87% of high-growth sales organizations now use a value-based approach to sales.
We are living in an era where a quick Google search, a Siri command, or a ChatGDP question can provide us with complex, in-depth answers to most of our questions.
What does this mean for sales reps?
This means traditional sales strategies have lost their value. I mean, why consult a sales representative when you can find the information you need on their website? No one has time for that anymore.
Connecting with potential buyers is no longer about communicating product details, or explaining special features. Today, in a business world where time and money are precious, it's about showing the value of a product in the selling process with a value based selling approach.
What's in this post:
- What is value selling? The value-selling framework
- What is solution selling? The solution selling methodology
- Solution selling vs. value selling
- 3 value-based selling examples
- How to train for value selling?
What is value selling? The value-selling framework
Rather than emphasizing features and specifications, value selling is a sales method that focuses on assisting prospects in understanding how a product or service might solve their issues.
During a sales pitch, sales reps should be asking themselves: 'What value will this product or service add to their lives?' as opposed to 'What is so great about this specific product or service?'
It all comes down to focusing on what your customers want, what they are currently experiencing, and how your product or service can assist them.
When sales reps use the value selling methodology, businesses may even set a higher price point for their product or service while keeping them pleased, due to the fact that they recognize the value you're providing them.
A classic example could be when customers are looking to buy a new computer - the sales professionals who understand the product well from a technical standpoint could explain how the computer system has a lot of RAM, a.k.a. feature based selling - but until they communicate how it'd solve the prospect's pain points, a.k.a. pique their genuine interest, the sales conversation will likely end unsuccessfully.
The value selling approach:
According to Zendesk, most value-based selling strategies or methodologies fall into one of four categories:
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Providing quantitative value. Eg. "This product will make you more money"
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Providing something different from the rest. Eg. "This product will set you apart from the competition"
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Providing financial incentives. Eg. "This product will save you money"
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Providing help to averse risk. Eg. "This product will stabilize your bottom line"
What is solution selling? The solution selling methodology
The solution selling methodology was popularized in the 1980s as a way to hook prospects during the buying process by understanding the customer's situation, essentially "diagnosing" their symptoms and offering a service that meets their needs.
In the past, this popular method of discovering customers' needs and selling them solutions to those needs worked - prospects trusted sales reps to solve their problems, which they didn't know how to solve. However, the world has changed a lot in the last decade, and many companies have in fact steered away from this methodology.
The bottom line is, customers don't need sales reps the way they used to.
In fact, a Corporate Executive Board study of more than 1,400 B2B customers revealed that those customers completed almost 60% of a typical purchasing decision in the sales cycle - researching solutions, ranking options, setting requirements, benchmarking pricing - before even having a conversation with a sales rep.
This means, once a sales rep makes their pitch, prospects have probably already done their research and don't need to be "diagnosed".
Solution selling vs. value selling
| Solution selling sales methodology | Value based selling framework |
| Providing customized solutions that integrate diverse products or services to address unique consumer demands and issues. | The quantifiable benefits and value that the suggested solution can bring to the customer's business should be highlighted. |
| The quantifiable benefits and value that the suggested solution can bring to the customer's business should be highlighted. | Aligning solutions with the strategic objectives of the client and demonstrating long-term effect and ROI. |
| Provides a complete solution that solves the customer's existing needs and challenges. | Shows the customer the value and practical benefits of implementing the recommended solution. |
| Salespeople serve as advisers, delivering comprehensive solutions and giving in-depth product knowledge. | Sales representatives serve as trusted consultants, focusing on comprehending the customer's business objectives and demonstrating how the solution corresponds with those objectives. |
3 value-based selling examples
The value based selling methodology can follow various strategies during the sales process, all with the underlying goal of highlighting the unique selling proposition that a product or service can bring to the customer's needs or desires.
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Showcasing the return on investment (ROI)
When sales reps clearly communicate a quantifiable return on investment during sales pitches for clients, this serves as a pivotal aspect that elevates the product or service from being more than a simple commodity, but a strategic investment that will yield returns.
Take for instance a business that is looking at investing in a customer relationship management software solution (CRM). Instead of simply spelling out what the features and functions of the software are, a value based strategy focussing on emphasizing ROI may highlight how the particular CRM would help the business optimize its sales process, raise lead conversion rates, increase customer retention rates, etc.
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Communicating the cost savings
We all like to know how we can save money. Sales reps communicating the possible cost savings a potential client could be making during their sales pitch is a compelling aspect that often resonates with the target audience.
For example, the prospects business is a manufacturing company, looking to implement an AI-powered supply chain management solution in order to streamline certain processes. If sales reps were to take on a values based approach, the potential customers would learn about how the new system would streamline inventory management, minimize excess stock, and optimize logistics, which would result in reduced carrying costs and lower inventory-related expenses.
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Emphasizing sustainability and environmental impacts
In this value based approach, the sales pitch would emphasize the sustainable aspect of a product or service, and use this as a persuasive strategy that appeals to a growing number of environmentally conscious customers and organizations. During the selling process, when the sales interactions are structured around the fact that the product is a strategic choice that supports the customer's corporate social responsibility objectives, prospective customers are likely to be persuaded as this would mean it would advance them toward a greener future.
Imagine you are a construction company looking at sourcing new building materials. A value based selling approach would underscore how the materials are sourced from sustainable, renewable resources and ultimately minimize the construction company's ecological footprint.
How to train for value selling?
In general, training sales reps continuously should be a baseline strategic initiative in any organization. However, companies can utilize special training platforms to particularly hone their sales reps' value selling during the entire sales process.
Take, for instance, the AI-powered sales training platform, Retorio. Retorio is a AI Coaching Platform that employs AI-driven video analytics to provide valuable insight into sales reps' value selling skills, analyzing what the reps are saying, how they're saying it, etc.
Sales reps engage in AI-powered role-play simulations where they can engage and interact with virtual customers and practice value-based selling techniques. The Al platform analyzes their responses and provides instant, personalized feedback on their performance.
Value selling scenarios with Retorio include:
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Needs analysis
This refers to finding a customer's needs for a good or service is done through customer needs analysis - the process of identifying and understanding the specific requirements, challenges, and objectives of a potential customer, which allows the sales rep to tailor the value proposition to cater exactly to the customer's needs. -
Storytelling
Within the value selling process, storytelling can be defined as the strategic use of narratives and compelling anecdotes to convey to a potential customer the value and benefits of a product or service. When done effectively, sales reps craft a cohesive and engaging narrative about how the product or service has positively impacted other businesses or clients, with the end goal of fostering trust and confidence in the value proposition. -
Confirming value
Confirm value within value selling is a truly critical step that reinforced the distinct value proposition in the product or service on offer and makes sure that the potential customer understands clearly what the advantages are with the product and the value it would bring to them.
During these B2B value selling training sessions, sales reps can undertake AI-powered role-play simulations and handle scenarios, such as needs analysis, storytelling, and confirming value, in a virtual setting. This way, before interacting with real prospects, sales reps are given the opportunity to practice, as many times as they desire, handling prospects and making sure they follow a value based selling framework.
When training is done by AI, sales reps can practice value based selling scenarios on-demand, whenever and wherever they desire, implementing a culture of continuous learning and development by proving access to ongoing training sessions. This way, reps can revisit training simulations, practice value selling sales conversations regularly, and ultimately ensure continuous improvement and skill refinement.
Want to see learn more about how you could implement Retorio's AI-powered training platform into your sales strategy, and make your reps prepared to embark on a value-based selling journey and essentially close more deals?
Check out how Retorio's AI Coaching Platform can help your reps master value selling today!
