In an era where anyone’s questions can be answered with a quick Google search, traditional sales strategies have lost a lot of their value. Why bother meeting with a sales rep just to learn information you can find on a website? It’s a waste of everyone’s time, and these days, time is a very precious commodity.
Salespeople who use product details and specs as the main driving force behind their sales tactics can’t compete in this new market. As a result, companies are now shifting toward personal selling. And a remarkable 87 percent of high-growth sales organizations now use a value-based approach to sales.
A remarkable 87% of high-growth sales organizations now use a value-based approach to sales.
Value selling is the sales methodology of the future. Buyers may know what a product can do, but they may not know what it can do for them.
In this article, we’ll review what value selling is, the different types of value selling frameworks, and how your team can make the most out of their value selling strategies.
What is value-based selling?
Value selling is a sales technique that focuses on helping prospects understand how a product or service can solve their problems, rather than highlighting the features and specs. In other words—what value will your products or services bring to their lives?
Many useful products, when introduced from a purely technical angle, can sound complicated or confusing. You can tell a prospect that a computer system has an impressive amount of RAM, but if they don’t know why that amount of RAM will solve their particular pain points, you’ll leave them cold.
With a value-based sales approach, your sales reps can use SPIN selling tactics to show buyers why the details matter. Instead of saying that a computer has 16 GB of RAM, they’ll say: “This computer saves you time throughout the day by processing data twice as fast as most other systems on the market. You won’t have to waste time waiting on loading screens, which saves you valuable work hours and increases productivity.”
By visualizing the value of each product or service, prospects gain a deeper understanding of your offerings without the need for endless statistics and specs. With the right value-based strategy, you won’t have to sell—your product’s value will sell itself.
Value selling methodology
Most value-based selling strategies or methodologies fall into one of four categories:
“This product will make you more money.”
People are willing to spend good money if it’s going to make them money. Your strongest argument for your product is that the prospect will experience a competitive ROI. For example, organizational software won’t directly bring in more capital, but it will boost productivity and eventually increase net revenue.
This methodology is most effective when combined with exact numbers from previous clients. If your customers earn an average of $500 per month with your product and they need to pay only $150 per month to use it, then the investment value is clear as day.
“This product will set you apart from the competition.”
Successful companies need a selling point that makes them stand out—all businesses know it. When you ensure your product provides a competitive edge, your prospects will clamor to purchase the goods.
If your clients have similar competitive pain points, determine whether your product can offer them a workaround. Solve their issues by helping them find their unique edge. Down the line, their success will be your success as well.
“This product will save you money.”
One of the biggest drivers for value selling is lowering costs. A fast way to shut down prospects’ objections is to mention that they’ll save a few bucks. Hiring software is a great example of this. By automating the onboarding process, hiring software can speed up employee ramp time and significantly lower onboarding costs.
Unless your product or service is astronomically expensive, outlining the amount of money your prospects can save will make purchasing a no-brainer.
“This product will stabilize your bottom line.”
CEOs and decision-makers hate uncertainty. There’s no way to consistently grow a business if there are factors that can reset your progress at any time. If you can position your product as a way to alleviate these dangers, you’ll have your prospects on the hook.
This strategy is especially useful when targeting executives. Executives are constantly searching for opportunities to scale their businesses, so products that help pave the way are extremely appealing.
Each of these four sales methodologies ensures your team is highlighting the value of your products or services—leading to more sales.
How to build a value selling framework
Before you can incorporate your value-based sales methodology, you need to prepare your team to use this particular sales technique. When you’re creating a sales process that incorporates a value-based selling approach, there are several key elements to keep in mind.
Highlight your USP
A unique selling proposition (USP) is the value your business brings to the table—it’s what sets your company’s product or service apart. Value selling isn’t just about the value you provide to your prospects; it’s also about the value of your product in the sea of competitors.
When prospects are considering your product, they may also be looking at the competition. Similar features, pricing, or partnerships make it harder for your company to stand out, so it’s important to use your USP to show prospects why your offering is the better choice.
Don’t rush the sales pitch
Value selling makes use of the prospect’s unique pain points to give them a reason to buy. The longer your team spends with prospects, the more information they can gather on how to perfectly sell to them.
If you rush in with a generic pitch, you simply won’t have enough information to make a compelling, value-based argument for individual prospects. But when your team takes their time and utilizes value selling tactics, they can make any sales pitch feel like sincere advice from a trusted friend.
Focus on quality over quantity
Value selling enables your team to build relationships with each buyer, but that also means each sale takes more time to complete.
And that’s the point.
When you’re using value selling, it’s not about making the most sales. It’s about getting the most value out of every sale. Value sales take more time, but the longer you spend with each prospect, the more likely you are to have a higher percentage of deals. Giving your prospects this level of attention and customer service can also lead to repeat sales and quality referrals in the future.
If you’re lengthening your sales cycle to accommodate value selling, simply ensure you’re prepared to make the most of the longer cycle. Just like Challenger Sales plans, have your team draw up detailed client notes to prepare for each call. They must be well-informed so they can drive the conversation and learn more through each interaction. Advise them to brush up on common client pain points before diving into a conversation.
Every step your reps take to focus on relationship-based selling will give your sales more value in the long run.
Know your products
Not every prospect is going to have the same pain points as others in their industry. So, to be successful in sales, you need to fully understand your product and what it can do for your customers.
Take time to review product details with your team. Look for any recurring prospect pain points and evaluate whether your product can offer a remedy. If so, how can your sales team reinforce that your product is the solution?
Find out how your product’s specs compare to the competition. Does your product outmatch your competitors in certain areas? Is your product a great all-around solution? What sales objections might your prospects have, and how can you calm those fears?
Learning about your product gives your team confidence in their sales process and helps your prospects visualize the value of a strong partnership.
Value selling best practices
The value selling method requires sales interactions to be tailored to each customer. However, while every deal is different, there are a few sales skills that will always improve your odds.
Research your prospects
Value selling techniques differ between prospects, just like pain points. If you plan on using value sales, you can’t rely solely on buyer personas and market trends to inform your tactics.
Before you reach out to your prospects, try researching a few key details:
- What industry are they in?
- Where do they work?
- What is their role at their company?
- What experience do they have?
- How does their company measure success?
- What are their current company goals?
- Who are their competitors?
- Do they have connections you can use to ask for a referral?
Be a consultant, not a salesperson
During the value selling process, the most important thing to keep in mind is that you’re working to find a solution, not to sell a product. Prospects will be more likely to make a purchase when they’re buying from an advisor and friend. Before you work on selling strategies and start pushing for a quick sale, dive deeper into the consultative selling approach.
For example, if you’re selling cybersecurity software, inform your prospects how vulnerable their data is. You can back up your claims with statistics about how much company information is stolen every year, and then show them how your solution will bolster their security.
By addressing their problems and fears first, you’ll reduce your prospects’ suspicions of salespeople. Understanding why they need a solution will make your sales pitch infinitely more enticing.
Bring value to every interaction
Any time your sales reps interact with prospects, they should leave with new information. This could include pain points, potential roadblocks, or questions crucial to the conversion process. When your reps get back in touch with a potential client, they should bring new value to the table.
By continuously adding value, your sales team achieves two things through proven sales psychology:
- They show they’re listening to prospects’ issues and actively seeking a solution.
- They give prospects a reason to stay in touch.
Bringing fresh information to each interaction means buyers can expect sales meetings to be a step toward a solution, not a plateau. If three meetings go by and a potential buyer hasn’t learned anything new, they’ll be reluctant to set up a fourth. Why would they waste their time?
When your team actively provides information at every point in the sales funnel, prospects will be motivated to engage with your sales reps and move forward in their buyer journey.
Value selling with a CRM
To successfully incorporate value-based selling into your sales tactic arsenal, your reps need to track a lot of prospect information. It’s overwhelming when every single detail is crucial to closing a sale, so equipping your team with the right system is essential.
Zendesk Sell is the system your reps need to succeed. With customizable sales dashboards, your team can track all their prospects’ contact information, pain points, and preferences in one centralized platform. When reps contact prospects, they’ll be able to wow them at every stage with their preparation and expertise.
Request a demo today, and see how a strong CRM can help your team personalize their sales pitches and get more value out of each sale.