BRIAN DUMAINE, BEZONOMICS
Fortune contributing editor and Author, Bezonomics
1. Bezonomics is the philosophy Jeff Bezos uses. Amazon has used it to reach a market cap of $1.2 trillion, with $280B a year in sales.
2. One story in Bezonomics that’s relevant to the pandemic is about Amazon in 2001. Amazon had been a high riding dotcom stock when the bubble burst. It went from $107 a share down to $6 a share. Barron’s ran a headline “Amazon.bomb.” Wall Street analysts said the company would run out of cash by end of the year. Bezos was worried and invited Jim Collins to talk to him and the board about how to get out of a crisis.
Jim Collins explained the flywheel concept. Bezos applied it to Amazon. It started with the customer (give them lower prices, better service, faster delivery, Prime, free audio, free video) to attract more customers/3rd party sellers and get economies of scale. Bezos has been driving this for the last 20 years with remarkable success. He’s applied AI, machine learning, Big Data to the flywheel. The smarter his system is, the lower the prices he can provide to customers. It has allowed Amazon to respond to a huge service in demand.
3. A key part of this is customer obsession. It’s about getting to what the customer really wants— there’s a 6-pager any Amazonian has to write if they want to pose a new idea to the customer.
4. Key tenets: “In God we trust, all others bring data”), extreme innovation (“You have to take big bets but never bet so big you have to bet the farm on it”), and long-term thinking (Bezos thinks 5-7 years out).
Verne’s recommendation: Be sure to read Chapter 12. How do you compete with Amazon? Link: https://bezonomics.com
Jim Collins’ 2-minute Flywheel Video Highlighting Amazon
JEFF THULL, SALES MASTERY
Author, Mastering the Complex Sale
1. Complex sale: The key to the complexity is the customer requires outside expertise to make a quality decision. It is a business or personal decision that might involve the technical aspect. In the medical world, it involves the clinical aspect.
2. The more transparent your approach is, the more you and your team will be invited to engage with your team as an advisor. Top professionals are coming to customers with tools to do a thorough analysis of a customer’s business. They know how their customers make money and what constraints customers are facing.
3. How professionals develop proficiency: systems, skill, and discipline
– System: Organized process that leads to predictable result – Skill: Individual’s knowledge and ability to execute
– Mandate: Do no harm
4. The physician model is a great guide for how sales-people should be interacting with customers. What would a doctor do if their patient said this or asks this?
5. Diagnosis is a big part of the complex sale: Many customers have “normalized pain.” They are operating in an inefficient way.
The more complex your solution is, the more it looks the same as your competitors. You can diagnose very effectively remotely. Asking the right questions in the right sequence for the right person.
6. Three challenges of this sales era (sales 3.0):
1. Many customers do not have a thorough, cross-functional, effective process that involves the right people in your organization. Need to provide open access to information.
2. The decision to buy is really a decision as to whether or not they should change. If you treat your customer’s decision as a decision to change, you will start talking with them differently. If the customer decides to change, they will buy from you to facilitate that change. With a strong diagnostic process being deployed that decision to change is made during the diagnosis.
3. Challenge of value: Net profit to your customer.
Verne’s insight: How do you get a sales appointment? Provide qualitative information that gets people’s attention