B2B Sales: Behaving as a Leader Results in Greater Customer Engagement
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This presentation will include findings from a study with 530 B2B buyers about the behaviors of sellers that cause buyers to readily accept meetings and see things through to the close of a sale. Buyers want sellers to replace stereotypical sales behaviors with leadership behaviors from Quote-to-Cash, all the way through the customer experience. Hear the research that reveals surprising findings all sales organizations need to understand.
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B2B Sales: Behaving as a Leader Results in Greater Customer Engagement
- 1. #AccelerateQTC May 4, 2017 – 3:00pm Deb Calvert @PeopleFirstPS #AccelerateQTC What Do Buyers REALLY Want? B2B Sales: How Behaving as a Leader Boosts Customer Engagement
- 2. Author, DISCOVER Questions® Get You Connected, named by HubSpot as one of “The Top 20 Most Highly-Rated Sales Books of All Time” Certified Master, The Leadership Challenge® Deb Calvert We build organizational strength by putting people first
- 3. How We Build Organizational Strength by Putting People First Sales TeamworkLeadership We help sellers connect with buyers and conduct research with B2B buyers. We help leaders connect with themselves and their followers. We help members of teams connect with each other and with their common goals.
- 4. The Power Shift What’s Changed? It’s one of the most significant shifts in economic history… “an enormous global power shift from producers to consumers, from those who make to those who buy.” - Dr. Rosabeth Moss Kanter, Harvard Business School
- 5. What’s Changed? Ouch Buyers have completed 67% of the buying process before engaging a seller. Only 19% of clients rate conversations with sellers as “valuable.” CEB, Forrester 2014
- 6. What’s Changed? Buyers Avoid Sellers 67% Buyers avoid sellers until they are nearly ready to buy Sellers don’t influence the sale, they simply transact it… Often with a focus on price alone
- 7. What’s Changed? What Buyers DO Want “If you want to win their pocketbooks, you have got to figure out how to get to them first, faster and more often ahead of all your equally compelling competitors have such an awesome connecting experience that they will go out of their way to come to you.” - Michael Dart, A.T. Kearney private equity firm, The Wall Street Journal OR
- 8. Research with 530 B2B Buyers Connecting Experience… Current Frequency of Leadership Behaviors Ideal Frequency of Leadership Behaviors Behaviors that Would Cause You to Meet Behaviors that Would Cause You to Buy Most Important Behaviors
- 9. 9 Frequency of Behaviors The Five Practices: Your Guess 30 Exemplary Leadership Behaviors Organized into The Five Practices of Exemplary Leadership® Based on 30 years of research – The Five Practices exemplify leadership across: Culture | Gender | Ethnicity | Generations | Industry
- 10. Instant Poll 10 Respond at PollEv.com/mikecarrell890 Text MIKECARRELL890 to 22333 (once to join) Then A, B, C, D, E, …. 1. Model the Way 2. Inspire a Shared Vision 3. Challenge the Process 4. Enable Others to Act 5. Encourage the Heart
- 11. 11 The Five Practices: Buyer’s Ranking 30 Leadership Behaviors that SELLERS can use Organized into Five Practices Frequency of Behaviors
- 12. 1212 Enable Others to Act Buyer’s Ranking #1 Enable Others to Act Overall % Behavior 12 9.39 The seller develops cooperative relationships among the people he/she works with. 6 23.6 The seller engages in two-way dialogue with me as he/she strives to understand my needs 2 30.9 Seller treats others with dignity and respect. 4 32.4 The seller involves me in the decisions that directly impact our job performance. 7 43.0 The seller acknowledges and affirms my ideas and is willing to brainstorm with me to build new ideas and insights together. 1 62.7 The seller fully answers my questions and provides information that is relevant, timely, and useful.
- 13. 131313 Enable Others to Act Buyer Participation = The Chipotle Effect “We’re entering a ‘bottom-up’ economy in which consumers will migrate to businesses that allow them to be participants in the process of creating what they want.” - The Future of Competition: Co-Creating Unique Value with Customers Enable Others to Act
- 14. 14141414 Enable Others to Act The B2B Buyer Experience “Value creation is defined by the experience of a specific consumer, at a specific point in time at a specific location, in the context of a specific event… The experience space is conceptually distinct from that of the product space. In the experience space, the individual consumer is central, and an event triggers a co-creation experience… The involvement of the individual influences that experience. The personal meaning derived from the co-creation experience is what determines the value to the individual.” - MIT Sloan Management Review Enable Others to Act
- 15. 1515151515 Model the Way Buyer’s Ranking #2 Model the Way Overall % Behavior 5 (tie) 6.36 The seller demonstrates a personal commitment to fulfilling any promises made or implied by the brand he/she represents 5 (tie) 10.0 The seller makes certain that the people who fulfill the order we’ve made will adhere to the principles and standards we agreed on. 3 11.8 The seller follows through on the promises and commitments that he/she makes. 15 2.78 The seller asks for feedback on how his/her actions affect my decisions and outcomes. 14 5.76 The seller builds consensus with me around a common set of values and standards for our working together. 10 5.45 The seller is clear about his/her values and consistent in upholding them.
- 16. 161616161616 Model the Way Credibility: The Seller follows through on promises and commitments that he/she makes. Model the Way
- 17. 17171717171717 Buyer’s Ranking #3 Encourage the Heart Overall % Behavior 17 20.6 Seller praises people for a job well done 8 45.4 The seller demonstrates confidence in my abilities and decisions 14 40.3 The seller makes sure that people are creatively recognized for their contributions to the success of our projects 21 29.0 The seller tells stories of encouragement about the good work we are doing. 18 33.0 The seller gets personally involved in recognizing people and celebrating accomplishments. 13 30.9 The seller provides appreciation and support for me and any other members of my team appreciation for the work we do together. Encourage the Heart
- 18. 18181818181818 Encourage the Heart How One Buyer Described It “When a seller makes you feel confident about your decisions, it creates a relationship filled with trust and optimism. The impact almost always makes working together a lot more enjoyable and tends to always have a great outcome. This behavior shows that a seller is confident in the business they are providing and creates a level of rewarding outcome.” Encourage the Heart
- 19. 19191919191919 Challenge the Process Buyer’s Ranking #4 Challenge the Process Overall % Behavior 26 .09 The seller seeks out challenging opportunities that test his/her own skills and abilities 24 4.24 The seller challenges me to try out new and innovative ways to accomplish my goals. 9 12.4 The seller searches for innovative ways to improve what we do 22 5.45 The seller asks, “What can we learn?” when things don’t go as expected. 16 7.88 The seller identifies measurable milestones that keep the project moving forward. 11 11.5 The seller takes initiative in anticipating and responding to changes.
- 20. 2020202020202020 Challenge the Process How One Buyer Described It “It is very important to me that the seller looks for innovative ways to improve because my business is ever changing and not always flexible. When he/she does so I usually continue to use their services or products throughout the whole process. I also need to know that the seller is on the same page with me and my company so an acknowledgment of my input is necessary. I also expect all of my questions to be answered before, during, and after our work together.” Challenge the Process
- 21. 2121212121212121 Inspire a Shared Vision Buyer’s Ranking #5 Inspire a Shared Vision Overall % Behavior 20 3.03 The seller talks about how future trends may influence our relationship and the work we do together 26 .03 The seller describes a compelling image of what the future could be like for me 27 (last) .03 The seller appeals to me to share with him/her an exciting dream of the future 25 2.42 The seller shows me how my long-term interests can be realized by enlisting in a common vision with him/her. 23 1.89 The seller paints the “big picture” that includes what I aspire to accomplish 19 6.06 The seller speaks with genuine conviction about the higher meaning and purpose of our work and relationship
- 23. #AccelerateQTC Deb Calvert deb.calvert@peoplefirstps.com What Do Buyers REALLY Want? B2B Sales: How behaving as a leader boosts customer engagement
Editor's Notes
- Buying and selling has changed. Buyers have changed. Sellers are struggling to deliver what busy, empowered and demanding buyers want. Sales organizations are pulling out all the stops on Customer Experience, sales enablement, AI and tech solutions, restructuring to get more inbound sales, complete with a return to ABM. People inside and outside the sales function are scrambling to keep up and to make all sorts of changes to respond to buyers. And yet, buyers still don’t seem satisfied. What gives? We’re going to tackle those tough challenges… And not just by discussing why this is happening. I will review some of that high-level research BUT, more importantly, I’ll be giving you some insights directly into buyer preferences so you can take action and respond to these developments in ways that genuinely move the needle. If you are an HR Business Partner to the sales organization or if you are simply hoping to understand more about the sales function, you’re in the right place. This presentation is about how sales can respond to all these changes and work more effectively with buyers. Best of all, the answers to these tough questions come directly from B2B buyers themselves. Working with Qualtrics, Santa Clara University, Wiley Publishing and the authors of The Leadersihp Challenge, Jim Kouzes and Barry Psoner, we conducted a research study with 530 B2B buyers based in the U.S. These buyers represent every sector and are distributed across all the usual demographic slices you’d expect – different ages, different roles inside their organization, different levels of B2B buying experience, different types of purchases being made, and so on The purpose of our study was to find out – directly from buyers – about their preferences regarding the behaviors exhibited by sales people calling on them. Let me give you a sneak preview: the behaviors they favor are behaviors more often associated with leadership than with stereotypical selling. Hence the moniker for this movement – Stop Selling & Start Leading. Let me back up and introduce the players involved and the way we started down this path to understand buyer preferences regarding seller behaviors. CLICK
- My name is Deb Calvert, and I am a Certified Master of The Leadership Challenge. After working as a corporate HR Director for a Fortune 500 company, I founded People First Productivity Solutions in 2006 to help companies like yours build organizational strength by putting people first. The PFPS team of trainers, coaches and consultants are former executives and specialists in the fields of sales productivity, leadership development and team effectiveness. Because I work in both leadership development and in sales effectiveness, I saw some interesting parallels and contrasts. I started thinking a few years back about the ways sellers behave and the ways buyers respond. In fact, I did 20 years of research about that for my first book DISCOVER Questions Get You Connected. It occurred to me that buyers might prefer it if their sellers exhibited leadership behaviors instead of some stereotypical sales behaviors. Working with Barry and Jim, we started conducting research directly with buyers. That’s how the Stop Selling & Start Leading™ movement was born, and that’s what I’m eager to share with you today. Enough about us! I’d like to get a better idea of who’s attending this webinar live today. Please pick the job role that fits you best, and I will tailor this presentation to you more specifically. CLICK POLL to be conducted and reported by Holly and HCI THANK YOU
- Let’s dive right in now. Let me start with a quick overview of what’s going on with buyers… the background that prompted this research and the symptoms of the problem we’re all experiencing. We can start with the obvious. The economy. Technology. Globalization. There are so many factors that contribute to this reality. Buyers are in control. Forrester calls the era we’re in “The Age of the Customer.” In B2C, the response has been to significantly invest in the Customer Experience. And, as consumers, we’re enjoying the attention and feel entitled to more of it. The Customer Experience includes making things easy, enjoyable and valuable to us buyers at every single touchpoint, online, on the phone or in person. Some B2C are getting there faster than others. Few B2B organizations are responding as quickly… Although ABM is a reaction that may address some of these needs. The big takeaway here that I want to point out is this – We are all buyers in the B2C space. Our B2B buyers are also B2C buyers who are getting conditioned by the comparatively pampered B2C Customer Experience offered by retailers and others. What this means to all sellers is that the expectations of their buyers are higher. The bar has been raised for all of us, even in B2B. CLICK
- People in sales are already painfully aware of these brutal facts. Sellers are finding it difficult to get meetings with prospects and find that the ones who take meetings immediately want to talk about price and other factors that we’re not ready to discuss… well, here’s why. They have already done their research and they are at a place in their buying process that doesn’t align with where we think they are if we’re measuring by our own sales funnel or process. Top of the funnel qualifying questions, for example, are a real turnoff for buyers who are 67% of the way through their own buying process and are ready to negotiate terms with your sellers. CLICK And here’s another unpleasant data point. Because we’re misaligned… And because buyers are barely giving sellers a chance to explain the value of your products, 81% of buyers rate conversations with sellers as less than valuable.. That’s also known, in buyer terms, as “a waste of time.” CLICK
- And that feeling, that meeting with us is a waste of time, only drives more independent buyer research and leads them to making conclusions about us that are ill-informed or inaccurate. Not only that, but it forces us to talk about price in a way that is transactional and commoditized. This is what’s happening. All the training and sales enablement and organizational restructure in the world won’t change these facts UNLESS we respond to what buyers want from us when we interact with them. So here’s the good news. We are getting clarity on what B2B buyers want from us. And it’s not theoretical or ambiguous. We have actual, practical information because – through our research -- we got directly to the specific behaviors that buyers want to see more frequently from sellers. See… the good about behaviors is that they are easy to understand and enact. These become simple choices – will I behave this way or not? I like easy, and getting to the specific behaviors makes this so much easier…. CLICK
- I’ll frame these contrasts in behaviors like this. We can continue to do the work of selling that we’ve always done… Automation using all the tools in your stack, pipeline management, grinding it out, competing on price… We can put all that in the first option bucket and keep trying to get to buyers first, faster and ahead of our competitors. OR We can choose leadership behaviors that – according to B2B buyers themselves – will more often get us in the door and more often make the sale. These behaviors help sellers connect with buyers in meaningful ways so they can guide them as leaders do. Buyers CHOOSE and gravitate toward sellers who lead. Said another way: This second choice suggested by researcher Michael Dart sounds more like a relationship between leaders and followers than it sounds like the relationship between buyers and sellers. This statement was one of the triggers that led us to exploring the hypothesis that buyers want leadership and not salesmanship. The Leadership Challenge was a logical framework for this research because it is the body of work that behaviorally defines what it means to lead in a way that others will choose to follow. Jim and Barry have conducted over 30 years of research with over 5 million constituents who observed the frequency of 30 specific behaviors in their leaders. In a Qualtrics Panel survey sponsored by Santa Clara University, we asked 530 B2B buyers about those 30 behaviors – the ones from The Leadership Challenge -- that are already proven to make leaders more effective. CLICK
- We asked about these 5 things… Point out ZERO differences in all demographic sortations. Findings = ALL 30 were positive, all 30 would ideally be exhibited more frequently, all 30 would increase likelihood of a buyer taking a meeting with a seller AND all 30 would lead buyers to buy from the seller who exhibited the behavior. We also asked for open response comments and got some insightful context to understand these buyer desires. CLICK
- There are, as I said, 30 behaviors. They are grouped into The Five Practices of Exemplary Leadership in that body of work I mentioned, The Leadership Challenge, by Jim Kouzes and Barry Posner. Each practice has 6 specific behaviors. Let me describe each of these Practices at a high level. And then I’ll ask you to select the one that you think the buyers ranked highest. MTW – Knowing your own values and what your brand stands for… Consistently aligning your actions with those values to be credible. ISV – Envisioning an exciting future and enlisting others in that vision by appealing to shared aspirations. CTP – Innovating, experimenting, taking risks, learning from experiences – including failures. Being able to challenge yourself and others in all these ways. EOA – Fostering collaboration and strengthening others. ETH – Showing appreciation and recognition + celebrating shared victories and creating a spirit of community. POLL Here – which of these 5 Practices do you think was ranked highest by B2B buyers who were asked about seller frequency of the behaviors related to each Practice? POLL to be conducted and reported by Holly and HCI Comment on the group’s vote. Contrast it, next slide, to the actual survey results. THANK YOU
- Are you fulfilling insurance contract or MITIGAGING risk? https://www.aicpa.org/interestareas/frc/accountingfinancialreporting/revenuerecognition/downloadabledocuments/working_drafts/insurance/insurance_9-1_applying_scope_exception_fasb_asc_606-10-15-2_4.pdf https://www.pwc.com/us/en/cfodirect/assets/pdf/in-depth/2014-01-revenue-recognition-insurance-supplement.pdf
- Here’s the actual order
- Let me give you some takeaways from this: The price of admission to work with someone, anyone, is treating them with basic dignity and respect. I was somewhat surprised by the number of comments B2B buyers shared about sellers being dismissive of their ideas or showing disregard for their contributions to the buying process. So, sellers, this is one where you really have to check yourself before you wreck yourself with buyers. It’s so basic that we shouldn’t have to talk about it. Two way dialogue to understand needs. That is NOT a diagnostic needs assessment conducted with one-way Q&A. It’s a dialogic needs assessment, an entirely new approach that is much more engaging. It requires different questions and a higher level of listening and interaction. My book DISCOVER Questions Get You Connected is a resource that can help with this. I’ve included a free chapter offer for anyone who would like to work on this critical skill. 3. Note the #1 ranked behavior overall pertains to being in step with your buyer. This can be tricky because they are doing some of their own research before they meet with you. So while you’re trying to ask qualifying questions and trying to position value that’s about your company, brand or product, the buyer is growing impatient. That’s old news to them and you risk being irrelevant and low value. What you’re trying to talk about is NOT useful to your buyer. Let me build on the other Enable Others to Act behaviors by introducing some thought-provoking research from others. CLICK
- Don’t go away to develop a solution. Don’t encourage your sellers to do this without the buyer. Instead, involve the buyer as much as possible to give them ownership and pride in the process of buying and creating. Think about B2C … buyers like to participate in creating exactly what they want, something that is uniquely their own… Build a Bear, Sephora, American Girl dolls, DIY workshops at Home Depot… Even Chipotle where you are tailoring the product to be precisely what you want in that moment in time. CLICK
- Don’t encourage your sellers to come up with insights and ideas on their own to bring to the buyer Insight Selling and Collaborative Selling gurus have said this all along… But when you hear about these models for selling, it’s usually translated incorrectly to suggest that sellers are supposed to bring insights TO the buyer. WRONG! Buyers want to participate and they want to derive meaning from the experience of working alongside a seller to co-create the experience itself. They want an experience where they are co-creating the insights and ahas and the ideas… You bring value as a facilitator or enabler of this process. CLICK
- The second highest ranking on leadership behaviors are clustered in the Leadership Practice known as Model the Way. Three of these are all about getting the job done. Two are about making sure that you model and uphold strong values that resonate with the buyer. That’s not to suggest you should hijack the buyer’s value system and claim it for your own. Just the opposite. Buyers want to know what you stand for and want your actions to match your professed values. Buyers want you to be transparent enough in your personal values that they can understand you and trust you. When it comes to working together, there will need to be some shared values or standards for how the work gets done – these are the ones that would more likely start with your buyers. Think of it this way. You have your own core values that you uphold in your actions every day. And you go to work for a company that has a set of values, too. You operate within the shared value system at work while also individually making life choices that fit your personal core values. Doing the same with buyers will position you as a leader that they can feel good about following. One of the MTW behaviors is about being vulnerable enough to ask for feedback and to have the self-awareness that what you do and how you do it affects your buyers. Some of these may seem a little lofty. They do require some introspection. But here’s one simple and high impact behavior we can extract from this practice that you could begin working on immediately. CLICK
- Rather third highest of all the behaviors: The seller follows through on the promises and commitments that he/she makes. Those of you who are familiar with The Leadership Challenge will recognize this acronym DWYSYWD. It stands for Do What You Say You Will Do. It’s such an easy behavior to demonstrate more frequently once you understand how critical it is for building trust and credibility with buyers. It’s also an easy way for your sellers to differentiate themselves from others. According to the buyers in our study, the lack of DWYSYWD is one of those negative sales stereotypes. The comments and stories they shared made it very clear that a seller who followed through is a seller they would choose to do business with… BUT a seller who doesn’t follow through seldom gets a second chance. CLICK
- The word choice in naming this leadership practice has always intrigued me. First, why encourage the HEART instead of the brain or the body? To me, for our purposes here today, this is an important acknowledgement that emotions are an undeniable part of buying decisions. This is the human factor we can’t and shouldn’t overlook. Second, the word ENCOURAGE… It literally means to “pour courage into” – think about that for a second. PAUSE. We do need to pour courage into our buyers at times. But it’s not something we think about all that often – beyond the polite “thank you” we give for their business, how often do we show gratitude and recognition to our buyers? There were a number of buyer comments in our study that conveyed just how bonding a well-placed and sincere appreciation could be. Not only that, but take a look at the second behavior in this list. It ranked highest of the behaviors in this leadership practice. It, too, generated a number of comments. It seems to go hand-in-hand with the behavior we saw on screen a few moments ago about treating people with dignity and respect. It reminds me of the old saying “don’t call my baby ugly.” When your prospects have made decisions you don’t agree with, remember that those were decisions that made sense to the buyer for some reason. At the time, they were proud of that decision. By denigrating their decision, it sounds like you are being disrespectful and are questioning the buyer’s abilities. So…. Just a word of caution there. I found this quote from a buyer in the study to be very interesting CLICK
- I had never thought about it this way… By conveying confidence in the buyer’s decisions, a seller projects confidence in his or her own solutions. Only those who are truly confident in themselves are generous in placing confidence in others… So I think this is a profound leadership lesson about something we may not be thinking about if we’re stuck in the mode of thinking and behaving like sellers. CLICK
- I was a bit surprised that these behaviors did not rank higher. After all, we’ve heard a lot these past few years about challenging our buyers. Lowest amongst these behaviors, though, are a seller stretching his or her own abilities AND a seller challenging the buyer to try new ways of doing things. At the same time, we see higher rankings for a seller searching for innovations… I think the dichotomy here is best explained by also considering the Enable Others to Act behaviors. Buyers want to participate, to engage in a 2-way dialogue, and to be treated respectfully. To challenge the buyer sounds one-sided. To bring ideas in for discussion is a whole other matter. But buyers do seem to want the best of both worlds… Check out the last item on the list. While involving them in idea generation and co-creating insights, buyers also want us to be on the lookout for changes and to keep them ahead of changes that are coming. Here’s how one buyer summed it up: CLICK
- And I have to admit I was completely floored that this Practice, Inspire a Shared Vision, ranked last. As you can see, these behaviors are still highly desirable… The ideal is still higher than the current sellers being chosen, but relative to the other 4 practices, this one cumulatively fell to the bottom. Many sellers expect that this is at or near the top. After all, the Practice and these behaviors sound more like the traditional work of selling. But there are 26 behaviors out of 30 that rank higher than half of these. Those three that are dead last – rating 25-26-27 due to tied scoring – they are leadership behaviors related to envisioning the future and describing the possibilities. Add the behavior that ranked #23 and you’ve got another one that is about looking down the road. Perhaps buyers are jaded and no longer want sellers to do this because they don’t fully believe the story being told. Or perhaps they need these other behaviors more before they can believe and trust the seller who would describe the future outcomes. Regardless of buyer’s rationale for ranking these behaviors lower, I think this is very important to consider. Sellers who over-rely on these behaviors because they think this is what selling is all about will miss the mark. At the same time, look at the last item in this list. I wonder if this is another leadership behavior that many sellers have never even considered… To speak with genuine conviction about the higher meaning and purpose of the work you do with buyers. When I field coach salespeople, I encourage them to look at a company’s website for mission, vision and values. Linking solutions to these higher purposes can be very inspirational. There’s a big difference between selling recycled paper goods in order to trim your expenses and selling recycled paper goods to help you strive toward your vision of being a good steward of the planet so future generations can enjoy it, too. CLICK
- Buying and selling has changed. Buyers have changed. Sellers are struggling to deliver what busy, empowered and demanding buyers want. Sales organizations are pulling out all the stops on Customer Experience, sales enablement, AI and tech solutions, restructuring to get more inbound sales, complete with a return to ABM. People inside and outside the sales function are scrambling to keep up and to make all sorts of changes to respond to buyers. And yet, buyers still don’t seem satisfied. What gives? We’re going to tackle those tough challenges… And not just by discussing why this is happening. I will review some of that high-level research BUT, more importantly, I’ll be giving you some insights directly into buyer preferences so you can take action and respond to these developments in ways that genuinely move the needle. If you are an HR Business Partner to the sales organization or if you are simply hoping to understand more about the sales function, you’re in the right place. This presentation is about how sales can respond to all these changes and work more effectively with buyers. Best of all, the answers to these tough questions come directly from B2B buyers themselves. Working with Qualtrics, Santa Clara University, Wiley Publishing and the authors of The Leadersihp Challenge, Jim Kouzes and Barry Psoner, we conducted a research study with 530 B2B buyers based in the U.S. These buyers represent every sector and are distributed across all the usual demographic slices you’d expect – different ages, different roles inside their organization, different levels of B2B buying experience, different types of purchases being made, and so on The purpose of our study was to find out – directly from buyers – about their preferences regarding the behaviors exhibited by sales people calling on them. Let me give you a sneak preview: the behaviors they favor are behaviors more often associated with leadership than with stereotypical selling. Hence the moniker for this movement – Stop Selling & Start Leading. Let me back up and introduce the players involved and the way we started down this path to understand buyer preferences regarding seller behaviors. CLICK