differentiators with a differenceslostc.org/events/jan24_2011_presentation_sant.pdf©2011 tom sant....

Differentiators with a Difference

How to Create Meaningful Differentiation in Your Sales Presentations and Proposals

Dr. Tom SantHyde Park Partners

Selling on value

The role of differentiators

How to state them

Linking them to value

Where to use them

Six Issues Related to Differentiation

Identifying yours

Your Success

Selling on value

How to state them

Where to use them

First…

Identifying yours

Your Success

FACT: Without value, winning is just luck.

You must establish superior value

based on technical, contractual, managerial, quality, or service differentiators,

or the customer will choose based on price

or may choose to donothing.

Smart Buyers Look for Positive Impact

• Revenue generation• Operational efficiency• Reliability of mission-critical operations• Quality• Worker productivity• Customer satisfaction• Regulatory compliance• And other key performance indicators

It’s not what you sell; it’s what they’ll gain

Focus on the hole your customer needs to make,

not on the drill.

The Basic Value Proposition

(Values - Costs) > (Valuea - Costa)

where:Values = the value of your solution Costs = the cost of your solution Valuea = the value of the next best alternativeCosta = the cost of the next best alternative

Outcomes

People use seven “heuristic models” to find the relevant information, analyze it,

and make a decision.

How people actually make decisions

The Estimation Heuristic

Basic principle:Choose the course of action or alternative that offers

the highest rate of return.

Why the Inuit hunt whales.

The promise inherent in our value proposition:

You will get more of the outcomesthat you want the most

if you choose us.

Warning: Not Everyone Buys Value*

The Relationship Buyer

The Price Buyer The Value Buyer

The Poker Player

*Based on the research of Dr. Reed Holden, The Strategy and Tactics of Pricing

And Not Everyone Wants the Same Value

Personal goalsBusiness / Financial• Budgetary compliance• Profit improvement• Downsizing

Technical / infrastructure goals• Automating a labor-

intensive process• Adding flexibility• Improving QC

Social goals• Internal

- Morale- Absenteeism- Turnover

• External- Public support- Approval- Recognition

Look at the client’s key goal areas and seek a solution where they overlap.

1. Financial gain

2. Business performance

3. Quality improvement

4. Technology / infrastructure

5. Reducing fixed asset costs

6. Keeping up with industry trends

7. Competitive strategy

8. Regulatory compliance

9. Social impact

10. Risk minimization

11. Speed of delivery

12. Continuous improvement

13. Lighter ecological footprint

14. “Core vs. context” focus

15. Creating a legacy

Types of Value Customers SeekTypes of Value Customers Seek

Selling on value

How to state them

Where to use them

Second…

Identifying yours

Your Success

What Are Differentiators?

Product/service featuresCorporate capabilitiesMethodology Management practicesPersonnel Facilities SizeExperienceRecognition, awards

Common Mistakes in Differentiating

Not including any differentiators at all.• Without differentiators, it’s a commodity.

Silence isn’t golden.

Using generic differentiators.• Generic value has no value.

Avoid Generic and Self-Serving Differentiators

Substituting marketing fluff.• No marketing fluff!

Marketing Fluff

Best of breedWorld classLeading edgeState of the artQuality focusedUniquely qualifiedInnovativeLeverage

High performanceSynergyUser friendlyIntegratedPartnershipSeamlessRobustHighly available

Anything look familiar?

Vague generalities. Undefined or unsubstantiated claims. Grandiose promises without substantiation.

Substituting marketing fluff.• No marketing fluff!

Using random or arbitrary lists of “differentiators”.• Tie your differentiators to your value proposition.

Differentiators That Don’t Do the Job

• Promises of quality service• Low price• Using standard methods

and tools• Promises of responsiveness• Credentials• Assurances of the client’s

importance• Company size

Selling on value

How to state them

Where to use them

Third…

Identifying yours

Your Success

The Process

1. Identify your differentiators• By competitor• By processes, especially customer touch points• By corporate capabilities

2. Align your differentiators with your customers’ most common value orientations

3. Identify proof and substantiation

Identifying Your Differentiators

Competitor

Process / Lifecycle

Corporate capabilities

By Competitor…Competitor Differentiators Why do they

matter?Proof?

1. Award-winning service2. Global coverage with

local offices 3. Unique work-load

balancing software

1. Faster user acceptance

2. Speedier response 3. Lower total cost of

ownership

1. Case study 1, 22. Map of offices 3. Screen shot;

testimonial

Baxter

Collins

Exercise

1. Identify two competitors

2. Identify two differentiators per competitor

3. Indicate why each differentiator matters

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Differentiators

Share your results.

By Processes and the Chain of Interaction…

•Learning about your product/service

•Ordering/purchasing your solution•Payment options•Delivery• Installation•Training•Using your product/ service

•Storing the product •Transferring the product•Getting help when using your product/service

•Repairing, maintaining•Returning, exchanging, upgrading•Removing, disposing of the product

Remember:Focus on what you do that nobody else does, or what everybody does that you do in a different way.

Differentiators Associated with Services

Selling services = selling the invisibleWhere to focus:

1. How you will do the work– Methodology, processes, best practices– Prior experience

2. How you will manage the work– Planning, people– Detailed roadmaps

3. Who you will provide– Experience, skills

4. Special facilities or equipment you will provide– Location– Software

Service Differentiators

Exercise

Identify as many differentiators as possible in the four key areas:

1. Methodology2. Management practices3. People 4. Facilities, resources and tools

Support each differentiator with proof. No proof = no points.

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Differentiators

Share your results.

Differentiators Proof

ValueProposition

Value That Has Value.

What you do that no one else does.

What you do differently

from anyone else.

Verifiable claims you make about

yourself. Claims your clients make about you.Third-party evidence.

What Kind of Proof?Stack up the proof:Case studiesReferencesTestimonialsTeam resumésProject planThird-party validation (press clips, articles, awards, etc.)Company capabilitiesManagement philosophyGuaranteesQuality control methodology

Types of Proof

Things you say about yourself.

Things your clients say about you.

Things third-party experts say about you.

Things You Say About Yourself

Product or service featuresResumes or CVsCompany history

Corporate capabilitiesCoverage maps

Process diagramsUnique contract terms

SizeExpertise

What evaluators prefer in technical resumés:• Recent, relevant experience• Specific training• General education• Publications• Patents• Professional affiliations

Photos—• A chance to personalize the team• Also, a way to establish team diversity

Using Resumes to Persuade

Things Your Clients Say About You

Case studiesReferencesTestimonials

Guidelines for Case Studies

1. Problem

2. Action

3. Results

Great Success Stories are P-A-R for the course!

Third-Party Evidence

AwardsCertifications

RankingsArticles

Accolades

Selling on value

How to state them

Where to use them

Fourth…

Identifying yours

Your Success

Four Principles of Effective Value

1. Make sure the client cares

What does the key decision maker care about?

CEOCFOCIO

Operational ManagerBuilding Manager

Others?

2. Measure it

What Are You Measuring? And How?

Area of results Metric Motion Unit of measure

Financial Direct labor costs Decreased Number or $

Quality Errors in work Reduced Number or %

Social Customer satisfaction Improved %

Technology Downtime Reduced Time or %

Personal Bonus Increased $

2. Measure it

3. Picture it

Graphics and color increase

persuasiveness 47%!

If You Can Measure It, You Can Graph It

2. Measure it

3. Picture it

4. Link it to your differentiators

Linking to ValueDifferentiator Cost Quality Technology Industry

TrendsMinimal risk Competitive

advantage

Awards for superior products

True Web-based architecture

Lease or buy options

Standard code base

Fastest loading and retrieval

Open architecture

Microsoft Solution Partner

First to market

Team functionality

advantage

Awards for superior products 1 4 5 2 3 3

True Web-based design 3 2 5 5 1 4

Lease or buy options 5 1 1 3 4 4Standard code base 4 3 3 2 5 3Fastest loading and

retrieval 3 2 4 2 3 4Open architecture 3 2 5 4 4 5Microsoft Solution

Partner 1 4 3 3 3 4First to market 4 4 2 3 5 3

Team functionality 3 1 4 2 2 5

advantage

Linking to Value

Differentiator Cost Quality Technology Industry Trends

Minimal risk Competitive advantage

Selling on value

How to state them

Where to use them

Fifth…

Identifying yours

Your Success

Differentiators Matter Through the Whole Sales Process

In the Proposal…The Business Case

•Cover letter•Title page•Table of Contents•Executive Summary

• Customer needs• Customer desired outcomes

• High-level presentation of solution

• Key evidence of competence and value added elements

•ROI, payback analysis

Solutions and SubstantiationSolution in detail

PricingROIValue-added components

Scope of workProject plan/master scheduleProject team, résumés, org chartSubcontractors

ValidationReferencesCase studiesUniqueness factors

RFP responseCompliance matrixQuestion and Answer section

Differentiators Are Critical in the Business CaseThe Business Case

•Cover letter•Title page•Table of Contents•Executive Summary

• Customer needs• Customer desired outcomes

• High-level presentation of solution

• Key evidence of competence and value added elements

•ROI, payback analysis

Solutions and SubstantiationSolution in detail

PricingROIValue-added components

Scope of workProject plan/master scheduleProject team, résumés, org chartSubcontractors

ValidationReferencesCase studiesUniqueness factors

RFP responseCompliance matrixQuestion and Answer section

Selling on value

How to state them

Where to use them

Sixth…

Identifying yours

Your Success

Writing Effective Differentiator Statements

First:

State the value the customer will receive, preferably in quantifiable terms

Example: “One important benefit of accepting this proposal is that Acme Ltd will see a decrease in energy consumption of 15 to 18%.”

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Second:

Link the value proposition with your differentiator in a cause/effect sentence

Example: “That decrease in energy consumption will come as a direct result of implementing our gas and electric rationalization software, which will automatically manage your energy costs to assure that you pay the lowest possible price 24 hours a day. The only system of its kind, the software has been proven in controlled studies to reduce energy bills.”

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Third:

Provide a proof statement • Case study• Reference or testimonial• Third-party validation• Verifiable statistics• Guarantees or service-level commitments

Example: “For example, when Leeds Smelting plc implemented the software, they saw an immediate reduction in energy costs of more than 20%. Similarly, Birmingham Hospital NHS Trust reduced energy costs by 17% during the first year of using our software.”

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Writing the Value Statement

Share your results.

Identify the customer’s value

Choose differentiators Provide proof

Financial? Technical? Social?

Key performance indicators?

Measurable?

Back up your differentiators with proof.

Use a client-centred format to write them.

Test their effectiveness regularly.

A three-phase process….

In Summary

Select the differentiators that show you can deliver the right value.

Present them in the cover letter, executive summary.

Use simple, direct language.

Good luck!

Creating Differentiators that Make a Difference

differentiators with a differenceslostc.org/events/jan24_2011_presentation_sant.pdf©2011 tom sant....

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