A step-by-step guide to crafting a sales pitch that wins | April Dunford (author of Sales Pitch)

Name: A step-by-step guide to crafting a sales pitch that wins | April Dunford (author of Sales Pitch)
Uploaded: 2023-10-22T12:00:00.000Z
Duration: 3 h 53 s

Understanding B2B Purchase Decisions

The Challenge of Decision-Making in B2B Purchases

Approximately 40 to 60% of B2B purchase processes result in no decision, primarily due to indecision rather than satisfaction with existing solutions.

Many potential buyers struggle to make confident choices, leading them to postpone decisions by suggesting delays to their superiors.

This behavior reflects a preference for risk aversion among decision-makers who fear accountability for making the wrong choice.

Introduction of April Dunford

Who is April Dunford?

April Dunford is recognized as a leading authority on product positioning and has authored the bestselling book "Obviously Awesome."

She has recently published a new book titled "Sales Pitch," which builds upon her extensive experience as VP of marketing and advisor for major companies like Google and Epic Games.

Overview of Sales Pitch Book

Key Insights from "Sales Pitch"

The book provides guidance on effectively pitching and selling products, focusing on frameworks that excite potential customers.

Listeners can expect to enhance their skills in pitching and selling by the end of this episode, making it valuable for product leaders and founders.

Sponsorship Messages

Composer: AI-Powered Trading Platform

Composer offers an algorithmic trading platform accessible without coding experience, featuring over 1000 strategies and a community for traders.

Eppo: Next Generation AB Testing Platform

Eppo is designed for modern growth teams, facilitating efficient experimentation across various metrics beyond basic click-through rates.

Returning Guest Segment with April Dunford

Reflections on Podcast Growth

April expresses excitement about returning after nearly a year since her last appearance, acknowledging the podcast's growth during that time.

Introduction to New Book Discussion

Sales Pitch Transformation

The Problem with Traditional Sales Pitches

Many sales pitches lack differentiation and often resemble a mere product exposition, focusing excessively on features rather than positioning.

Common approaches include stating the problem and solution but still revert to showcasing features without context or storytelling.

Importance of Positioning in Sales

Help Scout serves as an example of effective positioning; they cater specifically to digital businesses that prioritize customer service as a growth driver.

Unlike traditional views that see customer service as a cost center, Help Scout emphasizes the importance of great interactions for loyalty and repeat purchases.

Understanding Customer Needs

Customers often start with shared inboxes due to ease of use but face limitations as they grow, necessitating more advanced customer service features.

Transitioning from shared inboxes to help desk software can be challenging due to usability issues and impersonal ticketing systems.

Crafting an Effective Pitch

A typical pitch might focus solely on feature exposure, leading customers to question how Help Scout differs from other solutions like help desk software.

An improved pitch structure involves setting up the conversation by discussing market perspectives before diving into product features.

Engaging Customers Through Storytelling

Help Scout's approach includes engaging customers in dialogue about their needs and perceptions regarding customer service.

Understanding Effective Sales Pitches

Key Components of a Sales Pitch

The sales pitch emphasizes delivering an exceptional customer experience, allowing customers to choose their interaction channel while maintaining their identity rather than being reduced to a ticket number.

A well-crafted pitch addresses the question, "Why pick us over others?" This approach is more effective in helping clients understand the unique value proposition.

Structure of the Pitch

The pitch structure consists of two main parts:

Setup: Focuses on market insights and context.

Differentiated Value: Highlights what sets the company apart from competitors.

In a typical sales scenario, it's crucial to balance time spent on setup and differentiated value. While setup is important, the focus should be on demonstrating unique value.

Breakdown of Setup Phase

The setup phase includes:

Market Insight: Understanding customer service as a growth driver for digital businesses rather than just a cost center.

Discussing alternatives involves outlining pros and cons of other solutions in the market, leading to a consensus on ideal solution characteristics (the "perfect world").

Follow Through Steps

After establishing alignment with potential clients, introduce your company and its specific offerings. Reiterate how you deliver value through clear examples.

Include proof points such as case studies or third-party validations to substantiate claims made during the pitch.

Handling Objections

Address objections that may arise during discussions; these can include concerns about adoption difficulty or costs. It's essential to handle these effectively at the end of your presentation.

Founders often have strong insights based on personal experiences that shape their products. If potential clients disagree fundamentally with your perspective, it may indicate misalignment in values or needs.

Conclusion and Next Steps

Understanding the B2B Sales Process

The Importance of Discovery in Sales

In B2B sales, gaining agreement from a network of stakeholders is crucial, often leading to objections that need addressing during the initial pitch.

Effective discovery involves asking open-ended questions about the client's current situation and constraints, fostering a two-way conversation rather than a one-sided presentation.

Many SaaS companies lack structured opportunities for discovery within their pitch decks, which can lead to misalignment between the salesperson and potential clients.

Building Trust Through Education

A significant shift in approach is adopting a teaching mindset; instead of merely presenting products, salespeople should share insights about broader market trends and challenges.

This educational approach helps build trust with clients as they feel understood and informed about their options.

Understanding Buyer Challenges

Buyers often come into the process overwhelmed by information but lacking a clear understanding of market dynamics and product fit.

Many buyers are inexperienced in purchasing software like CRMs, making it difficult for them to navigate numerous options effectively.

The Risk Aversion in Decision-Making

Sales processes typically do not assist buyers in clarifying their choices; instead, they may exacerbate confusion by overwhelming them with features.

A significant percentage (40% to 60%) of B2B purchase processes end without a decision due to buyers' inability to confidently choose among options.

The Stressful Nature of Buying Software

Buying software can be more challenging than selling it because buyers face high stakes; poor decisions could impact their job security or departmental satisfaction.

Understanding the Challenges of Software Buying

The Stressful Nature of Software Purchases

Buying software is often a difficult and stressful process, with many buyers feeling overwhelmed and uncertain.

Buyers are typically 80% through their journey before engaging with sales reps, but this can mean they are also close to deciding against a purchase.

Many startups fail not just because their product isn't good enough, but due to buyer indecision stemming from fear of making the wrong choice.

Competing Against Status Quo

It's crucial to acknowledge that status quo products may be "good enough," leading to lost deals not only from indecision but also from reluctance to change.

Customers often fear making mistakes more than they desire new opportunities, which complicates the sales process.

Addressing Buyer Indecision

Research by Matt Dixon in "The JOLT Effect" indicates that inducing FOMO (Fear of Missing Out) can worsen buyer indecision rather than alleviate it.

When buyers feel pressured by FOMO, they may become paralyzed by stress and opt for inaction instead of making a decision.

Strategies for Reducing Stress in Decision-Making

Effective strategies include providing tools that help customers understand market options and simplifying the buying process.

Breaking down large decisions into smaller steps or offering guarantees can help mitigate perceived risks associated with purchasing.

Supporting the Champion's Decision-Making Process

Sales teams should focus on helping champions make decisions without risking their job security or performance evaluations.

Understanding Market Dynamics and B2B Sales Strategies

The Challenge of Choosing Market Leaders

In competitive environments, companies often default to established market leaders like Salesforce due to perceived safety in decision-making.

The inertia towards the status quo makes it easier for buyers to choose well-known brands, as "no one gets fired for buying Microsoft," a sentiment that may now apply to Salesforce.

The complexity of B2B purchasing involves multiple stakeholders (5-7 people), complicating the decision-making process beyond consumer purchases.

Role of the Champion in B2B Purchases

Within a buying team, the 'champion' is responsible for initial research and shortlisting potential solutions, making their support crucial for advancing deals.

While champions can initiate deals, they must also navigate objections from other stakeholders who cannot directly approve but can block progress.

Addressing Stakeholder Concerns

When pitching to a champion, it's essential to focus on addressing concerns from other departments (e.g., IT's security requirements rather than CRM value).

Effective positioning requires arming the champion with responses to potential objections from various groups involved in the purchase process.

Strategies for Empowering Champions

To prepare champions effectively, sales teams should proactively identify common concerns based on past experiences and provide solutions during initial discussions.

Offering tools such as ROI calculators or training plans helps champions advocate for your product within their organizations by addressing end-user concerns and management expectations.

Applicability of Framework Across Company Sizes

This approach is beneficial even for smaller companies or early-stage B2B firms; understanding typical deal processes is key regardless of company size.

Understanding Sales and Product Team Dynamics

The Role of Experience in Sales Implementation

The speaker emphasizes the importance of experience in sales, noting that having completed multiple deals provides insight into potential challenges during implementation.

They suggest that a seasoned salesperson can anticipate objections from stakeholders, particularly IT departments, without needing extensive research.

The concept of an MVP (Minimum Viable Product) is introduced as a continuously iterated presentation deck to assist champions in closing deals.

Collaboration Between Product and Sales Teams

The discussion shifts to product teams, highlighting their reliance on sales and marketing for successful product positioning.

A recommendation is made for product teams to learn from sales strategies to enhance their approach to building products and collaborating with sales.

Defining Differentiated Value

Understanding differentiated value is identified as crucial for effective sales pitches; it answers why customers should choose one solution over another.

A cross-functional team approach involving product, marketing, and sales is advocated for defining differentiated value collaboratively.

Common Pitfalls in Positioning

The speaker critiques the typical siloed approach where each department works independently on positioning, leading to misalignment between marketing materials and sales needs.

This disconnect often results in the sales team rejecting marketing's efforts due to lack of clarity or relevance.

Examples of Differentiated Value

Differentiated value is framed as the answer to competition; understanding what alternatives customers might consider if a company did not exist is essential.

Identifying competitive alternatives helps clarify what unique features or capabilities a company offers that competitors do not.

Analyzing Competitive Landscape

The process involves assessing both direct competitors and alternative solutions customers might use instead of your offering.

Features must be translated into meaningful value propositions that resonate with customer needs—this requires deep knowledge from both product development and sales perspectives.

Case Study: LevelJump's Market Positioning

Sales Enablement Insights and Differentiated Value

Understanding Differentiated Value in Sales

LevelJump's unique selling proposition is its integration with Salesforce, which allows for a seamless connection between sales enablement data and sales data.

This integration enables the measurement of sales enablement effectiveness on metrics like time to first deal and quota achievement, ultimately leading to increased revenue.

The insight derived from differentiated value provides context that highlights its importance; for example, Help Scout positions customer service as a growth driver for digital businesses.

If the differentiated value fails to resonate during a sales pitch, potential clients may question its relevance or value, indicating a disconnect in messaging.

Engaged customers signify existing differentiated value; understanding this can help identify why they choose your product over competitors.

Honesty About Competition in Sales

A calm confidence approach is recommended when discussing competition; it stems from a deep understanding of one's own differentiated value and target audience fit.

Sales representatives should be transparent about competitors' strengths while clearly articulating their own advantages, guiding clients toward the best solution for their needs.

It's essential to recognize when another solution might be more suitable for a client rather than pursuing every opportunity indiscriminately.

Pre-sales qualification processes are crucial; they ensure that only leads fitting the product's profile progress to formal pitches, saving time and resources.

LinkedIn's B2B Marketing Potential

Leveraging LinkedIn for Business Growth

LinkedIn offers direct access to decision-makers, including 950 million members, 180 million senior executives, and over 10 million C-level executives.

The platform provides targeting and measurement tools specifically designed for B2B marketing, resulting in a return on ad spend that is two to five times higher than other social media platforms.

Audiences on LinkedIn possess double the buying power compared to the average web audience, making it a valuable partner for businesses operating in the B2B space.

Users can claim a $100 credit towards their next campaign by visiting linkedin.com/podlenny.

The Debate on Category Creation

A previous guest emphasized the importance of creating a category as essential for building a legendary business; however, there are alternative perspectives on this approach.

Most legendary businesses did not create their categories; examples include Google (search) and Facebook (social networking), indicating that category creation is not the only path to success.

Understanding Market Categories

Successful companies often start as niche players within existing categories before evolving into category creators. This strategy allows them to gain traction without needing extensive market education.

For instance, Salesforce initially positioned itself as "CRM for very small businesses," leveraging an already established understanding of CRM systems.

The Risks of Category Creation

Many category creators face challenges from fast followers who learn from their mistakes and can disrupt their market position once they establish dominance.

Companies like Qualtrics and Snowflake exemplify this trend; they began in existing markets before expanding their definitions once they achieved significant revenue milestones.

Strategic Market Positioning: Bowling Pin Strategy

Category creation can be beneficial but should be approached cautiously by early-stage businesses. It’s more common for companies to dominate a segment first before branching out successfully.

Market Strategy and Category Creation

Establishing a Beachhead in the Market

The speaker discusses a strategy of targeting smaller market segments (referred to as "pins") to establish a foothold before challenging larger competitors.

An example from their early career illustrates this approach, focusing on CRM for investment banks as the initial target, followed by expansions into retail banking and insurance.

The narrative highlights that many companies begin with niche markets before growing large enough to compete with established leaders like Siebel.

Understanding Customer Needs

The conversation shifts to understanding customer perspectives and needs, emphasizing the importance of aligning solutions with customer expectations.

A successful pitch involves agreeing on what constitutes an ideal solution, ensuring both parties share a vision for success.

Differentiated Value Proposition

The second part of the sales process is termed "follow through," which focuses on presenting differentiated value.

This phase begins by introducing the product and establishing its relevance within the agreed-upon market category.

Demonstrating Value and Proof

During sales calls, more than half of the time should be spent demonstrating how the product meets customer needs effectively.

Providing proof of claims made about product effectiveness is crucial; this can include testimonials or case studies showcasing successful implementations.

Handling Objections and Next Steps

Addressing potential objections from customers is an essential step in solidifying interest in a product.

Sales Pitch Development and Testing

Understanding the Sales Pitch Structure

The ideal sales pitch includes insights, alternative approaches, pros and cons, introduction of the product, differentiated value, proof of effectiveness, handling objections, and a clear call to action.

A weak positioning often leads to ineffective sales pitches; companies should ensure they have nailed their differentiated value before crafting a new pitch.

Importance of Positioning

Engaging knowledgeable team members in the positioning process is crucial for developing an effective sales pitch that resonates with customers.

Involving sales teams in building the pitch is essential; without their input, the new pitch may not be accepted or utilized effectively.

Training and Testing New Pitches

It’s vital to train top-performing sales reps on the new pitch rather than simply handing it over; this ensures buy-in and familiarity with the material.

Testing should focus on qualified prospects rather than existing customers who may be biased by previous pitches. Continuous feedback after each test helps refine the approach.

Optimizing Sales Pitches

Experienced sales reps can determine when a new pitch is superior based on customer reactions and conversion rates during testing phases.

Once confidence in the new pitch is established by top reps, they can share their success stories with other team members to encourage adoption.

Expected Outcomes from Improved Pitches

An immediate uplift in deal conversions post-first call indicates successful implementation of a refined sales strategy.

Tightening positioning and refining pitches can yield quick results even in challenging economic conditions by enhancing customer understanding of value propositions.

Time Investment for Improvements

Positioning and Sales Strategy Insights

Speed of Positioning Process

The positioning process typically takes about a week, emphasizing speed in execution.

Larger companies may experience slower processes, but motivated teams can still achieve quick results.

Some companies have successfully completed the entire process from pitch development to implementation in as little as two weeks; however, a month is more common.

Role of Marketing in Positioning

Marketing plays a crucial role post-positioning by becoming the "stewards" or "police" of the new positioning.

Collaboration between marketing, sales, and product teams is essential for developing an effective sales pitch.

Regular recertification of sales representatives on the pitch is important to maintain consistency and effectiveness.

Impact of Rethinking Sales Pitch

Companies that invest time in refining their pitches often see immediate positive impacts on sales performance.

There’s a common concern that changing positioning might confuse prospects; however, this usually does not pose significant issues.

Some companies report doubling their deal flow simply by tightening up their sales pitches.

Importance of Tightening Up Pitches

Most improvements are not radical shifts but rather refinements that address existing weaknesses in pitches.

Many pitches are poorly constructed, presenting low-hanging fruit opportunities for improvement that can lead to substantial gains.

Comparison with Alternative Frameworks

Andy Raskin's framework emphasizes market shifts and competitive dynamics but lacks a focus on differentiated value.

Understanding the Challenges of Innovation

The Status Quo vs. Innovation

The speaker discusses the tension between innovation and the status quo, emphasizing that often, individuals face outdated systems or processes that hinder progress.

It is noted that many companies prefer established solutions (like Salesforce) because they are perceived as safe and reliable, making it challenging to convince customers to adopt new technologies solely based on their novelty.

Customer Perception of Value

Customers typically seek specific value propositions rather than being swayed by the idea that "new is better." They want clear advantages over existing solutions.

The speaker reflects on past experiences where trends were used in sales pitches but acknowledges that these trends are often not unique and can be leveraged by competitors.

Unique Insights Over Trends

Emphasizing the importance of unique insights, the speaker argues that relying on general trends does not differentiate a company from its competitors; instead, one must provide a distinct perspective on those trends.

Sales Pitch Dynamics

In contrast to investor pitches which can speculate about long-term market changes, sales pitches need to focus on immediate value to avoid customer indecision and delays.

Flexibility in Frameworks

The speaker critiques rigid frameworks for success in category creation, suggesting there are multiple paths to success and encouraging experimentation with different strategies.

Individuals should adapt frameworks to fit their unique situations rather than strictly adhering to prescribed methods.

Recommended Readings for Sales Professionals

Key Books for Understanding Sales Strategies

The JOLT Effect by Matt Dixon is highlighted as a valuable resource due to its data-driven insights that challenge traditional sales wisdom.

Previous works by Dixon such as The Challenger Sale and The Challenger Customer are also recommended for their foundational research in sales strategies.

Importance of Positioning Literature

Favorite Movies and TV Shows

Discussion on "Snow Piercer"

The speaker expresses a fondness for the movie Snow Piercer, directed by Bong Joon-ho, which was released in 2013. They mention rewatching it recently after discussing trains with their dad.

The speaker shares an anecdote about recommending Snow Piercer to their CEO, who later expressed frustration after watching it on a date, indicating the film's polarizing nature.

The conversation highlights that viewers either love or hate Snow Piercer, showcasing its divisive reception among audiences.

The speaker contrasts Snow Piercer with another of Bong Joon-ho's films, Parasite, noting that while both are remarkable, they differ significantly in style and impact.

Interview Questions and Hiring Insights

Approach to Interviewing

The speaker discusses their experience hiring marketing professionals, emphasizing the prevalence of bad habits from previous roles in startup environments.

They focus on assessing candidates' attitudes and enthusiasm rather than solely their skills, believing that persuasive writing is essential but challenging to teach.

A unique interview question involves asking candidates to write two paragraphs selling a product they recently purchased. This test evaluates their persuasive writing ability effectively.

Product Recommendations

Recent Discoveries

The speaker mentions a newfound appreciation for low-tech products, specifically fountain pens. They highlight Lamy as a brand known for high-quality pens.

They recommend the Lamy AL-Star fountain pen as an affordable yet excellent option for those interested in trying out fountain pens without significant investment.

The discussion includes how using a fountain pen differs from ballpoint pens, particularly regarding the feel of writing.

Life Philosophy

Personal Motto

Philosophy of Life: Nothing's a Big Deal

Embracing a Chill Perspective

The speaker reflects on a recent mindset where they believe "nothing's a big deal," suggesting that both positive and negative events often don't have the impact one anticipates.

This philosophy resonates deeply, highlighting the challenge of internalizing this perspective despite its simplicity. The speaker expresses an intention to adopt this motto more fully.

Lessons from Family Background

The speaker shares insights from their upbringing in an entrepreneurial family, where their father ran a local business in Canada, emphasizing the highs and lows experienced over the years.

A key lesson learned is perseverance; their father's mantra was to "just keep going" through challenges, reinforcing resilience as essential for success.

Reflections on Travel and Favorite Places

When asked about favorite travel destinations, the speaker expresses a strong affection for Paris, citing personal experiences during university that deepened their connection to the city.

They describe enjoying specific restaurants and cafes in Paris, illustrating how familiarity enhances their experience there.

Notable Conferences and Venues

The speaker mentions attending La Product Conference in Paris organized by Thiga, praising its quality and beautiful venue located in an old theater.

Sharing Knowledge and Future Aspirations

In concluding remarks, the speaker emphasizes the importance of sharing knowledge with others through various platforms like podcasts and newsletters.

Be Useful: Insights from Arnold Schwarzenegger's New Book

The Concept of Being Useful

Arnold Schwarzenegger introduces his new book titled "Be Useful," emphasizing the importance of being useful as a key to success, particularly in helping others.

Reflecting on feedback from his first book, he shares that while readers expressed enjoyment, he realized that the true goal was not entertainment but creating something genuinely useful for people.

Schwarzenegger expresses a desire for readers to find practical value in his work, aiming for them to share how it helped unlock solutions to their struggles rather than simply enjoying it.

Closing Remarks