Complete guide to the challenger sales model
This guide will give you a brief overview of the challenger sales model and how sales leaders can implement this methodology in their organizations.
Apr 11, 202410 MINS READ
What is the challenger sales model?
Over a decade ago, authors Matthew Dixon and Brent Adamson introduced the Challenger model in their book, The Challenger Sale. It is a unique sales strategy that focuses on taking control of the sales experience and offering innovative solutions to problems or issues that the prospect may not be aware of.
In other words, sales reps following this methodology will “challenge” customers by calling out drawbacks in their current operations. However, they also offer a precise solution to help them overcome such issues. This methodology gives reps the opportunity to disrupt customers’ usual patterns of thinking and teach them about new approaches they have never considered.
Overall, the Challenger sales methodology goes against the commonly held belief that building relationships with clients is the foundation for successful selling. According to Dixon and Adamson, relationship-based selling is the least effective selling method among high-performing reps, leading to their curiosity to uncover the methods that top salespeople use to close more deals.
The 5 profiles in the challenger sales methodology
Dixon and Adamson sought to identify the common characteristics and behaviors among top performers. Based on their findings, they believe salespeople can fall into one (or more) of five main profiles, which we’ll now cover in more detail.
1. The hard worker
This profile is characterized by highly self-motivated salespeople who are willing to go the extra mile to close a deal.
Hard workers have a “don’t give up” attitude and are driven by accomplishments. These reps are responsive to feedback and intent on sharpening their skills to become star performers.
2. The relationship builder
Relationship builders are the reps who spend a good amount of time developing personal connections with prospects.
Sales reps in this category typically focus on building trust and emotional bonds with leads over time. They want to be seen as a trusted advisor for customers. So, they may have plenty of interactions with leads where they’re not proposing solutions or products, but simply listening and asking questions.
3. The lone wolf
Sales reps who are more independent make up the lone wolf profiles. Those in this category are known to follow their instincts and carve their own path. By nature, these reps aren’t the biggest team players and are their own decision-makers. However, they can still drive satisfactory results.
4. The problem solver
As the name might suggest, sales reps with this profile are focused on finding solutions to customers’ problems and are seen as highly reliable by prospects. Problem solvers are known for being detail-oriented and take a customer service approach to selling.
5. The challenger
Finally, those in the challenger sales rep profile go against standard selling practices. They aren’t afraid to debate with prospective customers, challenging customers to think about things in new or unconventional ways. According to Gartner, 39% of high-performing sales reps are considered challengers.
One of the main characteristics of challengers is that they almost know a prospect's business better than they know it themselves. This allows them to enter conversations as the expert, providing leads with unique insights about their organization and teaching them new perspectives they haven’t considered yet.
Why should businesses consider the challenger sales method?
As mentioned above, many of the best sales reps are challengers. Thus, we can gather that this is a highly effective methodology for businesses that want to close more deals—even though it goes against other common sales approaches.
It’s not just the prospect of higher sales that makes the challenger method attractive, but also how it equips sales teams to relate with prospects in today’s dynamic marketplace. Modern consumers have a world of information available at their fingertips. By the time consumers reach out to a sales rep, they have already engaged in much research and comparison shopping—even if it’s partially misguided.
As a result, sales reps today constantly find themselves in conversations with prospects who have done extensive research on their problem, but are still seeking an expert voice who will tell them precisely how to fix it. They’ve already invested valuable time into finding the best solution, so they’re drawn to a sales process that directly addresses their needs without going through the motions of a relationship-building phase first.
This is where the challenger selling method shines, as reps are encouraged to address the lead’s misconceptions about their problem head-on. They can focus on educating prospects about new, innovative solutions rather than rehashing product features and attributes they likely already know about from their online research.
What are the challenges with the challenger sales model?
Though the challenger sales methodology is successful for many top sales reps, it’s not foolproof. Despite being highly effective for certain sellers, it’s not the only method sales teams can use to generate more revenue.
Like any other framework, there are some potential pitfalls to consider when adopting this selling mode. In certain sales environments, the challenger selling model is not conducive and may not be in everyone’s comfort zone. We will now go over some of the main challenges associated with this selling model.
1. Primarily suited for long, complex sales cycles
One of the advantages of the challenger method is that it is conducive to the long, complex sales cycles used by many organizations today. However, this can also be a drawback, as there may be better choices for selling on a shorter timeline.
It takes time to research buyers’ paint points, educate them on the severity of their problems, and lead them to the best solution. This may not be necessary in a simple sales cycle, and teams that do want to implement this methodology may not have the resources or capacity to adopt it fully.
2. Sales representatives may need help to adjust to the challenger model.
By design, sales reps using the challenger selling model don’t shy away from tension with their leads, which can be an uncomfortable technique for some sellers.
Especially for seasoned sales reps who are more accustomed to the relationship-building method for selling, directly challenging buyers and putting less of an emphasis on building a personal connection might seem counterintuitive. So, getting all sales reps on board with adopting the challenger model can be challenging
How to shift your business to a challenger sales model
The challenger sales model is attractive to businesses that want to succeed in the modern business environment. However, adopting the challenger methodology will require sales training and education before it becomes an effective revenue generator. Sales reps need to get comfortable taking control of the conversation, leveraging the lead’s emotions to promote their product or service as the no-brainer solution to their problems.
To begin this shift, let’s go over a step-by-step breakdown of the challenger sales model in practice.
Step 1: The warm-up
It’s never a good idea to jump into a sales call without any preparation, no matter the framework you use. Though the challenger sales model is not a relationship-based selling method, it does require sales reps to build a certain level of credibility and rapport with prospects so leads can trust their unique perspective and expertise.
To prepare, reps should dig into the business, understanding the prospect’s biggest pain points and challenges. Based on their findings, the reps will be able to pinpoint what the prospect needs, discussing these problems during the initial meeting rather than focusing on the features of the product or service the rep is trying to sell.
Reps can further drive home their expertise during the initial call by presenting statistics or research on the specific topic. Doing so allows the rep to educate the lead on critical issues impacting their business and get them curious to see what else the salesperson has to offer about the subject.
Step 2: Reframe the conversation
With a common understanding of what issues are plaguing the prospects the most, sales reps can now dive deeper into the core of the issue. From there, reps should reframe the conversation, helping the lead see how their struggles can provide growth opportunities.
This is where the sales rep begins to challenge the customer or try to change their perspective on what they believe the right solution is. In other words, the rep can help demonstrate how the lead’s current approach is failing, introducing an element of tension to the conversation that is part of the challenger sales model.
A major aspect of this stage is addressing the leads’ misconceptions about the problem and the best solution. Again, reps need to challenge a prospect’s regular pattern of thinking so they can see that what they’ve tried so far has been unsuccessful, creating space to promote their own product or service as the most effective solution.
Step 3: Leverage emotion
Throughout the interaction, sales reps should lean on the prospect’s positive and negative emotions. For instance, a salesperson should reiterate how devastating the long-term consequences of the problem might be if they continue as usual, as well as point out the incredible benefits and growth that could come from using the right solution. Storytelling can be a very powerful tool during this stage, allowing the sales rep to share examples of how other customers remedied their problems with a new solution.
It’s a mistake to harp on the specific features or attributes of what the rep is selling, which can detract from the salesperson’s overall persuasiveness. Often, purchasing decisions are driven by emotional reactions, so playing too much into the customer’s logic can get in the way of closing a deal.
Step 4: Value proposition
At this point, sales reps should paint the picture of how the lead’s circumstances would improve by using the new solution. It’s still too early to dive into the specifics of the product they’re offering, though the salesperson should continue highlighting the benefits the prospect could enjoy by taking action.
The goal is to get the prospect to connect their dots on their own, without the salesperson blatantly presenting their product as the ideal solution. By this point, the lead should be able to see the solution that would effectively resolve their issues, even without knowing the specific product.
Step 5: Introduce the product
When using the challenger selling model, sales reps shouldn’t highlight their product until the end. After breaking down the prospect’s main problem, reframing it as a potential growth opportunity, and presenting the best solution, it’s time for the rep to introduce their product as the missing link.
If everything has gone to plan so far, this should be the easiest step. Ideally, the salesperson was in control of the conversation at every stage, eventually making the product look like the no-brainer solution to the prospect’s problem.
Depending on the nature of what they’re selling, the rep may introduce the product by leading a demo or sending a sample. Or, if they’re offering a service, the rep may need to provide a walkthrough of the process once they decide to work together.
Turning your team into “challengers”
Of course, not every sales rep will naturally be drawn to the challenger approach. Reps can fall into any of the five profiles we reviewed above. But it’s not impossible to transform your team into a group of challenger sellers to drive better performance.
Depending on which profiles your salespeople relate to most, you may need to approach them differently to help them replicate the winning challenger methodology, such as:
Hard worker: Since these salespeople are responsive to feedback and motivated to improve, they’re likely open to the challenge of adopting a new sales approach. Openly communicate with them on their progress to help them develop into a challenger.
Relationship builder: They’re already comfortable with playing into the prospects' emotions. However, help them see that the relationship they build will be a by-product of this new method, not necessarily the driving force behind making sales.
Lone wolf: These reps are likely already successful, though you can encourage them to look into the challenger model and test it out on their own. This way, you can play into their strengths and natural tendencies.
Problem solver: Rather than having them spell out the obvious solution for prospects, help them understand the subtle problem-solving techniques the challenger model uses.
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FAQs
Can the challenger sales model be applied to all industries and sales scenarios?
Technically, sales teams in any industry or scenario can utilize the challenger sales model. It’s designed to let reps tailor the process to the unique needs of each stakeholder, which can apply to any type of buyer.
How does the challenger sales model impact the buyer-seller dynamic?
The challenger selling model can create more tension between the seller and the buyer than in other approaches. However, this is met with an added understanding of the buyer’s unique needs and pain points, which positions the seller as a reliable expert who can teach the buyer the best solution to their problem and earn the customer’s business.
How can sales leaders support the implementation of the Challenger Sales Model within their organizations?
To successfully adopt the challenger sales model in their organization, sales leaders must tailor its implementation to their sales reps' unique behaviors and needs. Depending on the profiles their salespeople most align with, they’ll need to take a unique approach that plays to their existing skills and natural tendencies.
How does the challenger sales model address objections and resistance from customers?
Sellers using the challenger sales approach understand that objections are a natural part of the sales process and meet their concerns with well-researched counterarguments and insights. This way, sales reps can continue adding value to the conversation after their sales pitch and nudge buyers toward their solution.