Value Selling: How to Sell on Value, not on Price
What is Value Selling?
Definition and Importance
The essence of Value Selling is to sell on the added value of a product or service, not on the price. Instead of just pushing a product or service, Value Selling focuses on how you can create real benefits for your customers. This means you really have to know what your customer needs and then show them how your product or service can help them.
Table of contents
Overview
This approach shifts the sales focus from the seller’s need to close a deal to the buyer’s benefits and how the product or service can truly help them achieve their goals.
History of Value Selling
Evolution Over Time
Value Selling has evolved from traditional sales methods that were often pushy and product-focused to a more customer-centric approach that prioritizes customer needs and the long-term relationship over immediate gains.
Key Milestones
Over the decades, this strategy has undergone several transformations, most notably with the introduction of consultative and solutions-based sales, which are integral components for this sales methodology.
Key Principles of Value Selling
Understanding Customer Needs
The first step to sell on value is to thoroughly understand the customer’s needs. This is achieved through active listening, empathy, and engaging customers in meaningful conversations about their challenges and goals. Account Executives and Account Managers who really want to understand their prospects and customers also read industry magazines/newsletters and know what their customers are concerned about.
Aligning Products with Needs
Once the needs are clearly understood, the next step is to align your offerings with those needs by demonstrating how your products or services solve specific problems or improve the customer’s business or personal life.
Creating Value Propositions
A strong value proposition is crucial in value selling. It succinctly conveys the benefits of your offerings, distinguishing them from competitors and clearly stating the unique advantages for the customer.
Techniques to Sell on Value
Consultative Selling
This technique is an essential part of value selling and involves acting more like a consultant than a traditional salesperson. The focus is on providing tailored advice and solutions that specifically address the customer’s unique needs and pain points.
Solution Selling
Solution Selling is closely aligned with value selling, focusing on problem-solving and how the product can improve the customer’s business operations or life quality.
Educational Selling
This involves educating the customer about the product’s benefits and the potential ROI it offers, helping them to see the value and relevance of the product in their own context.
6 Steps to Implement Value Selling
1. Research and Understand Your Customer
The key to value selling is knowing your customer inside out. Know their business, industry and specific challenges. Find out their goals, pain points and what they are currently using to achieve their goals.
2. Ask the Right Open-Ended questions
Get to know your customers by having meaningful conversations. Ask open-ended questions to find out what they need, what challenges they’re facing, and what’s important to them. This will help you figure out where your product can really make a difference.
3. Identify the ideal Outcomes
Once you understand the customer’s needs, map out the key benefits and ideal outcomes that your product or service can deliver. Focus on quantifiable results such as cost savings, or revenue growth.
4. Tailor Your Value Proposition
Speak directly to the customer’s needs and challenges. Outline the benefits and results that matter most to them. Use data, case studies, and testimonials to back up your claims.
5. Demonstrate ROI
Show the customer a clear return on investment (ROI) by using real-world examples and calculations. Demonstrating how your product will pay for itself and deliver long-term benefits can be a powerful motivator.
6. Follow Up and Measure Success
Keep in touch with the customer to make sure they get what they paid for. Ask for feedback, measure results, and use this to improve your value selling approach.