Showing posts with label value propositions. Show all posts
Showing posts with label value propositions. Show all posts

Saturday, March 1, 2008

Sales Training: Stop Traditional Based Selling & Focus on Consultative Selling Now

By Will Brooks

Today, the sales role has more in common with a fighter pilot’s job than anything else. It is defined by periods of patient waiting punctuated by moments of unimaginable excitement. The secret is to keep a constant flow of fresh leads without losing track of any of your current prospects and customers.

Your Prospects Want a Quick Follow-up

A technology research firm known as KnowledgeStorm recently produced a report in which they revealed that a prospect’s receptivity to salespeople declines drastically as time passes. Their data shows that 88% of prospects were happy to hear from salespeople when their Internet inquiry was responded to the same day. That means that salespeople who want positive reactions from prospects should respond to all inquiries the same day they receive them.

Despite a quick response, you should still expect a decision slow down.

While doing research for Cahners, Susan Mulcahy discovered that the typical B2B sale exceeding $35,000 now requires 5.12 sales calls to finalize, up 20% since 1989. Additional research in 2005 showed that there are 3.5 more people involved in a B2B buying decision than there were in 2001. Knowing that the average sales cycle for a high-dollar B2B sale lasts between 6 and 36 months, salespeople must be sure to be very responsive while at the same time very, very patient.

In other words, you must reply to prospects as quickly as possible, but they will not necessarily respond in kind. These forces have continued to push the need for a transition from a traditional selling mentality to a consultative one.

How to Shift from Traditional to Consultative Selling

21st Century Selling requires a unique mixture of skills. On one hand, a salesperson must exhibit a relative sense of urgency while, on the other hand, display a certain degree of patience. Immediate follow-up and a need to addressing your prospect’s specific needs should be combined with a willingness to move at a speed your prospect is comfortable with.

The most blatant example of a traditional selling mentality belongs to the much clichéd “used-car (now called pre-owned) salesman.” However, less extreme examples of the negative traits of traditional selling are exhibited in other ways, as well.

Sales people, who engage in excessive small talk, demean their competition or simply “pitch” their offering with scores of features-per-minute all exhibit traditional traits that will drive today’s highly-demanding prospects away.


The traditional sales role should be eliminated. Today’s sales professionals must become trusted advisors filling a consultant’s role regardless of their product or service. They can no longer “pitch” their product. Instead, they must:
  • Ask questions.
  • Listen to answers.
  • Provide sound recommendations and advice.

Sometimes, that may mean facing the difficult reality that their solution isn’t the right one for every person who is in front of them. They may also have to determine whether the prospect is the right one, long-term, for their organization.

Consultative Selling Requires Sales Professionals to Focus Every Ounce of Attention on the Needs and Wants Their Customers

Today, in order to advise a prospect appropriately about the implementation or use of your products or services, you must provide objective information about how to make a buying decision for the product or service. And it must appropriately meet the prospect’s needs and wants.

Only after identifying the prospect’s needs and wants can a consultative salesperson discuss the product or service and its application to the client.

How to Implement Change

Training a traditionally-minded sales team how to be consultative is no easy task. Part of the problem rests squarely on the shoulders of the sales management team. According to a survey released in Sales and Marketing Management Magazine and conducted by Equation Research, 65% of sales managers say they focus on building volume rather than finding more profitable customers. 63% say they neglected personal skills development. Both of those statistics reveal startling tendencies toward traditional sales techniques rather than consultative sales strategies.

In order to see maximum return on your bottom line, adequate sales training, evaluation, and compensation must also accompany structural changes to your sales force. In other words, a unilateral decision to transition from traditional to consultative selling will fail.

Remember, training is only one component of a successful transition. The most positive effect will come when training is coupled with follow-up and reinforcement components that extend beyond the classroom and into the field. Too often, sales-driven organizations believe that an annual sales conference and (supposedly) weekly sales meetings will be sufficient to upgrade the knowledge and skills of salespeople. While those are important pieces they do not, by themselves, complete the puzzle.

Will Brooks helps clients make the most intelligent investments in sales and sales management hiring, training and coaching. Now, you can gain more insight into contemporary selling strategies that helped 99% of The Brooks Group’s training participants see increased sales volume. Download Will’s free special report, 21 Biggest Myths In Sales at http://www.BrooksGroup.com/SalesMyths & discover how professional selling has changed and what you need to do!

Published March 2008 Networking Today


Friday, June 1, 2007

Is Your Value Proposition Strong Enough?

By Jill Konrath


A few weeks ago, I sent out a newsletter announcing my new Web site "Selling to Big Companies." The next day I received an e-mail from a subscriber that said, "You did a good piece of selling in the e-mail. I read all the way to the bottom, and I had NO intention of doing so when I glanced at it. You must know your stuff!"

While I enjoyed the compliment, what really surprised me was that it was from a professor in the Pharmacy Sciences Department of Midwestern University. Why was a Ph.D. reading a newsletter on selling? It wasn't logical.

So being the curious (or nosy) person that I am, I e-mailed and asked him. Turns out that he and a colleague were starting a consulting practice. When they told me about it, I was floored because they have one of the best "value propositions" I've heard in a long time! But before I tell you what it is, let me define what that term means.

A value proposition is a clear statement of the tangible results a customer gets from using your products or services. The more specific your value proposition is, the better. Most people and companies have lousy value propositions. They're weak – and I mean really weak. Often they're simply a description of features or capabilities. Or they're filled with self-aggrandizing puffery.

Here are a few examples of weak value propositions:

· It's the most technologically advanced and robust system on the market.

· We improve communication and morale.

· We offer training classes in a wide variety of areas. My product was rated the best in class by leading authorities.

You're probably saying, "So what?" That's exactly what most customers think when you share a weak value proposition. They've heard lines like that a zillion times before and don't believe you one little bit. Besides, you haven't shared what's in it for them-and that's all customers care about.

With today's tight economy and overburdened decision makers, you need to have a strong value proposition to break through the clutter and get their attention. That means you need a financially oriented value proposition that speaks to critical issues they're facing. And, by including specific numbers or percentages, you get the decision maker's attention even faster.

Now back to the two professors. In researching various pharmacy benefit managers (the companies behind your prescription drug card), they found that some firms offer much better deals than others.

One of their clients switched to a plan they recommended and saved $800,000 in the first six months, without reducing services to their employees.

Now that's a REALLY STRONG value proposition. I can't imagine any Chief Financial Officer turning down an appointment with the two professors after hearing those figures.

Let me give you another example: A while back I was having lunch with the president of a half-billion dollar division of a major corporation. She told me that if someone called her and said he could reduce her waste by just one percent, she'd meet with him immediately.

Now a one percent savings seemed miniscule to me, so I asked her why. She told me that she knew exactly how much her company spent on waste – and it was a big chunk of change. Every penny she saved would go right to her bottom line as additional profit. Strong value propositions deliver tangible results like...

· Increased revenues

· Faster time to market

· Decreased costs

· Improved operational efficiency

· Increased market share

· Decreased employee turnover

· Improved customer retention levels

Documented success stories make prospective buyers believe in you. That's why the two professors have such a compelling value proposition.

So how does your value proposition look? Can you describe what you do in terms of tangible business results? Do you have documented success stories? Or do you need to do some work to enhance your value proposition?

If it's not strong enough yet, don't despair. Most people, and companies, too, have a much stronger value proposition than the one they use. They just get caught up describing "what" they make or "how" they do things.

Here are several things you can do right now to enhance your value proposition:

1. Brainstorm with your colleagues:

2. Review your marketing material and what you say to customers to get their attention. If you're not talking tangible results, keep asking each other "So what?"

So what if it's an efficient system? So what if we have a replicable process? So what if it's high quality? By asking this question over and over again, you'll get much closer to the real value you bring to customers. If you're a sole proprietor, do this exercise with a group of small business owners.

3. Talk to your customers: To find out what value you bring, your existing customers are your best resource. Tell your customers you need help understanding the real value of your offering, and you'd like their feedback.

Most people are afraid to ask their customers for feedback. It took me awhile to take this step, but what I learned was a real eye-opener. Not only did it change my value proposition, but it also changed my offerings and self-perception.

Don't let another day go by with a weak value proposition. A strong one literally opens the doors of major corporations, while a weak one keeps you on the outside.


Jill Konrath, President of Selling to Big Companies and Leapfrog-Strategies Inc., helps sellers create value, differentiation, and demand in competitive markets. For info on speaking, training or consulting services, please call: 651-429-1922 or email: mailto:jill@sellingtobigcompanies.com

Published in Networking Today, June 2007