Cover of The Challenger Customer by Brent Adamson, Matthew Dixon, Pat Spenner, Nick Toman - Business and Economics Book

From "The Challenger Customer"

Author: Brent Adamson, Matthew Dixon, Pat Spenner, Nick Toman
Publisher: Portfolio
Year: 2015
Category: Business & Economics

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Chapter 8: TAKING CONTROL OF CONSENSUS CREATION
Key Insight 2 from this chapter

Collective Learning as the Primary Driver of High-Quality Sales

Key Insight

Collective Learning is defined as an interaction where stakeholders explore and socially norm by debating and building on each other's perspectives, finding points of unrecognized agreement, and arriving at a shared decision. It represents the ability of customer stakeholders to overcome natural disconnects and learn together to identify, debate, and decide on a common course of action. This is the single biggest driver of deal quality found in the data; if a customer moves from below-average to above-average performance on Collective Learning, the likelihood of a supplier closing a high-quality deal increases by 20 percent.

The power of Collective Learning stems from its capacity to bridge stakeholders' limited understanding of each other, moving beyond their shared desire to merely avoid unnecessary risk and reduce organizational expense. When customer stakeholders learn together, overall group dysfunction decreases by nearly a third. This leads to not only a boost in customers' willingness to pay a premium by over two-thirds (nearly 70 percent) but also increases their willingness to purchase additional future offerings by 23 percent, by establishing a long-term vision beyond the near-term purchase.

Effective Collective Learning is characterized by five behaviors: thoroughly exploring concerns and uncertainties across the group, honestly surfacing disconnects and competing ideas rather than avoiding debate, demonstrating a mutual willingness to explore problems and consider alternate views to 'get things right,' actively probing for potentially overlooked interdependencies across the organization, and establishing joint resolution where all participants publicly support the group's deliberative output. Suppliers must actively facilitate these behaviors to 'make' functional buying groups, as customers may not undertake these complex processes independently.

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