Latest / What is Business Development? / Episode 70: BD-BOK...Chapter 11 Summary of Sales Tactics
Transcript
- 0:00Speaker 1: So in the fast moving and really intense world of
- 0:04Speaker 1: corporate growth, business development, leaders often face this, this really
- 0:09Speaker 1: tough choice, right, how do you pick the right guiding
- 0:12Speaker 1: framework for your team when I mean the market just
- 0:15Speaker 1: throws a dozen popular methods at you.
- 0:18Speaker 2: Yeah, you're supposed to be the advisor or the challenger
- 0:21Speaker 2: or just you know, make it easy for them to.
- 0:23Speaker 1: Buy exactly, And the framework you choose, well, that basically
- 0:26Speaker 1: dictates whether you win or lose those huge, high stakes deals.
- 0:30Speaker 2: It's a fundamental decision really, and you know, to even
- 0:33Speaker 2: understand the choices we have today, we kind of have
- 0:35Speaker 2: to go back back to the moment it all changes.
- 0:37Speaker 2: Nineteen sixty eight, precisely, the birth of the modern beady methodology.
- 0:43Speaker 2: That's when it happened.
- 0:43Speaker 1: Yeah, that seems to be the undisputed origin point. Xerox,
- 0:47Speaker 1: the big corporate giant. Then they formalize their first structured
- 0:50Speaker 1: approach they called it needs satisfaction selling.
- 0:53Speaker 2: And that single move, that pivot, it became the catalyst,
- 0:56Speaker 2: didn't it totally?
- 0:57Speaker 1: It prompted pretty much every major sales and bead method
- 1:00Speaker 1: that came after all the way up to well right now.
- 1:03Speaker 2: But the context of that time the late sixties. That's
- 1:06Speaker 2: absolutely crucial, right, You've got the information age really starting
- 1:10Speaker 2: to accelerate, new telecom tech popping up.
- 1:13Speaker 1: Meaning buyers could suddenly share experiences good or bad instantly globally.
- 1:19Speaker 2: Exactly, and B to B competition just intensified like crazy.
- 1:22Speaker 2: Corporations suddenly realized, Hey, this old model of just you know,
- 1:26Speaker 2: taking orders and listing features, it's dead, completely unsustainable.
- 1:30Speaker 1: The whole job just changed almost overnight, it feels like
- 1:34Speaker 1: salespeople to survive, they had to transform from just being
- 1:38Speaker 1: order takers into well genuine listeners. They had to start
- 1:41Speaker 1: personalizing solutions.
- 1:43Speaker 2: And critically, this is the big shift. They had to
- 1:45Speaker 2: start advocating for the prospect's success, their long term needs,
- 1:49Speaker 2: not just hitting their own quarterly quota.
- 1:51Speaker 1: Because if they didn't, that negative feedback would just sink
- 1:54Speaker 1: future revenue instantly. That's why Xerox made that move, right,
- 1:58Speaker 1: trying to turn their sales folks into more strategic business glopers.
- 2:01Speaker 2: And that brings us right to the core confusion we
- 2:03Speaker 2: still wrestle with today, doesn't it.
- 2:05Speaker 1: Yeah, the BD versus sales thing.
- 2:07Speaker 2: Right, for you, the capture manager trying to scale a team,
- 2:10Speaker 2: you need clarity so business development BD, it's fundamentally about influence,
- 2:16Speaker 2: creating corporate growth through customer and community advocacy.
- 2:21Speaker 1: It's the top of the funnel stuff prospecting, accubation phases exactly.
- 2:25Speaker 2: And if BD is that long term influence piece.
- 2:28Speaker 1: And sales is the transaction itself, the exchange goods for
- 2:31Speaker 1: money that lives more in the qualifying and conversion phases. Now,
- 2:36Speaker 1: just to be clear for you listening in a lot
- 2:38Speaker 1: of lean startups, maybe you're a full cycle developer handling
- 2:41Speaker 1: both ends.
- 2:42Speaker 2: We get that, oh, absolutely, very common.
- 2:44Speaker 1: But methodologically the distinction really matters. B D kind of
- 2:47Speaker 1: sets the.
- 2:47Speaker 2: Stage and sales closes the curtain precisely. So our mission
- 2:52Speaker 2: today then is to take that journey through the methods. Okay,
- 2:55Speaker 2: we'll look at the frameworks guiding business developers from those
- 2:59Speaker 2: advisor models in the sixties and seventies through the scientific
- 3:02Speaker 2: revolution of the eighties all.
- 3:03Speaker 1: The way to the let's say, more aggressive, perspective driven
- 3:06Speaker 1: approaches you need for today's self educated buyer.
- 3:09Speaker 2: Exactly. Let's dive in.
- 3:11Speaker 1: All right, let's start right after that sixty eight shift
- 3:13Speaker 1: the advisor mentality, and you really can't talk about that
- 3:17Speaker 1: without mentioning the Sandler selling system.
- 3:19Speaker 2: No, you can't. David Sandler late nineteen sixties, right alongside Xerox,
- 3:23Speaker 2: and its popularity is just well enduring. Sandler training still
- 3:27Speaker 2: educates what over thirty thousand people a year.
- 3:30Speaker 1: Wow?
- 3:30Speaker 2: Still still. The genius of Sandler, I think, is how
- 3:34Speaker 2: it insists on positioning the seller as a genuinely trusted
- 3:37Speaker 2: advisor dedicated to the customers success, not just pitching features.
- 3:41Speaker 1: So how does it start? What are the first steps?
- 3:43Speaker 2: It kicks off with three really critical steps. They're designed
- 3:46Speaker 2: to build that trust and kind of balance the power dynamic.
- 3:50Speaker 2: First is bonding and rapport obvious but crucial, okay. Second,
- 3:54Speaker 2: establishing upfront contracts basically setting clear expectations, defining roles, what
- 3:59Speaker 2: have and snacks, no surprises, right, managing the process exactly.
- 4:03Speaker 2: And third, identifying pain, not just surface problems, but the
- 4:06Speaker 2: real underlying pain. This helps surface hidden objections early on
- 4:09Speaker 2: so you can deal with them.
- 4:10Speaker 1: Okay, So Sandler focuses on that rapport the power dynamic.
- 4:14Speaker 1: The next step then was kind of solidifying that consultative
- 4:17Speaker 1: idea into something more repeatable for big corporate teams.
- 4:21Speaker 2: That leads us straight to solutions selling Frank Watts nineteen
- 4:25Speaker 2: seventy five, later expanded by Michael Bosworth, who interestingly used
- 4:30Speaker 2: to be a Xerox trainer.
- 4:31Speaker 1: Ah, the connection right.
- 4:33Speaker 2: He taught the system to major corporations, and you hear
- 4:36Speaker 2: synonyms like consultative selling, customer centric selling. It's all basically
- 4:42Speaker 2: the same core idea rich the seller must deeply understand
- 4:46Speaker 2: the prospect's needs, not just guests, and understand their internal
- 4:49Speaker 2: buying process, which can be messy. Identify the true pain points,
- 4:54Speaker 2: articulate the solution's value in solving that pain, and then
- 4:57Speaker 2: this is key, maintained control over the buying process guide
- 5:00Speaker 2: them through it.
- 5:01Speaker 1: Okay, so these first methods were let's say, more philosophical
- 5:04Speaker 1: based on experience intuition.
- 5:06Speaker 2: Yeah, you could say that.
- 5:07Speaker 1: But the next big entry that really changed the game
- 5:09Speaker 1: by bringing in science, we have to talk about spin selling.
- 5:12Speaker 2: Oh, absolutely pivotal. This is where the conversation shifts from
- 5:15Speaker 2: just philosophy and anecdotes to actual verifiable data.
- 5:19Speaker 1: Professor Neil Rackham write his book in eighty eight that's.
- 5:22Speaker 2: The one, and the research behind it is just staggering.
- 5:25Speaker 2: We're talking twelve years of research looking at thirty five
- 5:29Speaker 2: thousand sales calls across twenty countries.
- 5:32Speaker 1: Twelve years, thirty five thousand calls. That immense.
- 5:35Speaker 2: It was the first methodology built entirely on rigorous scientific
- 5:39Speaker 2: analysis of how corporate selling actually worked or didn't work.
- 5:43Speaker 1: So what did the science show after analyzing all those calls?
- 5:47Speaker 1: What's the single most critical factor for success? I mean
- 5:50Speaker 1: I always figured it was nailing the opening or having
- 5:52Speaker 1: that killer closing pitch.
- 5:54Speaker 2: That's what everyone assumed. But Rappan's data showed something different. Yes,
- 5:58Speaker 2: strong opens and closes work okay in small, simple deals,
- 6:01Speaker 2: but not the big ones exactly. They fall apart in
- 6:04Speaker 2: large complex sales. The science was clear in those big deals,
- 6:07Speaker 2: the ones with long cycles, multiple decision makers, the single
- 6:11Speaker 2: most critical stage, the hinge point for success is investigating discovery,
- 6:15Speaker 2: what we now call discovery. Yes, success literally hinged on
- 6:20Speaker 2: the quality of the questions asked during that phase.
- 6:23Speaker 1: So discovery is scientifically proven to be king in complex sales,
- 6:28Speaker 1: and stepspin gives us the structure for how to investigate
- 6:31Speaker 1: the acronym spi.
- 6:33Speaker 2: N precisely, and the questions have to flow logically. You
- 6:37Speaker 2: start with s for situation, just establishing the baseline, what
- 6:40Speaker 2: are they doing now, what processes? Tools? A baseline established,
- 6:44Speaker 2: then you move to P for problem, identifying the immediate issues,
- 6:47Speaker 2: the pain points the dissatisfaction with the current situation. Now
- 6:51Speaker 2: most average sellers stop there.
- 6:53Speaker 1: Right, here's your problem, here's my solution.
- 6:55Speaker 2: But spin goes deeper. The next step is I for implication.
- 6:59Speaker 2: This is high value. You ask questions about the consequences,
- 7:02Speaker 2: the cascading negative impacts financial, operational, maybe even emotional. If
- 7:06Speaker 2: those problems don't get solved.
- 7:07Speaker 1: Ah, so you're raising the stakes, Yeah, making them quantify
- 7:11Speaker 1: the cost of doing nothing exactly right.
- 7:12Speaker 2: You build the urgency and only then, after you've explored
- 7:16Speaker 2: the depth of the pain and its consequences, do you
- 7:18Speaker 2: get to end for need pay off. This flips the conversation.
- 7:21Speaker 2: Instead of pitch your features, you ask questions that get
- 7:24Speaker 2: the prospect to articulate how the solution helps them, how
- 7:27Speaker 2: it enables their desired success directly solving the problems and
- 7:31Speaker 2: implications you just uncovered. It shifts from here's my product
- 7:35Speaker 2: to here's what achieving your goal looks like.
- 7:38Speaker 1: That's scientific interpinning in the late eighties. It really sets
- 7:42Speaker 1: the stage for the modern era, doesn't it? Which is
- 7:44Speaker 1: defined by this huge challenge. The prospect knows so much already. Yeah,
- 7:50Speaker 1: they're halfway done before they even talk to.
- 7:52Speaker 2: You, self educated buyer. It's the central problem now, So.
- 7:54Speaker 1: How do you even get their attention, let alone add value.
- 7:58Speaker 1: Let's look at strategic selling from Miller m They were
- 8:01Speaker 1: already tackling complex decision units way back in seventy eight.
- 8:04Speaker 2: Miller hymen. Yeah, they initially really focused on mastering that
- 8:08Speaker 2: long term relationship, especially when you're not selling to just
- 8:11Speaker 2: one person. They saw the decision making process as this
- 8:14Speaker 2: complex mays. So their method was about mastering that whole unit,
- 8:18Speaker 2: first categorizing, identifying who actually has influence formally or informally,
- 8:23Speaker 2: then determining, figuring out their level of support, are they
- 8:27Speaker 2: for you, against you, neutral? And finally influencing those key
- 8:30Speaker 2: individuals over time.
- 8:32Speaker 1: And then they added conceptual selling in eighty nine, focusing
- 8:35Speaker 1: more on the why right, communicating the value concept not
- 8:38Speaker 1: just the.
- 8:38Speaker 2: Future's list correct, but the really critical update, the one
- 8:42Speaker 2: that speaks directly to today's world, came in twenty eighteen.
- 8:45Speaker 2: They rebranded as strategic Selling with Perspective Perspective specifically to
- 8:49Speaker 2: tackle that self educated buyer The thinking is, if the
- 8:53Speaker 2: prospect already has the basic facts from their own research,
- 8:56Speaker 2: the seller's job fundamentally changes. Your role now is to
- 8:59Speaker 2: offer fresh perspectives, meaning meaning you have to point out
- 9:02Speaker 2: pain points, challenges, or opportunities the prospect hadn't discovered on
- 9:06Speaker 2: their own. You shift from being just an information source
- 9:09Speaker 2: to being a genuine thought leader who challenges their thinking.
- 9:13Speaker 1: That idea of teaching challenging assumptions that leads us straight
- 9:18Speaker 1: into the methodology that really made ways the challenger sale
- 9:23Speaker 1: Dixon and Adamson twenty eleven.
- 9:25Speaker 2: Oh yeah, that study shook things up. They identified five
- 9:28Speaker 2: distinct seller types, right, but the Challengers they were just
- 9:32Speaker 2: dominant among high performers. They were represented a massive forty
- 9:35Speaker 2: percent of all taught performers in the study.
- 9:38Speaker 1: Forty percent. That's huge, And they're specifically built for that
- 9:41Speaker 1: info rich, self educated prospect.
- 9:44Speaker 2: Absolutely. Their method is built around three core actions. Okay,
- 9:47Speaker 2: what First they teach They provide valuable, often unique insights
- 9:51Speaker 2: about the prospects business or market. Crucially, they often reveal
- 9:55Speaker 2: a problem the prospect didn't even realize.
- 9:57Speaker 1: They had, so creating the need almost in a way.
- 10:00Speaker 2: Yes. Second, they tailor that teaching. They make sure the
- 10:02Speaker 2: communication resonates deeply with that specific individual's role, their priorities,
- 10:06Speaker 2: their beliefs. It's not generic, makes sense. And Third, they
- 10:10Speaker 2: take control. This is the controversial one. They confidently guide
- 10:14Speaker 2: the sale, maintain momentum, and they're not afraid to challenge
- 10:17Speaker 2: the prospect's thinking, even if it means a bit of
- 10:19Speaker 2: constructive tension. They're focused on the prospect's success, even if
- 10:23Speaker 2: it means pushing back on the prospect's own assumptions or
- 10:26Speaker 2: bad ideas.
- 10:27Speaker 1: Wait, hold on, If the goal is being a trusted advisor,
- 10:30Speaker 1: Like Sandler said, why would Challenger push for confrontation? Isn't
- 10:35Speaker 1: that approach really high friction, maybe even risky.
- 10:38Speaker 2: That's a brilliant question and it gets right to the
- 10:40Speaker 2: strategic differences here. Challenger is high risk, high reward, no doubt. Okay,
- 10:45Speaker 2: it's designed for those big, strategic complex deals where the
- 10:48Speaker 2: stakes are huge and the economic buyer actually appreciates that
- 10:52Speaker 2: kind of aggressive data backed insight that pushes their thinking.
- 10:55Speaker 2: But try using that assertive take control step with a
- 10:59Speaker 2: really busy, rass old middle manager who just needs a
- 11:02Speaker 2: simple solution fast.
- 11:03Speaker 1: Yeah, that probably blows up in your face.
- 11:04Speaker 2: Likely, which brings us perfectly to the method design specifically
- 11:08Speaker 2: for that frazzled customer, snfhas selling Jill Conrath twenty twelve.
- 11:12Speaker 2: Another xeroxalum actually SNAPP sound. The goal here is just
- 11:18Speaker 2: less friction, right, exactly, pure friction reduction. SNAPP is all
- 11:22Speaker 2: about making it easy for those time pressed, overwhelmed decision makers.
- 11:26Speaker 2: Snap is the acronym.
- 11:28Speaker 1: Okay, break it down.
- 11:29Speaker 2: S is for simple, make the solution easy to understand,
- 11:32Speaker 2: easy to adopt, cut the complexity. N is for invaluable.
- 11:37Speaker 2: Position yourself as a trusted, valuable resource, someone who actually
- 11:41Speaker 2: helps them navigate the noise. R A is for aligned.
- 11:44Speaker 2: Ensure your solution fits perfectly with their existing priorities, beliefs,
- 11:48Speaker 2: and needs. Don't try to force a square peg and
- 11:51Speaker 2: P is for priority. Constantly reinforce how your solution addresses
- 11:55Speaker 2: their most urgent, time sensitive issues. Keep it top of mind.
- 11:58Speaker 1: So we're challenger kind of dictates the narrative.
- 12:01Speaker 2: SNFP slides gently into the narrative that's already there. Much
- 12:04Speaker 2: lower friction.
- 12:05Speaker 1: Okay, that distinction helps a lot. So SNFP reduces friction.
- 12:09Speaker 1: Challenger confronts assumptions. What does GP selling fit. That one's
- 12:12Speaker 1: pretty near right to me.
- 12:13Speaker 2: I Yeah, GP selling from Jim Keenan. You could see
- 12:16Speaker 2: this as sort of the peak of the problem centric approach.
- 12:19Speaker 2: It fully embraces that the sale isn't about your product.
- 12:23Speaker 2: It's about bridging the gap between the prospects current often
- 12:28Speaker 2: messy state and their desired future state. That's the real solution.
- 12:32Speaker 1: So how does the seller do that?
- 12:33Speaker 2: They go beyond just finding facts. They have to uncover
- 12:36Speaker 2: the facts, yes, but also the problems stemming from those facts,
- 12:40Speaker 2: the negative impacts of those problems, the deep root causes,
- 12:44Speaker 2: and crucially, the emotions tied to that pain.
- 12:47Speaker 1: Emotions. Interesting.
- 12:48Speaker 2: Yeah, the GP selling really emphasizes leveraging the emotional consequences
- 12:53Speaker 2: of the problem, the frustration, the fear, the ambition to
- 12:56Speaker 2: drive urgency and get everyone aligned on needing to change.
- 13:00Speaker 1: Gotch Okay. Before we wrap up with takeaways, we should
- 13:03Speaker 1: quickly touch on those acronyms used for qualification, the frameworks
- 13:06Speaker 1: for just figuring out if a deal is real, right.
- 13:08Speaker 2: The operational checklists. Almost we all know.
- 13:11Speaker 1: The granddaddy IBM way back in the fifties. Budget authority
- 13:16Speaker 1: needs timeframe.
- 13:17Speaker 2: Ban simple, sure, but honestly pretty outdated for complex B
- 13:21Speaker 2: to B deals today. I mean, how often do you
- 13:23Speaker 2: start a big deal by asking about budget first? It's
- 13:25Speaker 2: usually one of the last things nailed down.
- 13:27Speaker 1: True complex sales need more depth, which is why things
- 13:31Speaker 1: like medic emerged right nineteen ninety stents exactly.
- 13:34Speaker 2: Medic Force is much more rigor. You have to identify
- 13:36Speaker 2: the metrics for success, the actual economic buyer, the decision
- 13:40Speaker 2: criteria they'll use, the detailed decision process, clearly identify the
- 13:44Speaker 2: pain and crucially find a champion inside the organization. Much
- 13:49Speaker 2: more thorough.
- 13:49Speaker 1: And even more recently, I know there are others like
- 13:52Speaker 1: Champ faint ANU.
- 13:54Speaker 2: Yeah, it became an alphabet soup for a while. That's
- 13:56Speaker 2: why newer frameworks like an EAT selling came out around
- 13:59Speaker 2: twenty sixteen. They were designed to replace that.
- 14:01Speaker 1: Older clutter and eat. What's the focus there?
- 14:03Speaker 2: N is for need, but the deep core need, both
- 14:06Speaker 2: for the organization and the key individuals involved. E is
- 14:09Speaker 2: for economic impact, quantifying the value of changing versus staying put.
- 14:14Speaker 2: A is for authority, verifying who really signs off? And
- 14:17Speaker 2: T is for timeline, getting concrete dates and milestones. It
- 14:21Speaker 2: really pushes the focus towards financial consequence and away from
- 14:23Speaker 2: just features and interestingly an you am another one actually
- 14:26Speaker 2: prioritizes authority over money budget.
- 14:28Speaker 1: Okay, wow, that's a whirlwind tour through fifty plus years
- 14:33Speaker 1: of methodological evolution. Let's try to pull this together. Let's
- 14:37Speaker 1: distill the absolute key strategic takeaways for the modern business developer.
- 14:43Speaker 2: Listening right now sounds good. I think the first and
- 14:46Speaker 2: maybe the most foundational takeaway has to be that historical
- 14:50Speaker 2: mandate of advocacy that started back in sixty eight. Right
- 14:53Speaker 2: the shift the information age permanently changed the job. If
- 14:56Speaker 2: your capture manager today, your core mission fundamentally is not
- 15:00Speaker 2: just closing transactions. It's customer and community advocacy aimed at
- 15:03Speaker 2: creating sustainable growth. If you don't embody that advisor role, frankly,
- 15:07Speaker 2: the market's just going to replace you with a search engine.
- 15:09Speaker 1: Harsh but probably true. Okay, take away number two, I
- 15:13Speaker 1: think it has to come from Sesspin selling the science. Yeah,
- 15:16Speaker 1: the power of scientific discovery. For any large, complex deal,
- 15:20Speaker 1: the kind with multiple stakeholders and long cycles, the data
- 15:24Speaker 1: is just undeniable. Deep investigation uncovering the situation, problem, implication
- 15:29Speaker 1: and need payoff is the single most critical factor for winning.
- 15:33Speaker 1: Forget fancy closes. Elite developers spend their energy planning and
- 15:37Speaker 1: executing world class discovery.
- 15:40Speaker 2: Couldn't agree more, which leads perfectly into the third takeaway,
- 15:44Speaker 2: the absolute necessity of perspective in today's market.
- 15:47Speaker 1: Because the buyer is already educated.
- 15:49Speaker 2: Exactly, since the prospect has done maybe seventy percent of
- 15:52Speaker 2: their homework before you even talk. The successful developer, like
- 15:55Speaker 2: the Challengers or using Millerheimen's perspective, update has to evolve.
- 15:58Speaker 2: You can't just deliver information anymore. Your highest value now
- 16:02Speaker 2: lies in teaching the prospect something new, something insightful they
- 16:05Speaker 2: didn't find online, tailoring that insight so it hits home
- 16:08Speaker 2: for them specifically, and providing fresh, sometimes even confronting perspectives
- 16:13Speaker 2: that fundamentally shift how they see their own problem or opportunity.
- 16:17Speaker 1: Advocacy, discovery and perspective. Those three really do seem to
- 16:21Speaker 1: capture this strategic journey, don't they?
- 16:23Speaker 2: I think they do. And you know, this whole conversation
- 16:25Speaker 2: raises a really interesting question for you, the leader thinking
- 16:29Speaker 2: about the future. Okay, we keep refining these qualification frameworks,
- 16:32Speaker 2: right like any atgap selling focusing on impact emotion, but
- 16:37Speaker 2: looking ahead when AI tools inevitably get really good at
- 16:41Speaker 2: handling the more mechanical parts of discovery, identifying the basic
- 16:45Speaker 2: situation and problem points. What's the next qualification layer going
- 16:50Speaker 2: to be? What becomes the truly differentiating, highest value human
- 16:55Speaker 2: element in the B to B development process that AI
- 16:58Speaker 2: can't replicate.
- 17:00Speaker 1: That is definitely something to think about what is uniquely
- 17:02Speaker 1: human in that process going forward? Yeah, the great thought
- 17:05Speaker 1: to leave our listeners with as they tackled their next
- 17:07Speaker 1: complex deal. Thank you so much for walking us through
- 17:10Speaker 1: the DNA of all these crucial frameworks, so.
- 17:12Speaker 2: It was my pleasure.
- 17:12Speaker 1: Always fascinating stuff, And thank you our listeners for joining
- 17:15Speaker 1: us for this deep dive into the business development methodologies
- 17:18Speaker 1: that shape success today. We really hope these insights help
- 17:21Speaker 1: guide your strategy moving forward.