Crossing The Chasm Author Geoffrey Moore Re-Writes Rules For Finding Budget Dollars During A Downturn

Now Moore, managing director of TCG Advisors, is promoting a new line of thinking, this one focused on BtoB selling in the current economic downturn. His take on demand generation and lead generation is different from most. But his provocations and blunt approach will help any company struggling with keeping and growing current customers, as well as acquiring new ones. DemandGen Report recently had the opportunity to chat with Moore and got his take on how sales and marketing organizations need to change their approach to do get budget dollars allocated for new projects during this downturn.

Moore’s most provocative thinking for BtoB executives can be boiled down to the following three areas:

Embrace Provocation-Based Selling: Moore’s approach for breaking into new markets is aggressive. In fact he calls it “breaking and entering” new markets. Provocation-based selling requires companies to present a product offering that is differentiated from competitors. Solution-based selling identifies an existing problem and then the fix. Provocation-based selling presents unmet opportunities or future problems. Then it requires a BtoB marketer to find a line of business executive that will respond to the provocation. In other words, direct connections are essential. The BtoB marketer needs to convince the executive that they have a serious problem, that you will save them money, and your product will fulfill a vision of new business.

“If you don’t rethink the way you break into a new category, you are at risk,” Moore says. “Put something on the table that is controversial and edgy.”

Creating A Budget: In a downturn, IT budgets can go from 15-25% allocated for new technology to zero. Many companies, Moore says, make their case for budget creation on taking money from other areas. But Moore says provocation-based selling will bring about a new approach to budget creation. By focusing first on the line of business leader, sales and marketing executives can then customize the approach based on the personality of that executive. There are basically two kinds of executives, he says, pragmatists and visionaries. Pragmatists either want to address pain points or they have options. The “pain point pragmatist” wants to fix a broken mission critical process, with a rapid response complete solution. Provocation-based sellers should approach them by focusing on the cost of not solving the problem. Option-based pragmatists want to achieve rapid competitive advantage. Provoke them with revenue and margin gains. Visionaries want to create game-changing advantages through technology that will provide competitive advantage. Moore says they should be provoked by focusing on category share gains.

Implementing Efficient Lead Generation: “In a difficult market it’s great to use high volume lead generation,” Moore says. “It works well in high growth markets. But if you don’t have high volume lead generation, or if you’re entering a new market, you might need a course correction.” Moore recommends that BtoB lead prospecting focus heavily on referrals. Leads should be generated as a way to gain a referral, not just a connection. Qualifying leads should focus on the prospects’ compelling reason to buy, and finding leads that have serious issues that warrant special attention. “Chasing un-closable deals is the most common strategic error in a tough market,” Moore says.

The Crossing the Chasm strategy still applies to provocation-based selling, Moore says. It still starts with the technology adoption lifecycle and focuses on pragmatism in the client’s executive suite. But in the current economy, budget creation might be the most important addition to his thinking. “Create instead of consume budgets,” he says. “Most sales people don’t do that and it is critical to overcome this obstacle.”