Can marketing deliver on its contribution to challenge sale success?

Dave, since your response on my earlier question was so informative, and you mentioned "The Challenger Sale", I thought that I would challenge you and other readers with a question raised by The Challenger Sale. The value of being able to accomplish what the authors describe is significant so cannot be overlooked [i.e., in companies with solution selling models the star performers outperform core performers by almost 200 percent]. My question concerns what I see as a major challenge to its implementation – the load placed on Marketing. Was wondering what your thoughts were.

The authors see Marketing defining the “Why should clients buy” message for their organization’s products and/or services, including:

The most pressing business issues facing a group of clients (could be industry, or job function) for which company has a unique solution The way in which the company uniquely solved these issues The value the clients achieved as a result Validation of this with a subset of these clients

This should result in two things:

A clear understanding of “Why clients should buy this product or services from company over anyone else? – no one can say “Me too”” Insights into prospective client’s business issues and unique ways company solved same that can enable the salesperson to engage individual prospect in meaningful and enlightening discussion (the “Ah ha!” moment for client!)

I believe the challenge for Marketing is their ability to create (and maintain) the deliverables described above. For example, in service companies Marketing would have to drive to solutions within individual Practices (e.g., 3-5 solutions within the Oracle Practice). In my experience when this was attempted the Practice guys (surrogates for Marketing) could only describe their solution, not sure that it was unique, and not sure they really quantified the unique value the client’s received.

What is your opinion? Have you seen any organization’s Marketing group driving to this level of description of their solution’s uniqueness?

Topics

Marketing

Sales

Answer This Question

Dean Sharratt

asked on Feb. 2, 2012

Dave Brock

President and CEO, Partners In EXCELLENCE

Posted on Feb. 5, 2012

Recommended by:
Ardath Albee

Great topic and questions Dean. I think you've captured one of the key issues organizations will have with Challenger. I've said before that Challenger is really a business strategy, not a solution selling strategy Without the support of product marketing/management, marketing, customer service, etc, the sales people could be capable of having challgenging conversations but nothing to talk about.

As you highlight, marketing really needs to provide the tools and programs that support and enable the sales people to engage the customer in these new conversations.

However I have a little different take on the issue, "Why should a customer buy this product/service..." That strikes me as the classic product pitch that customers don't care about. I think what marketing must do, beyond this, is focus on helping the sales people understand where there are opportunities to challenge the customer--opportunities for growth, change, etc. Marketing needs to supply insight about the industry, competition, trends, etc. Focusing on buyer persona's is a great start. Additional tools to help identify and quantify the value are critical as well.

I think Challenger changes the sales/marketing cycle as well. I think sales gets engaged earlier than traditional, marketing stays invovled longer. The roles become more intertwined and interdependent. Over time, the distinctions between marketing and sales become almost indistinguishable.

Great topic Dean!

Dean Sharratt Replied on Feb. 22, 2012

Great reply Dave! I really support your idea that “Challenger is a business strategy”. I have too often been involved in implementing great ideas only to see them not wildly succeed because other key parts of the organization were not involved or did not participate.

You are right to correct my sequencing of the outcomes of the marketing effort I described; I have been in that “lead with your product world to long”! I have not full made the shift to the new Challenger paradigm.

The point I was trying to make based on my understanding of Challenger approach is: 1. Figure out what business insights your company has learned about client’s business/industry as result of your many implementations. 2. In order to conduct effective Commercial Teaching you also need to understand what your unique strengths are so that salesperson can ultimately lead client toward company’s product.

Bottom-line is as salesperson moves client through teaching (commercial), tailoring, and taking control all the elements from insights to value to solution should be aligned and reinforce each other so that when you get to the end the client cannot easily select a competitor’s product/service on basis of “me-too!”.

This is what I see as the challenge for Marketing. It’s a big job considering the number of product/services most organizations have. In my experience most Marketing organizations have not driven to this level product/service description in their materials/teaching. I don’t think this is something that you want to leave to each sales rep to figure out. It’s a distraction from their client-facing role and the outcomes would definitely not be consistent across the sales force. Perhaps this is where your idea of great partnership between Marketing and Sales needs to start.

I was very interested in your comments about changes in tradition Marketing and Sales roles in the sale/marketing cycle. This somewhat intersects with my other question. Could you elaborate on your thinking here?

Show 2 more replies

Dean Sharratt Replied on March 6, 2012

Impact of Challenger Sale on Marketing and Sales Roles

Dave, this is a great topic! I agree with your overall assessment that Marketing will become more tactical, and Sales more strategic. I want to answer your question in more detail with the aid of a high-level review of the business processes and participants involved! However, due to limitations on response length in this forum I will describe five scenarios based on these processes. [BTW I really feel the lack of charts and graphs in this Discussion capability. But here goes, and bear in mind that my thinking is biased by my complex consulting services solution background].

Major Functions of Interest
Let’s focus our discussion on the processes that lead up to a sale within the major business functions of: Marketing, Sales, and Product. Marketing, to over simplify, deals with the 5 P’s and 7 C’s to define the “What” to sell, “To Whom”, and “Why” prospects should be motivated to buy. Sales focus on identifying sales opportunities and creating the actual sale. Product defines/develops the unique qualities of their company’s solution (with Marketing), supports the selling process, and post-sales delivers the actual “product” to client. In a Consulting Services organization this Product group is generally called Practice. For sake of this discussion let’s refer to this function as Product/Practice. There is an argument to be made that this pre-contracted work role is really part of the marketing function.

Scenarios on Interaction of Marketing and Sales in Challenger Sale Approach
I like scenarios as a way to further describe the expected interaction of roles as they perform within a defined business model. These can be detailed out deeply incorporating how roles interact with other roles and their supporting technologies. There are some very capable technologies available. The interactions in the following Scenarios are based on the business processes described in Business Model below. These Scenarios describe situations where Challenger Sale approach creates greater interaction for above three roles. All Scenarios assume that the products/services have unique insights for clients (“strategic product/service”), and client is part of a targeted industry or function (“strategic account”).

Scenario 1. Prospective Client Calls Company
Prospect is researching ways to improve her business, visits company website (found on own or referenced to by colleague). Reads material and Case Studies, impressed by message, calls 800 number to speak with one of company’s “Product/Service Experts” (PE) located in company’s Lead Generation Group. Prospect and PE talks at length. PE asks questions to develop a profile of prospect and situation and “fit” for company’s product/service. PE is developing the sales situation, may suggest alternatives. This call may end with Prospect wanting time to review the information discussed (or even sent), in which case PE arranges for a follow up call. When Prospect is sufficiently engaged and “qualified” (defined criteria) PE would introduce Prospect to Salesperson assigned to this account. For this outcome PE documents situation sends note to Salesperson, calls to discuss.

Scenario 2. Targeted Product/Service Campaign
Marketing develops and runs a campaign for a specific “strategic product/service”, targeted at specific list of “strategic” companies. Sales and Product/Practice participate in development. PEs in Lead Generation begin calling on list contacts within target companies. Contacts would not be the senior decision makers (Salesperson needs to make this call with well developed “Tailored /Teaching” material available). As in S1 PE develops the situation with Prospect and abandons, schedules follow up call(s), or introduces Account Salesperson if meets qualification criteria.

Scenario 3. Sales Engages Marketing and Product/Practice in Developing Account Plan
Salesperson is either developing or updating Account Plan for account. Salesperson engages Marketing and Product/Practice to assist in effort, including developing or updating key background information on the account, identifying potential areas within account for company’s strategic products/services. Marketing works with Salesperson to confirm understanding of why this account would be a “good fit” for company’s strategic products/services. Upon some evaluation team may concur that account is not a good fit for company’s strategic products/services and abandon.

Scenario 4. Salesperson Engages Lead Gen and Product/Practice with Active Opportunity
One of the characteristics of Challenger Sale approach is need to build strong support for solution from within broad client group (i.e., many people, several departments). Salesperson has identified a qualified opportunity within assigned account (updated Account Plan in place). For assistance in developing required information and support at identified mid-level managers within account Salesperson engages PE’s in Lead Generation. Salesperson and PE discuss and develop specific approach. PE makes calls, develops information and support, documents and periodically briefs Salesperson on progress. Product/Practice assists Salesperson in developing specific solution to address Prospect’s business need, and in developing the business case to support Prospects’ decision making. Product/Practice meets with Prospect’s technical team to review solution and gain support for solution. Salesperson with PE takes key messages around solution and supporting business case to client prospects to gain support and buy-in for solution. With support of overall prospect community Salesperson presents solution, key messages, and supporting business case to client decision makers.

Scenario 5. Salesperson Engages Lead Gen with Dormant Opportunity
Salesperson (perhaps with PE support) has been developing a sales opportunity. Unfortunately Prospect’s situation has changed and has deferred making a decision on opportunity. Salesperson engages Lead Gen to assist in maintaining contact with Prospect periodically to monitor if Prospect’s situation has changed and opportunity once again valid.

Dean Sharratt Replied on March 15, 2012

My earlier Scenarios presumptuously prescribed how I saw Marketing and Sales interacting in the Challenger Sale world going forward. But, as we know life is not so simple and in the heat of battle people are often called upon to make decisions that may or may not be consistent with their game plan. The following two additional Scenarios might illustrate such decisions – what action would you take?

Scenario 6. Completing Delivery of a Strategic Sale, Client Request Proposal on New
You recently sold a strategic product/service implementation at a strategic client. Delivery of the product/service has gone well, it is wrapping up. Client is impressed with what you have accomplished. Following a discussion about a different business problem and how you might address it with another product/service that your company offers. Client likes the approach and asks you to provide a pricing proposal. Client has told you that she have not asked others to bid (i.e., sole source). However, your company has not classified this product/service as strategic. What action would you take and why?

Scenario 7. Same as Scenario 6, but Now It’s Competitive!
Same set-up as in Scenario 6, however client advises you that she has engaged several other companies to bid a solution (with pricing) to address her business need. What action would you take and why?