I felt that it was important to use today’s Sales Insight blog post to discuss the idea of communicating “value” for increased sales.
Why “Value” Is So Valuable
In my role as a sales coach and trainer I am quite often approached by sales managers and leaders, or even individual sales people telling me that they are struggling during negotiations with customers, in a way that protects their margin and avoids being forced to discount.
I respond that negotiation is possibly not the source of the problem, the real problem is that we are not creating or communicating enough “value” to these customers and therefore we’re finding ourselves potentially being beaten up on price towards the end of our sales process.
The 3 Parts Of Value
There are three parts to being able to communicate our value.
- Create – we need to create some new value for our customers.
- Communicate – secondly communicate the differential value we bring.
- Capture – the third part then is to capture the fair share of the value that we’re creating in the form of negotiating effectively.
Let’s start by thinking through how you can do that effectively. I suggest that you picture your product and service proposition. You have a range of customer’s needs on one side, but of course we don’t work in a vacuum and we need to consider the fact that our competitors are also able to supply their products and services to meet some of those customer needs. However, in the middle, between our customer’s issue, the challenges they face and their needs, plus what competitors can deliver, is an area of value where we can uniquely deliver products and services that would help them in that space.
How Do You Use Value To Stand Out From The Competition ?
We are not alone, nearly every sales person and organisation is looking for where that magical “value” is, so how do we set ourselves apart ?
I think there are three things that, as sales people, we need to make sure we are experts at:
- Our Product – we need to be expert in our own product and service proposition, because when we know our own proposition in great detail, we are able to find greater opportunities with our customer.
- Our Customer’s Business – This was discussed in the “Understanding Your Sales Prospects With Insights” blog post. We need to be experts in the customer’s business, by understanding the customer’s business in some detail we can again find additional opportunities.
- The Marketplace – Finally, we need to be an expert in what’s happening in the marketplace – what does our competitor’s proposition look like ? Only then can we find the unique nuance of our product or service offer that allows us to differentiate ourselves from the competition.
Now You Know The Value – Communicate It Effectively To Your Customer
Once we’ve found that value, we need to make sure that we articulate that value in a way that comes across as a number for a customer.
Our view is that value is a number, everything else is just noise, so when we are talking generally about the features and benefits we bring, it does not cut through a customer’s desire to understand the return on the investment they want to make, however using a specific number does.
There are three areas that we can consider when we’re thinking about the numerical value of our proposition and that is:
- Revenue – does it help the customer generate revenue for themselves in some way.
- Save Costs – does it save them some costs and reduce outgoings.
- Reduce Risk – or does it reduce risk, is there some emotional win or emotional benefit that they get from that.
If you look out for one of my future Sales Insight blog posts, I will go into more depth about this essential skill and how we can work through a process to make sure we’re creating compelling numerically based value propositions that really make the difference between you and other sales people out there.
If you’d like to have a further chat about this or how we could help you inside your own organisation, then please contact me firstname.lastname@example.org. Thank you.