4 Key skills to become a value sales expert
Value Selling is an essential sales technique that relies on building on the inherent value of a product or service when the customer perceives it to be so. This sounds like a ‘no brainer’, but shockingly it is not common practice in many sales organisations. The truth is that your salespeople must know the difference between price and value and more importantly how to SELL THE VALUE to customers. There’s a risk to revenue generation for your business if your salespeople’s approach to selling is based only on “selling on price.”
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To illustrate the concept of value, let me share my experience with you. About 14 months ago I purchased an iPhone 5 case from an Apple Authorised Reseller store at the Accra Mall. At the time, I bought one of the cheapest cases I could afford – so-called ‘imitation’ leather. As at two weeks ago, that case looked worn out, battered and more importantly, an embarrassment to my image.
Admittedly, I confused price with value, when I made that first purchase. The iPhone case turned out not to be the best value after all. As a result, I needed a replacement. On this occasion, I decided to buy an expensive, preferably, a genuine leather one that would probably last for many years, as well as enhance my image.
With that in mind, I walked into this same Apple Authorised Reseller store and was really disappointed with the retail salesperson’s inability to sell me ‘value.’ This is what happened during our interaction:
Me: “Do you have iPhone 5 case in stock?”
Retail salesperson: “Yes” (Walks me to display area).
Me: “I see they’re priced differently. Why is this case much pricier than the others?”
Retail salesperson: “That’s the price.”
Me: “You can’t tell me why I should buy the most expensive, and not the cheaper alternative?”
Retail salesperson: “As I said that’s the price. If you want the expensive one, that’s the price or you choose the cheaper alternative. There’s nothing I can do about it.”
Me: (At this point I was getting angry)…”Gentleman, I need to know why I have to spend GH¢168 on that case? Are you telling me to take it or leave it?”
Retail salesperson: “That one is priced at GH¢168, because it is a ‘Concerti’ and the others are not.”
Me: “What are Concerti? (Growing frustrated). It looks like you’re not interested in helping me. Can I get someone else to talk to?”
To cut a long story short, this retail salesperson finally explained to me that my preference was expensive because it was made of genuine leather, but failed to communicate its VALUE to me.
Not selling value hurts revenue
From my experience, the failure of your salespeople to sell VALUE to prospects/customers limits your sales organisation’s ability to optimise sales opportunities, and thereby impacts on your ability to achieve and exceed annual sales goals.
It is, therefore, imperative for your salespeople to hone their skills in selling on VALUE, and not only on price.
Key value selling skills needed
Here are four key skills needed for your salespeople to become value selling experts:
Skill #1: Asking good questions
How can your salesperson identify the ‘value drivers’ of prospects and customers when they fail to ask questions? Their ability to ask ‘value creation questions” is the foundation on which to begin selling VALUE. The salesperson in the Apple Authorised Reseller store should have asked me a few simple ‘value creation questions’ such as:
“What are you looking for in a new iPhone 5 case?”
“Why are you interested in the most expensive one?”
“Putting price aside for a moment, I would like to understand what is important to you in defining value.”
Skill #2: Demonstrating value
In order to avoid the mistake many salespeople make by attempting to sell on price instead of on value, your salespeople must first of all learn how to control their engagement with prospects and customers. Once in control, it is imperative for your salespeople to steer the conversation with prospects/customers away from how much the product costs towards what value it delivers. They should demonstrate how the product adds value to the lives or business of the prospect/customer. In demonstrating value to me, the salesperson in the Apple Authorised Reseller store should have said something like this: “This iPhone case is much more expensive because it is made of genuine leather; which means it will last much longer than the previous one you purchased.”
Skill #3: Quantifying the value
It is not enough for your salespeople to demonstrate value. They must be able to communicate your “value proposition” in quantifiable terms and do so persuasively. That’s the only way prospects/customers will appreciate the true value of the product.
For example, the Apple Authorised Reseller salesperson could have said something like:
“By choosing this genuine leather iPhone 5 case, you can save GH¢100 over the next two years, because you wouldn’t have to invest in another one.”
Skill #4: Closing the sales
The ultimate aim of every sales interaction is to close the sale. Once value has been created in the mind of prospects and customers, the job of your salespeople is to close the sale. Very often, your salespeople fail to do just that because of the fear of rejection.
That decision shouldn’t be left to the prospect and customer alone. It’s your salespeople’s responsibility to HELP them make that decision based on the value proposition. Instead of waiting for me to close myself, that Apple Authorised Store salesperson should have closed the sale by saying something like: “Based on your preference for a genuine leather iPhone 5 case, would you prefer the black or red one?”
Remember that your salespeople’s ability to master their value sales skills will result in solving your customers’ problems. It will also transition them from being order-takers to value sales experts who add value to customers’ purchase experience.