What are the different types of differentiators and their components?
Required Capabilities: The birthplace of our differentiation.
- Each Required Capability should align directly to one or more of our Differentiators. In turn, each Differentiator we bring into play must have value to the customer, related to their specific situation, and it must fulfill their Required Capabilities and PBOs. The Customer Value you are claiming must be validated or backed up with proof. And of course what fuels all of these discussions are Trap-Setting Questions. Defensible Differentiators also enter the Value Card conversation when you’re adding extra emphasis to the How We Do It/Better conversation.
There are three types of Differentiators:
Unique: We have it; no one else does.
- Don’t become chemically dependent on Unique; today’s “Unique” is tomorrow’s Comparative because competition will develop this
Comparative: We have it, others have it, but ours are better or different in a meaningful way.
- You want to make sure that the customer is holding every vendor accountable, don’t let the competition off the hook
- Battles can be won or lost in Comparative Differentiators
- If you don’t mention your Comparative Differentiators, you may be creating Unique Differentiators for the competition
Holistic: These transcend specific product and service capabilities and are company-specific.
- They are about the company as a whole and they make a customer feel better about doing business with you.
- They are most effective when the customer is evaluating risk (vs. at the beginning of the conversation). Examples include; financial stability and industry thought leadership.
- Holistic Defensible Differentiators are most impactful at the end of the sales cycle
Regardless of the type, Differentiators contain three major components:
1 - Customer Value: The benefit of the Differentiator to the customer. Similar to, a Value Card’s Positive Business Outcome, it is the Differentiator’s “So what?” Customer value is typically expressed as increased revenue, decreased costs, or mitigated risk.
2 - Defensibility: Evidence (in customer language) that the Differentiator has achieved value for past customers. Similar to, a Value Card’s Proof Point, it is the Differentiator’s “Says Who?”
3 - Trap-Setting Questions: Discovery questions asked with the specific intent of trapping the competition. They are used to introduce the Differentiator into the customer’s decision criteria via the Required Capabilities. They cause buyers to realize that they want the Differentiator’s Customer Value and expose weaknesses in our competitors’ offerings.
What is a trap setting question and how do I execute it?
Remember, the purpose of a Trap Setting Question is to influence the customer’s Required Capabilities by getting them to realize and admit that they want the benefits (feature or customer value) of the Differentiator.
There are three steps for developing Trap-Setting Questions:
1: Relevant Defensible Differentiator – Start by working back from Differentiation, which DD are you trying to introduce?
2: Target Required Capability – Determine the Required Capabilities that map to that Differentiator, in the customer’s language.
3: Trap-Setting Question – Develop Trap-Setting Questions that introduce your Differentiator into the RCs.
The flow when executing is often:
1) Introduce the concept, 2) Tee up the value, 3) Set the trap
Additional Trap-Setting Questions Guidelines:
- Same guidelines as Discovery Questions (Two-Sided, Open-Ended)
- Woven into the Discovery Question talk track:
- Covertly into Required Capabilities
- Overtly into How We Do It Better
- Plan them in advance to either:
- Marginalize an unfavorable Required Capability
- Introduce a relevant Differentiator into the decision criteria
- Use caution with Trap-Setting Questions and pay attention to the following:
- Ensure they focus on the Differentiator’s customer value
- Don’t openly disrespect the competition
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