I was very intrigued by the article in the Harvard Business Review, and I wanted to share this with the rest of the world. If you are in Sales, you definitely want to look at this.

1. Harvard Business Review
Summarized by Satoshi Takano
In a Downturn,
Provoke Your Customers
The companies you serve are slashing their
budgets – but you can still make a sale
Written by Philip Lay, Todd Hewlin, and Geoffrey Moore

2. Do you hear your
customers telling you…

3. “No budget.”

4. “No budget.”
“CUTS Across-the-board.”

5. “No budget.”
“CUTS Across-the-board.”
“We’ll do with what we got.”

6. Or, you may soon hear
this…

8. Or worst case…

9. “I’m no longer the sole
decision maker.”

10. So, what do I
do?

11. things.

12. “1. You MUST find a way to reach the
customer’s resource owners and motivate them
to allocate the necessary funds.”

13. “1. You MUST find a way to reach the
customer’s resource owners and motivate them
to allocate the necessary funds.”
“And 2, persuade them
that your solutions are
not just nice but
essential.”

14. This is called,
“Provocation-based Selling.”

15. This is called,
“Provocation-based Selling.”
“And it goes beyond the
conventional consultative
or solution-selling
approach.”

16. “Product or solution-based selling pushes features,
functionality, and benefits in a generic manner.”

17. “Product or solution-based selling pushes features,
functionality, and benefits in a generic manner.”
… while provocation-based selling helps
customer see their competitive
challenges in a new light that makes
addressing specific painful problems …

18. Unmistakably
URGENT.

19. So, how do I
learn to become
Provocative?

20. So, how do I
learn to become
Provocative?
(Without the customer becoming defensive?)

21. Steps

22. 1 Identify a critical issue

23. 1 Identify a critical issue
2 Formulate your provocation

24. 1 Identify a critical issue
2 Formulate your provocation
3 Lodge your provocation

25. 1 Identify a critical issue

26. “Identify key issues that matters so
deeply that even in a downturn the
money will be found to fix it.”

27. Once identified, subject those
issues to 3 sets of questions.

28. 1
Would it meet the CEO’s “keeps me up at
night” threshold? That is, does this problem
seriously jeopardize the organization’s ability
to compete?

29. 2
Is it being ignored, neglected, or ineffectively
addressed by existing processes, systems or
services?

30. 3
Are you a credible source of advice on the
issue?

31. Here’s some advice…

32. Here’s some advice…
“Observe what the security analysts have said
about the target company or industry.
If analysts have an issue, you can assume that
investors are pressuring management to
resolve it.”

33. 2 Formulate your provocation

34. “Develop an original point of view
about it. Otherwise no senior
executive will give you time.”

35. One way to do this is to go
to…

36. Our customers and industry
analysts.

37. Then compare the target
customer situation with their
peers.

38. Then compare the target
customer situation with their
peers.
(AKA - Gain extremely deep understanding of the industry-level issues)

39. 3 Lodge your provocation

40. Here’s a caveat… do this
carefully.

41. Here’s a caveat… do this
carefully.
(Provocation should not be seen as an invitation to behave disrespectfully)

42. So, here is one way to
approach it…

43. “We’ve worked with companies in your
peer group and have seen how the
leading players are experiencing this
painful problem.”

44. “We think it’s possible that your
company is at risk in this area as well.”

45. “We think it’s possible that your
company is at risk in this area as well.”
Your statements should clarify the challenge and demonstrate
knowledge of the customer’s current approach to it.

46. Then follow up and say…

47. Then follow up and say…
“We believe that if you can’t stem the
bleeding, you risk losing up to 4% of
your market share within the next six to
12 months.”

48. Then follow up and say…
“We believe that if you can’t stem the
bleeding, you risk losing up to 4% of
your market share within the next six to
12 months.”
The goal here is to disturb the equilibrium and status quo – without
putting him or her on the defensive.

49. Proving your point involves some
detective work

50. Once your report is completed, construct the sales
proposal in 3 phases…

51. Once your report is completed, construct the sales
proposal in 3 phases…
1. What your company can deliver
right away – most often primarily
services.

52. Once your report is completed, construct the sales
proposal in 3 phases…
1. What your company can deliver
right away – most often primarily
services.
2. What your company can deliver
within the year – usually a
customized, solution-oriented
adaptation of the offering.

53. Finally…

54. Finally…
3. Everything else the customer wants or will need over
time to fully address the problem. (If these additional
elements cannot wait, you must look for a partner – even
if that means working alongside a competitor. Your
ability to bring the components will earn you the status
of a trusted advisor.)

56. 1. Gain access to senior executives, typically with
P&L responsibilities – can reallocate resources to
create the budget for the offering.

57. 1. Gain access to senior executives, typically with
P&L responsibilities – can reallocate resources to
create the budget for the offering.
2. Find their acquaintance, and ask for referral to
present to the executive.
(can also be through seminars to rigorously find a referral.)

58. 1. Gain access to senior executives, typically with
P&L responsibilities – can reallocate resources to
create the budget for the offering.
2. Find their acquaintance, and ask for referral to
present to the executive.
(can also be through seminars to rigorously find a referral.)
And oh, ya…

59. Social networks ain’t so bad either…

61. Here’s the key…

62. “During an economic downturn, the
more you make your customer see
something that they never knew
existed, the process picks up speed,
and you WIN.”

63. “During an economic downturn, the
more you make your customer see
something that they never knew
existed, the process picks up speed,
and you WIN.”
AKA - The budget gets reallocated to your project.

64. “While, in an economic downturn,
most solution-selling strategies tend to
lose momentum at each phase of the
Sales Cycle.”

65. Here’s a simple way to differentiate

66. Here’s a simple way to differentiate
Solution Selling
vs.
Provocation-Based Selling

67. Solution Selling Provocation-Based Selling

68. Solution Selling Provocation-Based Selling
Competes for vendor preference within
an existing budget

69. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget

70. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view

71. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view

72. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points

73. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst

74. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems

75. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems

76. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then
builds a business case

77. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then Begins with the business case and then
builds a business case provides technical proof

78. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then Begins with the business case and then
builds a business case provides technical proof
Starts as an IT of line-of-business
dialogue

79. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then Begins with the business case and then
builds a business case provides technical proof
Starts as an IT of line-of-business Starts as an executive level dialogue
dialogue

80. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then Begins with the business case and then
builds a business case provides technical proof
Starts as an IT of line-of-business Starts as an executive level dialogue
dialogue
Asks questions to identify needs

81. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then Begins with the business case and then
builds a business case provides technical proof
Starts as an IT of line-of-business Starts as an executive level dialogue
dialogue
Asks questions to identify needs Uses an insightful hypothesis to
provoke a response

82. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then Begins with the business case and then
builds a business case provides technical proof
Starts as an IT of line-of-business Starts as an executive level dialogue
dialogue
Asks questions to identify needs Uses an insightful hypothesis to
provoke a response
Responds to issues described by the
customer

83. Solution Selling Provocation-Based Selling
Competes for vendor preference within Compels project investment outside an
an existing budget existing budget
Aligns with the prevailing point of view Challenges the prevailing point of view
Addresses acknowledged pain points Addresses unacknowledged angst
Targets tactical problems Targets strategic problems
Begins with technical proof and then Begins with the business case and then
builds a business case provides technical proof
Starts as an IT of line-of-business Starts as an executive level dialogue
dialogue
Asks questions to identify needs Uses an insightful hypothesis to
provoke a response
Responds to issues described by the Is proactive and leading, forcing issues
customer out

84. “These differences don’t imply the death
of solution selling, which is still the right
approach when the customer
understands the challenges to be faced….

85. “These differences don’t imply the death
of solution selling, which is still the right
approach when the customer
understands the challenges to be faced….
…and has the budget in place.”

86. “While provocation-based selling is most
effective when the customer’s problem is
unacknowledged or poorly understood,
the budget doesn’t exist, and the
customer’s main question is….

87. “How can we change our approach to
this problem, because we haven’t yet
managed to deal with it effectively?”

88. In Summary…

89. “In a severe downturn, provocation-based
selling may be the only way to move past
the ‘buy nothing’ mantra emanating from
customer organizations.”

90. Thank You
stakano@gmail.com