSTOMERS. WHAT CONTRIBUTES TO A LACKLUSTER EVENT?

Mis-alignment between the presented solution against the customer’s unique business situation or circumstance is a primary cause of demo failure

Page 19: Why Demos Fail - Entaktics Report

WHAT ARE THE PRIMARY ACTIVITIES FOR A TECHNICAL SALES TEAM TO PREPARE FOR A SUCCESSFUL FIRST DEMONSTRATION OF A HIGH TECHNOLOGY PRODUCT?

Buying facilitation techniques deployed earlier in the sales process can drive mutual satisfaction and success

Page 20: Why Demos Fail - Entaktics Report

WHAT ACTIONS SHOULD THE TECHNICAL SALES TEAM PERFORM DURING THE DEMO?

Prospects see an array of technologies and solutions in a given month. Have a clear “What is it” statement that is simple and understandable is essential.

Page 21: Why Demos Fail - Entaktics Report

WHAT ACTIVITIES SHOULD THE TECHNICAL SALES TEAM PERFORM POST-DEMONSTRATION?

A problem for the product team. How to interpret reams of feedback in narrative form? Customer engagement teams need to summarize input in a digestible format.

Page 22: Why Demos Fail - Entaktics Report

WHAT CUSTOMER ENGAGEMENT ACTIVITIES ARE IMPORTANT POST-DEMO?

The Sales Engineer is quickly becoming the “rock star” in the new sales process. Beyond technical competence, what business advisory knowledge and skillsets are required? Who is responsible for devising the solution to solve the business problem?

Page 23: Why Demos Fail - Entaktics Report

UNDERSTANDING

The Demo Experience

Page 24: Why Demos Fail - Entaktics Report

THE PHYSICAL EXPERIENCE OF DEMO CAN'T BE OVERLOOKED. DIFFERENT PERSONALITIES ABSORB CONTENT MORE READILY FROM VARIOUS COMMUNICATION METHODOLOGIES. HOW DO YOU BEST RECEIVE INFORMATION IN A DEMONSTRATION?

Consult books “Presentation Zen” and “Slide:ology” for solutions and approaches. TED talks are a model of excellence.

Page 25: Why Demos Fail - Entaktics Report

WHAT OF THE FOLLOWING DO YOU BELIEVE ENHANCES THE DEMONSTRATION EXPERIENCE?

A demo is like a Theatrical Event where the customers are cast members. Details are important. Actors must rehearse and also be prepared to improvise.

Page 26: Why Demos Fail - Entaktics Report

WHAT DO YOU THINK IS WORTH SHOWING IN SLIDEWARE?

Give materials that can help the prospect make the case with their boss. Enroll them in being your advocate.

Page 27: Why Demos Fail - Entaktics Report

MANY CUSTOMERS SAY THAT THEY HAVE TO SIT THROUGH TOO MANY SLIDES. HOW MANY SLIDES DO YOU THINK MAKES SENSE? IS SLIDEWARE NECESSARY?

The message must simply be complete. It’s not the number of slides that makes a difference. It’s about how you can solve the customer’s problem.

Page 28: Why Demos Fail - Entaktics Report

UNDERSTANDING

The Sales Engineer Role

Page 29: Why Demos Fail - Entaktics Report

DO YOU BELIEVE THAT THE TECHNICAL SALES ENGINEER IS A CRITICAL CONTRIBUTOR IN THE SUCCESS OF A HIGH TECHNOLOGY ORGANIZATION?

So much emphasis is given to conventional selling skills. Very little is written about technical selling. The professional development of the sales engineer is becoming more critical.

Page 30: Why Demos Fail - Entaktics Report

WHAT COMMUNICATION SKILLS ARE IMPORTANT FOR A TECHNICAL SALES ENGINEER TO DRIVE DEMO SUCCESS?

Sellers need to revaluate staffing. The expectations for a strong communication skillset is more important than pure technical ability for today’s Sales Engineers. More importantly, domain expertise, buying facilitation techniques & business advisory capabilities will be required.

Page 31: Why Demos Fail - Entaktics Report

WHAT PERSONAL ATTRIBUTES OF A TECHNICAL SALES ENGINEER ARE IMPORTANT FOR DEMO SUCCESS?

Competence, knowledge and trustworthiness are critical characteristics for hiring managers. Consider a RoundPeggassessment as part of your fit review.

Page 32: Why Demos Fail - Entaktics Report

DO YOU THINK THERE IS AN OPPORTUNITY TO PROVIDE SERVICES THAT WOULD HELP IMPROVE THE CUSTOMER EXPERIENCE OF BUYING HIGH TECHNOLOGY PRODUCTS?

Peer coaching and professional development are necessary programs to create a strong, sustainable Customer Engagement culture

Page 33: Why Demos Fail - Entaktics Report

AADAPTING TO THE NEW SALES FUNNEL

Next Practices

Page 34: Why Demos Fail - Entaktics Report

EVOLVING ACCOUNTABILITIES

Duties of Sales Engineers must change

Page 35: Why Demos Fail - Entaktics Report

RE-CASTING THE SALES ENGINEER ROLE

Technical Sales Consultant

Page 36: Why Demos Fail - Entaktics Report

TEAM-BASED SELLING

EVOLUTION OF ORGANIZATIONAL STRUCTURE

Selling organizations will need to re-align and introduce a variety of roles to engage the marketplace and meet client needsNo single job function will “close” the deal

Team accountabilityEvolving job titles with sales responsibilities

Business Development SpecialistSocial Media Engagement SpecialistBusiness Advisory DirectorEngagement Manager

Page 37: Why Demos Fail - Entaktics Report
Page 38: Why Demos Fail - Entaktics Report

TECHNICAL SALES CONSULTANT -CHARACTERISTICS

CommunicatorConsensus builderEfficientEnergeticEmpatheticKnowledgeableMeasuredOrganizerSelf-starterTechnically savvyThorough

Page 39: Why Demos Fail - Entaktics Report
Page 40: Why Demos Fail - Entaktics Report

TECHNICAL SALES CONSULTANT

ATTRIBUTESBroader AccountabilitiesSolutioneeringSales Proficiencies & Technical Skills

DUTIESBuying Facilitation

TOOLSMeasured Procedures & PracticesStructured Conversations/AnalysisRapid Prototyping

MEASUREMENTSDemo to CashCustomer Success

Page 41: Why Demos Fail - Entaktics Report

ATTRIBUTION

YOU MAY REFERENCE THE RESULTS OF THIS SURVEY

Data subject to Creative Commons license– Attribute to Doug Liles, Entaktics LLC– The Sales Funnel diagrams were co-authored with Michael J.

Moon of Gistics– Sale of content strictly prohibited without license

Images are licensed from Fotolia and iStockPhoto– Stock photos and graphics are not sub-licensable

Preferred linkback:http://www.linkedin.com/in/dougliles

Page 42: Why Demos Fail - Entaktics Report

DOUG LILES - CREDENTIALS

High technology focus

Buy SideVice President TechnologyMarketing Manager

Sell SideConsultantBusiness Development DirectorAccount Executive, Agency

ChannelDirector, Partner ProgramsSr. Manager, Partner Relations

Page 43: Why Demos Fail - Entaktics Report

THANK YOU

ENGINEERING SALES DIFFERENTIATION

Page 44: Why Demos Fail - Entaktics Report

ENTAKTICS = ENGAGEMENT

Lean Six Sigma Customer Engagement principles applied to business development, product marketing and service delivery for high technology companies

TAKT means cycle time

Want to improve it?

Call Doug Liles

VOIP: 303-800-6430M: 303-547-5846

CONTACTDoug Liles, [email protected]

Page 45: Why Demos Fail - Entaktics Report

HOW ENTAKTICS CAN HELP

RESULTS FOCUSED PROGRAMS– Training

Modular approach to customer engagement– Demo script development

WritingRehearsalCoaching

– Recruiting SupportProfile DevelopmentScreening

– Sales Operations OptimizationProcess mapping and measurement

Page 46: Why Demos Fail - Entaktics Report

SPECIAL THANKS - MICHAEL J. MOON

CEO, GISTICS– Think Tank for Innovations in

Customer Engagement and the Entrepreneurial Imagination

Co-Founder of CIO Salon– Trust Network for Executive

Education and Peer Coaching

Michael J. Moon– [email protected]– 1 415.509.5023 mobile

GISTICS Incorporated– 1 510.450.9999 tel

www.gistics.com

Editor in Chief 2004 to 2011

Author of widely acclaimed book

400+ Keynotes and Webinars

Author of 30+ white papers

YouTube: São Paulo 13 April 2011