Value-based selling is a hot topic in 2020 and only a few businesses know this. That means only a handful of businesses are doing this. So, it’s an underused sales tactic that brings tons of customers.
Value-based selling is a method of offering value upfront to your prospects and making the price look less important. When you offer more value to your customers, they feel the price is very less and this motivates them to take action.
Forrester predicts that the top 10% of CMOs will move into Customer Value roles to acquire more customers.
Let’s see how you can leverage Value-based selling and achieve your sales goals.
What exactly is Value-based selling?
What’s the #1 thing that customers consider the most while making a purchase? Price. But so many businesses out there use low prices as a tool to attract customers. That’s the worst sales tactic ever.
Instead, you can convey the value that you offer to your customers and make them realise what you bring to the table and how it’s going to help them.
Once your target customers know the value of your product/service, then they feel that your product is underpriced. This motivates them to make the buying decision.
Offer more value, increase the value gap and get more sales. So what is value? Price is what you pay for a product or a service, value is what you get. Give more than what they ask, I mean, overdeliver.
5 Key Principles of Value-Based Selling: How to add more value?
Value-based selling is not an overnight thing where you bombard customers with a value and get sales quickly. It’s a long term process where you listen to your customers and understand their needs.
Let’s see how we can add value to your customers.
1. Listening to their problems
The first step in building a sales relationship is listening to your customer’s problem. Let’s see what a doctor does. First, they ask what’s your problem and what you’re going through. Then they offer you some medicines.
Follow the same blueprint and talk to your customers. Get to know their fears and frustrations, dreams and desires. Once you know that, tell them you have a solution that can solve their problem.
A great salesperson is a great listener. Are you listening to your prospect’s problems? If not, do it from today.
2. Gaining trust by sharing benefits
If you go and ask someone to buy your product, will they buy? No, right? You need to demonstrate the value to your target customers. Show the value upfront and explain how your solution will change their life.
Initiate a conversation without a sales pitch, make them feel you are there for them. Build their trust and finally speak about your product or service. By doing this, you are sharing benefits with them. You make money, their problem is solved, both are happy, that’s value-based selling.
3. Nurture your customers
Your customers have plenty of things to do, buying your stuff is not their job. You need to educate your customers about your product. Tell them why they need your product and how it can transform their life.
By educating them, you are helping them, so they have an affinity towards you. This is the starting point of a perfect relationship. We can help you understand better with an example.
We are a digital marketing agency who help businesses grow. We offer plenty of free resources to our customers and help them learn how to market their product. Adding value upfront and educating them, then we sell our services to solve their problems. Hope you got the point.
4. Customers buy experiences, not products
The goal of the customer is not to buy a product or service, they want to achieve their goals. Your offering should act as a tool to help them achieve their dreams.
For example, business owners buy professional services to make their life easier and smooth. Same applies to a person who buys a beautiful shirt. They don’t buy clothes to just cover their body, they buy beautiful and trendy things to experience the comfort and flaunt their beauty to the world.
Show, don’t tell. Follow this and show the end benefit to your customers so that their value perception changes. Once customers know the true value of your product, price doesn’t matter. Add value to an extent where they open their wallet and pay you happily.
5. Proof works
Adding value is not limited to what we said above. You can go on and show proof. Social proof makes people believe that a product or service is great.
Show real proof and testimonial to customers and let them know the power of your offering. Collect all the positive feedback you received for your business and represent it in an appealing way to your customers. This makes it easy for the customers to make the buying decision no matter what the price is.
Also, you need to see what your competitors are doing. If you are offering the same value that your competitor is already offering, then your business won’t stand out. So, differentiate your product and position it uniquely.
The beauty of value-based selling is that you get customers even if your competitors offer services at a low price.
We are living in a competitive digital world and if you don’t add value to your customers you will be left behind. Value-based selling makes customers believe that they are making a worthy investment. That’s the trust you have to earn from them. You will do it.
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