PDF Summary:Gap Selling, by Keenan

Do you feel like your sales process just isn’t delivering the results you want? In Gap Selling, Keenan argues that you may need to shift your focus from the product you’re trying to sell to your customer’s problems and how you can solve them. His approach calls on you to ask thorough questions and get to the root of your customer’s issue. This not only increases the likelihood of a sale, but allows you to provide your customer with a true solution instead of a superficial quick fix.

Keenan is the CEO of the consulting firm A Sales Guy Inc. and the host of the podcast Gap Sell Keenan. He draws on years of experience in B2B sales to lay out a practical framework for improving your sales techniques at every step of the process. This guide offers insights for salespeople, managers, and business professionals who want to improve their sales. Throughout, our commentary extends Keenan’s advice with tips from other sales experts and explores the psychological principles behind them.

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(Shortform note: In addition to using the metrics that are most important to your customer, you may also consider their preferred methodology for evaluating benefits. For example, many companies rely on a traditional calculation of return on investment (ROI). However, those interested in the long-term payback may be more interested in a payback period analysis. Firms that are more concerned about high uncertainty may rely on a Monte Carlo simulation to determine the probabilities of different outcomes. Understanding your customer’s preferred method may help you to present value in the terms that your customer finds credible and easy to understand.)

2) Measure the Costs

Keenan also recommends that you consider the costs and effort the customer will have to make to implement your plan. These include not only the tangible upfront costs, but also intangible costs like implementation time, organizational disruption, training, and compatibility with their current practices.

In the example of the CRM software, you might want to consider factors such as:

• Software licensing fees (for example, $500 per user per year)
• Implementation costs (for example, $10,000 for initial setup and data migration)
• Training time (for example, two days of productivity lost per salesperson during onboarding)
• IT infrastructure upgrades (for example, $5,000 for additional server capacity)
• Potential temporary dip in productivity during the transition (for example, 10% reduction in sales for the first month)

(Shortform note: When estimating the time and effort your client needs to implement a change, it’s important to be aware of a cognitive bias called the planning fallacy. Psychologists explain: Most people have difficulty accurately predicting how long a project will take or how much they can achieve within a given timeframe. To counteract this bias, experts recommend using objective data points rather than relying on subjective prediction. Compare your project to similar projects in the past and base your estimate on how long those projects took—even if you believe it will go more smoothly this time.)

3) Evaluate the Benefits Against the Costs

Finally, weigh the costs and benefits to your customer. If the benefits exceed the costs, then you’re offering the customer real value, and—as we’ll discuss in Step 3—you’ll work to demonstrate that value in your sale. If the costs exceed the benefits, then you’re unlikely to make a sale, and should refer the customer to someone else who may be able to help overcome their issues instead.

The History of the Cost-Benefit Analysis

In calling on salespeople to weigh the costs against the benefits (cost-benefit analysis, or CBA in economic terms), Keenan is drawing on a tradition of analysis that stretches back over a century. This technique was first developed in the 1840s by French engineer and economist Jules Dupuit, who tried to measure the potential social utility of civic building projects like bridges and roads before their construction.

However, it didn’t come into wide use in the US until the 1950s, when economist Otto Eckstein began publishing his analysis of building projects in annual Green Book reports. This method itself has benefits and costs: While it can quantify and simplify decision-making, such analysis requires time and resources, which may not be worthwhile for small decisions.

Step 2: Demonstrate the Value of Your Solution

Once you understand the value your proposition offers to your customer, you can effectively pitch your solution. It’s important to start with the understanding that customers only take a risk if they see an obvious benefit to themselves. Keenan explains: While many people claim to want change, most people actually oppose making changes and prefer the status quo because it’s more emotionally comfortable. Thus, your job as a salesperson is to show your customer why the change is worth it.

(Shortform note: Understanding what motivates customers to prefer the status quo can give you insight into how to best alleviate any concerns they have about the changes you’ll propose.. Psychologists have identified at least two causes of what they call “status quo bias.” As we’ve discussed earlier, people are strongly motivated by loss aversion, and any change to the status quo often requires a loss. Secondly, people are motivated by regret avoidance—meaning that they’ll pick the safest option (often, the status quo) to minimize the possibility that they’ll regret their choice later on. Thus, when crafting your pitch, consider what your customer stands to lose or regret in a sale and prepare explanations for why your customer won’t experience the losses and regrets they fear.)

Keenan explains that you must focus your sale on demonstrating the value your proposition will provide by closing the gap. You’ve now thoroughly researched your client’s goals and issues and made a detailed cost-benefit analysis of your proposed solution. Your job now is to present your proposition in a way that highlights and showcases the specific value it provides to your specific client. Focus your pitch on concrete, measurable improvements that align with the customer’s goals and priorities.

How to Demonstrate Value

Sales experts build on Keenan’s advice with a few specific methods to help customers see and understand the value you’re trying to demonstrate.

In Pitch Anything, Oren Klaff says your pitch should answer the question “why now?” He suggests telling a story about how the business world is changing, and why your solution will help your customer in meeting the challenges of the moment.

In Little Red Book of Selling, Jeffrey Gitomer advises you to let your customers speak for you. By giving customer testimonials and examples of clients you’ve helped, you can showcase the value your solutions have brought to others.

Finally, Zig Ziglar, in Secrets of Closing the Sale, recommends that you ask questions that get the customer to state the value of the solution in their words. When they articulate the value themselves, they’ll feel like they’re making the decision rather than being pressured. This will strengthen their perception of the value your solution provides.

Additional Tips

Keenan also offers three pieces of advice to guide you in your sales process: Remember that a sale is made up of little sales, establish yourself as an authority, and stand up to your customer.

1) A Sale Is a Process Made Up of Little Sales

Keenan explains that every sale is a process made up of little sales. Focus on obtaining the next incremental commitment from the customer to keep your deal moving forward, instead of fixating solely on the final close.

He breaks down the sales process: First, you need to sell someone on the idea of giving you their time. Then you need to sell them on answering your why questions to reveal their long-term goals and the underlying causes of their issue. You need to sell them on the idea of sharing data with you so that you can evaluate the value of the solution, and you need to sell them on the idea of listening to your pitch so you can demonstrate the value of your proposition. Only then can you actually make the final sale.

(Shortform note: Getting a series of yesses from your client can improve your chances of closing the final sale because of a persuasive strategy called the “foot in the door technique.” Psychologists explain that often, someone is more likely to grant you a large request (like lending you money) if they’ve already granted you a smaller request (like letting you borrow their car). This is because people want to maintain a consistent image of themselves. When someone grants a small request, they gain a positive self-perception as someone who’s generous, reasonable, or accommodating. If they were to then turn down a larger request, their actions would be at odds with their self-perception as a generous and accommodating person. Therefore, they’re unlikely to turn down the larger request so as to hold onto their positive self-perception.)

2) Establish Yourself as an Authority

Keenan recommends that salespeople establish themselves as knowledgeable consultants and valuable assets to their customers. He challenges the conventional wisdom that people buy from those they like. Instead, he argues, people buy from those who provide them value. Thus, focus on providing expertise and solutions rather than trying to be everyone’s friend. For instance, if you’re selling software, be able to discuss not just your product, but also industry trends, best practices, and how your solution fits into the broader technological landscape.

How to Be Knowledgeable and Likeable

While Keenan asserts that expertise is more important than likeability, some sales experts argue that being liked or disliked by customers can still make a difference when making a sale. Humans are naturally social creatures, and your customer may be more inclined to listen to you or perceive your solution as valuable if they enjoy spending time with you. Fortunately, expertise and likeability aren’t mutually exclusive. Here we’ll discuss how to cultivate both qualities.

Likeability: To become more likeable, sales experts recommend that you simply listen to your customers. People enjoy feeling heard, and are more likely to trust someone who understands them. Furthermore, show enthusiasm for your customer’s business. When you can demonstrate that you care about their success, your customer will feel like you’re “on their side.” Lastly, always keep your word. Customers like someone who they can trust to follow through, even on small things like coordinating meeting times.

Expertise: Becoming an authority will require you to develop a strong foundation of industry knowledge. Career experts recommend several strategies to learn more about your industry. By networking and getting to know more people in your industry, you can learn about current developments and best practices. They also recommend keeping up with industry publications, finding a knowledgeable mentor, or taking a course. Lastly, consider choosing a niche area of your field and becoming an expert to build your authority.

3) Stand Up to Your Customer

Keenan emphasizes the importance of maintaining a balanced partnership with customers throughout the sales process. He cautions against becoming subservient or readily agreeing to excessive demands. Instead, be prepared to stand your ground when necessary, clearly explain your rationale, and propose mutually beneficial compromises.

Furthermore, he encourages you to tactfully challenge your customer when they change their mind or offer reasons for backing out of a sale. He suggests framing your challenges with language like “I'm confused, I thought you said…” and "Could you explain to me why…” This maintains a tone of respect while forcing the customer to clarify and justify their position. Challenging the customer keeps the conversation open and provides an opportunity for you to continue convincing your customer of the value you can provide.

(Shortform note: According to communication experts, challenging someone without alienating them is a delicate balancing act. Thus, they recommend that you begin by establishing common ground to set a constructive tone, so the person knows that you’re here to collaborate and discuss. When challenging someone’s beliefs, they advise you to focus on the problem rather than the individual so as not to come across as making an accusation, which could be alienating. Lastly, they recommend that you make the client feel like you understand where they’re coming from throughout the conversation by asking clarifying questions and summarizing their position to demonstrate your understanding. When they feel understood, they’re more likely to listen to what you have to say—even if it challenges their beliefs.)

Part 3: Managing a Sales Team

Finally, Keenan offers his advice for applying the principles of gap selling to management of a team of sales representatives. He focuses on two strategies in particular: asking your sales representatives questions and keeping them accountable to sales targets.

Strategy #1: Frequently Ask Your Sales Representatives Questions

To ensure that your sales representatives are putting gap selling principles into practice, Keenan recommends frequently asking them questions about their clients and about the state of the sale. He explains that gap selling requires a more thorough approach to tracking and managing your ongoing sales when compared to traditional techniques. He argues that asking questions allows you to verify your sales representatives’ knowledge while identifying gaps in their understanding of the sale. Furthermore, by asking about the sale, managers can support their sales representatives by providing strategies and ideas to guide them through the process.

(Shortform note: Research supports Keenan’s call for a structured and rigorous approach to sales pipeline management. One study found that companies saw 28% higher revenue growth if they implemented just three best practices: 1) They explicitly defined their sales process step by step. 2) They devoted a minimum of three hours a month to tracking and managing their ongoing sales. 3) They trained sales managers specifically on management of ongoing sales. While these practices may sound like extra work, the effort spent following up with your sales team to keep them on track could potentially improve your revenue in the long run.)

He recommends that you focus your questions on two points: whether they understand their customers’ gaps and whether they know the next commitment to secure.

1) Do You Understand the Customer’s Gap?

In a gap selling pipeline review, Keenan advises sales managers to verify that their salespeople truly understand their customers’ gap. Recall that this requires a sales representative to fully understand their customer: their present condition, ideal future condition, underlying issues, and long-term goals. Furthermore, gap selling requires the sales representative to understand the value of closing the gap as well as the costs of implementing their solution. Keenan advises managers to ask for specific data from their sales reps and to ask follow-up questions to ensure that they’ve completed a thorough discovery and evaluation.

(Shortform note: One potential drawback of this discussion-heavy approach is that it may use up a lot of time with meetings, decreasing productivity by taking time away from other tasks. However, management experts explain that by implementing best practices, you can keep your meeting time productive. To use your meeting time wisely, define a clear purpose for the meeting, plan the agenda in advance, and set clear time limits for each item and stick to them. Furthermore, they recommend that you regularly request feedback on the meetings to improve them.)

2) Do You Know the Next Commitment?

Recall that each sale is a series of incremental smaller sales. Keenan recommends that sales managers verify their representatives’ understanding of a sale by asking them about the customer’s next commitment. What is the next incremental step in the sales process that their customer must say yes to? Managers must make sure their sales reps have a clear short-term target in the sales process to keep the deal consistently moving along.

(Shortform note: Management experts caution that regularly making sure that your employees are moving toward company goals could make them feel that they’re being micromanaged and stifled. Employees report that micromanagement increases their stress, hurts their confidence, and makes them feel distrusted by their supervisor. Management experts recommend mitigating this effect by showing your employees trust. They recommend delegating important tasks to demonstrate your faith in their abilities, and allowing them room to make mistakes and grow. Lastly, they recommend setting clear expectations for what your staff achieves, but giving them broad leeway in how to achieve it.)

Strategy #2: Keep Your Sales Reps Accountable

Finally, Keenan explains that successfully managing a gap selling team requires ensuring that sales reps take responsibility for setting and hitting their sales targets. This will improve the predictability and accountability of your sales operations. He gives two pieces of advice for creating this shared culture of accountability: Reward honesty and base your predictions on data.

1) Reward Honesty

Keenan argues that successful sales managers reward their representatives for being honest when they’ll likely fall short of a target. He also cautions against pressuring representatives to change their commitments or find new leads when falling short. The goal is to establish a climate of trust where salespeople can share accurate pipeline information without fear of repercussions. This transparency will give you more accurate information about expected revenue, allowing you to address problems proactively and adjust sales strategies as needed.

(Shortform note: According to management experts, creating an environment of trust and accountability among workers will require you to model these behaviors yourself. They argue that workers naturally emulate their leaders and look to them for cues about how to behave. Thus, they recommend that you practice being transparent and honest with your workers about decisions, as well as admitting when you've made a mistake or fallen short of a target. Your workers will then be more likely to embody these values as well.)

2) Base Predictions on Data

Lastly, Keenan advises that you can improve the accountability of your sales team by calling on them to rely on data over gut feelings when making their sales projections. Your team can’t effectively anticipate future sales unless they’re drawing on clear and reliable information. Even if your sales representative has a “good feeling” about a deal, that doesn’t mean it will go through. Ask your team to incorporate prior closeout rates and other metrics when making their predictions.

(Shortform note: Psychological research supports Keenan’s argument that gut feelings are unreliable when it comes to predicting success. This is because of a cognitive bias called “the illusion of control,” which leads people to think they have more control over a situation than they actually do. Psychologists attribute this to three related factors: 1) People’s natural optimism leads them to believe things will turn out in their favor more often than they actually do. 2) Discomfort and anxiety with situations out of their control leads them to overestimate their own control over outcomes. 3) Humans also overestimate their control over events because they’re constantly looking for patterns and are therefore likely to infer cause and effect, even where it doesn’t exist. Using data, as Keenan suggests, shows you clearly where your feelings are in conflict with facts, helping you overcome the illusion of control.)