Exploring the Best Sales Methodologies – No.2 Challenger
Selling can be a lot like trying to catch a fish. You cast your line out there and hope for the best, but if you really want to reel in a big one, you need to be strategic. That's how the Challenger Sales Model is positioned - it's like having a shiny lure that catches the fish's attention and makes it want to take the bait. By challenging the customer's thinking and providing unique insights, you can hook them and reel them in.
In this blog, we will explain the Challenger Sales Model and look at how it can help businesses improve their sales performance. We will look at which sort of business may benefit from implementation and which will not.
What is Challenger?
Over the last 20 years, more suppliers have begun selling complex “solutions,” or bundles of products and services, rather than just simple products. Suppliers came up with solution selling as a way of differentiating themselves from the competition.?Small differences in a company’s product versus a competitor’s product had become harder to sell—customers viewed products from different companies as essentially the same and so chose the ones with the lowest price. However, well-designed bundled offerings are customised and therefore difficult for competitors to duplicate. Bundling also saves suppliers money and allows them to introduce premium pricing. Because of these benefits, solution selling has become the dominant sales strategy in virtually every industry.
The Challenger Sales Model was published in 2011 by Brent Adamson and Matt Dixon, who worked at CEB (now Gartner). It is based on the idea that the most successful solution salespeople are not the ones who are the most relationship-oriented or the best at closing deals. Rather, they are the ones who challenge their customers' thinking and bring new insights to the table.
Following extensive research of salespeople, CEB assessed that there are five key profiles of salesperson with an even distribution by type. However the most successful group by some margin were the challengers:
The Hard Worker. Goes the extra mile, doesn’t give up easily, is self-motivated and likes feedback and development.
The Relationship Builder. Builds strong customer advocates, generates customer loyalty, is generous with giving their time to help others and gets along with everyone.
The Lone Wolf. Follows their own instincts, is self-assured and independent.
The Problem Solver. Is reliable, ensures all of their customer’s problems are solved and is detail-oriented.
The Challenger. Has a different view of the world, deeply understands the customer’s business and industry, loves to debate, is confident in challenging the customers thinking and pushes the customer to get out of their comfort zone by offering insights on unknown or not previously considered options. Simply, the Challenger is in control of the sales conversation.
One of the key skills that Challengers possess is the ability to teach. Challengers are not so much world-class investigators as they are world-class teachers. They win not by understanding their customers’ world as well as the customers know it themselves, but by actually knowing their customers’ world better than their customers know it themselves, teaching them what they don’t know but should.
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Advocates of implementing the Challenger Sales Model claim that it will have a significant impact on your sales performance pointing to the CEB research that suggests companies that use Challenger have a 23% higher customer loyalty rate, a 17% higher win rate, and a 30% higher revenue per rep compared to companies that use other sales models.
‘’So, lets make everyone one of our reps a Challenger!’’ you cry. Before you do it’s important to look at whether it makes sense as the Challenger model is not the default sales process for every business. Enabling a sales team to be able to deliver the Challenger model will take a sizeable investment of time and resource if you want a uniform approach across your team. The Challenger profile is probably best considered for Enterprise sales rather than a whole sales team as it demands a particular mindset and culture among salespeople. If your sales team is not receptive to this type of approach or is resistant to change, then it may be challenging to implement the Challenger Model effectively.
Is Challenger right for your business?
Whether you're a small startup or a large enterprise, the Challenger Sales Model can help you sell more effectively and efficiently, of that there is no argument.
Challenger is well-suited for businesses that operate in highly competitive industries. In these industries, customers are often bombarded with sales pitches and are resistant to change. By using Challenger, you can break through this resistance and create a sense of urgency to take action.
Challenger is also ideal for businesses that sell complex or high-value products and services. These products and services require a deep understanding of the customer's business and industry, as well as the ability to deliver value in a way that is easy to understand. Challenger lets you demonstrate your expertise and build trust with the customer.
However I wouldn’t recommend investing in Challenger if your sales are transactional or your proposition is a one-time sale only as the ROI is unlikely to make commercial sense.
I hope this gives you a clear idea whether Challenger is right for your business and your sales team.
I’m happy to answer any questions you may have or if you’re looking to scale your sales function or searching for the right process for your business, then please send me a DM or email me at?[email protected]
NEXT TIME: No.3 Gap Selling