Value-based selling is the practice of aligning your sales strategy with the needs of your target customer. It’s built on the idea that customers buy solutions to their problems, not products. Value-based selling aligns your sales team with a customer’s business needs so they can provide effective solutions. Instead of focusing on what your product does or how it works, value-based selling centers on what value it provides for the customer and how it solves their problem. It’s about identifying opportunities within each prospect by understanding their company’s pain points and challenges. This post will give you examples of companies using VBS effectively and explain why it’s so powerful when used correctly.
Pros of value-based selling:
- customers are more likely to be satisfied with their purchase
- customers are more likely to be loyal to the company
- company can charge a premium for their product
Cons of value-based selling:
- it can be difficult to establish the value of the product
- some customers may be turned off by the focus on the product’s value instead of its price
What is value-based selling?
Value-based selling is the art of selling based on the total value of a product or service instead of a single price or cost. Unlike price-based selling, when value-based selling, you don’t negotiate prices in order to close the deal. Instead, you tailor a solution to a client’s specific needs and help them see how your products and services fit into their overall business goals. Value-based selling is a long-term investment strategy that focuses on placing customer needs and expectations first. The salesperson’s goal is to deliver value to the customer by providing products or services that solve their problems, fit their budget and make their lives easier. The goal is to create loyal customers who will come back to use the seller’s products or services again and again.
Why is value-based selling important?
In today’s highly competitive business environment, you need the right combination of products and services, pricing, and marketing to win the attention and business of today’s digitally savvy customers. It is critical to offer a highly compelling value proposition that appeals to your target market and sets you apart from the competition. Successful value-based selling can help your business gain an advantage over other sellers by increasing sales and customer retention. Customers who feel that they got more than they expected from your product or service will be much more likely to make additional purchases from you in the future. This is especially important in B2B sales, where the average customer lifetime value is more than $40,000.
Tips for successful value-based selling
Building a successful value proposition is not a one-time effort. It is an ongoing process that requires you to stay in touch with your customers’ needs and expectations and always look for ways to improve your products and services. You can do that by following these six key tips for successful value-based selling: – Create a customized solution for each customer. Value-based selling is not just about placing customers’ needs at the center of your sales strategy. It also involves tailoring your solution to their needs and expectations to create a win-win situation for both parties. It is important to understand the needs and pain points of your clients and meet those with your products and services. While you might have one solution for a problem that is common across your industry, customers expect and demand a customized solution for their individual needs. – Identify and understand customer needs. One common mistake in value-based selling is to make assumptions about what your customers want from your products or services. Instead, you should focus on creating a detailed profile of your ideal customer and then identifying their needs and pain points. Once you have identified what your customers need, you can create a customized solution that meets their needs at an affordable price. – Gain a deep understanding of your customers’ business. Customers expect you to understand their business, how your products and services fit into that business and how they can improve their overall results. You can do that by conducting thorough company research and by asking lots of questions to seek as much information as you can. It is important that you also provide information to your customers to help them see why your products or services are a good fit for their business and how they can improve their performance. – Be transparent and honest in everything you do. Customers are much more likely to trust you and make a purchase from your company if they feel like you are transparent and honest in all your business dealings. That means that you should disclose everything that is important to your customers: product features and benefits, pricing, payment terms, delivery times, return policy and other details that have a direct impact on their decision-making process. – Offer more than just a product or service. Customers expect you to provide more than just a product or service when they make a purchase decision from you. They also look for information about your company, its values and what it stands for. That is why it is important to clearly define your business values, create a strong corporate identity and use all your marketing channels to promote your brand.
3 Examples of Successful Value-Based Selling
Airline Industry – To win customers who want to travel to other countries, airlines offer a variety of products and services, including flight schedules, seating arrangements, and meal service. While these are important, they don’t make the sale by themselves. What makes the sale is the value that an airline offers its customers in the form of a hassle-free travel experience. Customers expect airlines to take care of all the details of their travel, from helping them choose the best flight schedule to being on time, to being comfortable and safe during the flight. Airlines that offer a high value proposition are more likely to win the hearts and dollars of their customers, which is why so many people choose to fly with certain airlines.
Oil and Gas Industry – The oil and gas industry has a wide variety of customers, ranging from homeowners who need heating oil to large industrial users. Each of these customers has different needs and requirements, and service providers must take that into account when offering value. One of the ways suppliers in the oil and gas industry can add value is by being environmentally responsible. They can also help customers by offering suggestions on how to use less fuel or make their processes more efficient. When customers feel that suppliers are looking out for their best interests, they are more likely to buy from those companies and recommend them to others.
Mobile Phone Industry – When selling mobile phones, companies may offer a variety of products, such as types of handsets, a number of different services, and installation options. But to win customers, they must provide more than just the items they plan to sell. They must provide a superior experience that makes it easy for people to buy and have their phones activated. Companies that offer a superior experience are more likely to win customers and keep them coming back for more. That can mean offering a wider variety of mobile phone plans with affordable pricing or providing convenient payment options that don’t require customers to leave home to purchase their phones.
Dropbox: Using VBS to Emphasize Customer Relationships
Dropbox is a cloud storage company that uses VBS to emphasize customer relationships. When you sign up for Dropbox, the first thing they ask is what industry you’re in and what you do. They use this information to help you organize your data so that it’s easy to find and collaborate with colleagues. This way, Dropbox helps their customers do their jobs better. The reason this works so well is because it’s tailored to the unique needs of each industry. If you’re in a creative field, you may need to store larger files, or larger files may take longer to upload. This is one way Dropbox demonstrates that they’re deeply focused on their customers.
Google: Recognizing the Importance of Collaboration in VBS
Google’s VBS focuses on collaboration and finding the right solution for your business needs. They have a dedicated sales team that partners with you throughout the implementation process. Google has created a solution that allows you to find and organize information from across the web and collaborate with teammates using their easy-to-use software. They are focused on the customer’s needs and providing the tools to solve their challenges. Google’s sales team has done a great job of focusing on the challenges their customers face and creating a solution that solves those challenges.
IBM: Selling Based on Data and ROI
IBM’s VBS focuses on ROI and data-driven selling. They provide analytics software, data management, and advisory services to help businesses make better decisions. Their VBS is focused on helping businesses make better decisions and increase revenues by leveraging their existing data. They have a dedicated team of sales experts that partner with you to optimize your sales and marketing efforts. They take a strategic approach to selling by focusing on the challenges their customers face, learning their sales process, and providing solutions designed to solve those challenges.
How data and ROI can be used to sell:
- Using data to understand what customers want and need
- Designing products and services that meet those needs
- Creating marketing messages that resonate with customers
- Pricing products and services competitively
- Selecting the most effective channels for marketing and sales
- Continuously measuring and improving performance
Microsoft: Focusing on Cloud-Based Products with ROI
Microsoft’s VBS focuses on their cloud-based products and ROI. They offer a wide variety of cloud-based products, such as Office 365 and Azure. They are focused on providing solutions designed to help businesses grow. With Office 365, you can save time, communicate more effectively, and get better insights. With Azure, you can build and deploy a wide range of applications, including websites and applications that run on the Internet. These products help businesses grow and generate more revenue by providing them with a solution that meets their unique needs. Microsoft’s sales team utilize the power of data and ROI to show a direct affect their product can have on a businesses bottom line.
Oracle: Leveraging Existing Relationships to Grow Through VBS
Oracle has focused on VBS and leveraging existing relationships. They have a dedicated team with experience in many different industries. They partner with their customers throughout the lifecycle, helping them succeed and grow. Oracle partners with their customers throughout the sales process, providing their expertise to help them achieve their business goals. They provide their customers with the best tools for their specific industry and goals. They’ve built long-term partnerships with their customers by understanding their business challenges and providing solutions. This has helped them grow their business and provide even better solutions and services to their customers.
Summing up
Value-based selling is the practice of aligning your sales strategy with the needs of your target customer. It’s built on the idea that customers buy solutions to their problems, not products. Value-based selling aligns your sales team with a customer’s business needs so they can provide effective solutions. When you’re selling with VBS, you’re not trying to sell the product. Instead, you’re selling the results the product will help your prospect achieve. This post has given you examples of companies using VBS effectively and explained why it’s so powerful when used correctly.
Value-based selling is when you:
- Research your audience and personalize your pitch
- Start with a strong opener that grabs attention
- Use data and statistics to back up your claims-
- Keep your pitch concise and to the point
- Use strong visual aids to support your points
- End with a call to action that inspires the listener to take action
