N is for Need

In early-stage B2B tech startups, uncovering Need and driving to contract execution is evidence of product/market fit. Since establishing product/market fit is usually the initial overarching goal of a startup (during the first few years), it can be helpful to focus the entire business on the Needs that are uncovered within your well-defined target market. From this information, you can derive value propositions, prioritize feature requests, zero-in on ROI, eliminate market sub-segments, etc.

Opportunity qualification in the early-stage arena is usually less strict. Often, there is no Budget. If what you are doing is innovative, your champion might not even know who the key points of contact are (Access) for evaluating your solution. The prospect may not have known that the Need could even be addressed. Sometimes you have to create the Mandate. However, once you have uncovered a Need, you have something to work with — and that is about as good as it gets in early-stage deals.

Need and Leads, Opportunities, and Sales Stages

When engaging with warm, hot, or cold leads, quickly identify the need. It is the foundation that your deal will be built on. “Identifying a need that you are in a position to address” is a good definition for a qualified opportunity, and your first sales stage (e.g., “Need Identified”).

Common Examples of Need

The best Needs are expressed in business terms. Prospects don’t need your solution; they need business outcomes. Here are a few examples of needs expressed in business terms:

• Reduce staff time spent on a business process by x%
• Cut a particular type of cost by y%
• Grow revenue by $Z by N date
• Improve customer satisfaction scores to # by X date

Uncovering Need

Help the prospect understand the universe (e.g., contact data) that you operate in, and ask questions like the following:

• Given the nature of our solution, do you think we could help?
• What are your end-of-year goals, and how do you think we could help you achieve them?
• What are some of the most frustrating challenges related to {your universe}?
• What are some of your aspirations with regard to {your universe}?

Types of Need

There are two types of needs: Carrots and Sticks. Both are effective. Note that the approach to ridding an organization of pain (Sticks) is slightly different than giving an organization new capabilities (Carrots). The Carrot sale is aspirational and positive. The Stick sale is about ensuring the prospect understands the pain they are experiencing and demonstrating that your solution can extinguish it. Highlighting the pain is sometimes called “twisting the knife.”

• Carrot Need: A desirable capability or business result that is not possible today (e.g., giving your prospect the ability to launch a freemium offering).
• Stick Need: An undesirable pain or business reality that the prospect would like to get rid of (e.g., improving your prospect’s below-industry-standard customer satisfaction scores).

Recommended BMANTR Format for Need

• Stick: {Critical Business Need} is producing {X, Y, Z pain}, which can be solved with {your solution}, producing {X, Y, Z favorable business results}.
• Carrot: {Your Solution} will create {X, Y, Z new capability}, which will produce {X, Y, Z favorable business result}.

Critical vs. Non-Critical Needs

One of the most important and difficult aspects of opportunity qualification is determining whether the Need is critical or non-critical. Critical needs warrant your time and resources. Non-critical needs can take your time and resources for years and never produce an executed contract.

• Critical Needs: Must be addressed. Not addressing this Need means that your Budget/Signing Authority’s Mandates can’t be achieved. Products can’t be launched, revenue targets can’t be met, people can’t be hired, and sparks are flying out of the machine.
• Non-Critical Need: Can be thought of as “nice to haves.” The prospect may be experiencing some pain or desire a Carrot. However, the pain or Carrot doesn’t justify spending their time, complicating their operations, or allocating budget.

Connecting Your Need to Access, Budget, and Mandate

You can dramatically increase your win probability by connecting your Need to Access, Budget, and Mandate.

• Carrot Scenario: Your solution enables a new capability that allows an organization to achieve a mandate issued or agreed to by your Budget/Signing Authority.
• Stick Scenario: Your solution removes an undesirable business condition that was standing in the way of a mandate issued or agreed to by your Budget/Signing Authority.

In Closing

Need is the foundation of your deal. Document it well. Determine if it is nice to have or critical. If critical, determine if it is a carrot or stick. Lastly, connect your need to access, budget, & mandate and drive to execution.