Pop Cans, Parity, and Positioning Your Product

January 13, 2010
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Three Rules to Help You Create Preference, Not Parity

According to a survey of 9,000 companies by the Corporate Executive Board’s Marketing Leadership Council, only 14% of the so-called unique benefits companies choose to promote drive enough preference to have a commercial impact. This means that 86% of the things companies claim as unique features and benefits are not perceived as significant enough to get customers to consider doing anything different.

The video below illustrates what can happen when your latest and greatest product offering isn’t a whole lot different from what’s already available and you are not connecting your differentiation with the customer pains you solve better.

The bottom line is that most companies overestimate the uniqueness of the benefits they promote. The failure point, according to the Corporate Executive Board, is proximity. Companies are too close to what they do and lose sight of what is relevant enough to drive customer preference and compel them to take action.

Here are three rules for creating preference vs. parity in your value propositions:

Rule #1:  No context. No value proposition.

Due to Marketers’ proximity to their own company and products, they overestimate the uniqueness and relevance of the benefits they choose to promote.

One of the biggest problems with proximity is mistaking customer “touch-points” for value propositions. Companies like to tout such things as customer service as a differentiator. But, the research shows that decision makers see these types of “touch-point” activities as marginal or poor drivers of preference.

Meanwhile, what really gets customers excited is hearing about clear, unique benefits attached to their business needs. Strategic agenda items such as “streamline my supply chain” or “help me get more out of my existing capital investments” are what people will pay you for because it’s relevant to their responsibilities and how people hold them accountable in their organizations.

Rule #2:  No contrast. No value proposition.

Value lies in the contrast between the pain and the gain.

Brain research proves that humans make decisions that are more adaptive than rational. They need to see a change in their environment that makes the status quo no longer acceptable. They need to see that change is coming now and fast. And, they need to see your solution as critical to their survival.

In fact, emotion needs to be injected into your messaging. Even in B2B, you have to get decision makers emotionally invested in the decision. They will justify with facts, but they will buy based on how this will impact their success or failure in their jobs.

Rule #3:  No corroboration. No value proposition.

The third rule pertains to proof points. Most Marketers think of proof points as quantifiable validation of the value you provide. This is true. Actually, it’s partially true.

When you are trying to get prospects to care enough to consider a change and choose you, proof points must corroborate your solution on two levels:

First, you need proof points that will corroborate or turn up the heat on the problem. “Amping up the pain” as we like to call it. Notice at the beginning of this article, we told you that 86% of unique benefits cited by companies don’t create preference. Did it get you thinking about your own benefit statements and value propositions? It hooked you into the story and got you to care about a potential solution.

Second, you need proof points that will corroborate your claims to be able to solve the problem in a meaningful way that eliminates the pain and brings measurable gain around the strategic agenda item you are addressing. Do you have documented results that validate what doing something different tomorrow will mean to your customers – in terms they care about?

Use these three rules when creating your value propositions and you will discover the difference between preference and parity.

To learn more visit this instant webcast:

http://www.brainshark.com/corpv/PP

1 Comment | sales messaging, sales tips, sales training | Tagged: , | Permalink
Posted by Corporate Visions Inc.

Do You Take the Stairs?

November 16, 2009

Fun theory shows once again that human decision-making isn’t rational.

I always like to think that logic and rational thought rule when my prospects make a decision.  But, time and again I’m proven wrong.  That’s why you always hear us say in Power Messaging – “people decide on emotion and justify with facts.”

When I ran across this video it showed once again how emotional decision-making can be.  You and I know that taking the stairs instead of an escalator will provide more exercise.  And, we are fully aware that exercise is good for us.  (There’s plenty of research and data to prove that.)  So, it would be logical to assume that if we know what’s good for us, we’d always take the stairs instead of the escalator.  But, we don’t.

Watch this less than 2-minute video to see an interesting social experiment on getting more people to take the stairs.  It proves once again how we underestimate the power of emotions to impact a decision.

It’s the same when you go into a sales pitch with too much information.  Too much data.  Too many rational arguments.  You leave wondering why your prospect has paralysis by analysis.  It’s because you put her there.  And, as a result, she can’t clearly see enough reason to change from the status quo.

In fact, recent research indicates that 40% of sales cycles end in no decision.  Meaning your biggest competitive enemy is no longer an arch rival competitor, but prospects doing nothing.  In truth, however, this could be your biggest opportunity.  Taking market share from tough competitors is always difficult.  Getting a prospect to make a decision vs. waiting may be your next big growth opportunity.

Loosen the status quo with emotion
Just like the stairs were transformed into a piano, you need to create some emotion and excitement in your sales message.  If you want to loosen the status quo, you need a story that inspires your prospect to see the need for change.  Think about the video.  They were still stairs.  Weren’t they? They were still healthier for you than taking the escalator.  Right?  The “product” called stairs and the benefits of using them didn’t change.

Only the brand new story and the experience created around the stairs changed.  In fact, the stairs themselves became a giant prop to help sell the concept of stairs.  It engaged people’s body and mind in the product called stairs.  It made people want to try the stairs in a way that rationally explaining the benefits never did.

Where can you inject emotion?
You need a great story for your products and services.  The greatest stories are facts, wrapped in emotion.  For example, “the King died.  The Queen died.”  Those are the facts.  But, when you add emotion saying, “the King died, and the Queen died of a broken heart,” then you have a story.  You have a story that pulls people in, engages them and connects in a way that just the facts can’t.

We worked with a corporate, after-hours cleaning services company that offered a unique approach to cleaning.  It was a multi-color, microfiber cloth system that eliminated 90% of bacteria compared to just 33% with traditional cotton cloths.  You would think that fact would be enough to get prospects to bite.  It wasn’t until the company added a mini-story (drama and props) about how the multi-color cloths helped make sure your cleaners weren’t using the same cloth to clean your bathrooms as they did to clean your office telephone that they really got people’s attention.

Don’t be afraid to make your sales messages connect emotionally with your customers.  Help them see the need for change.  Help them see change is coming fast.  Help them see the impact of not dealing with the change vs. the impact of successfully adapting to the change. Creating enough emotional contrast between their current pain and the potential gain they can achieve by working with you.  And, then make your solution critical to their survival.

Leave a Comment » | emotion, old brain, sales training, story | Tagged: , , , , , | Permalink
Posted by Corporate Visions Inc.

I’ll Need You to Throw This One in for Free

October 14, 2009

Have you seen this hilarious video of how B-to-B negotiations would play out in “real world” situations?

We’re almost so used to B-to-B purchasing demands that we forget how ridiculous they are.  This video gives us a chance to step back and laugh, but, it doesn’t change the reality of your customers’ buying habits.

What can you do?  Do these battles always have to occur?  According to The Corporate Executive Board’s Integrated Sales Executive Council, only 9% of brand preference and loyalty decisions are based on price.  Meanwhile, 53% of a prospect’s decision to choose you comes from their sales experience.

So you are saying I’ve got a chance

What these percentages mean is… in a world where everyone sounds and looks the same, your prospects and customers are saying:  “Would someone please cut through the clutter and present a clear path to value that will result if I partner with your company?”

Unfortunately, too many salespeople wallow in parity with their presentations and proposals, leaving customers with the perception that everyone is a commodity.  Freeing them up to bring the hammer of B-to-B purchasing down.

Avoid these ugly and ridiculous confrontations by preemptively showing the contrast between you and your prospect’s status quo, as well as you and your competition.

Value Lives in the Contrast between Pain and Gain

Here are three easy ways you can use contrast to show value:

1) Focus on what you do that’s unique: Don’t waste precious conversation time playing the “me too” game.  If you’re in a job interview, would you talk about how your resume is exactly the same as the guy who interviewed before you?  Of course not!  Your prospect already knows that your solution is on par with others in the industry… that’s why they agreed to talk with you in the first place.  Instead, identify some unmet or under-served customer pain and talk about what you do uniquely or better to turn that pain into gain.

2) Before and After Stories: When presenting references, don’t just show off the end results your customers realized using your solution. That’s only half the story.  You need to show contrast. What was your customer’s life before they implemented your solution and then after?  Showcasing the pain first provides the foundation for understanding what value your solution brings by helping the customer visualize their current situation and see it getting better.

3) Use colors and space to make emotional connections: Don’t stop with the content of your message. Make sure the way you deliver your uniqueness and value is engaging and memorable. Work the room… or the web conference.  Remember, value lies in the contrast between the pain and the gain, so make the contrast as apparent as possible. Use different flipcharts placed at opposite sides of the room, or split your PowerPoint slide in two, to show the pain and the gain.  And use different colored markers or different colored fonts. In Western cultures, use red for bad and green or black for good. (Adjust the colors based on what significance they carry in your culture.)

Don’t fall for the same old B-to-B buying tactics.  Establish your solution as the one your prospects need by leading with your uniqueness, clearly showing the contrast between you, the status quo, and your competition, and proving it with a before and after customer story that makes your value come alive.

Leave a Comment » | buyer conversation, delivery techniques, differentiation, focus on the buyer, presentation skills, presentations, sales messaging, sales tactics, sales tips, sales training | Permalink
Posted by Corporate Visions Inc.

Just-in-Time Coaching

September 16, 2009

It’s amazing what you can achieve when you’ve got a high performer showing you exactly what to do.  Check out this 30-second clip that shows the impact of coaching and modeling — at the moment it’s needed.

Salespeople are no exception.   In a recent survey, Corporate Visions found that 87% of salespeople want more field-level, just-in-time coaching from their managers, especially in differentiating their solution from the competition.[1]

The best learning takes place outside the classroom

While investing in a good training program help reps meet and exceed quota, even the best training fades over time.  In fact, 87% of what’s learned in sales training classrooms is forgotten in just four weeks.[2] So, just-in-time coaching and reinforcement is critical to maximize the often substantial investments companies make in training their sales forces.

As evidence, two recent studies from Pfizer and American Express confirm that managerial involvement, post-training, has a positive effect on learning, retention and impact.  Participants who achieved significantly better results after training were four times (4X) more likely to have had a conversation with their managers about how to apply their newly acquired skills once they got back in the field. [3]

Unfortunately, we hear that front-line managers are increasingly overwhelmed with other expectations.  On top of quota pressures, they are tasked with translating company-wide initiatives to field-level tactics, HR management obligations, and maximizing pipeline health.

This leaves them with precious little time to provide specific coaching, reinforcement and examples of how to create and deliver your best message to your prospects and customers.

Here are four examples of best practices we’ve seen to help in this area:

  1. One hour a week – That’s all.  Set aside one hour, early on Monday morning to get your teams on a conference call.  Each week, have one of the sales people in your territory walk the team through a recent or upcoming presentation they are going to make.  Use a web presentation tool to share the content.  This gives the manager an opportunity to coach, as well as peers to provide input. Together, you can learn each week how to sharpen your customer messages for greater impact.
  2. Best practice examples – With FLIP™ video technology, the advent of YouTube™, along with simple on-demand, multi-media presentation tools such as Brainshark (www.brainshark.com) there’s no excuse for not capturing some of the best messaging practices and examples and sharing them throughout the company.  You don’t need fancy, expensive videos or flash demos to get this great coaching content online.
  3. Tribal knowledge sharing – Web 2.0 is a fancy term for social networking, which is a fancy term for what used to be a “copy all” and “reply all” email request in the field.  Problem is that many of these one-off archeological digs for stuff that works in the field were rarely captured and managed as company assets.  So, a lot of these became redundant requests.  You need to look at technologies such as Savo (www.savogroup.com) and StreetSmarts (www.streetsmarts.com) that are harnessing the collective would-be, one-off genius of the organization and making it easily available to everyone who needs it.
  4. Field message coaching – How important is it that you get your biggest presentations, pitches and proposals right?  Some companies are designating regional field marketing, sales or training resources to come alongside field sales managers and serve as the designated expert on making sure your customer messaging is working in the field, inside the deals, where it counts.  It’s a big commitment, but companies are justifying it by tracking the improvements in deal sizes and close rates on the opportunities these experts work on versus the ones they don’t and seeing trackable improvements.

Here’s some just-in-time coaching help for Power Messaging alumni:

Corporate Visions recently launched Power Connection, a just-in-time coaching and messaging reinforcement tool designed exclusively to help you master Power Messaging as part of your sales craft.  It’s a combination of modular, multi-media refreshers (5-15 minutes) on each of the key Power Messaging techniques, a set of additional practice examples and helpful hints, along with access to a Corporate Visions messaging expert, when you need it.
Check it out now:
http://www.brainshark.com/cvi/PC4PM4Alumni?tx=Feed

[1] Corporate Visions Survey, July 2009

[2] American Society for Training and Development

[3] American Society for Training and Development

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Posted by jfrantzcorpv

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