Friday, 8 January 2016

Pitch Anything : An Innovative Method for Presenting, Persuading, and Winning the Deal



Here’s the Pitch

Regardless of the business you’re in or the product you sell, common wisdom holds that you must work harder to land more sales pitches and that you will make only a couple of sales from every 100 pitches. Thus, sales is a numbers game that depends only on effort and volume. That sounds like a pretty difficult way to make a living, because it depends on the idea that – no matter how good your presentation skills – you are destined to strike out most of the time. Instead, you need to learn this crucial secret: As a presenter, the success of your pitch is less about your presentation skills and more about how you get and hold your audience’s attention.

Crocodiles and Business
To boost your pitch success percentage, take a moment to understand some basic neuroscience. The brain is divided into three parts. The first and deepest part is the “crocodile brain”: The “croc brain” responds first to all incoming messages and reacts in a fundamental way, with raw emotion and a fast fight-or-flight reaction. The second part is the midbrain, which responds next and gives meaning and thought to the input it receives. The last response comes from the neocortex – the part of the brain charged with making sense of complexity and with solving problems. This poses a challenge for presenters. You develop presentations and pitches in your neocortex and construct your sales argument as a complex problem to solve. Then you share your solution with your audience. Your audience members, however, receive your message through the croc brain, which responds one of three ways: losing interest, deciding the message is a threat or passing the information on to the midbrain in a condensed form. Sales pitches always face this cognitive process unless you are selling “a product so sexy it’s irresistible,” like a Ferrari.

Making a Pitch Your Audience Will Catch

To impress the croc brain with your message, use the “STRONG" process. STRONG stands for: “setting the frame, telling the story, revealing the intrigue, offering the prize, nailing the hookpoint and getting the decision.” When you go into a business meeting, you must first set the frame. Try to establish a framework – a set of conditions – favorable to keeping your audience’s interest. Your audience members have likely seen several similar presentations. They will try to frame the meeting to get it to end as quickly as possible without having to engage with you. In terms of the cognitive science at work, “the stronger frame absorbs the weaker,” and whoever sets the frame prevails. For example, consider the last time a police officer pulled you over for a minor driving infraction. The cop had a number of tools that created an advantage over you – like sirens, lights and a uniform. As the officer walked toward your car, you probably reacted with an elevated heart rate and the desire to explain yourself; the cop was in charge before even asking, “Do you know why I pulled you over?” The police officer controlled the frame. In a business situation, you need to control the frame and understand the frames that other people present to you. Those who feel they are more important than others in attendance will use the “power frame.” Such people expect you to defer to their status. Defuse this tactic with a “power-busting frame” that includes a “mildly shocking but not unfriendly act.” For example, if your audience member demonstrates personal power by doodling on your handouts, take your handouts back to demand attention. You also will encounter the “prize frame.” The task in this frame is to determine who is the prize in a given discussion. You always want that prize to be you. If the main client you plan to pitch to is absent from the meeting or running late, make yourself the prize. Instead of pitching to staff subordinates, offer to wait a short while and then say that you will need to reschedule for a later date at your office. While this might unnerve you the first time you try it, you are reframing the discussion to make clear that the information you will present is a prize worth pursuing. Another important frame is the “time frame.” Whoever controls the timing of the meeting controls this frame. Watch for signs that your audience is losing interest – at that point, they control the time frame. Keep control of the timing of the meeting and wrap things up before your audience cools and wants to move along. Finally, there is the “intrigue frame,” which is often at war with the “analyst frame.” Remember that the croc brain governs emotion and interest, which are “hot cognitions,” while the neocortex handles problem solving, which involves “cold cognition.” You want to keep your audience members involved in a hot cognitive process for as long as possible. When they can analyze the puzzle you present and reach their own solution, they’ll lose interest. Maintain a sense of intrigue and challenge throughout your presentation to keep the hot cognition active. Accomplish this by telling a brief story in which you are the star. The story should pose some sort of “risk, danger and uncertainty,” and a plot that forces you to solve the problem in the story in a limited amount of time or face serious consequences. The element of risk and the looming threat of bad results create necessary tension. You want the people in your audience to feel that they must know how you will solve the problem. Their emotions  remain active as they journey through the story with you, and their analyst frames will not come into play.

Establish Your “Status”

 How others view your status determines your ability to master a dominant frame and control the interaction. You don’t gain status by being nice. If you lack “high status,” you won’t be able to get the audience focus you need to throw your pitch. Status is about taking the “alpha” position, the one with primacy and the most authority. If you don’t seize that position, you will fall into the “beta trap” of being subordinate to the alpha. Nobody listens to or pays attention to the beta. You must have status in order to persuade and to close. Pitch meetings are almost perfectly designed to put you in a beta position. First there’s the lobby, where a gatekeeper greets you and asks you to take a seat. The wait demands that you cede control of the timing of your visit to whoever comes to escort you to the meeting. Such “beta trapping” continues throughout the meeting, keeping you at a disadvantage. “Your position in the social hierarchy is an artificial measure of your worth to others, a construct based on your wealth, your popularity within society at large and the power of the position you hold.” To assume the alpha position, manipulate the variables. Start by ignoring the rituals that exist to put you in the beta position. Do not be deferential, never join in pointless premeeting chatter and don’t let anyone tell you what to do. Also, ignore your customer’s status. Look for ways to boost your frame and to shift the conversation to areas where you can demonstrate expertise. Make yourself the prize and encourage your customer to acknowledge your alpha status

The Pitch

Many salespeople let a pitch go on for too long. To keep your listeners’ croc brains engaged and the hot cognition going, limit your pitch to about 20 minutes. To introduce your idea, discuss “why now.” Speak to your presentation’s urgency by examining the economic, social and technological forces that affect the aspect of the client’s business that your pitch addresses. This is an important step in establishing “movement,” another neurological trigger to maintaining interest – the brain is wired to see movement and change, not stability. This technique also allows you to grab your audience’s attention, which is crucial to maintaining control of the pitch. You need to create both “desire and tension” in your audience, and that requires understanding their neurochemistry. Both of these emotions are linked to the production of dopamine and norepinephrine in the brain. Dopamine transmits the pleasant feelings a person gets when anticipating a reward. The brain creates norepinephrine in response to tension. Manage the creation of these two chemicals, and you’ll have your audience members’ attention. Then, you can deliver your secret sauce, which is “the unfair advantage you have over others.” This sets you up to offer the deal, which takes the least amount of time in your 20-minute pitch. Deliver it in four steps: 1. “Introduce yourself and the big idea: five minutes.” 2. “Explain the budget and secret sauce: ten minutes.” 3. “Offer the deal: two minutes.” 4. “Stack frames for a hot cognition: three minutes.”
Bringing It Home Your final step is to keep your audience members in hot cognition so they stay emotionally excited about your idea. Once they are enthusiastic about the concept you’re offering, demonstrate your alpha position by reinforcing your power through the frames you use, one after the other, stacking the intrigue, prize, time and “moral authority” frames. The powerful moral authority frame shows up quite often in daily life. Think of your doctor, whose approach might be “the most powerful frame in the world.” The doctor commands all the cues that demonstrate clout. A physician has specialized knowledge that can mean the difference between life and death, or sickness and health. To attain that knowledge, doctors dedicate a significant part of their lives to education, and they earn commensurate salaries. When you encounter your doctor, you are likely wearing a flimsy gown, while the doc is dressed in business attire or a white coat. You accept your physician’s recommendations almost as commands. By taking a piece of this moral authority and applying it to your pitch, you can gain some part of the automatic response you give doctors or others with moral authority. Avoid looking needy as you pitch: “It’s incredibly bad for frame control. It erodes status. It freezes your hot cognitions. It topples your frame stacks.” Neediness can torpedo your pitch; the croc brain sees it as a threat and shies away just when you want it to engage. Neediness can be hard to avoid, because it arises from the natural human tendency to seek validation – to want feedback from your audience that says your pitch is acceptable. Avoid closing your pitch with statements such as “So, what do you think?” or “We can sign a deal right away if you want us to.” To combat neediness, use “the Tao of Steve,” a philosophy from the film of that name, which is based on the qualities of actor Steve McQueen, TV’s Six Million Dollar Man Steve Austin and Hawaii Five-O cop Steve McGarrett. The heroes evince three lessons: 1. McQueen shows how to “eliminate your desires” – Don’t want something. 2. Austin shows how to “be excellent in the presence of others” – Show expertise. 3. McGarrett shows when to “withdraw” – Stop while your audience still wants more. In other words, keep your cool while your audience is thinking hot, demonstrate your area of competency and stop even though your audience still wants more. Keep a sense of humor about your pitch. Remember the example of frame control that presidential candidate Ronald Reagan exhibited in his 1984 debate with his opponent Walter Mondale. While Mondale wanted to take control of the campaign through a frame that focused on Reagan’s advanced age, Reagan deflected this with the famous comment, “I will not make age an issue of this campaign. I am not going to exploit, for political purposes, my opponent’s youth and inexperience.” Mondale was 56 at the time. Reagan became the alpha by taking control of the frame with good humor and a likable attitude. The American electorate embraced his pitch and awarded him a second term.

Good Works!

The Customer Now Rules
In the past, companies ran their own marketplace activities and entirely controlled their products and services. Today, customers rule. Numerous factors have aligned to put the emerging generation of consumers in charge, most notably the power of technology and the Internet, which provide comprehensive product data instantly and enable consumers to buy anything any time, and to comment on everything all the time. The millennial generation – also called generation Y – runs commerce today. This generation followed generation X, which in turn followed the baby boomers. Members of gen Y grew up in a fully digital world. They are becoming the world’s biggest consumer group. They have huge expectations, are extremely demanding and have little patience for companies that displease them. If generation Y doesn’t want what you offer, doesn’t like how you operate or feels negative about your products or services, its consumers will quickly call public attention to every failing. Often this means enthusiastically wreaking havoc on the organizations they target. Many victims could appear under that “rest in peace” sign, including Circuit City and Borders. The first electronics superstore, Circuit City, went bankrupt in 2009. Former chairman Alan L. Wurtzel says it died because it failed to listen to its customers. Having 500 US bookstores did not protect Borders from bankruptcy and liquidation in 2011. Rick Newman of U.S. News & World Report notes that Borders’s sin was failure to adapt to changing customer expectations. “Customers are now in the driver’s seat,” write George Colony and Peter Burris of Forrester Research. Former GM CEO Rick Wagoner agrees: “We used to ‘own’ the customer. Now we hope and pray that they want to ‘own’ us,” he says. Firms that can’t regain control of their businesses will die, undone by the slow decomposition of their consumer base.
Gen Y has an outsize influence, in part due to its members’ tendency to broadcast their displeasure via online social networks. Companies can foment this dislike simply by too overtly trying to influence how gen Yers think, feel and act. If your gen Y target market learns that you’re campaigning at them, “they will object, they will drop you and they will tell their friends.”

Generation D Gen Yers are frightening enough, but the next cohort, generation D, is downright terrifying. Gen Ders are the envoys of the looming “customerpocalypse.” If you fail them, Gen Yers might want nothing to do with your products or services. But if you get on the wrong side of ferocious gen Ders, they may go out of their way to bury your firm. Think of the D in generation D “as ‘doom’ or ‘death’ or ‘destruction’; gen D may well be the “discover, devour” and “demonize” generation. Unlike generation Y, which merely creates “suck sites” to denigrate the companies that disappoint its members, gen D challenges such firms and may put them out of business. While generation Y members may dislike the idea of being your targeted customers, generation Ders don’t consider themselves anyone’s customers. They don’t want any company to sell products and services directly to them as targets. Customer relationship management has no relevance to gen Ders. Here is a typical gen D tweet: “Never doing business again with –– bank totally [ruined] my account went to –– bank and switched accounts...you should do the same!” When such messages are retweeted again and again to thousands of people, the brand damage can be irreparable. If your brand generates a traditional narrative about its offerings, just one “influential blogger” can destroy your credibility by listing facts that contradict your claims. That refutation will be retweeted by millions until it becomes news and the traditional media report it. Disgruntled Gen Ders will recruit their friends to bring down a company. For gen Ders, a friend is “everyone they’ve ever known, or who is known by someone they know, or who they have no relationship with other than what appears to the rest of us to be the narrowest sliver of obscure commonality.” Gen D represents the future of the marketplace and the future of your firm


Chasing Gen D’s Love
On the plus side, gen Ders avidly praise, support and buy the goods and services they like, such as Apple and Google products. They seek “radical authenticity” and insist on “trust, transparency and total openness.” Gen Ders turn customer loyalty on its head; they demand “your loyalty to them.” To establish relationships with them firms must offer rewarding, seamless customer experiences. For most, this requires a dynamic transformation of business processes, most notably digital operations, and it calls for the complete integration of a company’s business side with its information-technology side. Companies must teach employees game-changing mind-sets. Thanks in part to Frederick Winslow Taylor’s “scientific management” approach, most companies work to reduce costs, often at the expense of their customers. Consider Ryanair’s 2010 decision to charge passengers for using the restrooms and First National Bank of Chicago’s decision during the mid-1990s to charge customers $2 to speak with live customer-service representatives. Such decisions don’t endear companies to their customers.
The Limits and Risks of Big Data
Organizations must take control of their data before the volume of the data becomes a ruinous hazard. Big data – an enormously large and complex collection of data sets – requires sophisticated management and analysis systems. The amount of data companies handle is expanding “from the terabyte to the yottabyte, which equals one septillion bytes (a septillion...has 24 zeros).” Companies use this vast information base, in part, to develop 360-degree views of their customers. A 360-degree customer view compiles a lot of existing data about a single individual. However, any one customer is not “a standalone amoeba swimming in a round petri dish.” What you need is a “1080 high-definition” view that involves data, customer intent and reorganized business processes. Focusing on data alone means exploring only the customer’s past actions. In this context, “data is who”; intent is “what and why”; and processes supply the “when and where and how.” To begin with, navigating enormous data presents certain problems. Companies must determine how to interpret data and must teach their customer service personnel how to use them. Companies that are drowning in information can even suffer “data suicide.” They must supplement big data with “syndicated market research, opinion inferred from voice and text analysis, and data aggregated from social media and websites.” Even a mountain of data can tell you only “who the customer was.” You must learn why customers seek your company, what to offer them, where they like to receive services and how to give them what they want. “Thinking in layers” can provide the context you need to understand and best serve your consumers. You can use it to identify your clients’ intent – why someone wants to do business with you. Intent encompasses clients’ personalities, “goals, desires, needs and preferences. You also want to understand and maximize your company’s intent so that you act in harmony with what it wants to achieve. “If data is memory, intent is desire moderated by judgment.” Astute judgment provides the power you need to understand your customers fully and to serve them best. Data accumulation for its own sake is self-defeating. Instead, use data to detect patterns about your customers’ future behavior. Establish hypotheses and test them to determine your customers’ intent. Combining data and customer intent will help you plot your “nextbest action,” so that you can “offer and promote the right thing to the right person at the right time.” Transform your processes to personalize your customers’ experiences so their encounters with your company are seamless, dynamic, fluid and “sticky.” Always ask, “How does my customer want to engage with me?” and adapt your processes accordingly. Vodafone answers these questions successfully. Each time a pay-as-you-go customer reloads a cellphone, he or she automatically receives a next-best-action message, a “‘daily special’ – or new individual offer” – to improve individual phone plans based on that client’s actual usage. Vodofone seeks to do all it can to “retain the customer.” The equation notes the customer’s intentions and objectives (“the who and the why”), includes Vodafone’s goals (“the what”) based on the customer’s intentions, and develops a specially tailored deal for each customer. Vodafone’s clientele loves these offers. Such an approach can bring generation Y and D customers to your company and can retain them.
The “Outside-In” Approach

Senior management at Farmers Insurance decided to pursue the business-owners’ insurance market by supplying highly specific policies, each developed for individual types of businesses. Normally, this would demand extensive, time-consuming underwriting. For most insurance companies, this level of comprehensive work with specialty underwriters would make such a project prohibitively impractical. Instead, Farmers took an outside-in approach that leveraged its knowledge of its consumers. Farmers successfully developed a “seamless experience for insurance agents and their customers.” Farmers “went beyond the data to get to intent.” It focused on customers’ goals – for example, “Give me a reliable quote quickly”– as an intelligent strategy for developing context” within following the required “business rules and state and local regulations.” Farmers created a “customer-centric platform that captured its business intent and operationalized it.” This involved transforming its processes, including its involvement with its clients “Liberating Your Organization” and Engaging Your Customers For most companies, this transformation requires changing how your culture views technology and IT. It challenges “the grips of channels and silos.” The problem is that computer programming – the bedrock of IT – is a complex mess at many businesses, mired in “zombie systems” that are impossible to change, “manual systems” using old workarounds and “rogue systems” filled with stopgaps created along the way. These systems are all flawed. The traditional approach that spawned them will never supply a solution. They will never change until personnel first change how they think about technology. Making such changes may require reorganizing certain functions. Start with the chief financial officer, since you can’t make radical changes without major investments in personnel and technology. To make this corporate change, the CFO needs to be willing to make “directionally correct decisions” to spend money in ways that are “validated by intermediate results.” Set up two new positions: chief process officer and chief customer officer. These changes will help you find new ways to engage customers for every interaction. Try to incorporate three basic principles: 1. “Democratize how you do technology” – Involve your staff in your firm’s technology by speaking the “language of business, not the programming language of the machines.” For instance, one goal might be to program computers to use business language. 2. “Think in layers” – Your technology must work across all “customers, products and jurisdictions.” 3. “Use analytics to optimize continually” – Never stop analyzing your customers or analyzing how you analyze. These changes will increase the positive expectations your customers have about your firm and its products or services, and will define what it means for them to deal with you.
        Today, customers control commerce and they’re threatening a “customerpocalypse.”
         • Generation Y, the world’s largest consumer group, has no patience for companies that displease it.
         • A rapidly growing subset of generation Y – called generation D – refuses to let companies control it. These connected, informed consumers insist on having control.
        • Gen D turns customer loyalty on its head; its members demand “your loyalty to them.”
         • “Data is who.” Intent is “what and why.” Processes supply the “when and where and how.”
        • Most companies need to transform their systems, customer service processes and technology in order to offer the most satisfying experiences to their customers.
         • Such transformation requires a radical mind-set change for executives.
         • Companies spend too much time accumulating data and too little understanding them.
         • Brands and traditional forms of customer loyalty are increasingly irrelevant.

        • Firms need to operate with an “outside-in” approach that focuses on customers.