an introduction to the challenger customer [pat spenner, ceb]

An Introduction to

The Challenger Customer

© 2015 CEB. All rights reserved#ChallengerCustomer


Customer

Status Quo

Agreement

on a Vision

Purchase

Decision

Two Trends Reshaping B2B Commerce

Buying Trend #2:

Consensus Purchase

Buying Trend #1:

Customers Learn on

Their Own


A Different Kind of Buying

57%

Customer

Due Diligence

Begins

Customer

Purchase

Decision

Customer

Contacts

Supplier


Right Answer Meets Changing World

Customers rely on

consultants and own

research to identify

needs

Customers research

potential solutions

without suppliers

Customers set

prices based on

comparison

shopping

Question the

customer to surface

their needs

Help customer

identify solutions to

their needs

Price deal according

to scope of solution

and range of needs

addressed

321

Solution

Selling

Approach

Reality

of the

Situation

Needs Discovery Solutions Design Pricing


“Good Enough” and the Path to Commoditization

CUSTOMER FACES PURCHASE DECISION

“What’s important?”

“How much do I need?”

“What’s it going to cost?”

EXAMPLE

Criteria:

1. Speed

2. Durability

3. Up-time

Criteria: Specs:

1. Speed 10/day

2. Durability 5 years

3. Up-time 95%


Challenger Sellers Win

• Always goes the extra

mile

• Doesn’t give up easily

• Self-motivated

• Interested in feedback

and development

• Always has a different

view of the world

• Understands the

customer’s business

• Loves to debate

• Pushes the customer

• Reliably responds

• Ensures that all

problems are solved

• Detail oriented

• Follows own

instincts

• Self-assured

• Independent

• Builds strong customer

advocates

• Generous in giving

time to help others

• Gets along with

everyone

Hard Worker Challenger™ Seller Relationship Builder

Lone Wolf Problem Solver


Customer

Status Quo

Agreement

on a Vision

Purchase

Decision

Two Trends Reshaping B2B Commerce

Buying Trend #2:

Consensus Purchase

Buying Trend #1: Customers

Learn on Their Own


Customer

Status Quo

Agreement

on a Vision

Purchase

Decision

Single

Stakeholder

Agreement

Organizational

Consensus

Traversing the Solutions Graveyard


n = 3,000.

0%

50%

100%

81%

55%

53%

31%

1 2 3 4 5 6+

Size of Buying Team

60%Purchase

Likelihood

60%

Bigger Groups, Fewer Purchases


n = 3,000.

0%

50%

100%

81%

55%

53%

31%

1 2 3 4 5 6+

Size of Buying Team

60%Purchase

Likelihood

60%

5.4Average Buying

Group Size

Bigger Groups, Fewer Purchases


Stakeholder 1:

CIO

Rep Angle: Minimal work-

flow disruption

Positioning: Seamless

integration with legacy

systems

Stakeholder “Closed”

Stakeholder 2:

Financial Analyst

Rep Angle: Cost

savings

Positioning: Write-off of

existing platform


Stakeholder 3:

Marketer

Rep Angle: Deeper

customer segmentation

Positioning: Develop effective

segmentation targeting

strategies


1. Accessing Individuals2

. C

los

ing

In

div

idu

als

Track Them All down, Win Them All Over


0%

8%

(8%)

4%

(4%)

Ch

an

ge in

Lik

eli

ho

od

of

Makin

g

a H

igh

-Qu

ality

Sale

Access to

Stakeholders

Evaluating Purchase

Positioning Offering on

Value to an Individual

Stakeholder

Surprising Findings


Stakeholder 1

Mental ModelGoal

Priorities

Metrics

Means

Stakeholder 2

Mental ModelGoal

Priorities

Metrics

Means

Stakeholder 3

Mental ModelGoal

Priorities

Metrics

Means

The Lowest Common Denominator


The Teacher The BlockerThe ClimberThe Guide

The Go-Getter The FriendThe Skeptic

Seven Types of Customer Stakeholders


Mobilizer™ Customers Get the Deal Done


1. Identify Mobilizer™ customers versus “Champions”

2. Engage Mobilizer customers with Commercial Insight, not Thought

Leadership

3. Equip Mobilizer customers to coach customers toward collective

change

What Now?


Finding Mobilizer™ Customers




Leadership


change

What Now?


Break down the “A,” then Build up the “B”

0.013

(0.047) (0.096) (0.132)

Ma

gn

itu

de

of

Dri

ve

r Im

pac

t

Representing a

Smart/Expert

Perspective

Being Easy to

Understand

Containing

Interesting

Facts or

Anecdotes

Being

Accessible/

Quick to

Find

Non-Statistically Significant Drivers



Statistically Significant Drivers

0.302

0.013

(0.047) (0.096) (0.132)

Ma

gn

itu

de

of

Dri

ve

r Im

pac

t

0.446

Teaching Customer

Something New

about Their

Business Needs/

Challenges

Providing the

Customer with

Compelling

Reasons to Take

Action

Representing a

Smart/Expert

Perspective

Being Easy to

Understand

Containing

Interesting

Facts or

Anecdotes

Being

Accessible/

Quick to

Find

Non-Statistically Significant Drivers


Thought Leadership Is not Commercial Insight

General Information

Accepted Information

Thought Leadership

Insight

Commercial Insight


Current

Beliefs/Behavior

Desired

Beliefs/Behavior





Leadership


Change

What Now?


Source: Skillsoft; CEB analysis.

Skillsoft’s toolkit provides

guidance on how to navigate

internal change and purchase

processes

Mobilizer™ Customer Toolkit

© 2015 CEB. All rights reserved#ChallengerCustomer© 2015 CEB. All rights reserved. SEC4512515SYN 17

HOW CAN CEB HELP?

CEB equips organizations through best practices, tools, and

implementation support to:

■ Source, screen, assess and develop ChallengerTM sellers

■ Develop sales talent to better engage Mobilizer customers

■ Create Commercial Insights

■ Support the mapping of customer buying behavior and verifiers

■ Create Challenger marketing content

Learn more: www.ChallengerCustomer.com

Find MobilizerTM

Customers

Engage Mobilizer

CustomersDrive Consensus

Challenger™ and Mobilizer™ are trademarks or service marks of CEB Inc. These marks may be registered marks® in various countries. CEB Inc. claims

all rights to control their use for goods and services within their field. Inquiries concerning these trademarks and service marks should be directed to

[email protected].


Appendix: Commercial Insight Example

an introduction to the challenger customer [pat spenner, ceb]

Marketing