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Library of Congress Cataloging-in-Publication Data
Names: Dixon, Matthew, 1972- author. | McKenna, Ted (Business consultant), author.
Title: The jolt effect : how high performers overcome customer indecision / Matthew Dixon and Ted McKenna.
Description: New York : Portfolio/Penguin, [2022] | Includes bibliographical references and index.
Identifiers: LCCN 2022013122 (print) | LCCN 2022013123 (ebook) | ISBN 9780593538104 (hardcover) | ISBN 9780593538111 (ebook)
Subjects: LCSH: Consumer behavior. | Decision making. | Customer relations. | Selling.
Classification: LCC HF5415.32 .D58 2022 (print) | LCC HF5415.32 (ebook) | DDC 658.8/342dc23/eng/20220601
LC record available at https://lccn.loc.gov/2022013122
LC ebook record available at https://lccn.loc.gov/2022013123
Cover design: Sarah Brody
Cover image: Vectorplusb / iStock / Getty Images Plus
Book design by Tanya Maiboroda, adapted for ebook by Cora Wigen
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Matt wishes to thank his wife, Amy, and his kids, Aidan, Ethan, Norah, and Claraall of whom find it supremely ironic and endlessly amusing that he wrote a book about how to overcome indecision.
Ted would like to thank his wife, Alison, and kids, Will and Ella, for the support and love. Youll now have an easier answer to the question What is it you do, again?
The burdens that make us groan and sweat,
The troubles that make us fume and fret,
Are the things that havent happened yet.
George W. Bain
CONTENTS
PREFACE
A Unique Moment in Time
If theres one study that is the envy of every sales researcher, its the groundbreaking work done by Professor Neil Rackham and his team, as profiled in the book SPIN Selling. Twelve years to complete. Thirty-five thousand sales calls observed. One hundred and sixteen unique factors assessed for their potential impact on sales outcomes. More than one million dollars ($2.3 million in todays dollars) spent on the study. For more than thirty years, this study has been considered the gold standard of sales research. It was a study so broad, so deep, and so resource-intensive that nobody dared to even ask if it could be repeated, let alone surpassed.
It wasnt the number of calls studied or the number of variables in the study that was the challenge. Advances in big data analytics, machine learning, and GPU-powered processing have made it possible to study much larger data sets and to consider far more factors than Rackhams team had. The issue has always been that many sales conversationsespecially the most pivotal ones take place in the customers office. Collecting the data therefore meant committing to traveling the world to actually sit in on those sales meetings and observe what was happening. No organization would sponsor a study like that given the cost, time, and resources requiredand especially given the uncertain outcomes of such an undertaking.
But something interesting and altogether surprising happened in the spring of 2020. As the world went into lockdown due to the COVID-19 pandemic, all sales became virtualliterally overnight.
For sales researchers like ourselves, this represented a once-in-a-lifetime opportunity.
Partnering with several dozen companies, our research team went to work collecting millions of sales conversations recorded on platforms like Zoom, Teams, and Webex as well as the dozens of bespoke recording platforms used by companies all over the world. Using automatic speech recognition, we turned the unstructured audio from these recordings into unstructured text. Then, using a machine learning platform from a conversation intelligence company called Tethr, we brought structure to that data, tagging more than 8,300 unique factors across those sales calls. Finally, we did the math to determine which of these factors drive sales performance and which do not.
And what emerged from this analysis was a story that was entirely unexpected.
INTRODUCTION
Stuck
For as long as sales training has been delivered and sales books have been written, theres been one singular objective weve all been focused on: How do we overcome the customers status quo?
Focusing on the customers status quo makes perfect sense. After all, its a formidable enemyone that salespeople lose to all the time. Human beings have a deep-seated bias for things to remain as they are. And customers, we all know, will regularly pass on pursuing opportunities that have been clearly demonstrated to make them better off.
It should come as no surprise, then, that companies have spent untold amounts of time and money on sales training, coaching, and enablement in order to help salespeople overcome the customers status quo. Sales organizations equip their reps with better scripting, tighter value proposition messaging, customer case studies, reviews, testimonials, proof points, ROI calculators, and objection-handling techniquesall designed to help the customer get over the hump, to get them to say yes to their offers and no to doing more of the same.
Of course, there is no shortage of opinions as to how to do this. Some say its about building trust while others argue its about diagnosing needs. In fact, we wrote about this very problem in The Challenger Sale more than a decade ago. In that research, we discovered that the best sellersChallengersbring disruptive, provocative insights that reframe the customers thinking as to how to make money, save money, or mitigate risk. What these gifted reps had figured out was that the way to get the customer to move forward is to show them that the pain of same is worse than the pain of change.
But that is not what this book is about.
This book is about a newer, more nefarious, and seemingly intractable problem facing salespeople today: What happens when the customer agrees that the status quo is unacceptable, that yours is the only solution that can help them attain their objectives, that the whole buying committee is on board... and you still lose?
This sort of thing happens more often than you might think.
In our research, we found that anywhere between 40 percent and 60 percent of deals today end up stalled in no decision limbo. To be clear, these are customers who go through the entire sales processconsuming valuable seller time and organizational resources, perhaps even engaging in extended pilots or proof-of-concept trialsonly to end up not crossing the finish line.