Differentiate Before Sundown
Differentiation is far and away the most important tool in the quiver of any sales professional. So why is it so very rare? Experts disagree about where the responsibility for differentiation lies. Some say it begins with the marketing strategy. Others claim that the best differentiation happens in product development. Still others would claim it develops itself over time through iteration with the marketplace. Differentiation comes from no one place. There's no "best practice" that defines the proper source for differentiation - just that it "must be". So why is it that only 12% of b2b companies can actually clearly articulate their differentiation?
Motum defines differentiation as having one or more unique characteristics that create material, recognizable value for the buyer. It doesn't have to be unique in the universe (although that would be nice). It simply has to be unique among the cadre of competitors being considered by the buyer at a given time. The belief that a differentiated offering is crucial to revenue performance is universal. So why very few can actually lay claim to a true differentiator in the sales process is a mystery.
We have spent thousands of hours over the years helping clients plan, develop and message true differentiation. It's a wonderful process that often becomes engrained in the client's future product and marketing strategies for years to come. No company should ever be without it. That said, to a lonely sales professional in Des Moines or Columbus working hard to sell their company's product without differentiation, what should have happened months ago during development of the marketing strategy no longer matters. She needs to sell something or find a new job.
Differentiate Before Sundown
A sales professional doesn't have the luxury of pausing the sales cycle to hold a differentiation workshop. They have to find a way to make it happen now. Fortunately, some of the most effective differentiation opportunities can be created in the field. At Motum, we call it "Instant Value". Creating and offering compelling, instant value should be a concrete step in every sales methodology. The "Instant Value" approach, when done properly, is most difficult for competitors to overcome. It is a one-time differentiator created exclusively for the client.
In his 1996 Harvard Business Review article entitled “ What is Strategy?,” Michael Porter suggests that differentiation takes one of two forms: 1. Performing different activities than the competition. 2. Performing similar activities as the competition in a different manner. A sales professional should ask the question, what else can we bundle into our offering that will "compel" the buyer to choose us? What can we do differently "just this one time" that will make us seem "man-on-the-moon" cool to the buyer and put us unquestionably over the top? Can we perform different activities than the competition? Can we perform similar activities in a different way? If I'm just another player on the field, how do I "change the game"?
Offer What You Can Control
When I was selling supply chain consulting services to large companies in Silicon Valley in the early 2000's, there was little difference among the top firms, their methods/practices/tools. Yet we had Gene Tyndall and Christopher Gopal, authors of Supercharging The Supply Chain, a best selling book on one of the hottest topics of the era. I offered to place one or both of them on steering committees of supply chain projects in every major pursuit I led. That one component put us over the top time and time again. It created differentiation where there was none. Think about what resources your company has that you can offer. Do you have a senior executive or SME in the organization that could add value to the client as an advisor or member of a steering committee? Is there a third-party SME that you have access to? An offer of expert support is always a compelling differentiator.
Often times bringing your offering close to a zero-risk decision can put you over the top. Risk mitigators might include extending the product or service warranty, dedicating support services to the buyer's account, or a long-term agreement to upgrade to future releases. While these offerings may come with a cost, buyers usually don't mind if it reduces their personal exposure in selecting you over the competition.
Differentiation Doesn't Have To Be Built-In
You are in it to win it. Plan your strategy to include "Instant Value" items as components of your offering and never forget to shout it to the world that "nobody else does this". Discuss in advance with your team and senior leaders and come up with a list of instant value items you have at your disposal. The more you are able to change how and when you offer value to clients, the more difficult you will be to beat in sales cycles.
Motum is a market leader in revenue performance consulting, working with clients from large enterprises to entrepreneurial organizations across five continents to create sustainable revenue growth and develop an “unfair” competitive advantage for the long term. Please connect with us on LinkedIn and get services details at www.motum-us.com.