The Challenger Sale: A New Sales Methodology Based on Research and Results

What is the Challenger Sale and Why You Need It

If you're looking for a way to boost your sales performance, you might want to consider adopting the challenger sale approach. This is a sales methodology that was developed by Matthew Dixon and Brent Adamson, based on their extensive research on thousands of sales reps across different industries. In their book, The Challenger Sale: Taking Control of the Customer Conversation, they reveal that the most successful sales reps are not those who build relationships, solve problems, or work hard, but those who challenge their customers with provocative insights and solutions.

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The challenger sale approach is based on the idea that customers are more loyal and satisfied when they are challenged by their sales reps, rather than simply agreeing with them. Challengers are not afraid to push back, debate, and educate their customers on how to improve their situation. They are not just selling products or services, but delivering value and creating positive change for their customers.

According to Dixon and Adamson, the challenger sale approach can help you achieve several benefits, such as:

• Increase your sales revenue and profitability by winning more deals and avoiding price discounts

• Build stronger customer loyalty and retention by delivering more value and differentiation

• Gain a competitive edge by positioning yourself as a trusted advisor and thought leader

• Adapt to changing customer needs and expectations by staying ahead of the curve

In this article, we'll explain what makes a challenger sales rep, how they perform compared to other types of sales reps, and how you can implement the challenger sale model in your organization.

The Five Types of Sales Reps and How They Perform

Dixon and Adamson identified five distinct profiles that describe how sales reps interact with their customers. These profiles are based on two dimensions: relationship building (how well they build rapport and trust with customers) and challenge (how much they challenge customers with new ideas and perspectives). Here are the five types of sales reps:

The Hard Worker

The hard worker is someone who doesn't give up easily, is self-motivated, and is interested in feedback and personal development. They are willing to put in extra hours, make more calls, and follow up diligently. They are persistent and resilient in pursuing their goals.

The hard worker has a high level of relationship building, but a low level of challenge. They tend to focus on satisfying their customers' needs and requests, rather than challenging them with new insights. They are good at executing the sales process, but not at creating value for their customers.

The hard worker is the second most common profile among sales reps, accounting for 21% of the population. However, they are not very effective in complex sales situations, where customers need more guidance and education. Only 10% of the top performers are hard workers.

The Relationship Builder

The relationship builder is someone who builds strong relationships with their customers, both at a personal and professional level. They are good at creating rapport, building advocates, and resolving conflicts. They are empathetic and attentive to their customers' needs and emotions.

The relationship builder has a high level of relationship building, but a low level of challenge. They tend to focus on maintaining harmony and avoiding confrontation, rather than challenging their customers with new insights. They are good at retaining existing customers, but not at acquiring new ones.

The relationship builder is the most common profile among sales reps, accounting for 25% of the population. However, they are the least effective in complex sales situations, where customers need more differentiation and value. Only 7% of the top performers are relationship builders.

The Problem Solver

The problem solver is someone who is highly detail-oriented, reliable, and responsive. They are good at addressing their customers' issues and ensuring that all problems are solved. They are thorough and meticulous in their work.

The problem solver has a moderate level of relationship building, but a low level of challenge. They tend to focus on delivering solutions and fixing problems, rather than challenging their customers with new insights. They are good at providing service and support, but not at creating value for their customers.

The problem solver is the third most common profile among sales reps, accounting for 18% of the population. However, they are not very effective in complex sales situations, where customers need more innovation and vision. Only 12% of the top performers are problem solvers.

The Lone Wolf

The lone wolf is someone who follows their own instincts and rules, rather than following the company's guidelines or best practices. They are self-assured, independent, and confident. They deliver results, but they are difficult to manage and control.

The lone wolf has a low level of relationship building, but a high level of challenge. They tend to focus on challenging their customers with their own ideas and perspectives, rather than aligning with their customers' needs and goals. They are good at creating value for their customers, but not at building trust and loyalty.

The lone wolf is the least common profile among sales reps, accounting for 9% of the population. However, they are surprisingly effective in complex sales situations, where customers need more creativity and expertise. 25% of the top performers are lone wolves.

The Challenger

The challenger is someone who has a different view of the world and loves to debate and push their customers. They have a strong understanding of their customers' business and goals, and they use that knowledge to provide valuable insights and solutions. They are not afraid to assert their authority and guide their customers through the sales process.

The challenger has a low level of relationship building, but a high level of challenge. They tend to focus on challenging their customers with new insights that teach them something new, tailor their message to different stakeholders and their priorities, and take control of the sale by driving action and commitment. They are good at creating value for their customers, as well as building trust and loyalty.

The challenger is the second least common profile among sales reps, accounting for 17% of the population. However, they are the most effective in complex sales situations, where customers need more value and differentiation. 40% of the top performers are challengers.

The Three Skills of a Challenger Sales Rep

Now that you know what makes a challenger sales rep different from other types of sales reps, you might be wondering how you can become one yourself. According to Dixon and Adamson, there are three key skills that challengers possess and practice:

Teach

Challengers teach their customers something new and valuable about their business or industry that they didn't know before. They don't just ask questions or pitch features and benefits; they provide insights that challenge their customers' assumptions and beliefs. They show their customers how they can improve their situation or achieve their goals in a better way.

To teach effectively, challengers need to do three things:

• Know your customer: Challengers research their customers thoroughly before engaging with them. They understand their customer's industry trends, challenges, goals, needs, preferences, and decision-making process.

Teach

Challengers teach their customers something new and valuable about their business or industry that they didn't know before. They don't just ask questions or pitch features and benefits; they provide insights that challenge their customers' assumptions and beliefs. They show their customers how they can improve their situation or achieve their goals in a better way.

To teach effectively, challengers need to do three things:

• Know your customer: Challengers research their customers thoroughly before engaging with them. They understand their customer's industry trends, challenges, goals, needs, preferences, and decision-making process.

• Know your value: Challengers know how their products or services can deliver value to their customers in a unique and compelling way. They can articulate the benefits and outcomes of their solutions, not just the features and functions.

• Know your insight: Challengers craft insights that are relevant, credible, and surprising to their customers. They use data, facts, and stories to support their insights and make them memorable.

By teaching their customers something new, challengers position themselves as experts and thought leaders who can help their customers grow and succeed.

Tailor

Challengers tailor their message and approach to different types of customers and stakeholders. They don't use a one-size-fits-all strategy; they adapt their communication style and content to suit the needs and goals of each individual. They also leverage the relationships they have built with different influencers and decision-makers within the customer's organization.

To tailor effectively, challengers need to do three things:

• Identify the customer's value drivers: Challengers understand what motivates each customer and stakeholder to buy or not buy. They know what pain points, goals, interests, and concerns each customer has, and how they measure success.

• Align your message with the customer's value drivers: Challengers customize their message and solution to address the specific value drivers of each customer and stakeholder. They show how their solution can help each customer achieve their desired outcomes and overcome their challenges.

• Adjust your delivery style to the customer's communication preferences: Challengers modify their tone, language, and format to match the communication preferences of each customer and stakeholder. They use different techniques such as storytelling, data visualization, analogies, metaphors, humor, etc. to engage and persuade each customer.

By tailoring their message and approach, challengers demonstrate that they understand and care about each customer's unique situation and goals.

Take Control

Challengers take control of the sales process and guide their customers through it. They don't let the customer dictate the pace or direction of the sale; they assert their authority and expertise to lead the customer to a decision. They also don't shy away from discussing difficult topics such as price, budget, or competition.

To take control effectively, challengers need to do three things:

• Establish credibility and trust: Challengers earn the respect and confidence of their customers by demonstrating their knowledge, professionalism, and integrity. They deliver on their promises, follow up on time, and provide honest feedback.

• Create constructive tension: Challengers create a sense of urgency and discomfort in their customers by highlighting the gap between their current state and their desired state. They show their customers the risks and costs of inaction or choosing a suboptimal solution.

• Drive action and commitment: Challengers influence their customers to take action and commit to the next steps in the sales process. They use clear calls to action, deadlines, incentives, testimonials, etc. to motivate their customers to move forward.

By taking control of the sale process, challengers ensure that they move the sale forward and close the deal in a timely manner.

How to Implement the Challenger Sale Model in Your Organization

If you're convinced that the challenger sale approach is the best way to sell in today's complex and competitive environment, you might be wondering how you can implement it in your organization. According to Dixon and Adamson, there are three key steps you need to take:

Identify and Develop Challengers

The first step is to identify who are your existing or potential challengers among your sales reps. You can use assessments, interviews, observations, or feedback from customers or managers to determine which profile each rep falls into. You can also look at their sales performance, especially in complex sales situations, to see who are the top performers.

Once you have identified your challengers, you need to develop them further by providing them with the right training, coaching, and feedback. You can use the three skills of teach, tailor, and take control as a framework to help them improve their abilities and behaviors. You can also use role-playing, case studies, or peer mentoring to help them practice and apply their skills.

If you have reps who are not challengers, but have the potential to become one, you need to help them transition to the challenger mindset and skillset. You can do this by identifying their strengths and weaknesses, and providing them with the appropriate guidance and support. You can also use incentives, recognition, or rewards to encourage them to adopt the challenger approach.

Equip Challengers with the Right Tools

The second step is to equip your challengers with the right tools and resources that they need to succeed. These include:

• Content: You need to provide your challengers with high-quality content that they can use to teach their customers something new and valuable. This content should be based on your unique value proposition, customer insights, industry trends, best practices, case studies, etc. You should also make sure that your content is easy to access, update, and share.

• Coaching: You need to provide your challengers with ongoing coaching and feedback that they can use to improve their skills and performance. This coaching should be based on clear goals, metrics, and expectations. You should also make sure that your coaching is consistent, constructive, and collaborative.

• Support: You need to provide your challengers with adequate support from other functions or departments in your organization. This support should include technical assistance, product information, marketing materials, customer service, etc. You should also make sure that your support is responsive, reliable, and aligned with your sales strategy.

By equipping your challengers with the right tools and resources, you enable them to deliver more value and differentiation to their customers.

Align Your Sales and Marketing Teams

The third step is to align your sales and marketing teams around the challenger sale approach. This means that both teams should share the same vision, goals, and strategies for engaging and influencing your customers. They should also collaborate and communicate effectively to ensure consistency and efficiency in your sales process.

To align your sales and marketing teams, you need to do three things:

• Create a common language: You need to create a common language that both teams can use to understand and describe your customers, their needs, their challenges, their value drivers, etc. You can use tools such as buyer personas, customer journey maps, value propositions, etc. to help you create a common language.

• Create a common process: You need to create a common process that both teams can use to generate leads, qualify prospects, nurture opportunities, close deals, etc. You can use tools such as lead scoring, CRM systems, marketing automation platforms, etc. to help you create a common process.

• Create a common culture: You need to create a common culture that both teams can embrace and embody. This culture should be based on the challenger mindset and skillset that we discussed earlier. You can use tools such as training programs, recognition programs, reward programs, etc. to help you create a common culture.

By aligning your sales and marketing teams around the challenger sale approach, you ensure that you deliver a consistent and compelling message to your customers throughout their buying journey.

Conclusion

The challenger sale approach is a proven and effective way to sell in today's complex and competitive environment. It is based on the idea that customers are more loyal and satisfied when they are challenged by their sales reps, rather than simply agreeing with them. Challengers are not just selling products or services, but delivering value and creating positive change for their customers.

To become a challenger sales rep, you need to master three key skills: teach, tailor, and take control. You need to teach your customers something new and valuable about their business or industry, tailor your message and approach to different types of customers and stakeholders, and take control of the sales process and guide your customers through it.

To implement the challenger sale model in your organization, you need to take three key steps: identify and develop challengers, equip challengers with the right tools, and align your sales and marketing teams. You need to identify who are your existing or potential challengers among your sales reps, provide them with the right content, coaching, and support, and ensure that both your sales and marketing teams share the same vision, goals, and strategies for engaging and influencing your customers.

If you follow these steps, you will be able to boost your sales performance, build stronger customer loyalty and retention, gain a competitive edge, and adapt to changing customer needs and expectations.

FAQs

Here are some common questions and answers about the challenger sale approach:

What is the difference between the challenger sale and solution selling?

Solution selling is a traditional sales methodology that focuses on identifying the customer's needs and problems, and providing solutions that address them. Solution selling relies on asking questions, building relationships, and offering features and benefits.

The challenger sale is a modern sales methodology that focuses on challenging the customer's assumptions and beliefs, and providing insights that teach them something new. Challenger selling relies on providing value, creating differentiation, and driving action.

How can I find insights to teach my customers?

You can find insights to teach your customers by doing research on your customer's industry, market, competitors, trends, challenges, goals, etc. You can also use your own experience, expertise, data, case studies, best practices, etc. to generate insights. The key is to find insights that are relevant, credible, and surprising to your customers.

How can I tailor my message to different stakeholders?

You can tailor your message to different stakeholders by understanding their value drivers, aligning your message with their value drivers, and adjusting your delivery style to their communication preferences. You need to know what motivates each stakeholder to buy or not buy, how your solution can help them achieve their desired outcomes or overcome their challenges, and how they prefer to receive information.

How can I take control of the sale process without being pushy?

How can I take control of the sale process without being pushy?

You can take control of the sale process without being pushy by establishing credibility and trust