The JOLT Effect

1. Customer indecision, not status quo bias, is the biggest obstacle to sales

Customers, it turns out, are much less worried about missing out than they are about messing up.

The real enemy in sales. While salespeople have long been taught that the customer's preference for the status quo is their biggest competitor, research reveals a more formidable foe: customer indecision. This indecision, driven by the fear of making a mistake (omission bias), accounts for more deals lost to inaction than any preference for the status quo.

Three sources of indecision:

• Valuation problems: Difficulty choosing between seemingly equal options
• Lack of information: Feeling unprepared to make an informed decision
• Outcome uncertainty: Worry about not realizing expected benefits

Impact on sales: Customer indecision appears in 87% of sales opportunities and has a corrosive effect on win rates. As indecision increases, win rates plummet from 45-55% (low indecision) to below 5% (high indecision).

2. The JOLT method: A new playbook for overcoming customer indecision

High performers focus less on "maximum impact"—that is, what is theoretically possible—and more on setting realistic, "believable impact" expectations early on.

A paradigm shift in sales. The JOLT method represents a fundamentally different approach to overcoming customer indecision. Instead of relying on fear, uncertainty, and doubt (FUD) tactics to scare customers into buying, JOLT focuses on instilling confidence and reducing the fear of purchasing.

Four key components of JOLT:

1. Judge the indecision
2. Offer your recommendation
3. Limit the exploration
4. Take risk off the table

Proven results: When sellers use JOLT behaviors, they go from an 84% probability of a bad outcome to a 70% probability of a good one. Even with highly indecisive customers, JOLT sellers maintain a 31% win rate compared to just 6% for average performers.

3. Judge the indecision: Qualify opportunities based on decision-making ability

"There are two things I'm always looking for with any customer," she said, "their ability to buy and their ability to decide."

Beyond traditional qualification. High performers qualify opportunities not just on external criteria like budget and fit, but also on the customer's ability to make decisions. This allows them to identify and deprioritize or disqualify hopelessly stuck customers early in the process.

Four dimensions to assess customer indecision:

1. How they search for and consume information
2. How they evaluate alternatives
3. Whether they're content with "good enough"
4. The nature of their delay tactics

Impact on forecasting: Understanding a customer's level of indecision helps sellers more accurately forecast deals and allocate their time and resources effectively.

4. Offer your recommendation: Simplify choices for hesitant customers

High performers know that customers who are indecisive are looking for guidance, not more choice.

Guidance, not options. When faced with customers struggling to choose between options, average performers rely on needs diagnosis and defer to the customer. High performers, recognizing that indecisive customers seek guidance, take a more assertive approach by offering personal recommendations.

Two key skills:

1. Proactive guidance: Shifting from a reactive to a proactive posture
2. Advocacy: Offering a personal recommendation with confidence

Dramatic impact on win rates: Using both proactive guidance and advocacy can increase win rates from 13% to 48%, a 269% improvement.

5. Limit the exploration: Control information flow to prevent analysis paralysis

Knowing just how badly high levels of indecision kill deals, JOLT sellers actively monitor for cold feet and aren't afraid to cut bait based purely on signs of customer indecision.

Prevent information overload. High performers understand that no amount of additional information will satisfy an indecisive customer's desire for more. Instead, they take control of the information flow and limit unproductive exploration.

Three key techniques:

1. Own the flow of information: Position yourself as the primary source of expertise
2. Anticipate needs and objections: Address concerns before they arise
3. Practice radical candor: Be honest about unnecessary requests or information

Engagement is key: Top performers engage in "cooperative overlapping," creating an active, engaged dialogue that keeps customers focused and moving forward.

6. Take risk off the table: Alleviate fears by managing expectations and offering safety nets

Best reps know that dealing with the customer's outcome uncertainty isn't about making them more scared; it's about making them more confident.

Confidence, not fear. Instead of using FUD tactics to motivate action, high performers focus on instilling confidence and reducing the perceived risk of purchasing.

Three effective techniques:

1. Set realistic expectations: Focus on "believable impact" rather than maximum potential
2. Offer downside risk protection: Use creative options like money-back guarantees or opt-out clauses
3. Start smaller: Suggest beginning with a core offering and expanding later

Significant impact: When reps offer options to minimize perceived downside risk, win rates jump from 22% to 46%, an increase of 109%.

7. Become a "buyer's agent": Shift from selling to buying for the customer

JOLT sellers have an innate sense for the personal role they play in getting the prospect past their indecision.

A new perspective on selling. Top performers understand that their role shifts from selling to buying for the customer once purchase intent is established. They act as a delegate, helping customers work through their indecision and fears.

Overcoming the agency dilemma:

• Build trust by suggesting customers not overbuy
• Offer positive feedback on competitors when appropriate
• Admit when you don't have all the answers

Make "yes" the default: By establishing themselves as trusted advisors, JOLT sellers can confidently ask for the business and position saying "yes" as the easiest choice for the customer.

8. JOLT reduces customer effort and post-decision dysfunction

JOLT-ing customers past indecision reduces customer effort, enriches the customer experience, and significantly improves the odds of building long-term, loyal customer relationships.

Beyond the initial sale. JOLT not only improves win rates but also enhances the overall customer experience and reduces post-purchase regret. By addressing fears and instilling confidence during the sales process, JOLT sellers set the stage for long-term customer loyalty.

Three types of post-decision dysfunction:

1. Worrying: Fretting about whether the right choice was made
2. Checking: Continuing to research options after the decision
3. Decision instability: Changing one's mind and selecting a different option

Customer effort impact: As sellers increase their use of JOLT behaviors, customer effort levels decline precipitously, leading to higher satisfaction and loyalty.

9. Apply JOLT across different sales environments for consistent results

Because, as we discussed earlier, indecision isn't a problem in one go-to-market model or another, it's a human problem.

Universal applicability. While the specific implementation may vary, the JOLT method is effective across various sales environments, from simple inbound transactions to complex, long-cycle outbound sales.

Key considerations for different environments:

• Inbound sales: Focus on quickly identifying and transferring non-sales calls
• Outbound sales: Be vigilant for indecision throughout the extended sales cycle
• Complex sales: Adapt JOLT techniques to multi-stakeholder decision-making processes

Consistent results: Despite differences in frequency of specific behaviors, the power of JOLT in impacting win rates remains consistent across sales models.

10. Build a JOLT-capable sales force through targeted hiring and development

Behavior change of any sort is difficult. Our past experience can be an inhibitor, especially when that experience has been informed by weeks or months of sales training and years of observation, trial, and error.

A two-pronged approach. To improve an organization's ability to overcome customer indecision, sales leaders should focus on both hiring JOLT-ready reps and developing JOLT skills in existing sellers.

Hiring considerations:

• Look beyond traditional sales backgrounds
• Use interviews and simulations to assess JOLT capabilities
• Consider emotional intelligence alongside intellectual capacity

Development strategies:

• Position JOLT as a complement to existing sales methodologies
• Engage sales managers in modeling and coaching JOLT behaviors
• Leverage technology to observe and measure JOLT behavior at scale

Continuous improvement: Encourage idea sharing and cross-functional collaboration to refine and expand JOLT techniques over time.

Last updated: October 22, 2024