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An Introduction to
The Challenger Customer
© 2015 CEB. All rights reserved#ChallengerCustomer
© 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
© 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
© 2015 CEB. All rights reserved#ChallengerCustomer
A Different Kind of Buying
57%
Customer
Due Diligence
Begins
Customer
Purchase
Decision
Customer
Contacts
Supplier
© 2015 CEB. All rights reserved#ChallengerCustomer
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
© 2015 CEB. All rights reserved#ChallengerCustomer
“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%
© 2015 CEB. All rights reserved#ChallengerCustomer
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
© 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
© 2015 CEB. All rights reserved#ChallengerCustomer
Customer
Status Quo
Agreement
on a Vision
Purchase
Decision
Single
Stakeholder
Agreement
Organizational
Consensus
Traversing the Solutions Graveyard
© 2015 CEB. All rights reserved#ChallengerCustomer
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
© 2015 CEB. All rights reserved#ChallengerCustomer
n = 3,000.
0%
50%
100%
81%
55%
53%
31%
1 2 3 4 5 6+
Size of Buying Team
60%
Purchase
Likelihood
60%
5.4
Average Buying
Group Size
Bigger Groups, Fewer Purchases
© 2015 CEB. All rights reserved#ChallengerCustomer
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 “Closed”
Stakeholder 3:
Marketer
Rep Angle: Deeper
customer segmentation
Positioning: Develop effective
segmentation targeting
strategies
Stakeholder “Closed”
1. Accessing Individuals2.ClosingIndividuals
Track Them All down, Win Them All Over
© 2015 CEB. All rights reserved#ChallengerCustomer
0%
8%
(8%)
4%
(4%)
ChangeinLikelihoodofMaking
aHigh-QualitySale
Access to
Stakeholders
Evaluating Purchase
Positioning Offering on
Value to an Individual
Stakeholder
Surprising Findings
© 2015 CEB. All rights reserved#ChallengerCustomer
Stakeholder 1
Mental Model
Goal
Priorities
Metrics
Means
Stakeholder 2
Mental Model
Goal
Priorities
Metrics
Means
Stakeholder 3
Mental Model
Goal
Priorities
Metrics
Means
The Lowest Common Denominator
© 2015 CEB. All rights reserved#ChallengerCustomer
The Teacher The BlockerThe ClimberThe Guide
The Go-Getter The FriendThe Skeptic
Seven Types of Customer Stakeholders
© 2015 CEB. All rights reserved#ChallengerCustomer
Mobilizer™ Customers Get the Deal Done
© 2015 CEB. All rights reserved#ChallengerCustomer
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?
© 2015 CEB. All rights reserved#ChallengerCustomer
Finding Mobilizer™ Customers
© 2015 CEB. All rights reserved#ChallengerCustomer
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?
© 2015 CEB. All rights reserved#ChallengerCustomer
Break down the “A,” then Build up the “B”
0.013
(0.047) (0.096) (0.132)
MagnitudeofDriverImpact
Representing a
Smart/Expert
Perspective
Being Easy to
Understand
Containing
Interesting
Facts or
Anecdotes
Being
Accessible/
Quick to
Find
Non-Statistically Significant Drivers
© 2015 CEB. All rights reserved#ChallengerCustomer
Break down the “A,” then Build up the “B”
Statistically Significant Drivers
0.302
0.013
(0.047) (0.096) (0.132)
MagnitudeofDriverImpact
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
© 2015 CEB. All rights reserved#ChallengerCustomer
Thought Leadership Is not Commercial Insight
General Information
Accepted Information
Thought Leadership
Insight
Commercial Insight
© 2015 CEB. All rights reserved#ChallengerCustomer
Current
Beliefs/Behavior
Desired
Beliefs/Behavior
Break down the “A,” then Build up the “B”
© 2015 CEB. All rights reserved#ChallengerCustomer
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?
© 2015 CEB. All rights reserved#ChallengerCustomer
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
Customers
Drive 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
support@cebglobal.com.
© 2015 CEB. All rights reserved#ChallengerCustomer
Appendix: Commercial Insight Example
© 2015 CEB. All rights reserved#ChallengerCustomer
Appendix: Commercial Insight Example
© 2015 CEB. All rights reserved#ChallengerCustomer
Appendix: Commercial Insight Example

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An Introduction to The Challenger Customer [Pat Spenner, CEB]

  • 1. An Introduction to The Challenger Customer © 2015 CEB. All rights reserved#ChallengerCustomer
  • 2. © 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
  • 3. © 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
  • 4. © 2015 CEB. All rights reserved#ChallengerCustomer A Different Kind of Buying 57% Customer Due Diligence Begins Customer Purchase Decision Customer Contacts Supplier
  • 5. © 2015 CEB. All rights reserved#ChallengerCustomer 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
  • 6. © 2015 CEB. All rights reserved#ChallengerCustomer “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%
  • 7. © 2015 CEB. All rights reserved#ChallengerCustomer 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
  • 8. © 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
  • 9. © 2015 CEB. All rights reserved#ChallengerCustomer Customer Status Quo Agreement on a Vision Purchase Decision Single Stakeholder Agreement Organizational Consensus Traversing the Solutions Graveyard
  • 10. © 2015 CEB. All rights reserved#ChallengerCustomer 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
  • 11. © 2015 CEB. All rights reserved#ChallengerCustomer n = 3,000. 0% 50% 100% 81% 55% 53% 31% 1 2 3 4 5 6+ Size of Buying Team 60% Purchase Likelihood 60% 5.4 Average Buying Group Size Bigger Groups, Fewer Purchases
  • 12. © 2015 CEB. All rights reserved#ChallengerCustomer 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 “Closed” Stakeholder 3: Marketer Rep Angle: Deeper customer segmentation Positioning: Develop effective segmentation targeting strategies Stakeholder “Closed” 1. Accessing Individuals2.ClosingIndividuals Track Them All down, Win Them All Over
  • 13. © 2015 CEB. All rights reserved#ChallengerCustomer 0% 8% (8%) 4% (4%) ChangeinLikelihoodofMaking aHigh-QualitySale Access to Stakeholders Evaluating Purchase Positioning Offering on Value to an Individual Stakeholder Surprising Findings
  • 14. © 2015 CEB. All rights reserved#ChallengerCustomer Stakeholder 1 Mental Model Goal Priorities Metrics Means Stakeholder 2 Mental Model Goal Priorities Metrics Means Stakeholder 3 Mental Model Goal Priorities Metrics Means The Lowest Common Denominator
  • 15. © 2015 CEB. All rights reserved#ChallengerCustomer The Teacher The BlockerThe ClimberThe Guide The Go-Getter The FriendThe Skeptic Seven Types of Customer Stakeholders
  • 16. © 2015 CEB. All rights reserved#ChallengerCustomer Mobilizer™ Customers Get the Deal Done
  • 17. © 2015 CEB. All rights reserved#ChallengerCustomer 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?
  • 18. © 2015 CEB. All rights reserved#ChallengerCustomer Finding Mobilizer™ Customers
  • 19. © 2015 CEB. All rights reserved#ChallengerCustomer 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?
  • 20. © 2015 CEB. All rights reserved#ChallengerCustomer Break down the “A,” then Build up the “B” 0.013 (0.047) (0.096) (0.132) MagnitudeofDriverImpact Representing a Smart/Expert Perspective Being Easy to Understand Containing Interesting Facts or Anecdotes Being Accessible/ Quick to Find Non-Statistically Significant Drivers
  • 21. © 2015 CEB. All rights reserved#ChallengerCustomer Break down the “A,” then Build up the “B” Statistically Significant Drivers 0.302 0.013 (0.047) (0.096) (0.132) MagnitudeofDriverImpact 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
  • 22. © 2015 CEB. All rights reserved#ChallengerCustomer Thought Leadership Is not Commercial Insight General Information Accepted Information Thought Leadership Insight Commercial Insight
  • 23. © 2015 CEB. All rights reserved#ChallengerCustomer Current Beliefs/Behavior Desired Beliefs/Behavior Break down the “A,” then Build up the “B”
  • 24. © 2015 CEB. All rights reserved#ChallengerCustomer 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?
  • 25. © 2015 CEB. All rights reserved#ChallengerCustomer Source: Skillsoft; CEB analysis. Skillsoft’s toolkit provides guidance on how to navigate internal change and purchase processes Mobilizer™ Customer Toolkit
  • 26. © 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 Customers Drive 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 support@cebglobal.com.
  • 27. © 2015 CEB. All rights reserved#ChallengerCustomer Appendix: Commercial Insight Example
  • 28. © 2015 CEB. All rights reserved#ChallengerCustomer Appendix: Commercial Insight Example
  • 29. © 2015 CEB. All rights reserved#ChallengerCustomer Appendix: Commercial Insight Example