The 3 Steps of Provocation-Based Selling
Geoffrey Moore, acclaimed author of “Crossing the Chasm,” and most recently “Zone to Win” joined us to chat with Steve Barsh on how to provoke customers to increase sales in a downturn. In this episode, the two discussed how you can effectively sell in an environment where budgets are being cut, executive decision-makers are distracted with other priorities, and companies are less inclined to invest in innovation. In addition to his books, Geoffrey Moore assisted in writing “In a Downturn, Provoke Your Customers” for the Harvard Business Review in 2009. His strategy for selling in 2009 is relevant to any economic downturn. In this episode of #DreamitLive, Moore discussed the challenges we are confronted with in a downturn and the unique challenges COVID-19 presents. Provocation-based selling turns these challenges into opportunities. The approach flips traditional solution-based selling upside down. Luckily, the strategy can be broken down into 3 steps.
Identify a problem that resonates with the decision-maker at your target organization
Moore recommends that you put yourself in the shoes of the CEO or Board of Directors. What keeps them up at night? What are they ignoring? Do you have a track record that proves you’re a credible source of advice on this issue? During this pandemic, you can also ask, “What are they going through in this downturn that is new?” For example, Moore mentions the current “new normal” we’re experiencing as all organizations go through digital transformation. Ask yourself, “What segment is in crisis mode as a result of this problem?” As Moore says, “You fire the big gun at the beginning.” In solution-based selling, you match benefits to the needs and pain points that customers signal. In provocation-based selling, you’re telling the customer, ‘here’s what you should be paying attention to’.
Develop a unique point of view on the problem
Your team must prove that they have a unique and valuable view on this problem. Senior executives won’t listen to you otherwise. Your team must examine the impact of the issue for either the target company or the industry as a whole. Look at issues analysts are flagging. You can assume that the company’s investors are pressuring management to solve these issues too. Then, look at the issue through the lens of your product. Create a road map for how the target company can adapt your product to address the issue. The challenge in adopting this approach is that it requires the role of your marketing and sales teams to change. Analysts on the marketing team must gain a deep understanding of industry-level issues and how to capitalize on them during the sales process.
Lodge that provocation with the relevant executive
All of this work on communicating the problem effectively will go to waste if the information does not reach the right ears. In the episode, Moore tells you how to find the higher-level executive who traditionally deals with the issue you are bringing to the organization’s attention. However, these executives usually have multiple lines of defense to shield them from sales pitches. This is why provocation-based selling requires the vendor to utilize what Moore refers to as “soft power”, specifically “relationship capital.” Instead of contacting this higher level executive directly, find a mutual acquaintance who can provide you with a referral. Then, when you are in the room establish a relationship around the problem, not the solution. Unlike the traditional sales pitch, frame the problem as a hypothesis and ask the executive, “Would you allocate resources to further investigate this possibility?” If your team has done the proper research, then the answer should be an obvious yes.
COVID-19 poses unique challenges. We don’t know how long this downturn will last. But challenges create opportunities. That is the spirit of provocation-based selling. It requires your sales team to take an entirely different approach As Moore advises, in provocation-based selling you must, “spend 80% of your time getting closer to the customer’s problem and 20% of your time on your solution.” Traditional sales strategies invert that and won’t work as well in this climate. Shifting your organization’s mindset can be difficult, but the results of provocation-based selling make it a worthwhile transition. It gains momentum at each phase instead of losing it. It will not result in the fastest close, so performance-based metrics will not prove its effectiveness. In a downturn winning the race is nice, but staying in the game is essential. In a time of budget cuts and uncertainty, provocation-based sales helps you show that your product is not just nice to have, but essential.
By Alana Hill, Securetech Associate at Dreamit Ventures
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