… and Value is close behind
Change how you do it not what you do!
Some decades back a common approach to selling saw the sales person running down a list of the features of their product or service expecting the prospect to stop them at some point saying “Ah, that sounds interesting, tell me more”. By the 1970s, the more sophisticated suppliers, Rank Xerox being a good example, had come to realise this approach probably lost more customers than it created and the practice was given the derogatory term “spray and pray” or “doing a features dump”.
The next evolution involved teaching the sales people to apply their questioning skills to uncovering the prospect’s issues; then they would mention the features that were relevant to addressing those issues. This worked for a while but over time prospects wised up to the approach and expected the sales person to put in more effort by demonstrating that they actually understood their business. This led to the idea of sales people telling prospects the benefits they would gain by using the supplier’s product or service.
The problem with the benefits-driven approach is that it puts the sales person in the position of stating things they typically cannot know about the individual prospect’s business. The sales person can learn about the general issues of a particular business type, industry or market place but before engaging with each prospect they cannot appreciate the specific and individual issues. As a result, most benefits are taken from a generic list based on assumptions such as everyone wants to save money or do things faster. We call this the “faster better cheaper” approach.
Things have since moved on and the current fashion is for suppliers to express what they do in terms of the value it will deliver if the prospect buys from them. Unfortunately, in many cases, the expression of value is basically a re-badging exercise as it involves using the same benefit statements but giving them a new name ‘value’.
So, what is the poor supplier to do? As is often the case with problem solving in business the answer has been around for a long time but it got swamped by the desire to do something different or just new and by knee jerk reactions to short-term problems; “we need more orders!” The answer is really simple; sales people must learn and apply the techniques of structured questioning, empathetic listening and interactive conversation.
If you do want to employ an approach based on benefits and value here are a few tips to get you started:
- Do the research to understand the generic and common issues that companies in your target market sectors have or will soon have. This work is often done by the marketing department or perhaps the sales enablement function if you have one.
- Before attending a first meeting do specific research; the individual prospect, their market, their competitors, relevant news/web items, and from the common and generic issues, identified above, which ones might apply that businesses like theirs have to deal with now and in the future.
You can now begin to create a profile of the prospect and identify what you need to find out so that you can design a solution that will really excite them.
- Use the profile to plan the first meeting especially; the questions you will ask to start finding out what issues the prospect actually has, what they might consider as beneficial, and how they will evaluate and measure the value of a solution. Note I said “start” the process; building a profile of a prospect, especially where your proposition is complex and the sales cycle long, cannot be achieved in a single meeting.
- At various points during the engagement journey check with the prospect that you have understood what matters to them; the benefits and value they want to enjoy. Approach this using a process of trial closing – “if we were able to do this for you and as a result you were able to (reduce stock levels, increase your customer satisfaction score, etc.,) would you go ahead with our proposed solution?” If yes, good you can move forward and if no, excellent; you can explore why not and this will provide further insights into what the prospect really wants, needs and values.
Using a feature-based approach to selling and doing it well will actually deliver better results than a benefits or value based approach done badly. However, if all you talk about is features, the other party typically thinks about price and discount and the basis of negotiation will be crude haggling which will probably get you the deal but lose you margin.
So, isn’t it better to learn how to do the benefits/value approach properly?
We’re here to help.