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Commercial Teaching at W.W. Grainger

W.W. Grainger, Inc. $7 billion distributor of maintenance, repair and operations (MRO) equipment Serves nearly 2 million companies across US and Canada Grainger helps them keep their facilities, plants and offices running safely, smoothly and efficiently Both field-based and headquarters-based sales reps establish long term customer purchasing agreements for routine items Stocks several hundred thousand different products from tools, pumps and electrical equipment to safety and janitorial supplies Delivers products through branch stores, its e-store and famous product catalog 3

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Grainger’s first hurdle in building a compelling teaching pitch What specific set of capabilities sets it apart from competitors? Grainger is the ONLY supplier that carries BOTH a wide range of products AND a national network of retail outlets enabling them to fully service customers with a diverse set of geographic locations 5 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

Grainger’s second hurdle in building a compelling teaching pitch What specific customer problems were resulting in lost sales or unnecessary costs? Grainger marketing team launched a comprehensive analysis –Large number of leader-led customer interviews –Multiple rounds of market research –Robust analysis of customer spending patterns –Cross functional brainstorming sessions 6 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

Grainger’s insight Most companies were spending far too much on unplanned purchases and this behavior had major cost implications 7 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

The Power of Planning for the Unplanned The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

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10 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

11 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

12 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

13 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

14 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

15 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

16 The Challenger Sale, 2011, Mathew Dixon and Brent Adamson

Summary The 1 st step in developing a good commercial teaching pitch is defining the specific set of capabilities that sets you apart from competitors The 2 nd step is to identify the specific customer problems that are resulting in significant lost sales or unnecessary costs? The 3 rd step is to convince customers that reframing is necessary by connecting challenges that they acknowledge to bigger problems or opportunities than they ever realized The fourth step is to quantify these implications in a way that is credible and connects emotionally with customers The last major step is to demonstrate how your solution is better able than anyone else’s to help customers capitalize on these opportunities 17