Read any book, article or blog about sales and you’ll probably come across some reference to the need for the sales person to provide value to the customer. But the real question should be “how can a sales person make their value more visible to the customer?”
Sales people who differentiate their value succeed
Most sales people work for a company where they have developed solutions which can add value to the customer’s business. The challenge is to persuade the customer that the value that one company (or sales person) provides is greater than the value presented by their competition. In many cases it is not the ‘best company’ or ‘best solution’ that wins the sale but rather the sales person who was able to make their value more visible to the customer. You’ll often hear people say that company 'A' was simply “out-sold” by company 'B'. What they really mean is that the sales person in company 'B' did a better job of making their differentiated value more visible to the customer.
How sales people make value visible
It’s no use having the best solution for the customer if you can’t make that value visible. So how can sales people make value visible? The starting point has to be to focus on the customer first, not on your product or service. This may appear counter-intuitive but the problem is that most sales people think that the value proposition is all about themselves and their product. It’s not; the value proposition
should be all about the customer and what your product or solution can do for the customer. Therefore, the sales person who can articulate the value that their solution can provide to the customer is more likely to win the deal.
Understand the value the customer is looking for
In complex sales scenarios (where there is more than one person involved in making the buying decision) this is even more important. This is because the sales person has to determine what type of value each individual member of the customer’s buying team is looking for, and then make that value visible to them personally. If they succeed in doing this they are more likely to win the support of all involved.
For example, let’s say that one sales person believes that part of their value proposition is that they are the market leader in their space. What does that mean to the customer? What is the value to the customer of this vendor being the market leader? The answer depends on who the sales person is addressing in the customer: for the CFO, or financial buyer, it might mean financial stability, the fact that the company is likely to be here for the long-term. For someone in marketing perhaps it has to do with brand and market perception. They want to be seen to business with a successful company. For someone in the implementation team perhaps it has more to do with experience and having a trusted, tried and tested solution. For others it might represent the potential economic value of being able to buy a solution at a fair price because the vendor has better economies of scale.
Sales people tell customers engaging stories to articulate their value
The key task for any sales person is to determine what their differentiating value is, and to find a way to make it more visible to the customer. One of the most effective ways of doing that is for the sales person to have a story to back-up any claim or value proposition. People remember stories. They re-tell stories. Customers are far more likely to remember a story which provides a good example of the value that the vendor provides. Good stories, customer success stories, references and market innovations help the customer to see and appreciate the real value that the vendor can bring to them. People will buy from sales people they trust – and sales people who are able to bring their value to life, to make their value visible by telling meaningful success stories.
If listening is important to developing a consultative selling style, the ability to ask good questions is just as critical. Asking the right sales questions will help to build the customer relationship and advance the sales process. This involves trying to understand what the customer is thinking so that we know how to respond to them and offer them the best solutions to address their concerns. We do this by asking them the right consultative questions to determine:
an understanding of each other
their personal perception
Whether they have a different view
What they think is the most important issue
What their underlying concerns are
The answers to these fairly simple questions helps the sales person to focus their value proposition on things that are important to the customer. The type of insightful questions that the sales person asks conveys a great deal to the customer about the value they can provide, but how?
How to ask the right sales questions
If you think about the news for example, a news reporter demonstrates their experience, their knowledge and their understanding of a situation by asking the right sort of questions to a politician. Similarly, a sales manager can show how much they know about the business by asking insightful questions of a salesperson about where they are in the sales cycle, or the buying cycle. You might have experienced this yourself, where the sales manager can convey a lot about their knowledge, not by telling you, but by asking pertinent questions - and it's the same for the customer - when they see a salesperson who asks insightful questions it shows more than anything else that they understand, and that they know what's happening.
Different types of consultative questions
These are the five consultative questioning types all of which can provide you a great deal of information:
Business value questions
When we talk about consultative selling we are constantly stressing the importance of developing trust to help build a successful business relationship. Think about it for a minute, who would you prefer to buy from, someone who puts your back up and makes you feel uncomfortable or someone you like and respect? Trusting people is the key to any successful relationship and it should be the consultative sales person’s continual focus throughout the entire sales cycle. ‘How to develop successful sales relationships’.
The relationship test
There are three basic tests to a relationship with someone, which your customers almost certainly consider when they start to get to know you:
Do you trust them? - Trust is the most important. If you can’t trust the other person, you have no relationship or partnership.
Do you like them? – 'Can I get along with this person?' 'Do I want to work with them?'
Can they do the job? - 'Can they provide the service?' Your customer often has many choices as to who can provide the service they are seeking. Have you ever wondered why a customer has bought an inferior product or service from another supplier? It’s because they trusted the person who sold it to them.
People buy from people
The reason that trust is so important is “people buy from people” and “they buy from people they trust and like it” - ‘people do business with people’. To illustrate this point let’s look at the example of Mark McCormack, founder of a company called IMG and well known from his book “What they don't teach you at Harvard Business School”. McCormack built the largest sports marketing company in the world - he developed sponsorships for golfers, tennis players, racing drivers and was once considered the most powerful man in sport. He was renowned for having built most of his successful relationships with the world’s greatest sports people, on the basis of a handshake! McCormack said: “it's a basic fact that all things being equal, people prefer to buy from friends, it is also true that when all things are not equal people still prefer to buy from friends!”
How to build trust with the customer
So what can you do to develop trust with your customers and successfully build your relationship with them?
Focus on the customer first. Think about the customer's customer and show that you really care about their success.
Demonstrate your experience, your knowledge and your expertise all of which will add value. People will then start to trust the information that you give them.
Deliver what you promise. It sounds simple but you would be surprised how few sales people simply follow the basics.
Be reliable and trustworthy. Become known to the customer for being reliable and trustworthy. This means simple things, like returning calls on time; sending follow-up information if you promise to do that. It means maintaining confidences. More than anything else it simply means "if you say you're going to do something, do it"
Consultative selling is about building a trusted partnership with the customer and call preparation is the first step in this process. A good starting point is an analysis of the company’s market position and an internal analysis of what is happening within the company itself. (See ‘Consultative Selling: why bother to prepare for the sales call?’ )The second component is analyzing the customer’s business. An effective way to achieve this is by looking at the customer’s business from the perspective of an investor; making an investor recommendation based on a personal analysis of the customer.
Analyzing the customer as a prospective investor
Determine business strengths and challenges
This involves interpreting information from contacts and discussions with members of your team and the customer’s team to determine the strength of the customer’s company and the challenges it faces.
Customer first, focus on them as a business
Many sales people are so focused on what they have to sell that they don’t take the time to understand what the customer wants. A consultative sale’s person turns that thinking around, they think customer first, what are the customer’s needs and goals; thinking about the customer as a complete entity, not just the department or specialist area that their solution might address.
Imagine you could buy stock in the company
Once you have a clear understanding of the customer’s business strengths and challenges and what their goals are, you are then better placed to think about the scenario that the customer’s company has stock listed on the stock market (even if they don’t) or that they are about to launch themselves on the stock market. What recommendation would you make to a potential investor? To do this you would need to provide an analysis of their business.
Components of the analysis
What the analysis would need to include
- An organizational overview - to clarify the customers’ goals and objectives. How well they doing against their own plan, are they achieving the objectives they set for themselves; if not, why not? If so, what will they want to do next?
- A comparison to their competition. Remembering that a company might be growing but if their market is growing at a faster rate, they are actually losing market share to their competitors.
- Consider what they do well - and what they might need to improve.
- Search for the organization chart or try to build this up from your knowledge and conversations with people. Try to identify key members of the senior management team, who might ultimately be those to have the most influence on your own success with this company.
- Now you are well prepared to be able make your analyst recommendation, but before you do step back and think ‘what is this business really all about?’ ‘If I was to make a recommendation, would I suggest that people hold, buy or sell stock in the company?’ Try to explain to yourself why you reached that conclusion.
How can a business analysis help the customer?