Sailing requires a lot of capabilities. As a sailor you learn various mechanical principles – how the equipment works, and based on that, what to do on the sailboat. You have to become an experienced sailing practitioner to be able to sail the ocean. But these mechanical skills aren’t sufficient. You also have to learn the essentials of how to navigate.
Sailing experience is actually built on all the things you can control – managing the sailing mechanics on the boat – and on your ability to navigate all the things you cannot control – nature’s dynamics.
Mechanics are predictable. Dynamics are probabilities in uncertainty
Imagine the mechanical steps you take to create a new account or a new opportunity in your CRM system. Mechanics describe precisely in which way something has to be done. Mechanics have a lot to do with “if/then” clauses. In this example, you need the account data before you can create your opportunity. Mechanics are pretty predictable. If all the required data are entered, a new account or a new opportunity will be created.
Dynamics instead represent probability, possibility, and uncertainty in often complex environments. Imagine your recent conversations with different B2B buying teams. Were these situations predictable? You have probably developed a few scenarios to get prepared for the conversations. But at the end, a slightly different scenario may have happened. Dynamics are not really predictable.
Navigating different dynamics along the customer’s journey
- Change dynamics in the awareness phase of the customer’s journey:
A challenge occurs, the situation gets analyzed, and options for tackling the challenge are discussed. Customer stakeholders often come from different functions and roles, and have different approaches regarding how to address the situation. The key question is, “Do we change the current state for a better future state: Yes or no?” The decision can be “yes,” “no,” or “not now.” For sales professionals, the biggest challenge here is to provide perspectives that help the stakeholders make a decision to change the current state for a better future state.
- Decision dynamics in the actual buying phase of the customer’s journey:
The buying team may change, because some senior executives may delegate the project and procurement people may join the buying team. Decision dynamics are focused on how to make the best buying decision as a team with different perspectives and approaches to achieve the best results and wins with the lowest possible risks. Decision dynamics have different characteristics than change dynamics. For sales professionals, the biggest challenge is to contribute to the customer’s value calculation in a way that’s beyond TCO or product-driven ROIs to be perceived as the best possible buying option. Business value ideally tackles the top or the bottom line.
- Value dynamics in the implementation and adoption phase:
When the implemented products and services deliver the value that has been bought, thoughtful value confirmations tailored for each buyer role are they key to developing future business. This step is often overlooked, but as buyers have different approaches regarding how to tackle a situation, they will also have different perceptions of value.
For sales professionals, the biggest challenge is to get back to the initially involved senior executives, even if they have delegated the project for implementation. These value confirmation conversations can lead directly to new opportunities.
What makes the difference in these situations? Mechanics or dynamics?
Mechanics, as we defined the term above, are everything that can be controlled by the sales professionals. Dynamics are what happens in reality, in complex situations with different stakeholders, and their different approaches, changing objectives and an often-changing situational context. In those complex, often unpredictable environments, sales professionals need a solid foundation of skills and competencies, customer, market and product knowledge, strategies and specific expertise – just to remain in the game. What makes the difference is their ability to quickly adjust their strategies, behaviors and activities to new, changed and complex situations. That’s navigating dynamics.
Navigating dynamics requires adaptive competencies – a key challenge for sales enablement
Developing adaptive competencies happens in iterations of training, practice, learning and coaching Whatever the specific challenges in a sales organization might be, a solid foundation of selling competencies, various knowledge areas, and customer management strategies has to be in place before adaptive competencies can be developed. You don’t train a new sailor to navigate the ocean before learning the basics.
Adaptive training sessions can consist of various highly interactive sessions, including real-world simulations. Those curriculums should consider cycles of training, practice, and learning, reinforced by coaching before the next cycle begins with training. Those cycles ensure that people can learn what works for them and adjust what didn’t work so far. This approach also requires that coaching is an integral part of reinforcing and building adaptive competencies. Integrating the frontline sales managers early builds the foundation for execution and reinforcement. Key learning objectives should include situational awareness, applying principles instead of rules, and creativity, as well as critical and strategic thinking.
Adaptive competencies are what sales professionals need as an add-on to their mechanics. Adaptive competencies enable them to navigate the dynamics of today’s ever-changing, complex, buyer-driven world.
Questions for you:
- How do you navigate complex B2B buying dynamics?
- How important is the alignment of your sales process to the customer’s journey to successfully navigate buying dynamics?
- How does your engagement principle reflect buying dynamics?
Related blog posts:
This article was initially written for Top Sales Magazine, September 29, 2015.
What was your last bad experience as a prospect – just a short time after you downloaded something from a website? Maybe this example sounds familiar for you, too. I was interested in a report that had been published on a vendor’s blog. I downloaded the document. Less than an hour later, I got a call to “follow-up.” Would I be interested in the vendor’s products? Bad, very bad. I asked her if she had checked out my LinkedIn or my Twitter profile to prepare this call? Of course, she did not. Even more interesting, she made this call for a large provider of social technology. Ouch.
What’s wrong? The call was out of any context, not connected to my role, my potential challenges and the company I’m working for. Not valuable for me. And not relevant.
I care about lead management behaviors for two reasons. First, because I care about all things sales force enablement and how to get more effective in a “customer-core” way. Second, because I work as an analyst in this fascinating space and I do believe that successful sales enablement begins very early along the customer’s journey. So, I have skin in the game.
Bad lead management practices like this follow-up call happen every minute a thousand times. These practices not only ruin your brand reputation, but they also wreck potential future business opportunities.
According to our CSO Insights 2015 Lead Management and Social Engagement Study (login required), increasing new customer acquisition is the number one marketing priority. Additionally, social media and website design/content are the main areas for more investments in lead generation.
Quantity over quality leads only to more bad calls – focus on effectiveness first
The problem with so many bad lead follow-up calls has one cause: measuring quantity over quality. Why should it be the right way to measure the number of calls instead of the outcomes of those calls? Yes, we have to be quick with follow-up calls. And yes, we need to know how many calls are made by person by time frame. But there is a difference between a bad call half an hour after the web page interaction or a much better call within the next few hours. But more bad lead follow-up calls are not effective, regardless how efficient they are processed. Even worse, bad follow-up calls damage not only your brand reputation, but they also block this customer’s potential future interest in any of your products and services. Whether you conduct those lead follow-up calls internally or with an agency, measuring success must be based on effectiveness, not on efficiency only, if you want to move the performance needle in any way.
Call preparation begins with – social media
“We have no time to prepare our calls.” I hear you. Please explain to me why you have time to make lots of bad calls with poor outcomes? Why not make fewer calls with better outcomes? Please ensure just one mandatory step: The person must check the prospect’s social profiles before the call (not just taking the mapped CRM data, or even worse – nothing) such as the prospect’s current role, potential areas of interest and challenges to connect the dots to your products and services. Only then can the salesperson open the call in a smarter way that connects the dots to the potential prospect’s role and context. A much better idea in the case, as mentioned above, could have been to say “Hello…, we appreciate your interest in our content. How was the XYZ document valuable or relevant for you? … As I have seen on LinkedIn, you are working as an analyst. So, what’s of specific relevance for you in your role?” Etc…
Needless to say, I would have been much more engaged in such a conversation than the above-mentioned bad examples, and with no damage to the vendors’ brand. What’s so difficult about doing it this way? It only requires evident homework, preparation that would prove that someone would care about me as a potential customer. Instead, I felt treated just like another damned prospect.
Making lead follow-up calls effective with coaching
This simple step helps to sort out prospect roles that are not relevant as a potential buyer (e.g., me in an analyst role) which reduces the number of calls to make and increases the potential effectiveness of those calls. Now, let’s look at how to increase the effectiveness of those calls. There are lots of ways to get the necessary insights for coaching sales or marketing people running these calls: riding along, analyzing recorded versions, and so on, always combined with predictive analytics regarding call outcomes from the prospect’s perspective. Also, compare the approaches different people on the team may take. Understanding what works and what doesn’t, and where and how to make the necessary changes, is key to success. Maybe the messaging has to be adjusted for specific buyer roles; maybe the guided script has to be changed. Or maybe, just more and better practice and coaching is the key to more effectiveness. Understanding what works and what doesn’t, adjusting the activities and behaviors. Only then, when we know that we process the right activities in the best possible set-up, can training, practicing and coaching really improve the effectiveness of those calls.
Don’t disable sales with bad lead follow-up-call behaviors. Instead, enabling sales begins exactly here.
This article was initially written for Top Sales Magazine Sept 1, 2015
“The beginning of wisdom is the definition of terms.”
Imagine a group of people in a business meeting who are discussing a certain topic that seems to be familiar to everybody. But somehow, the meeting goes on and on. Then it ends with – no decision. We all know those unproductive scenarios. People assume that all others have the same (their own) understanding of a certain term. But this is often not the case. Then meetings end nowhere, the time has been wasted, and no decisions have been made.
This is why definitions are so important. Definitions are a productivity booster rather than a waste of time. Most important in our ever-changing and complex world of selling and buying is that definitions have to be adjusted, changed, and evolved to remain valuable.
And that’s exactly the case with sales enablement. How enablement began its journey several years ago may no longer be appropriate to create sustainable and scalable business value in today’s ever-changing environments.
Let’s analyze how a world of rising buyer expectations requires that enablement evolve to a more dynamic, strategic and holistic discipline.
Our 2015 MHI Sales Best Practices Study shows that world-class sales performers involve an average of 5.8 stakeholders at the customer, and 4.6 within their own organization. That’s significantly more than average performers, who only involve 4.4 stakeholders at the customer and 3.8 people internally. More people involved leads to more complexity to be mastered. But more people involved also leads to better sales performance. That’s counterintuitive, but this world-class segment outperforms all others in terms of increasing customer retention rates (+5.8%) and sales performance (+23%), measured by various sales metrics. What are they doing differently?
World-class sales performers adapt better and faster to rising and changing buyer expectations in a customer-centric world.
World-class sales performers know that understanding the specific customer’s journey, and all involved stakeholders, is the foundation for providing valuable perspectives. World-class sales performers create value at each stage of the customer’s journey for all stakeholders, each of whose involvement may be different. They provide valuable perspectives on how to achieve even better results and wins, and collaborate with customers to calculate their specific business value. World-class sales performers know exactly how to navigate the different dynamics along the entire customer’s journey, and they don’t walk away after a deal has been closed.
That’s why enablement needs to be refreshed and redefined in a strategic and holistic way – Sales Force Enablement
All these findings on world-class sales performance require a dynamic, strategic and holistic enablement approach based on the customer’s journey as the main design point. That’s why I came up with a new and comprehensive definition. Many years in different sales roles, as an executive in the enablement space evolving the topic from a program to a strategic function in a large corporation; and working for many years with peers in the same space plus working with our clients, have led to this sharpened approach. Here we go:
A few soundbites for you on the definition:
- Strategic means that the business strategy is mapped to sales execution to derive a specific enablement scope that’s tailored to addresses an organization’s weaknesses, gaps and strengths to execute the business strategy successfully.
- We call it a discipline, as enablement can be organized in many different ways depending on your context and maturity. Enablement, whether it is a program or a function, is always cross-functional. The orchestration of tasks and processes – such as content creation and distribution or training design and delivery – always involves several functions and often external providers.
- Sales results and productivity are the quantitative metrics by which an organization assesses the performance of their sales function. Specific goals always have to be defined based on your organizational context and your specific point of departure. Make sure to cover both, effectiveness (first) and efficiency metrics.
- Providing integrated content, training and coaching services helps to ensure consistent messages across the sales force. There is no training without content, and no enablement content should be provided to the sales force without at least a “how-to-use” video.
- As a consequence of providing coaching services, frontline sales managers are a key target group to ensure that coaching can reinforce the enablement efforts. No sales leader can afford to put enablement investments at risk by not aligning enablement and coaching.
- As discussed above, what separates world-class performers from all others is their ability to make the customer’s journey and all involved stakeholders their main design point.
- Last but not least, sales force enablement is powered by technology from the creation and production of enablement services (content, training, and coaching) up to their distribution and integration in CRM systems with mechanisms that provide relevant services at salespeople’s fingertips.
As an MHI research member, please check out the related Research Note that explains the definition in detail. You can also have a look at my keynote from the SAVO Sales Enablement Summit 2015 to learn more about the underlying maturity model that covers a required level (where we have all started to organized certain domains), the recommended level (that’s the sales force enablement definition) and the world-class level (our ambition), which we call customer-core enablement.
This article was first published in Top Sales Magazine, July 28th 2015
Related blog posts:
Missing Something in Your Sales Enablement Approach?
Manage Mechanics, Navigate Dynamics
The Customer’s Journey Matters, Or How To Avoid Seller and Buyer Misalignment
Providing Perspectives – A Dynamic Customer-Core Engagement Principle
In a complex, ever-changing world of rising buyer expectations, the business need for sales enablement is growing every day. There is no sales leader’s agenda without enablement challenges.
In our customer-centric era, selling means creating value at each stage of the customer’s journey. That requires sales professionals to know their prospect’s industry, their business, and their specific roles and challenges as well as their relevant metrics. Only with this customer knowledge can sales professionals create value for them at each stage of their customer’s journey; and not waste their time. World-class sales performers know how to adapt to these rising buyer expectations. They shift their knowledge and adapt their skills, strategies, and expertise fast and effectively, tailored to the specific situation.
This is where sales enablement comes into play. This kind of adaptive value creation for prospects and customers requires strategic, dynamic and scalable enablement strategies for organizational execution.
It’s time to evolve sales enablement from a tactical “fixing a quarter” approach to setting up a platform for productivity that ensures sustainable sales results.
Are you leading a sales enablement program, initiative or function?
Are you leading a sales training, sales readiness, field readiness, sales effectiveness, etc., program, initiative or function?
If so, please read on, because our CSO Insights Sales Enablement Study could provide you with valuable data and insights on a number of questions, such as:
- What are best-in-class organizations doing differently when it comes to sales enablement? What can we learn from their approach?
- What kind of enablement services really move the sales performance needle?
- What’s the role of enablement technology and what metrics can be improved by technology?
- What are the real investments in enablement, mapped to the sales results?
- How mature is enablement as a discipline, and what are enablement maturity levels?
- How is sales enablement organized in world-class organizations?
- How does sales enablement manage cross-functional collaboration effectively?
- To what extent are enablement approaches “customer-core”?
- Are frontline sales managers considered as a target group? If so, how does sales performance look different?
What is the overall business impact sales enablement can create? And what is the difference between world-class and others?
Please take 15 minutes to complete our sales enablement survey. It’s a “help us help you” approach. We will conduct a detailed analysis of your data, and we will share study results with our participants first. Those results are highly valuable assets for you on how to evolve your enablement practice. Also, these data points help you to sell your enablement strategy internally.
What’s in it for you?
- Immediate Thank You: Upon completing the survey you will be able to download the CSO Insights’ 2015 Sales Management Optimization Key Trends Analysis
- In October 2015, you will receive the 2015 Sales Enablement Study Key Trends Report that will provide you answers to the questions above and more
Here is the link to the survey. Thank You!
This application management deal is a “must-win” deal. We have the best solution, we have a great relationship with the customer and we save them a lot of money with this new cloud-based service. We all know overconfident sales statements like this one, don’t we? But then, all of a sudden, the deal goes south. The customer makes a decision for a competitor. Why? Because this competitor offered a much bigger business impact, connected to the customer’s relevant financial metrics. It’s a disaster for the sales team, the funnel and the quarter.
Cost savings are a translation of features and functions into a financial equivalent. Cost savings don’t connect to the customer’s desired business results per se. They are a prerequisite for getting to their specific business value.
Cost savings are still in the category of what a product, a service or a solution IS (features and functions) and what it DOES (saving money), but not what these cost savings MEAN to the customer. The typical question of a CFO kind of role will be: “So what?” In our 2015 MHI Sales Best Practices Study, we identified critical customer behaviors. One of these behaviors is that customers decide how they calculate value. In this year’s study, 61% of the world-class sales performers indicated that their customers require formal calculations on business value (ROI, TCO, and specific business cases, etc.) before making a buying decision, compared to 39% the year before. Look at this huge hike from 2014 to 2015, and consider that only 35% of all respondents indicated the same customer requirement (versus 26% in 2014). Now, what are world-class sales performers doing differently?
World-class sales performers know that their products, services, and solutions are only one element in the customer’s approach to solving a problem or mastering a challenge.
Value always lies in the eyes of the beholder, the customer. As customers make every decision differently, every time, the customer’s desired business value has to be different from the provider’s product-oriented cost savings. There is a natural gap by definition. This gap is one of the reasons why traditional ROI calculators never impress a customer stakeholder who has a financial focus. Those ROI calculators are, most of the time, product-oriented, which means they only cover one element of the customer’s solution, the provider’s offerings.
World-class sales performers map their product’s cost savings to their customers’ broader business value calculation.
That means that in the customer’s business case, the offered product’s cost savings will often be only one line item. World-class sales performers know how their cost savings can impact other financial metrics in general. Their expertise in understanding the customer’s context and the stakeholders’ different concepts allows them to figure out which financial metrics are important for this buying team, this time. They also identify the strategic business initiatives and connect the dots between their product-based cost savings, the directly impacted financial metrics and their impact on the customer’s strategic business initiatives.
Understand your customer’s financial performance and identify financial metrics that matter to them
Many sales professionals were trained to focus on their ROI and TCO as discussed above. That worked as long as (in our example of a cloud-based application management), IT departments and technical buyers made the decisions alone. Now, as we observe a huge shift to business buyers and cross-functional and complex buying teams, business value calculations become very different. Why is this the case? Because there are no IT projects anymore. Every IT project that exists has at least one business reason, why it exists. Consequently, business values are calculated differently. In general there is a switch from efficiency and budget optimization to effectiveness and investment thinking.
Understanding your customers’ current financial performance and their goals are the first step to identifying metrics that make a difference to them. Financial reports, analyst views, strategic initiatives are great sources to educate yourself. Learning additional financial metrics such as e.g. return on assets (ROA), return on equity (ROE), operating costs, cash flow, EBIT and EBITDA, as well as net and gross profit margins are essential to create outstanding value for your customers next time.
Create a value mapping chart for the entire buying team
Such a document includes the business reasons for every buyer, their desired solution and their desired tangible results and intangible wins, and how they measure success. Then, map back to the relevant metrics of the strategic initiatives, identify alignments, gaps and maybe inconsistencies. Then, come up with an overall approach to your customer’s business value calculation, integrating the stakeholders’ relevant metrics. Being prepared like this shows that you work backward from the customer’s context, and the stakeholders’ different concepts and that you made a lot of efforts to create extraordinary value for them. That’s the entry ticket to have effectiveness and investment focused conversations on eye-level. This is where you should be to win the next deals.
Related blog posts:
Providing Perspectives – A Dynamic Customer-Core Engagement Principle
Manage Mechanics, Navigate Dynamics
How Sales Professionals Create Value for Customers
This article was initially written for the Top Sales Magazine June 30th, 2015