Want to transform your win rates? Try value selling.
How is value selling different from selling your product's benefits or traditional sales pitches? In this post, we break down the premises for selling value and how sellers can use the principles to win more business.
What if your sales pitch was so great that even the buyer’s CFO couldn’t say no to your offer? 🤔
That’s what value selling is all about— demonstrating the impact of your product or service in a tangible way so that your product’s value is indisputable. That value could be anything from saving time to cost reductions to efficiency gains.
And the value discussion isn’t just something sellers should do. Rather, buyers want sellers to bring value into the sales conversation.
According to research by Forrester, only 10% of sales reps are value-focused. The difference between what buyers seek vs. a more traditional sales approach is what’s called a value gap. The more a value gap widens, the harder it is for sellers to get the price they want let alone win the business.
How is value selling different from selling your product’s benefits or traditional sales pitches? In this post, we break down the premises for selling value and how sellers can use the principles to win more business.
Opening up the value conversation
Of course, the first step in selling value is understanding what your client is seeking to accomplish with your solution.
Likely, your prospect has already done a lot of preliminary research on you and your competitors. In fact, according to Gartner research, buyers may be halfway through their purchasing decision before engaging with a sales rep. Your buyer has probably already combed your website and watched your videos, and now armed with basic information, is coming to you for more specifics on how you can help solve their particular use case example.
Use your discovery call to gain insight into your buyer’s specific pain points, challenges, or goals that they want your solution to solve. This information then becomes the basis for presenting the value of your product or service.
Some of our favorite questions to open up the value conversation during discovery include:
- What is your [or your team’s] process for X?
- Why do you do X this way?
- How much time have you spent doing X this way?
- How much budget do you have assigned to X?
- How much of an impact does X have on your business?
And if you’d like more discovery questions, download our free discovery call checklist now.
Value selling: presenting ROI
Once you know the specifics— how long a buyer is spending doing X— you can begin helping your prospect justify making a purchase.
Value selling includes showing the buyer how much their current processes are costing them, whether it’s time inefficiencies or the financial impact on their bottom line. Then, present how your solution improves their situation, from hours saved to cost reductions.
Understand too, in value selling, words alone or generic claims are ineffective. For example, statements like, “Our product improves the efficiency of sales teams,” or “We’ve helped organizations save tens of thousands of dollars,” don’t give the buyer much insight into the specifics behind your declarations. if you can prove your claims, you’ll be much more believable, not to mention build trust with your buyer.
How can you prove your value?
An ROI calculator is an effective tool for visualizing your product’s impact, as it presents the worth of your solution in a way buyers can understand.
For example, a company selling e-commerce website design services might use data showing that a website redesign can generate an additional $200,000 in sales in a one-year period. Would you spend $150,000 on the project? Heck ya!
An ROI calculator can also be used for goods and services that reduce costs, which— because net income is calculated by subtracting costs from revenue– also increases net income, all else being equal. So, for example, if you’re selling enterprise software that enables your buyer to do the same administrative work with two FTEs instead of five, you could show the reduction in payroll costs by FTE.
Or, an ROI calculator can also be used to show efficiency improvements expressed as either hours saved or as a percentage. The options are nearly limitless, but the goal is to quantify the value of your solution in a way that will resonate with your buyer.
The hidden benefits of an ROI calculator
ROI calculators are essential tools for effective value selling. Your price shows what your product will cost a buyer. An ROI calculator demonstrates what your product will give your buyer in return.
An often overlooked benefit of an interactive ROI calculator is that it also allows the buyer to “sell themselves” on a solution by allowing them to adjust the variables, see the outcomes, and share the information with other stakeholders. Research shows 63% of deals involve four or more decision-makers and influencers weighing into the purchasing decision— including the CFO, in many cases. ROI calculators allow you to talk “their language,” turning a cost into value.
ROI calculators take your sales pitch up a notch, too— they engage buyers and let buyers know you’re not afraid of discussing numbers.
Of course, ROI calculators are not new to selling but are unique to being included in a sales proposal. Prior to Qwilr developing a fully customizable and interactive ROI calculator, ROI calculators were not available in any proposal software— and are still unique to Qwilr. If you’d like to see how Qwilr’s proposal software and ROI calculators work, we invite you to book a 15-minute demo.
Moving to value selling
When sellers move from traditional product pitches or benefits-based selling to value selling, it transforms the selling process, for both buyers and sellers. Specifically:
- Value selling shifts the seller’s mindset to focus on value over product capabilities. Many products can likely do X, Y, and Z, similar to yours. But demonstrate the value of what you’re offering and the impact to your potential customer, and you’ve separated your brand from the competition.
- Value selling makes you a valued partner, not just a salesperson. Buyers want sellers to align with them to help them make the best decision possible. Additionally, 28% of buyers look for clear, attainable ROI. Be that trusted advisor!
- Value selling puts the focus back on the customer. Buyers want a personalized sales experience and will often dismiss brands who use generic sales pitches. Value selling highlights the impact on the customer’s unique use case, and how your product accomplishes their objective.
- Value selling demonstrates the impact of a purchase, mitigating requests for discounts or price shopping. Discussing value creates a high perception of your product or service supporting your product’s price, without discounting. Additionally, proving value gives buyers the confidence to commit to signing a purchase agreement.
Hard numbers are indisputable. Reps selling based on product value are the ones communicating to their buyers they understand their challenge, want to help them solve it, and are more likely regarded as trusted partners. Most of all, demonstrating the value of your product takes the focus off the cost and emphasizes the return— it’s frictionless selling at its best.
To learn more about the benefits of proposal software, ROI calculators, and how to enable frictionless selling for your sales team, we encourage you to book a Qwilr demo.
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