Sales teams make the gears of the business world churn, but they can only do so by closing their sales. In the past, the idea was to simply sell for the sake of selling and making a profit. Today, however, the idea of value-based selling is now taking over. Here’s everything you need to know.
What is Value-Based Selling?
Instead of focusing on simply closing one sale after the next, this value-based approach focuses on benefitting the customer. Sales reps become consultative, speaking with each potential customer about the benefits a product or service can have for them.
Each customer is walked through the sales process with a rep as their guide. As value is added, anticipation builds over the positive result of the purchase. This process also removes the pressure on the customer, making for a happier and more than likely return buyer. These are the principles behind value-based success.
The ultimate goal of value-based sales is to close the deal. That means the sales team needs to be educated on what they’re selling, but they also need to do their homework on any potential contacts. In B2B, for instance, knowing the company and their industry will boost value sale ability.
Sales reps should leverage common connections, content their contacts share on social media, and their CRMs for any previous contacts. Google searches and any associated websites or press can also be a major help. The use of value management tools is also critical to success.
Hold the Pitch
This model differs from traditional sales techniques in that the rep cannot kick off the call with a sales pitch. Before heading into the pitch or working on a convincing reason for them to buy, reps must listen to the contact.
This allows the contact to explain what they’re looking for as well as their current situation. Conversations like these build trust and humanize the experience. They can also produce invaluable insight to help close the sale.
Prospects have an issue they’re looking to solve or something they’re looking to fulfill. Your product or service is just that, right? That’s value, but sales reps needs to keep building on it. What benefits are there to purchasing, what aspects of one’s life can benefit, and are there any freebies?
Education vs. Selling
To best communicate value, sales reps must educate the prospect about the product and incorporate its value. This varies from traditional sales techniques, but makes each rep the new go-to source of information on how this product or service can benefit a customer’s life. Again, holding off on the pitch and focusing on addressing the prospect’s wants or needs is vital to value-based selling.
Master the Personable Approach
To make the previous two points work, sales reps need to be as personable as possible. That includes asking open-ended questions to better understand the prospect, gaining insight. Open-ended questions also push the conversation forward naturally, rather than those with a yes or no response.
Small talk is a large portion of the technique, as well. It’s the bridge in-between gaining knowledge and pitching. Asking simple questions about events they plan on attending, what their professional interests are, or even mentioning something positive about the area they’re from can make an enormous difference.
Finally, reps should talk as if they’re speaking with a friend. A warmer conversation fosters positive emotions, and emotions drive people to buy. Plus, learning to foster that type of friendly conversation builds an increasing amount of trust between the rep and the prospect.