The Rapid Response Institute

Category: Sales

  • Send in the Suits

    Send in the Suits

    “The best teachers are those who show you where to look, but don’t tell you what to see.”

    –Alexandra K. Trenfor

    As a sales manager, executive and now independent advisor, I am often asked to go on sales calls. Sounds like what every sales executive should to, support the representative, interact with the client and help close the deal, right?

    Not so fast, often this is a crutch.  For a number of reasons, mostly lack of preparation, the sales representative is looking to outsource the sales call.  What often happens next, the perception the part of the client of a weak performance by the vendor. This tact will backfire more often than not.

    It continues to amaze me how unprepared sales calls are.  In the heat of making as many calls as possible, real opportunities are routinely squandered.  The feeling among many reps is that an executive adds gravitas and is almost a dressed up potted plant in the room.

    Meet and Greet is only appropriate at an event, such as a hospitality suite at a conference. A sales call needs an agenda and end game goals. “I wanted to introduce so-and-so is not an agenda and will accomplish exactly nothing.

    Proper Use of an Executive

    We asked Chatbot Pro two questions, How to Plan a Sales Call and How to Use a Senior Executive on a Sales Call.  Its response follows:

    How to Plan a Sales Call

    Planning a successful sales call involves several key steps to ensure that you are prepared and can effectively engage with the potential client. Here’s a guide to help you through the process:

    1. Research Your Prospect – Understand the prospect’s business, industry, and any specific challenges they might be facing. Use LinkedIn, their company website, and news articles.

    2. Define Your Objective – Be clear on what you want to achieve. This could be setting up a follow-up meeting, closing a sale, or gathering information.

    3. Prepare Your Value Proposition – Articulate how your product or service can solve a problem or improve the prospect’s situation. Tailor this based on your research on their needs.

    4. Develop Questions – Craft open-ended questions that will help you understand their needs better and match your solution to their requirements.

    5. Plan Your Pitch – Create an outline of what you want to say during the call, focusing on key benefits and features that resonate with the prospect.

    6. Practice Active Listening – Be prepared to listen more than you speak. Make mental notes of key points the prospect mentions so that you can address them.

    7. Set the Agenda – At the beginning of the call, outline what you hope to discuss and ask if there’s anything specific the prospect would like to cover.

    8. Prepare for Objections – Anticipate potential objections the prospect may have and prepare responses to address these concerns.

    9. Follow-Up Plan – Be ready to discuss next steps and how you’ll follow up after the call, no matter the outcome.

    10. Practice and Refine – Role-play the call with a colleague or rehearse your talking points to build confidence and identify any weak areas.

    11. Schedule a Time – Plan the call during a time that is convenient for the prospect, ensuring you have adequate time without interruptions.

    By following these steps, you’ll be in a strong position to have a productive sales call that builds rapport, addresses the prospect’s needs, and ultimately drives sales.

    How to Use a Senior Executive on a Sales Call

    Using a senior executive in a sales call can significantly enhance your pitch, especially when dealing with high-stakes clients or complex sales. Here are steps on how to effectively include a senior executive in your sales call:

    1. Identify the Right Executive – Choose a senior executive whose expertise aligns with the prospect’s needs or the solution being offered. This could be a CEO, CTO, or another relevant leader.

    2. Prepare Them with Context – Provide the executive with background information on the prospect, including their business, challenges, and previous interactions. Share key objectives for the call.

    3. Define Roles – Before the call, clarify who will lead the conversation and how each participant will contribute. The senior executive can handle higher-level discussions, while the sales rep can manage details and logistics.

    4. Focus on Value – During the call, the executive should emphasize the strategic value and vision of the solution rather than delving into minute details. This highlights the significance of the partnership.

    5. Build Credibility and Trust – Having a senior executive on the call can instill confidence in the prospect. They can address company capabilities, commitment, and long-term vision, which can reassure the client.

    6. Encourage Engagement – The executive should ask questions and encourage dialogue. This not only fosters a relationship but also helps uncover deeper insights into the prospect’s needs.

    7. Handle Objections – Use the senior executive’s authority to address any key objections the prospect may have. Their experience and level can help navigate concerns more effectively.

    8. Follow-Up Actions – At the end of the call, the executive should help define the next steps or commitments. This shows commitment from the top level of the organization.

    9. Thank and Acknowledge – Thank the prospect for their time and reiterate the value that your organization can bring, leveraging the senior executive’s closing remarks for strong impact.

    10. Debrief After the Call – Review the call with the executive afterward to assess what went well, what could be improved, and any follow-up actions needed.

    Including a senior executive in sales calls can provide a significant edge by leveraging their authority and experience, ultimately leading to more successful outcomes.

    The use of senior executives, and I would include senior support individuals such technology gurus or Chief Digital Officers, etc. takes a fair amount of prep work.  Moreover, clients may invite counterparts and/or others to the meeting.  A big deal!

    It is only fair to all concerned that the call be well thought out.  This is not to say stick with a rigid script.  The dialogue may well lead into other areas and deals struck may be substantially different than the original position(s).

    “We’re from corporate and we are here to help.”  How do you maximize this valuable asset?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if your job depends on Big Data and Artificial Intelligence (AI)?

    Available June 2025

    Ordering Information

    We are also pleased to advise our loyal readers that CRC Press has accepted our proposal for this forthcoming book, Nonlinear Big Data and AI-Enabled Problem-Solving: Transforming From A Spreadsheet Society.  Stay tuned for more details.

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in June 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Leadership Selling

    Leadership Selling

    “The price of greatness is responsibility.” – Winston Churchill

    I recently watched a documentary about Three Mile Island.  I did not fact check it or try to assess bias but if much of what went wrong were correctly portrayed, leadership was missing in action.  The father of the US Nuclear Navy, Admiral Hyman G. Rickover and his demand for excellence was referred to on several occasions.  He was rightfully positioned as THE sector leader during that era when nuclear power generation was an emerging technology.

    In the context of leadership, the following is attributed to him, “Responsibility is a unique concept… You may share it with others, but your portion is not diminished. You may delegate it, but it is still with you… If responsibility is rightfully yours, no evasion, or ignorance or passing the blame can shift the burden to someone else. Unless you can point your finger at the man who is responsible when something goes wrong, then you have never had anyone really responsible.”  This is a very telling statement that is applicable to the many human foibles that have resulted in cataphoric failures, even warfare and almost all high visibility major industrial incidents.

     A clear explanation of the difference between Management and Leadership.

    What Does All This Have to Do with Selling?

    Typically, organizations refer to the process of revenue generation as Sales.  However, a more accurate description this process is Selling.  The action verb, selling can result in a sale or series of sales.  Yet, for each competitive engagement most of these costly attempts at revenue generation will result in no sales–zero revenue.   Fail at enough opportunities and the firm’s Cost of Sales can skyrocket.

    Moreover, increasingly B2B solutions are a combination of products (seller product line and possibly third parties) as well as services (can include Cloud subscriptions).  By definition, Complex Sales is getting more complex and interrelated with other new/existing systems.

    Failure is Not an Option!

    “SUBSAFE was born in 1963, just two months after mechanical failures resulted in the loss of USS Thresher (SSN-593).  The program was started with a simple goal in mind: ‘. . . provide the maximum reasonable assurance that the ship will not have flooding but if flooding does occur, assures that the ship will get safely to the surface.’”  The program is deemed as a major life saving success, partially by enabling real responsibility to all including contractors.

    Safety and Environmental Management Systems (SEMS) are a similar construct.  Most organizations in Critical Infrastructure sectors incorporate SEMS into their Operations Management Systems (OMS).  For our purposes here, we will repurpose and slightly change the nine tenants of the US Bureau of Safety and Environmental Enforcement’s BSEE, SEMS.

    We posit that the following Tenants comprising our Selling Management System (SMS):

    1. Commitment to Values and Actions. Leaders demonstrate a commitment to societal and organizational values in their decisions and behaviors.
    2. Issue Identification and Risk Management. Issues potentially impacting the deal and its successful delivery are promptly identified, fully evaluated, and promptly addressed or corrected commensurate with their significance.
    3. Personal Accountability. All individuals take personal responsibility for process and personal behavior, as well as the stewardship of those entrusted to them.
    4. Work Processes. The process of planning and controlling work activities so that the selling action items are in accordance with organizational mission and policies as well as boding well for success.
    5. Continuous Improvement. Opportunities to learn and codify selling and delivery knowledge, ensuing future success and organizational learning.
    6. Environment for Raising Concerns. A work environment is maintained where personnel feel free to raise issues and concerns without fear of retaliation, intimidation, harassment, or discrimination.
    7. Effective External and Internal Communication. Communications maintain a focus of the selling efforts and processes.
    8. Respectful Work Environment. Trust and respect permeate the organization with a focus on teamwork and collaboration.
    9. Inquiring Attitude. Individuals avoid complacency and continuously consider and review existing conditions and activities in order to identify discrepancies that might result in error or inappropriate action.

    It is not surprising that action items focused on revenue generation should align with business imperatives towards effective and efficient operations.  This is especially true when operations personnel are assigned to the pursuit team as they will play a major role assuring successful delivery, i.e. most capital (CAPEX) goods and services.

    Tenant 6, Environment for Raising Concerns is perhaps one of the most important when enabling junior leadership.  For example, if a material issue is identified by a new college graduate in her or his field and unnoticed by more senior individuals schooled in early technologies, failure to be “heard” may have deal failure ramifications, i.e., engineering or software errors.

    Leadership is not part of a title, except by self-serving politicians who routine call themselves leaders.  Leaders are not born either, they are individuals (all ages and genders) who when needed, rise to occasions great and small.  The Rickover Mind Model enables leaders to emerge and that includes leadership during selling processes.

    Complex Deal Pursuit Team

    A deal Pursuit Team is a formal group assigned to drive revenue opportunities for a single deal/long-term strategic relationship or even partnership.  It can be an ad hoc assemblage or more effectively the assembly of experts with this type of experience.  Ideally, for a significant opportunity this team has a sole focus during its lifecycle, but that is not always the case or even practical in some firms or deals.

    Team composition can include, Sales Representative(s), Sales Management, Sales Support Team (as required) Executive Sponsor (if appropriate), Subject Matter Expert(s), Project Management, Third Parties (subcontractors and/or technology/professorial services providers), and others as needed.  Not all participants will be required full time.

    Typically, there are three phases to this process:

    • Relationship and Opportunity Development–The relationship building processes between seller and buyer as well as identification of value that can be added from seller products/services/solutions.
    • Formal Proposal Submission–Development and draft (with revisions) of a documented Scope of Work/Products, Deliverables and Pricing.
    • Proposal Assessment and Acceptance–Buyer review, changes and agreement to move forward–The Deal!

    Leadership is required throughout this process, and it may come from very unlikely sources.  Often top-level technologists and engineers are not the most outgoing folks.  However, their thoughts can be game changing.  It is important that those on the quiet side be actively ‘Included,’ and their ideas sought out and given serious discussion.

    Role of AI Agents

    “AI sales agents are autonomous applications that analyze and learn from your sales and customer data to perform tasks with little or no human input. These agents can perform a wealth of functions, from top-of-funnel tasks like nurturing leads with email outreach, answering questions, booking meetings with sellers, and quote creation to tasks more deeply integrated inside sales teams, like active buyer roleplays and coaching. What makes them different from simple workflow automation is that agents are capable of learning, using data analysis to work more efficiently, taking action on their own.”

    The Pursuit Team is responsible for winning the deal and AI is another tool, not unlike product demonstrations and marketing efforts.  AI inputs should be calibrated and interpreted just like other data sources and analyses.

    Final Thoughts

    Remember that people buy from people and individuals on both the selling and buying teams have personal agendas, such as getting promoted.  Sellers who identify many/most of these concerns stand a better change of closing the deal.

    Closing deals generates jobs.  Both by the vendor and its ecosystem as well as the client who will use the product/service/solution to increase the stakeholder value ecosystem.  Stakeholders are broadly defined including local communities and customer’s customers.

    It is safe to say that the complex selling process is dramatically changing.  Time to get on board!

    Nothing happens until somebody sells something!  How is your company assuring the selling process is routinely successful?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if your job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    Ordering Information

    We are also pleased to advise our loyal readers that CRC Press has accepted our proposal for this forthcoming book, Nonlinear Big Data and AI-Enabled Problem-Solving: Transforming From A Spreadsheet Society.  Stay tuned for more details.

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in April 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • CRM Suks

    CRM Suks

    This author recently received an automated text message regarding an upcoming process.  Received the day before the scheduled process, the text described pre-process procedures (as if it was in the future) to be completed 72 hours beforehand.

    Customer Relationship Management (CRM) systems are ubiquitous.  These automated systems remind customers of valid business relationships as well as enabling scammers with all manner of fraud or worse.

    Process Management

    We have known for some time that any automated IT scenarios require that a specific process be identified and codified.  In other words, before IT system implementation a Process Assessment must be undertaken and verified as correct.

    It seems that in the case above, this assessment was poorly done.  Unfortunately, this seems to be the case with many CRM systems.  Perhaps, this is because ‘process’ is not a term common to the marketing and sales profession.  However, one would think that the CRM IT provider would know better?

    Badgering

    For those who think repeated emails or texts to a non-responsive prospect or even customer will win of the day.  Think again, this concept is a major turn off.

    “Just checking to see if you got my previous email,” just reinforces why I don’t want to do business with you.  If your first message does not generated interest, restating it ‘repeatedly’ will not either.

    Moreover, we have previously commented on the cold call phase, “I’d love to jump on a call with you and learn more about your company.  I am sure we can help.”  Another non starter.  The sales rep/company must put forth a value proposition that addresses MY issue.  Therefore, homework is required and not just a bunch of unintelligent automated calls/texts/emails.

    For those readers interested, we have previously addressed the concept of a ‘meaningful’ Value Proposition in detail.

    Final Thoughts

    Poorly designed Customer Relationship Management systems whose processes appear to be frivolous can alienate customers and cause prospects to disregard your message.  The cost of Customer Acquisition and Retention can be very high.  Doesn’t the process aimed at both activities warrant as much thought as your organization’s financial and other systems.

    How is your organization treating your customers and prospects?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor for an in press book (to be released in Spring 2023) titled, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our recent blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • You’re Kidding, Right?

    You’re Kidding, Right?

    Not Again

     

    In 2018 we posted an opinion regarding social media driven sales ‘cold calling.’  As noted then, the comments went along the lines, “I reviewed your profile and I know I can help.”  This unsolicited approach continues to be blown off by this and other pundits/potential customers as amateurish.

    Recently, the tactic has sifted.  Now the argument seems to refrain (not literally), “I have reviewed your profile and I would like to offer you something that you have no interest in.”  What?

    In the past few weeks, I have been offered the opportunity to ‘buy in’ to an insurance agency, retain a coach, buy a franchise specifically chosen for me, and any number of prospect generation engagements.  Kidding right?  As if I do not know how to run my business?

    Innovative solutions that individuals and organizations are not aware of can add value and ‘reaching out’ to inform those unaware is legitimate and a long standing sales approach.  Most prospects welcome this knowledge and then can make an informed decision as to the relevance to their needs.

    Lunch and Learn models come to mind.  If I respond to this invitation, perhaps I am a qualified prospect worthy of follow up.

    The Call Back . . .

    Then, “Since you did not respond, I am sending you the same crap again“.  Maybe there was no response because the owner of a software company does not want to invest in the insurance business.

    A follow up should further the prospects knowledge, thus generating interest.  Regurgitating the same o ‘ same o ‘ is pointless, if not insulting.

    What a waste of everyone’s time, including the seller.  If the idea is just to blast everyone and see what sticks, this approach has never really worked.

    For example, somehow despite my being on the ‘no mail’ list this writer routinely receives (snail) junk mail from an AC service company that is not nearby, two real estate brokers I have no relationship with (one because they sold the house next to mine last year) and the infamous, home insurance renewal scam.

    Finally, I love the one whereby the vendor will send me qualified leads for my stock brokerage business.  What filter did that guy use?  Maybe AI.  As might be expected, none of these vendors received a call back, much less a sale.

    Someone With Your Name

    We have all received notification that someone with your surname has died and her/his bank account has millions in it.  “I am writing to you because we can transfer this wealth to you.  Just send us your banking information.”

    How is any of this different from online cold calling?  At its core, it is not.  These approaches to selling are abusive and condescending.  Moreover, they are not likely to win any business.  They come across as scams and not bonifide offers.

    Develop a Value Proposition

    If you want my business, explain how its adds value to my life.  Don’t just blast out something you HOPE will get my attention.  Why do I need coaching?  Why do I need a franchise or insurance agency?  Tell me something that matters to me.

    I am sure this message will not be heeded and I expect to continue to receive worthless materials from people I do not know.  The waste of bits and bites will not stop.  Just know that like rewards from the African princesses, such requests will go to Junk.

    For a sales model that works, see our Economic Value Proposition Matrix® (EVPM).  Additional information and a free version to build your own EVPM is available.

    Are You Doing Your Homework and Presenting Yourself/Organization as a Legitimate Provider?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    You can contact this author as well.

     

     

  • Want – Like – Need

    Want – Like – Need

    Years ago, as part of a never-ending series of company reorganizations, a team of our change management consultants headed to the ‘field’ to interview users.  Upon their return, they presented an extensive list of technology investments deemed necessary to remain competitive.

    Their list focused on technology and not business concerns.  Wondering, I asked who they interviewed.  Proudly, they proclaimed the “field engineers.”  When queried–did they talk with district managers, regional engineers and others with P&L or other managerial responsibilities, the answer was “no.”

    This very expensive process by a major professional services organization simply generated a wish list of junior employees.  It was what they thought they WANTED.

    In our current jargon, “cool stuff.”  Needless to say, none of these projects were funded.  Wasted time and money by those not familiar with our business!

    Today, we are driven to LIKE everything!  CRM systems demand input before we have even procured the product or service.  Log on to any given website and the request to complete a survey will hit you before you read the first line.  Five stars or thumbs-up emojis appears to be the goal.

    Do wants and likes add value?  Perhaps a like is a statement of preference, but perhaps the consumer wants the digital driven question to just go away without the hassle of someone begging for a higher ranking like.  Fibbing to surveys has become a national pastime.

    Business should be most concerned about what a prospect or returning customer NEED.  What pain point or problem does your product/service solve?  If you can’t answer that question, no amount of wants and likes will add to your bottom line.

    I may want a hamburger and go to a fast food restaurant with lots of likes.  However, if I am in a hurry and their preference is clearly to move cars via the drive-through faster than those of us waiting inside, my need to eat quickly will not be met.  I may leave without my meal or most likely not respond to a survey seeking likes.  Then never return!

    That lost customer will never surface in any analysis—not even one star.  Enough of those responses and the business will be in jeopardy and management my not even know why.  Collecting likes should never be a Key Performance Indicator (KPI).

    Finding the Pain

    In a recent Global Energy Mentors leadership meeting, an investment group recounted their business model as one that focused on identifying organizational ‘pain’ points.  Once a specific pain was articulated, the search for new technologies that would address/resolve that pain was undertaken.

    This model flies in the face of Steve Job’s, “A lot of times, people don’t know what they want until you show it to them.”  That may be and sometimes unknown needs are uncovered.

    However, in critical infrastructure sectors where failure is not be an option because it can be very expensive solving a known need is usually most important.  Without exception, this entrepreneur’s success has been focusing on addressing industrial client known pain points.  As an example, our EVPM modeling process demands input from customer groups.

    In this blog series, we have referred to successful change management that comes from addressing the—what’s in it for me question.  From a customer perspective; freeing ‘me’ from known pain is often more valuable than alleviating pain I did not know I had.

    Does Your Value Proposition Solve a Need, Address a Want, or Simply Generate a Like?

    For More Information

    Please note, RRI does not endorse or advocate the links to other materials.  They are provided for education and entertainment only.

    You can contact the author more information as well.

    End Notes

      http://globalenergymentors.org/

      https://www.helpscout.com/blog/why-steve-jobs-never-listened-to-his-customers/

      https://therrinstitute.com/brand-your-digital-oilfield-culture-internalize-its-transformation/

  • It’s the Economics Stupid!

    It’s the Economics Stupid!

    Since it was first uttered in the early 1990s, the phrase “It’s the economy stupid” has been used and misused extensively.  Let’s squander the lexicon one more time.

    The US ‘silly’ political season is well underway and forecast to last almost 13 more months—no telling what voodoo economics will emerge.  Those of us with our business noses to the grindstone must ride this stormy weather to a safe port next November.

    Most have an interest in the macroeconomic policies nation states put forth but other than voting and perhaps lobbying, there is little many can do to materially impact the economy.  What we can do is focus on the economics of our business—CAPEX.  Hence, our daily mantra should be, “It’s the Economics Stupid.”

    What Is Your Value to the Customer?

    For over the fifteen our organization has been, “Helping Clients Achieve Organizational Agility, Resiliency and Sustainability.”  Assisting clients develop and articulate a viable economic value proposition has been one of the most elusive and vexing challenges.

    There is a strong tendency to make statements that are Overstated, Not Demonstrable, and Not Defendable.  Declarations such as, “Enhanced credit control system for partners through increased information visibility” are effectively meaningless—yes, this is an actual quotation from a software company.  Customers are left with the question, “What does that mean for me?”

    Translate Technology into the Language of Business

    If you leave your customer with the above and/or other questions regarding your value to their enterprise, likely the sale will not close.  Probably, a more coherent competitor will leave with the deal.

    CAPEX always undergoes extensive scrutiny; even at the Board level in some cases.  While new and cool technology may ultimately be disruptive and of extremely high value, peddlers must speak the language of the Chief Financial Officer and her staff.  These are ‘green’ deals!

    Those tasked with generating revenue from technological solutions must also take on the role of translator.  Bridging the cultural differences between cool stuff and the bottom line requires a Rosetta Stone.

    The Economic Value Proposition Matrix® model (EVPM) was originally developed with a Super Independent oil and gas operator at the first part of the century to become that Rosetta Stone.  Working with customers, technology providers can now prepare for the inevitable decision by the CFO.  Usually, the vendor will not attend said meeting but preparing the customer staff to make the case is mandatory.

    This video tells the whole story in less than 43 minutes.  Is winning your next deal worth an investment of three quarters of an hour?  If not, keep doing what your doing and hope for a different result.

    The video makes the case that technology offerings often seems similar.  The same buzzwords and euphemisms often confused clients and make it appear that since the solutions are basically the same, just go with the low dollar.  Rising above this clutter is required to be successful.

    How is Your Value Proposition Better Than Your Competitors’?

    For More Information

    Please note, RRI does not endorse or advocate the links to third party materials.  They are provided for education and entertainment only.

    You can contact the author more information as well.

    End Notes

      https://en.wikipedia.org/wiki/It%27s_the_economy,_stupid

      https://www.forbes.com/sites/briandomitrovic/2018/12/02/george-h-w-bushs-voodoo-rhetoric/#26f9ad21798a

      https://www.investopedia.com/ask/answers/042415/what-difference-between-operating-expense-and-capital-expense.asp

     https://en.wikipedia.org/wiki/Rosetta_Stone

  • Zero: What If Switching Costs are Near?

    Zero: What If Switching Costs are Near?

    Customer Acquisition and Retention (CAR) are two of the most important activities of the Marketing and Sales strategies and should be KPIs for “C” suite occupants as well.  One of the classic case studies of the battle over CAR is the so-called Cola Wars initiated between Coca Cola and Pepsi Cola in the 1970s.   These two established giants of that sector fought for market Dominance in a manner that is instructive for today’s audience.

    Readers are cautioned that this Modern Marvels (The History Channel) video is almost 45 minutes in length, although with almost a million views on YouTube alone it appears that many (including this blogger) have found the information of value.

    https://www.youtube.com/watch?v=jOKnXZK0apE

    One can surmise that the reason, this match was dubbed, the Cola Wars—it was a brutal confrontation between the number one and number two economic actors in that space.  Coca Cola was heavily damaged (sometimes self-inflicted wounds) yet later recovered.  This was in part due to a loyal (emotional) following of its customers once it got over the fiasco; New Coke.

    The subsequence competitive landscape was forever changed, possibly more because of the entrants of new products by both firms.  However, the past can be prologue.

    According to one recent source;

    • “The top 10% of your patrons probably spend three times more than your average customer.
    • Acquiring a new customer can cost five times more than retaining an existing customer.
    • 33% of American customers say they consider switching companies immediately following a single instance of poor service.
    • 55% of consumers believe companies have a more important role than governments in creating a better future.
    • 77% of businesses that exceeded their revenue goals in 2018 have documented personalization strategies.
    • 95% of loyalty program members want to engage with the programs via virtual reality, wearable devices, and other cutting-edge technology.
    • Customers who are emotionally connected have a four times greater lifetime value.”

    This pundit has long argued (often on this and other blogs) that despite significant changes in Social Media and our abilities to connect worldwide, ‘human nature’ has not changed (much if any).

    For example, after the Pepsi Challenge and use of popular celebrities of the time, Coke customers did in fact ‘switch.’  However, when Coke rectified its market transgressions many switched back.

    It follows, that against the contemporary list above:

    • Coca Cola customers were committed and emotionally connected to the firm’s product, albeit not the firm itself
    • Pepsi’s acquisition strategy was expensive and, in the end, not very effective
    • Many Coke drinkers did switch when confronted especially after the New Coke strategy
    • Each cola was personal to the individual consumer

    The challenges of the distant Cola Wars may not seem relevant today.  Yet, Apple’s Steve Job’s opportunity to the then Pepsi CEO John Scully, “Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?” may have been more apropos that subsequent events between the two men depicted.

    The Cola Wars case study holds timeless lessons.  All businesses seek to increase their customer base and stave off competitors.  This is life in the free (and not so free) enterprise sectors.

    The cautionary tale to both established and those seeking new markets is to think smart about the customer acquisition and retention processes and not cavalierly and simplistically.  This is true whether seeking to protect and installed base or switch it.

    Do You Know if Your Customer Acquisition and Retention Strategy is Actually Working?

    For More Information

    To calculate your own Risk Adjusted Customer Acquisition Cost, checkout our free model.

    You can contact the author more information as well.

    End Notes

      https://www.bartleby.com/essay/Cola-Wars-Summary-F3ZJHEKVC

      https://www.smallbizgenius.net/by-the-numbers/brand-loyalty-statistics/

     

  • Elevator: Going Up or Going Down?

    Elevator: Going Up or Going Down?

    True Story!  A couple of decades ago when I was the sales manager of a technology line of business that was part of a much larger organization, an excited young sales representative rushed into my office.  He just had to tell me that he just rode up the elevator and an older gentleman wearing a suit who had asked him about his business.

    He explained in the short time it took to get to our floor he had essentially ‘cored dumped’ everything he knew to this stranger.  When asked if he got his name, the answer was no.  Turns out the individual was the CEO of our division.

    While this was a discussion in an elevator, it was far from an elevator pitch.  Talking fast to get as much as you can in a short period is usually not an effective sales pitch.

    Plus, as always qualify who you are talking to and why they have a need to know.  Could have been a competitor!

    Unfortunately, we see this all the time.  Individuals try to jam in as much as they can in funding Pitch Competitions and political pundits in the media feel the same pressure to talk fast and then talk all over each other.

    However, and perhaps the worst of all selling transgressions.  We had attained a long-coveted meeting with a senior decision maker at a process plant.  We completed the pitch for our solution.  The customer team asked a couple of good questions which we apparently answered satisfactory.

    Then the senior director said words to the effect, “I can see how this can help my problem. . .” but did get a chance to complete his statement before one of our technical people ‘talked over him’ to explain blah blah blah.

    The classic, don’t wait for the customer to complete his/her question before answering it.  This usually means that it will be answered incorrectly.

    The subject changed, and the meeting ended shortly afterwards.  We never did discover how our solution could have helped in the mind of that individual.

    In our zest to close deals, we often are our own worst enemy.  When presented with an opportunity to state your case to a buyer, state it succinctly and quickly.  Then shut up and let the individual respond!

    Elevator Pitch

    According to Wikipedia, “An elevator pitch, elevator speech, or elevator statement is a short summary used to quickly and simply define a person, profession, product, service, organization or event and its value proposition.

    The name “elevator pitch” reflects the idea that it should be possible to deliver the summary in the time span of an elevator ride, or approximately thirty seconds to two minutes.  The term itself comes from a scenario of an accidental meeting with someone important in the elevator.  If the conversation inside the elevator in those few seconds is interesting and value adding, the conversation will continue after the elevator ride or end in exchange of business card or a scheduled meeting.”

    Mark Twain famously quipped, “I didn’t have time to write a short letter, so I wrote a long one instead.”  It takes time and thought to succinctly and quickly state something that is very important to its writer.

    The tendency is to say as much and as fast as we can.  Surely, everyone will want to know what I know and in detail.  This is such an important subject!

    However, if a deal is on the line what is the Return on Investment (ROI) of the time it takes to develop and refine an elevator pitch?  Like any business deal, if it will be profitable then do it.  If not, then why do we have the product/service!

    The ‘I didn’t have time’ comment is insulting to those who you explain it to in this regard.  The sales representative’s livelihood and firm’ profitability depend on you the rep’s team’s time.

    How Do I Develop an Elevator Pitch?

    To develop an effective elevator pitch, one must understand the product/service they are selling and have a ‘compelling value proposition’ already developed.  Write down every major item you want to get across and then continue to refine it until it meets the criteria above.

    What are the three most important points a customer would care about?

    Pitch it internally and then to outsiders such as mentors.  Update it as you receive additional input, both positive and critical.  Then Practice, Practice, Practice.

    It must come across effectively, not stilted nor leave the listener with the feeling they have been the subject of a ‘core dump.’  Let them respond, answer questions and ask them, “What’s the Next Step” sort of closing question.

    One caveat, since you do not know who you are talking to be careful about providing any proprietary information.  So, unless you have publicly available market or financial figures leave them out.  They can come later at follow up meetings.

    However, in the appropriate setting such as a Pitch Competition non-proprietary market and financial information will most likely be required in the elevator pitch.  Use your good judgement.

    For most of us the so called ‘blank sheet of paper’ can be intimidating.  It helps to have precedents.

    An Example

    The following is an actual elevator pitched developed a few years ago—targeting 20-30 seconds in a public setting.  It has been redacted as noted within it.

    _______ is an __________ “Enterprise Platform” that addresses _________-issues in sectors with complex ______ and ______ requiring many ____ parties and their _____.

    It seamlessly incorporates _____ and ______ enabling a _______, efficiency and effectiveness in operations—including an automatic and comprehensive ______ process.

    This cloud-based collaborative ____ solution provides ____ engineers, technicians and ______ personnel with the data and information necessary to perform their tasks in compliance with all __________________.

    There are also several examples available on line that address different requirements, i.e. sales, investor, etc. and industry sectors.  A good pitch will pay significant dividends and is well worth the time and energy necessary to develop.

    How Effective is Your Elevator Pitch?

      https://en.wikipedia.org/wiki/Elevator_pitch

  • You Have 10 Minutes: Maybe

    You Have 10 Minutes: Maybe

    Over the past couple of weeks this writer has been part of several conversations regarding the value proposition of technology for established as well as startup companies and how to articulate it.

    This remains a tough subject and we have been addressing it over the years.  However, there is an approach that is successful when properly executed.

    As part of master’s level course, one graded test for my students goes along these lines.  You have been given the opportunity to ‘pitch’ your CAPEX/Technology Sale to the Chief Financial Officer.  In the current market environment, she is skeptical about new capital investments.  She is the economic buyer, very busy and has allocated no more than ten minutes for this meeting?  How will you close the deal?

    Students are offered the opportunity to select their own project or sales initiative, so they are very familiar with the background.  This also allows them the opportunity to ‘rehearse’ with the instructor before the actual meeting with the CFO.

    First, What Not to Do

    Sadly, many sales representatives/internal project advocates view the selling process through the following lens:

    The merits of this project or technology solution are obvious.  After all, everyone agrees we must move forward.

    The Return on Capital Employed (ROCE) or Net Present Value (NPV) is clear on the chart presented.  The justifications (spreadsheets) support our plan.

    Moreover, senior executives only want the single PowerPoint slide and high-level risk overview.  After all, she doesn’t want the details and has been briefed by her staff.  How much can be discussed in ten minutes anyway?

    Hit–Lost Deal Button!!

    If this scenario sounds far fetched, it is based on reality.  At an Internet of Things conference, one panel moderator from a major professional services firm advocated that IoT investments must be made to remain competitive because everyone else is doing it.  When this attendee asked about project governance and risk mitigation planning, was told it was outside the scope of the discussion.

    What Drives Decisions?

    One of the first things this sales guy does when preparing for a meeting with senior executives is to read the Letter to Shareholders in the customer’s Annual Report.  Typically, the strategy, challenges and priorities of the firm are easily discerned.

    If the project/solution is not aligned with business, success is much less likely.  Also, how does it fit in the firm’s portfolio of projects/technologies?

    Often risks are not as well understood as they could be with simple models suggesting exposures are low and unlikely.  Many sale representatives do not even think about the governance issues associated with the ‘spend.’

    Expect a senior executive to be engaged and ask insightful even tough questions.  They have to be answered—with authority!  Can’t wing this, only homework will prepare for this meeting!

    Finally, what drives her?  Not the company; the individual.

    Hit–Won the Deal Button!!

    Is this in the ‘too hard to do’ category?  Not at all, and processes and means are available to guide this course.  Several tools are available such as our Economic Value Proposition Matrix® and the white paper Asset/Equipment Integrity Governance: Operations—Enterprise Alignment.  These can help guide your closing efforts.

    Not a typical sales model but it works—several billion dollars later!

    Lessons from the Classroom

    As might be expected in an academic environment, many students struggled to reduce the data into a ten-minute compelling pitch.  Mark Twain is credited with saying “I didn’t have time to write a short letter, so I wrote a long one instead.”

    It takes significant effort to succinctly address complex multi-faceted problems.  A classic; when tasked to write a one-page executive summary one student submitted a multi-page report with appendices.  His retort was that the subject was too important to only write one page on it.  This response defeated the learning objective of the exercise.

    CFO’s do not make trivial decisions.  If you would have her take time to listen to you.  Be prepared!

    Is the Deal Worth Winning?

    For more information check out our Value Proposition Matrix® and the Digital Oilfield Case Study.

  • Selling Your Economic Value Proposition to the C Suite: Translating Technology to the Language of Business

    Selling Your Economic Value Proposition to the C Suite: Translating Technology to the Language of Business

    The challenge of building a Business Case for CAPEX investments with high intangible content, i.e., IoT, professional services and operational excellence, remains difficult.  Many also argue that disruptive new business models are making the old ways irrelevant.

    Hence, we simply must make the investment to remain competitive.  After all, everyone is doing it.  A matter of faith!  The returns are huge (just look at this white paper).

    To some extent technological based business model disruption has always been true, certainly throughout the industrial and cyber revolutions of the last 200 years or so.  However, one of the major issues with technological change is the nature of the cultural differences between the technologists and those who write the checks.

    We have previously described organizational culture as partly a function of an Interdisciplinary Common Vocabulary (ICV).  One can look at the gap between advocates of new technologies and/or business models and the “C” suite as the lack of shared ICV.  This gap may become egregious during economic downturns when financial concerns overtake strategy.

    Making Your Case

    As a junior sales representative and later ‘pitching’ CAPEX projects to management, I often presented the ‘Feature—Benefit’ of my suite of products and services.  My success rate was on par with my peers, but the case could be made that I was no better than average.  We all had weak value propositions.

    While I did not know it at the time, my sales ‘ah ha’ moment happened when the department of head for an Engineering, Procurement and Construction (EPIC) firm with a refinery rebuild project asked me if he would get promoted if he bought from me.  Dah, what did that have to do with anything I wondered.  I have great features and benefits.

    At least as good as my multiple competitors.  Moreover, I could lower my price and give him great value.

    Once we understood his CSFs, we won a multimillion dollar (high margin) deal.  His problem was not the technology.  All competitive specs and price points were tightly grouped.  Almost any reputable vendor would do.

    His key problem were project milestones!  He did not want a pile of products to be assembled.  He need solutions to meet deadlines and we could deliver against that critical path.  That was the value proposition he needed.  By the way, he got promoted!

    I have seen this phenomenon often, including earlier this month.  Sales people and internal proponents of new ideas often focus on the new hot stuff, for which many competitors vie.  The current crazes include IoT, Blockchain, Operational Excellence to name a few.

    How many suppliers of these technologies and methods are there and how are they differentiated?  Lots and poorly would be my bet and experience.

    C Suite Value

    The stereotypical ‘hard nose’ businessman or businesswoman is alive and well.  He and she live in the C suite and boardroom.  Preaching features and benefits, PPT bullet points of value or use case with glossary, poorly articulated and often unbelievable claims will make for a short meeting.

    Proponents of big, disruptive or simply expensive ideas can have their ‘ah ha’ moment too.  Who is the audience and what are their drivers that can you facilitate?  In a previous blog this author took umbrage with sales cold calls who wanted to meet, waste my time and “learn about my company.”

    In other words what I hear is, I don’t have time to do my homework before I meet the economic buyer.  Another deal closing strategy!  Not.

    In an invited Guest Editorial for the Professional Petroleum Data Management Association (PPDM) online magazine, Foundations we had the privilege to post a short article.  In How to Make The Case To the C-Suite: Selling Large Scale Data Management Project to the C Suite, we present a short overview of this process.  The magazine (Vol 5, Issue 2) is free; all one has to do is sign up as a Guest.

    The article tells the story of a hypothetical Chief Data Scientist as she prepares for a presentation to the Chief Financial Officer.  Readers will see that for some concerns management has, she has a lot of homework and preparation to do.  One would expect that much of this work is outside her comfort zone, but necessary.

    Driving Success

    In our hypothetical case, she has the prep work in addition to her so-called ‘day job,’ a problem most have.  Additionally, she must align with their ICV and move away from ‘data speak.’

    Since 2004, we have used our Economic Value Proposition Matrix ® (EVPM) to help guide this process for a wide range of large projects (including security).  A free version is available.  Your invited to check it out and contact us if you have any questions.

    When the economic cycle is at a low point, it is hard to sell new projects.  When the cycle is active, there are competing projects.  Throwing money at technology has failed time and time again and ruined many careers (the antithetical of ‘getting promoted’).  Building a solid business case in the ICV of senior executives is a step towards accelerating one’s career, closing a deal or enjoying a project rather than fighting every step.

    One final point, when one reads statements such as, “Our software will save you 50%” they are not true on their face and management never believes them.  So never make those claims no matter the authority of their source.  Sometimes the value can be greater.  To find out the secret look at our webpage for the answer.

    Good Selling to the Top Dogs!

    Further Reading

    The author and others have published extensively on this subject.  The list of appropriate articles and papers is too extensive to list here.  However, readers are invited to peruse Dr. Shemwell’s extensive list of blogs and publications.

  • Love to Have the Opportunity to Learn About Your Company: I Know I Can Help

    Love to Have the Opportunity to Learn About Your Company: I Know I Can Help

    It seems that the preferred CRM Cold Call script goes something like this, ”I’d love to jump on a call with you and learn more about your company.  I am sure we can help.”  Really?

    The roots of this approach may be from the “Sell me this pen” sales model whereby the sales representative queries the prospect seeking to find a need that can then be filled.  Understanding your customer and her business needs are a critical selling skill.

    However, a cold call (using this sales model) from someone the prospect does not know and may even be unclear about the product/service being offered is usually a non-starter.  Yet, increasingly this is the opening gambit in many digital marketing campaigns materials.

    What is missing from all of this is the construct of homework.  The race car driver, Bobby Unser is credited with saying, “Success is where preparation and opportunity meet.”

    Somehow, I don’t think he jumped in the car ‘cold’ the day of the race.  Long hours of preparation preceded race day.

    B2B selling is all about solving a specific issue or challenge the buyer is facing.  Whether the potential customer knows about the issue or is unaware (for example, the first-generation smart phone), he or she must perceive value from the selling firm.

    While it is usually impossible to know the details of an issue, the rep must have a starting point.  Rather than, “let’s jump on a call” articulate that the rep has some actual knowledge about the prospect.

    Value Proposition

    If the purchasing authority works on average ten hours a day (plus or including commuting time) a 30-min meeting is 5% of his or her day.  Is talking to this sales rep the best use of that time?

    Frankly, teaching an uninformed individual about the company and fielding a battery of probing questions probably is not worth it to most of us.  A more valuable approach would be to develop a ‘strawman’ value proposition.

    The usual benchmark of value is financial.  An increase in the top/bottom lines, stock price or more recently reputation (great place to work, etc.) drive operational excellence initiatives.  Whether tangible or intangible organizations seek value from business cases put forth by suppliers.

    Unfortunately, value often remains loosely defined; as shown in the text box.  Moreover, it is often difficult and time consuming to develop a viable and valid value proposition.  No matter, this homework must be done!

    At a recent conference about the Industrial Internet of Things (IIoT), two panels extoled the (technology) virtue available to heavy industry.  An inquiry from the audience regarding the project risk of implementing enterprise level IIoT was not impressively answered.  Likewise, when questioned about the value proposition one panelist timidly answered that IIoT was simply necessary to remain competitive.

    Trust me, it’s going to be good!  Not the most compelling use case.

    Early in my sales career, this rep often put forth value propositions along the line of the IIoT example.  Often, the company provided me with presentation materials to that end.

    My sales life forever changed at a Mexican restaurant one lunch when I was going through the usual pitch and was interrupted by the prospect.  His question to me paraphrased, “If I buy from you will I be promoted?”

    I thought I knew this individual reasonably well and was speechless at the question.  Later I realized that instead of a laundry list of products, spares and other materials, he was looking for a solution.

    His problem would have been apparent if I had done my homework.  He was charged with installing all the instrumentation in a $ 1 billion refinery retrofit.  When successful, he believed his career would advance

    Grilling him about his business would have made me persona non-grata as he did not have time for that.  Once I proactively engaged his organization it quickly became clear how to win the deal.  Three million dollars later our manufacturing facility was in over drive.  And he did get promoted!

    Finally, there is a level of impersonality from this selling model.  This includes the much ‘loved’ follow up email driven by CRM, “I haven’t heard from you so I thought I would resend my email.”

    Certainly, persistence is required to close deals; however, pestering will drive prospects away as fast as they can run.  Professional behavior coupled with persistence are two sales KPIs.

    You want me to give you some of my valuable time?  Then do your homework and show me why I should

    Further Reading

    The author and others have published extensively on this subject.  The list of appropriate articles and papers is too extensive to list here.  However, readers are invited to peruse Dr. Shemwell’s extensive list of blogs and publications.

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    For further information Contact Us.