How a fast Kahneman makes for better B2B Sales!

Welcome to the first Newsletter by Inno-Pact Consulting . Here I cover Innovation Strategy, Venture Growth, and the latest research in the field. Feedback and new ideas are highly appreciated! ??

Today we have a Venture Growth topic and I want to show you how Daniel Kahneman's concept of fast thinking can create a smoother and more effective sales experience, especially in B2B. But to get there, we should first have a look at a few concepts.

Thinking backward from our goal: While Kahneman explains WHY an experience feels good, the Value Proposition Canvas maps out WHICH experiences we go for and the Ideal Client Profile helps us pin down for WHOM we want to create them.

?? What is an Ideal Client Profile (ICP)?

The Ideal Client Profile is essentially a blueprint of your perfect customer—the one whose needs match perfectly with what your solution offers. This is not just about demographic information but extends to psychographics like goals, challenges, and behavior patterns. The ICP helps companies focus their resources on acquiring and serving the most valuable customers who are more likely to convert, stay loyal, and provide higher lifetime value. It is also useful within your team to discuss opinions and align on the most relevant client needs. Last, but not least, it provides you with a specific person to sit on that 亚马逊 chair.

So having our ICP, how do we link client needs with what we offer?

??? Connecting ICP to the Value Proposition Canvas

This is where the Value Proposition Canvas (VPC) comes in. It is an amazing tool developed by Alexander Osterwalder , which allows companies to visualize how their solution fits the customer’s needs. It has two sides: the customer profile (where you outline the customer's jobs to be done, pains, and gains) and the value map (where you specify the solution, pain relievers, and gain creators your solution offers).

The Canvas allows for a deep understanding of your client's needs by aligning what you offer directly with what the customer needs and values (your value proposition ??).

?? The Canvas in B2B

In a great video, Alexander Osteralder recently dove into how the canvas is used in a B2B context - make sure to check it out. Inspired by this, I simplified it slightly for our purposes here.

As you can see, in B2B you are not selling to one person, but to an organization with various people in different roles. The most relevant ones are:

1. The Champion: This is the person who wants your solution and might even advocate for it internally.
2. The Sponsor: Typically someone at a higher level who controls the budget and makes the financial decisions.
3. The Users: The ones who will regularly engage with your solution post-purchase.
4. Influencers: They can be positive, neutral, or even negative. E.g. how does procurement feel about onboarding another vendor?

Each of these stakeholders has different jobs, pains, and gains. While you should consider all of them to keep anyone from blocking your progress, you want to keep a clear focus on the Sponsor and the Champion.

Given this rather complex situation, how can we create a smooth experience?

?? Make your Sales process a smooth experience with fast-thinking

Daniel Kahneman's Thinking, Fast and Slow explores two main types of thinking: fast thinking, which is quick, intuitive, and emotional; and slow thinking, which is more deliberate, logical, and methodical.

For our B2B Sales process this means, we want to stay on the smooth, fast track as much as possible. Here's how:

1. Know the direction, but do not show the map: By utilizing the ICP and a well-adapted VPC, you provide a sales experience that feels natural and effortless to the client. You gather all relevant information and can guide the discussion effortlessly. However, the frameworks should stay in the background.
2. Turn selling into a fast-thinking exercise for yourself: The most important aspect of creating a smooth experience for the client is to feel at ease yourself. This means you have to internalize your tools through practice. The goal is to make the use of these frameworks second nature, allowing for quicker, more confident decision-making. This will also free up the mental capacity for you to truly listen and react to your client.

In that sense, selling is like driving a car. Pitching your solution, you are the driver, taking the potential client for a ride. If you manage to handle the dozens of knobs, levers, and buttons with ease, the passenger has a more enjoyable ride and will be curious about where the trip might lead them.

In a nutshell

By effectively integrating the Ideal Client Profile and Value Proposition Canvas into your B2B sales strategy, and adapting your approach to the multiple stakeholders involved, you can leverage fast thinking to create not only a more efficient sales process but also a more compelling and satisfying experience for all parties involved.

However, it has to be mentioned that fast thinking is especially desirable in initial conversations to establish and maintain trust. B2B Sales is often quite complex and a more slow-thinking approach will be needed later on, e.g. for negotiations. At that time, the smooth first interactions will hopefully have created an atmosphere of trust.

?? Ready to transform your B2B sales approach? Reach out today to see how I can help streamline your sales process and significantly improve your conversion rates!