Selling economic value – some drill down questions

Selling Economic Value

Sales people who position their products solely as solutions to problems increasingly will find themselves in price wars. Top performing sales reps bypass price wars by converting their solutions into hard currency, be it dollars, euros, pounds, yen or … With this approach, they tie their solutions directly to their customer’s bottom line – whether it’s how much money it will save the customer or how much money the customer might make. [3 Major Issues Facing Sales Management in 2011]. Top performing sales reps know that customers don’t buy, they invest – and they invest where they get the maximum economic value

To determine economic value, customers:  (1) assess the degree to which the solution has a positive impact on those business outcomes that matter to the customer, (2) deduct the perceived risk of purchasing the solution, and  (3) then deduct the cost of the solution.  

Very often a customer will ask us:  “Are there some questions our sales people should know the answers to determine the impact a solution can have on business outcomes?” Here are five questions that a sales person needs to answer that were included in a Sales Machine blog post we think sales people might find helpful:    

  • How can my offering uniquely help them improve their revenue?
  • How can my offering uniquely help them reduce costs?
  • How can my offering uniquely help them improve quality?
  • How can my offering uniquely help them improve delivery performance?
  • How can my offering uniquely reduce their exposure to risk and liability?

Did you notice that each question includes the word “uniquely”? In the post, it’s suggested that sales people need to understand economic value from the customer’s perspective and then tie back how their solution uniquely provides that economic value.  

Check out the Sales Training Connection to read other posts on sales effectiveness.

©2011 Sales Horizons™, LLC

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2 Responses to Selling economic value – some drill down questions

  1. Tim Murray says:

    Need a little help – I am a new Sales Manager and want to spend as much time as I can coaching because I have a sales team that is mostly new hires. I know questioning is important but can I really make a difference on their questioning skills or should I focus on something else?

  2. Richard Ruff says:

    One good fundamental to remember when coaching is the one size does not fit all caveat – so that should be considered. But with that caution in mind, questioning is a great skill on which to focus your coaching because it is used in every call and it is an fundamental skill so if you don’t get it right, it is tough to do some other higher-order skills. Plus, there is do doubt that questioning skills can be improved by coaching. At first I would suggest just focusing on that one skill rather than two or three different ones on any given call – it is easier for you and for your new hires.

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