There’s a world of difference between talking about agility and actually being agile. Every company’s annual report talks about agile organizations but very few organizations actually demonstrate real agility in the face of unexpected change. There’s a reason for that: it’s hard to be agile in the abstract.
For example, in B2B marketing, we know that the value of a product depends on the customer and competitor: value is determined by the impact of your product on your customer’s business and on your customer’s alternatives. Changes in your customer’s business model and your competitor’s offer can both change the value of a product. And the power of value messages will depend on the role of the person receiving the message: an operations manager will not respond the same way as a purchasing manager or a sales leader . In the abstract there is a price that represents the best value for the client and the best value for the company. But most often the client gets the better end of the deal. Why?
In an ideal world, the marketing person would actually stand next to the sales person, listening to every word the customer is saying, doing research on the fly, coaching the sales person in real time, and setting a price based on a value proposition that is tailored to that client in that moment. But that’s impossible. And lacking an agile model to set a price that responds to conditions as they change and the value messages that communicate that value, the sales person sticks his finger in the air and comes up with a price that feels comfortable. Often, the best deal is left on the table for lack of ability to justify a higher price in terms of the value the customer will receive.
The Native Americans had a saying: “you cannot know a man until you walk a mile in his moccasins.” We can turn that just a tad: you cannot know your best bargaining position until you stand in the shoes of your customer, and compute the world from that point of view. The power to do this in real time throughout your marketing and sales organization would create organizational agility.
In B2B customer value management, the LeveragePoint for Value Management online suite of tools create real-time agility in three ways: first, in the marketing department; secondly in the sales meeting with the client; and finally, in the feedback from sales to marketing.
- Agility in the Marketing Department: your marketers gain the expertise they need to develop professional Economic Value Evaluations (EVEs) and convey them to sales people because the needed coaching and value drivers are built into the online e-Working tool. They can learn what they need in real time without attending workshops, and gain the benefit of others’ best practice and best thinking without leaving their desk.
- Agility in the Sales Meeting: Using the value model as both sales preparation and as a customer-facing sale tool, sales professionals can clearly demonstrate the amount of economic value that your product delivers to the customer versus the competition. Your sales people are given compelling proof-points of your product's differentiation that shift the focus of sales discussions from price to value and allow them to instantly customize value messaging to specific accounts and to specific functional stakeholders within accounts. The message is quickly tailored from account to account, competitor to competitor, and person to person.
- Agility in feedback from Sales: using the same LeveragePoint tool, your sales people share real-time customer feedback and competitive intelligence from the field with marketing, providing an overall rating and feedback that marketing can use to either modify the base value model or in future value models. This creates a virtuous cycle between sales and marketing, and a “virtual conversation” that keeps information flowing in both directions.
Agility can be more than just an abstract goal or a bullet point on a list of corporate objectives. It can be a reality, embedded and activated in every company’s marketing and sales organization. For our customers, agility means the ability to create measurable value that was previously left on the table by capturing important competitive value and communicating it to your clients in ways that are meaningful and persuasive to them, even when the client changes the argument mid-stream. Nothing else we have seen defends your price and your value on the fly with such agility.
Jonathon Levy
CSO