Selling to the Fortune 500 C-Suite
CXOs Have Their Own Way of Thinking
Bravo developed a semiconductor sensor technology that promised to revolutionize multiple food processing and medical applications. BigCo was interested in using the technology in their soft drink dispensers.
BigCo’s engineers identified multiple benefits including:
Quality control: More accurate management of the syrup mix, for better taste
Consistency: The sensor enabled the dispenser to keep the mix constant for two years or more
Cleaning alerts: The ability to detect unacceptable levels of specific contaminants
Because BigCo engineers described these issues, Bravo assumed these were BigCo’s Hot Buttons. They were half right-these were Engineering’s Hot Buttons, but not those of the Executive Suite.
Preparing for the Big Meeting
Bravo and BigCo worked together to build prototype and gather data that validated Bravo’s technology performed as expected. Bravo worked directly with BigCo engineers to complete BigCo’s rigorous internal Business Case Approval Process (BCAP):
Bravo participated in four different BCAP design reviews with internal teams and external consultants.
Bravo co-wrote and helped deliver a 168-slide BCAP presentation to other groups and multiple layers of management.
The engineering team presented their BCAP to the CEO, CFO and the business unit management (this time without Bravo).
After the Big Meeting
Eight days after the CXO meeting, BigCo’s chief engineer received an email from an MBA intern working for the CFO. This is what she asked, verbatim:
“On slide 61, you state that the new dispenser eliminates downward drift in the syrup/water mix, resulting in 0.6% percent increased syrup usage per year starting in month six. Does the increased syrup usage remain at that level for the installed lifetime of the dispenser?”
The chief engineer replied that the answer was yes. The next day the proposal was approved, and Bravo closed the deal with BigCo. What had been the deciding factor? That 0.6% increase in syrup sales resulted in millions of dollars of additional revenue, at a tiny capital cost that was already budgeted. While the engineers wanted Bravo’s quality benefits, the CEO and CFO approved the project because of this painless revenue boost.
Hot Buttons are Real
It pays to understand your customer’s Hot Buttons and decision process. In this case, entirely different criteria drove the decisions in Engineering and the Executive Suite:
| Engineering Decision Criteria | CXO Decision Criteria |
|---|---|
| Impact on dispensed beverage quality |
Capital cost to purchase |
| Long-term reliability |
Operational expense to deploy |
| Food safety |
Impact on quarterly revenue and margins |
Dealing with Multiple Decision Processes
The challenge faced by Bravo was that they first needed to sell to Engineering, then together with Engineering sell to the CXOs. Multiple decision processes are common at larger companies, or with multiple decision makers. In this case, there was no way to avoid two sequential sales processes to two audiences.
When you identify multiple decision makers, your goals are (in priority order:
Identify in advance what the decision process will be. Well-managed companies will have a clear process. Other companies may have no idea how they will decide, or who the various constituencies are.
Work consistently with all of the separate decision making groups, helping them to understand their own interactions. Often you can drive the creation of a small decision-making team with representatives from ech group, which can reduce the decision process down to a single evaluation and negotiation.
When one group outranks another group, as in the BigCo case above, you may be stuck with sequential evaluations by each group. In this case, get clear on the rules of engagement. BigCo had a rigorous BCAP process. Governments and public institutions have strict acquisition guidelines. Your customer may have something similar.
When you try to serve the needs of multiple groups at one time, all of them unanimously have to say “yes.” Just one of them can kill the deal by saying “No.”
The Trojan Horse Strategy:
Sometimes, you can perform a pilot program at one group, in order to demonstrate success from the inside. While this sounds easier than closing a deal with three or four groups at once, it may be risky.
Don’t try to surprise the other groups at the end. Contact them, let them know about the pilot program, and invite their participation.
Keep them updated about every milestone.
Watch out for conflicts or political infighting. You absolutely don’t want to become the victim of a turf war.
The Answer You Never Want to Hear
After you win a difficult evaluation and meet all the requirements, you never want to be surprised by this answer: “I’ll ask my boss if he’s interested. Of course, he’ll have to ask Manufacturing and Operations and Finance what they think we should do…” Do your homework!