I’ve been working with four companies from entirely different sectors this month. SaaS software, biotech, manufacturing and renewable energy. The discussion with each is about how we understand the value of their technology to their customers.
Each has been selling based on the great technology that they have.
Don’t get me wrong, their technologies are excellent and there are many features and advantages as to why the customer should invest with them.
But too many projects end up without a decision.
The customer can’t get their team to invest because the value is not clear, and importantly, is not agreed with the customer using their data – there is no value delivered to them as a pre-packaged calculation during the decision-making process.
So, I’ve had a similar discussion with each to define what is the value of their technology.
The biotech case is probably the most complex. The new technology has multiple impacts for their customer. Firstly, it eliminates two steps in the manufacture of high value personalised cancer treatments. We can work that through with the customer if they are happy to share their manufacturing cost data.
But there are other intangible benefits.
Improved treatment quality, better product yield and reputational enhancement.
- The first means the patient is more likely to survive. How do you value that?
- The second is not know yet, but we can talk about a range of value.
- The third, an increase in sales, again we can look at a range of value.
I could go through each; the common theme though is that there is a core value that you can calculate with the customer and then look at a believable range for that can be attributed to the other benefits.
Once we agree a methodology for each of their technologies, we need to then embed that process with each member of their sales team.
This involves several strategic steps:
1. Define and Understand Value
Identify core benefits: This requires sales leaders/mangers to collaborate with product, marketing, and customer success teams to understand and define the core benefits your product or service provides. This includes both quantitative (cost savings, revenue growth) and qualitative (improved efficiency, enhanced reputation) aspects.
Customer collaboration: To create realistic and relatable value propositions, you need to engage with your customers to gather data and insights about how your solutions have positively impacted their operations.
2. Develop a Value Storytelling Framework
Craft the narrative: Develop a compelling value narrative that your sales team can use. This should include customer success stories, case studies, and clear examples of how your product or service has delivered value.
Use specific stories: Tailor the value stories to different customer industries to ensure relevance and resonance. Different verticals or business sizes may value different aspects of your offering.
3. Create Tools and Resources
Value calculation tools: Develop easy-to-use tools, such as spreadsheets or software applications, that allow your sales team to calculate and demonstrate ROI for customers. Tools like MediaFly’s Value 360 can be highly effective.
Training materials: Provide comprehensive training materials, for example guides, FAQs, and video tutorials, to help your team understand how to use these tools and articulate the value proposition.
4. Train and Coach Your Sales Team
Workshops and training sessions: Conduct regular sessions designed to teach your sales team the principles of value selling and how to use the value calculation tools. Make these interactive and hands-on.
Role-playing exercises: Use role-playing exercises to simulate customer interactions. This helps sales reps practice value conversations and become more confident in delivering the value story.
5. Integrate Value Selling into the Sales Process
Sales process alignment: Integrate value selling principles into all of your existing sales process. Ensure that each stage of the sales cycle includes steps for discussing and demonstrating value.
Performance metrics: Adjust performance metrics and KPIs to include value selling activities, such as the number of value-based presentations or ROI calculations conducted.
6. Ongoing Support and Reinforcement
Regular check-ins: Schedule regular check-ins and coaching sessions to reinforce value selling practices and address any challenges your sales team may face.
Feedback loop: Establish a process where sales reps can share their experiences and success stories. Use this feedback to continuously improve your value selling approach.
7. Leverage Technology and Automation
CRM integration: Integrate value selling tools and frameworks into your CRM system to ensure they are easily accessible and part of the daily workflow.
Automated reporting: Use technology to automate the tracking of activities. This helps in monitoring progress and identifying areas for improvement.
8. Celebrate Successes
Recognition and rewards: Acknowledge sales reps who excel in value selling. Highlight their successes and use them as examples to inspire others.
Customer testimonials: Gather and use customer testimonials and success stories that result from value selling efforts. These serve as powerful endorsements and motivation for the sales team.
The outcome?
You, the vendor is able to demonstrate value early in, and then throughout, the sales cycle, providing a solid foundation on which to progress decision making and accelerating qualify out too, avoiding time wasting and disappointment. This makes for a much more productive and effective, efficient sales team.
All stakeholder teams within the customer organisation can see and understand the value of the investment, both in enhanced services, raw financial improvement and tangible reputation benefits.
If you’re still not sure what value selling really is – and it is different for every product and service – and you would like to find out more and hear some more real-life examples, please get in touch and connect with me, John Toal, on LinkedIn.
Amongst other areas, I specialise in high-growth companies and PE portfolio firms and can support any sales or business leader willing to take some strategic leaps as well as roll their sleeves up to help their teams deliver what’s needed.