We live in a time when a quick Google search or asking Siri can give us almost any answer. Complex information is right at our fingertips.
What does this mean for sales reps?
It means that the old ways of selling aren’t working anymore. People don’t need to talk to a sales rep to learn about a product. They can find what they need online. And they don’t have time to sit through a sales pitch.
Today, connecting with buyers isn’t about listing features or explaining how a product works. Instead, it’s about showing how the product brings real value to the buyer. In a world where time and money matter, value is what sells.
What is Value Selling?
Value-based selling is a sales method that focuses on the benefits a customer will get from a product, rather than just its features. This approach helps the customer see how your product can solve their specific problems.
Don’t get me wrong, product features are important too. But when you also talk about the value, you show how the product can solve issues that the customer cares about.
Why Value Selling Matters?
Most customers don’t join a sales call to hear a list of features. They come with a problem they want solved. They need to know why your product is better than sticking with what they already have.
Harvard Business Review pointed out years ago that people prefer to buy based on value, so focusing on value is key to closing deals.
In short, a salesperson’s job is to build trust. When customers trust you to solve their problems, they’re more likely to buy and stick around for the long term.
Benefits of Value Selling
- Building Long-Term Relationships: Selling based on value, not just price, shows customers you care about what they need. This builds strong relationships that can last.
- Understanding Different Industries: Value selling helps you learn more about how your product fits different industries. This knowledge can help you connect with future customers.
- Saving Time: When a customer understands the benefits, they’re less likely to argue over the price. This saves time and helps them make a more confident purchase, ultimately improving sales velocity in the process.
- Boosting Profits: By focusing on value, you’re less likely to need to discount your product. If customers see the benefits, they’re often willing to pay the full price.
Key Steps to Succeed in Value-Based Selling
Value selling focuses on tailoring your approach to each prospect's specific needs and wants, but there are some helpful general tips to keep in mind.
1. Understand Your Prospect’s Needs
Value selling means focusing on what your prospect needs. To do that, you need to know what those needs are.
Before a sales call, research your prospect’s company, role, industry, and challenges. This helps you understand how your product can help them and enables you to track and evaluate sales performance based on these insights.
Here’s what to look for:
- Their Role: Are they new to their position or experienced? This may impact their buying needs.
- Shared Connections: If you have mutual contacts, they can help build trust faster.
- Social Media Content: What have they shared online recently? This gives insight into their interests.
- Company Updates: Check their website and social media for recent changes or news.
- CRM Information: Look for past interactions to understand their engagement with your company.
2. Don’t Rush Into Your Pitch
Resist the urge to jump into your sales pitch right away. Even if you’ve done your research, let the prospect explain their needs directly. This builds trust and can give you insights to tailor your approach based on proven sales strategies that align with their needs.
3. Highlight How Your Product Solves Their Problem
The prospect is looking for a solution to their problem. Show them how your product can help. Be clear and specific about the benefits. For example:
- Does it save time or improve productivity?
- Do you offer free training or updates? Whatever makes your product special, make sure it aligns with their needs.
4. Focus on Educating, Not Just Selling
Provide value by teaching the prospect something helpful. This builds trust and makes them more likely to see your product as a good choice. For instance, if you sell software, ask the prospect about their top challenges. During the meeting, walk them through solutions, focusing on their needs.
5. Guide Them, Don’t Push Them
In value selling, your role is more of a consultant. Offer ideas and strategies to help them make the best decision.
Avoid telling them what to do. If they ask about an approach you wouldn’t recommend, share a real-life example of why it might not work. This keeps them in control while you provide helpful advice.
6. Be Personable and Relatable
Keep things friendly and genuine. Show you’re interested in them as people, not just as buyers. Here are a few ways to keep it conversational:
- Ask Open-Ended Questions: Avoid “yes” or “no” questions to encourage more detailed answers.
- Master Small Talk: Simple questions about their interests or upcoming events can help break the ice.
- Speak Like a Friend: Aim to sound like a trusted advisor, not a salesperson.
7. Add Value to Every Interaction
Make sure each conversation benefits the prospect. Leave time for questions, listen without interrupting, and share useful content when relevant. This shows you’re there to help, not just to sell.
How to Build a Value-Based Selling Framework?
Before using a value-based sales approach, make sure your team is ready to apply this method. As you build a sales process around value-based selling, there are a few important elements to remember.
1. Identify Your Unique Selling Point (USP)
Your USP is what makes your product or service different. It’s the unique value you bring to the table.
Prospects may be comparing your product with others, especially if similar features or pricing exist. Use your USP to show why your product is the best choice.
2. Don’t Rush the Pitch
Value selling relies on understanding each prospect’s needs and pain points. Spend time with them to gather this information.
Jumping in with a quick, one-size-fits-all pitch won’t make your case. Instead, let your team take the time to understand each prospect’s situation, making your pitch feel more like helpful advice from a friend.
3. Focus on Quality, Not Quantity
Value selling is about building strong relationships, not just making quick sales. Yes, it takes more time, but it also leads to better results.
With a longer sales cycle, your team has more opportunities to provide a personal touch. Quality relationships can bring repeat sales and good referrals down the road.
To make the most of this approach, ensure your team keeps detailed notes for each client. They should come to every call prepared and informed. Encourage them to review common pain points and tailor each interaction to the prospect’s needs.
4. Know Your Product Inside and Out
Each prospect has different challenges, even if they’re in the same industry. Your team should fully understand the product’s features and how it can solve these challenges. Spend time reviewing the product details with your team, so they’re ready to address questions confidently.
Compare your product with competitors. Where does it stand out? Is it a strong all-around solution? What objections might prospects have, and how can you address them?
Knowing your product well gives your team confidence. It also helps prospects see the value in a partnership with your company.
Examples of Value-Based Selling in Action
Value-based selling can use different strategies throughout the sales process, all aimed at showcasing the unique benefits a product or service offers to meet the customer's needs or wants.
1. Show the Return on Investment (ROI)
One way to apply value-based selling is by showing customers a clear return on investment (ROI). When sales reps can prove that a product will deliver measurable returns, it becomes more than just a purchase; it becomes a strategic investment.
For example, say a company is considering customer relationship management (CRM) software. Instead of just listing features, a value-based approach would focus on how this CRM could improve the company’s sales process, boost lead conversion, and help retain more customers as part of an effective sales and operations planning approach.
2. Communicate Potential Cost Savings
Everyone likes to save money. A key part of value-based selling is showing potential cost savings. This often resonates with customers looking for ways to cut expenses.
For instance, imagine a manufacturing company interested in an AI-powered supply chain solution. A value-based approach would highlight how the system could reduce excess inventory, streamline processes, and lower costs tied to storage and logistics.
3. Highlight Sustainability and Environmental Impact
Today, many customers value sustainability. By focusing on the environmental benefits of a product, sales reps can appeal to customers interested in eco-friendly options. This aligns with the customer’s goals of corporate social responsibility.
Picture a construction company looking for new building materials. A value-based approach would stress how these materials are sourced sustainably and how they could reduce the company’s environmental footprint.
Conclusion
Value-based selling is key to building trust, connecting with buyers, and forming long-term relationships. By focusing on what matters most to each customer sales teams can show why their product is worth buying.
When sales reps take time to listen and understand each customer, they aren’t just selling a product; they’re building a real connection. This value-based approach helps customers feel good about their choices and opens the door for future business and referrals. Value-based selling isn’t just a sales tactic. It’s a way to find success in today’s competitive world.
