The inaction paradox
In part 1 of this blog, I explained the research that have made by Matthew Dixon and Ted McKenna's new book "the jolt effect".
Part 1 of my blog can be found here
How do we win deals where the client "does nothing"?
What they found that clients that end up "doing nothing" so staying with the existing supplier, or just not buying can be separated into two different types:-
44% stay with the current status quo, this could be staying with the existing in-house system, or the current supplier or just doing nothing.
The greater percentage, 56% decide to do nothing as they are actually too scared to do anything.
Wouldn't it make sense to be able to qualify better, both types?
Especially those in the 56% and the research shows we can.
There are three drivers to indecision
1. Valuation problems - What happens if I choose the wrong option?
2. Lack of information - Maybe I haven't done enough homework?
3. Outcome uncertainty - I'm concerned that project just isn't going to work!
(Now you have to remember, this is the buyers, view and not yours!)
Each of these had an associated set of behaviours, phrases and utterances that you can listen to in your meetings.
1. Valuation problems - What happens if I choose the wrong option?
For example, you will hear the client making these sort of statements on call.
"I know your system is cheaper to operate but your competitor is much faster and we're trying to figure out what is more important for our business".
Other times, it happens at the end of the sales process where the customer starts, delaying over what the final contract should look like. "We are trying to work out what professional services are required".
"I know we said we wanted a three year contract, but maybe we need to go back to the two year option".
2. Lack of information - We need to do more research
- Despite they have consumed a lot of your time as a seller, they will keep wanting additional calls to address questions.
- They might enlist the help of third party purchasing consultants. I've seen this kill so many deals.
- They invite more colleagues in to de-risk the internal politics of the decision from their prospective. For example, they might keep finding people internally for you to demo to.
3. Outcome uncertainty - this is the 'belief gap" between what the rep says and reality
- Customers ask for endless references.
- Or modeling the exact returns )return on investment (ROI)) they should expect to get.
- Insisting on low cost or no cost proof-of concept (PoC) trails and pilots.
It's worth placing a side note, which I will detail on a later blog, that the "belief gap" can be closed by having a buyer-centric profile, a wide and varied network and by sharing great content, which is exactly what we teach and coach in our social selling and influence courses.
The problem gets worse
In many sectors, competition seems to get more and more, in the Martech (marketing technology) space the number of startups have grown from 150 vendors in 2011 to 10,000 in 2022.
In research for the book, I mentioned above, they found that on 87% of calls there was either moderate or high levels of customer indecision.
Want to know more about social selling, check out my new book
"social selling techniques to influence buyers and changemakers - 2nd edition".
In this brand new edition, I have updated all the text, I have also got 15 practitioners, so people who are doing this already to explain how they are get (practical) business benefit. From the CEO that has been running a digital business for over 18 months to sales leaders who use social selling every day.
Articles on how these business have and are implementing digital, from Mercer, Telstra Purple, Ring Central, Cyberhawk, Namos, Ericsson, Crux Consulting, DLA Ignite and more.
What does Mark Schaefer, Marketing guru think of the book "social selling - techniques to influence buyers and changemakers - 2nd edition"? watch the video here
It's available on Amazon worldwide. Link to Amazon.com here and Amazon.co.uk here.
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