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How to do value-based selling that generates better prospects and higher revenue by helping buyers visualize

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How to sell products and services based on value by qualifying leads and guiding buyer conversations using questions that help buyers visualize the usage and value of your offering in accomplishing their goals.

Presented at the Stockholm Value-Pricing Meetup on Nov 1, 2016. www.sthlmvp.com

Published in: Business

How to do value-based selling that generates better prospects and higher revenue by helping buyers visualize

  1. 1. VALUE-BASED SELLING Jakob Persson Leancept www.leancept.com
  2. 2. What selling is Qualifying prospects Leading conversations Following up Writing quotes
  3. 3. What is selling?
  4. 4. Post-it time!
  5. 5. Selling is:
  6. 6. Buying is:
  7. 7. Conclusion?
  8. 8. 1 out of 9 work in sales or marketing
  9. 9. But the remaining 8 out of 9 spend 40% of their !me on the job moving others Persuade Cajole Convince InfluenceSway Hook Assure Coax Entice Induce Convert Urge
  10. 10. “The ability to move others to exchange what they have for what we have is crucial to our survival and our happiness. It has helped our species evolve, lifted our living standards, and enhanced our daily lives.” Daniel Pink in “To Sell is Human”
  11. 11. One of the most effective ways of moving others is to uncover challenges they may not know they have
  12. 12. “The first time we met I didn’t have any problems. Now I can’t sleep at night” Told to a salesperson by a customer
  13. 13. If the person you’re selling to agrees to buy, will his or her life improve? When your interaction is over, will the world be a better place than when you began
  14. 14. Qualifying prospects
  15. 15. You can’t sell to everyone, even if you wanted to.
  16. 16. Lead Prospect Deal “I know someone who might be interested in your product” DONE DEAL Long and winding road
  17. 17. A prospect is a qualified lead
  18. 18. A qualified lead has admitted a problem or expressed a goal
  19. 19. Cobb Value Curve “Nuclear event” Hired for experience Brand name services Commodity products/ services Price insensitive Price sensitive HIGH LOW RELATIVE
 VALUE ADDED VOLUME OF WORK AVAILABLE 0% 20% 40% www.cobb-consulting.com
  20. 20. Cobb Value Curve “Nuclear event” Hired for experience Brand name services Commodity products/ services Price insensitive Price sensitive HIGH LOW RELATIVE
 VALUE ADDED VOLUME OF WORK AVAILABLE 0% 20% 40% 4% Needs to be taken care of immediately. Price is of little concern. www.cobb-consulting.com
  21. 21. Cobb Value Curve “Nuclear event” Hired for experience Brand name services Commodity products/ services Price insensitive Price sensitive HIGH LOW RELATIVE
 VALUE ADDED VOLUME OF WORK AVAILABLE 0% 20% 40% 4% Needs to be taken care of immediately. Price is of little concern. 16% High risk or impact. Chooses the company perceived as best able to handle the matter effectively. www.cobb-consulting.com
  22. 22. Cobb Value Curve “Nuclear event” Hired for experience Brand name services Commodity products/ services Price insensitive Price sensitive HIGH LOW RELATIVE
 VALUE ADDED VOLUME OF WORK AVAILABLE 0% 20% 40% 4% Needs to be taken care of immediately. Price is of little concern. 16% High risk or impact. Chooses the company perceived as best able to handle the matter effectively. 20% Important routine work, tends to go to those with well-established reputations in a particular area. www.cobb-consulting.com
  23. 23. Cobb Value Curve “Nuclear event” Hired for experience Brand name services Commodity products/ services Price insensitive Price sensitive HIGH LOW RELATIVE
 VALUE ADDED VOLUME OF WORK AVAILABLE 0% 20% 40% 4% Needs to be taken care of immediately. Price is of little concern. 16% High risk or impact. Chooses the company perceived as best able to handle the matter effectively. 20% Important routine work, tends to go to those with well-established reputations in a particular area. www.cobb-consulting.com 60% “Grunt work” that doesn’t require special qualifications and can be provided by any company.
  24. 24. Cobb Value Curve “Nuclear event” Hired for experience Brand name services Commodity products/ services Price insensitive Price sensitive HIGH LOW RELATIVE
 VALUE ADDED VOLUME OF WORK AVAILABLE 0% 20% 40% 4% Needs to be taken care of immediately. Price is of little concern. 16% High risk or impact. Chooses the company perceived as best able to handle the matter effectively. 20% Important routine work, tends to go to those with well-established reputations in a particular area. www.cobb-consulting.com 60% “Grunt work” that doesn’t require special qualifications and can be provided by any company. 20% of the market is price insensitive
  25. 25. “We’d like to reach 20% higher revenue in this market over the next six months” “We were thinking of kinda doing some e- commerce. You do that, right?” Lead A Lead B
  26. 26. Your job
 
 Helping the buyer achieve goals, solve problems or satisfy needs. If you can’t, walk.
  27. 27. What you need to know to qualify your leads.
  28. 28. The buyer’s role, title and vertical industry Jane Doe VP Sales +098 765 43 21 jane@generic.co GenericCo.
  29. 29. The buyer has shared a business goal or problem
  30. 30. You can solve the problem and the buyer knows it
  31. 31. OK! Your turn!
  32. 32. Was it hard? Easy? Conclusions?
  33. 33. Leading conversations
  34. 34. A salesperson is a buying facilitator leading the buyer with questions that are biased towards the seller's offering
  35. 35. Patience.
  36. 36. ‘‘It’s about leading with my ears instead of my mouth,” Ferlazzo says. ‘‘It means trying to elicit from people what their goals are for themselves and having the flexibility to frame what we do in that context.” Daniel Pink in “To Sell is Human”
  37. 37. Great sellers empower buyers The buyer wants to feel in control
  38. 38. A “no” is a no. “Overcoming objections” isn’t a valid excuse.
  39. 39. Who here enjoys shopping? Raise hands.
  40. 40. “I love buying but I hate being sold to.”
  41. 41. Demonstrate value before discussing price
  42. 42. Is your service or product perceived as a commodity? Sales experience is even more important.
  43. 43. Dress the part
  44. 44. Endless lists of features
  45. 45. Discussing features prematurely is a bad idea Opens the door for objections. “Looks too complicated. We don’t need X!” Leads to premature discussion of price. “So how much would we pay if we want X and Y?”
  46. 46. If you want to demo something, make a special appointment.
  47. 47. Ask questions that are open, framing or confirming. Be patient. Listen actively (and take notes if needed). Three rules
  48. 48. Help the buyer visualize your product being used to solve a problem, achieve a goal or satisfy a need
  49. 49. Telling is selling Asking is consulting
  50. 50. Before meeting Learn about the buyer’s company Learn about their competitors Learn about current challenges in their vertical industry
  51. 51. 2. CONFIRM AND PRESCRIBE Visualize and confirm usage of product to solve the problem. Provide information about price. Agree on terms and schedule. 1. ANALYZE AND DIAGNOSE Have the customer admit to a problem. Break down feature requests using 5 WHY’s. Ask questions to diagnose the problem and help the buyer arrive at a solution. Two steps
  52. 52. CLOSED With better Y would your X lead to better results? Helps create a vision. FRAMING How do you do X today? Uncovers the current situation and problems. OPEN What do you hope to accomplish? Used to uncover goals and open a conversation. Asking questions
  53. 53. “So if I've understood you correctly you'd like to accomplish X but Y prevents you why Z would be a big help?” Confirm
  54. 54. OK! Your turn!
  55. 55. You are selling Video-conferencing products
  56. 56. Your buyer is A business law firm
  57. 57. How did it go? Challenging? Do you see yourself using it?
  58. 58. Following up
  59. 59. Write a summary letter to help them pave the way.
  60. 60. Goals Current situation Visions Value Access to key players
  61. 61. Dear Sandra, Thank you for your interest in ABC. This is a summary of what we discussed. I understand that your primary goal is increase the amount of donations received through web and social media. [ paraphrase of how the buyer described the cause of the problem and how much it’s worth to them ] [ list what the buyer said would help increase the amount of donations ] [ list of usage scenarios with your product or service ] [ suggest next steps ] I will call you on Thursday, Nov 22 at 09.00 to review this summary and discuss next steps. If that is not convenient, please let me know. I look forward to working with you, John Doe Sales ABC
  62. 62. Follow up the letter and make sure you got it right.
  63. 63. The letter accurately summarizes the conversation The buyer is willing and able to provide access to the requested key people Talking to these people is meaningful and can lead to more evaluation or close Confirm
  64. 64. Writing quotes
  65. 65. RFP’s are almost always a waste of time
  66. 66. Reasons for RFP Legal requirements such as the public procurement process The buyer already has a seller in mind Buyer company policy
  67. 67. The true price of RFP’s Only 5% of RFP’s are won
  68. 68. 60 hours per RFP ÷ 5% chance of success ———————— 1,200 hours of sales work per won RFP Math class
  69. 69. Do not respond to an RFP unless the buyer provides access to a key player
  70. 70. We have the information we need to build the quote
  71. 71. The buyer has one or several goals The buyer can visualize achieving the goals using your offering You understand the buyer’s current situation The buyer can influence and provide a budget There’s a plan for how your offering will be delivered.
  72. 72. Your cheat sheet Shoots beams. Faster than puny “Enterprise” Onboard bur r joint. Awesome dresscode! Trash compactors! Overpopulation. Too many Jedi. Sunsets. Happiness. Wants a cleaner galaxy. Annihilation :) Using planet destroyer beam to blow stuff up! Death Star!
  73. 73. Linking features to goals Feature Advantage Benefit Goal Mobile-friendly responsive website Better search engine ranking and user experience for all users More customers can use the website which generates more leads and sales Increase sales generated through website Blog with content that matters to customers Reach your audience with content they need and want Improved perception, sense of authority, more pricing power Increase profit by being able to raise prices Visually appealing gallery featuring previous projects Offer proof of quality of previous work and communicate professionalism Helps more customers understand that you’re a good choice Take market shares from competitors
  74. 74. Keep it simple Max 10 pages
  75. 75. Make it visually appealing Hire a designer if you need
  76. 76. Make it visually appealing Hire a designer if you need
  77. 77. General terms Legal fine print Pg. 8 Company information and contact details Photo, name, email Pg. 7 Cases and references A visual overview Pg. 6 Project plan Rough plan with dates Pg. 5 Customer success plan Table with plans and options Pg. 4 Optioned pricing Table with price options Pg. 3 Feature - Advantage - Benefit Summary benefit FAB table Pg. 2 Executive summary Value proposition Summary Bullets with benefits Pg. 1 Buyer name Buyer company name Date and valid thru date Whether it’s a quote or a tender, Your name Your company name Your contact details Cover
  78. 78. General terms Legal fine print Pg. 8 Company information and contact details Photo, name, email Pg. 7 Cases and references A visual overview Pg. 6 Project plan Rough plan with dates Pg. 5 Customer success plan Table with plans and options Pg. 4 Optioned pricing Table with price options Pg. 3 Feature - Advantage - Benefit Summary benefit FAB table Pg. 2 Executive summary Value proposition Summary Bullets with benefits Pg. 1
  79. 79. General terms Legal fine print Pg. 8 Company information and contact details Photo, name, email Pg. 7 Cases and references A visual overview Pg. 6 Project plan Rough plan with dates Pg. 5 Customer success plan Table with plans and options Pg. 4 Optioned pricing Table with price options Pg. 3 Feature - Advantage - Benefit Summary benefit FAB table Pg. 2
  80. 80. General terms Legal fine print Pg. 8 Company information and contact details Photo, name, email Pg. 7 Cases and references A visual overview Pg. 6 Project plan Rough plan with dates Pg. 5 Customer success plan Table with plans and options Pg. 4 Optioned pricing Table with price options Pg. 3
  81. 81. General terms Legal fine print Pg. 8 Company information and contact details Photo, name, email Pg. 7 Cases and references A visual overview Pg. 6 Project plan Rough plan with dates Pg. 5 Customer success plan Table with plans and options Pg. 4
  82. 82. General terms Legal fine print Pg. 8 Company information and contact details Photo, name, email Pg. 7 Cases and references A visual overview Pg. 6 Project plan Rough plan with dates Pg. 5
  83. 83. General terms Legal fine print Pg. 8 Company information and contact details Photo, name, email Pg. 7 Cases and references A visual overview Pg. 6
  84. 84. General terms Legal fine print Pg. 8 Company information and contact details Photo, name, email Pg. 7
  85. 85. General terms Legal fine print Pg. 8
  86. 86. Reading Buy Buy Buy
  87. 87. Twitter: @leancept Want to learn more? Subscribe to our newsletter: www.leancept.com Value-pricing consultants

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