Salespeople are often told to “Sell Value.” This is brilliant advice, but why?
In my newest book, Selling Value: How to Win More Deals at Higher Prices, I detail 4 big benefits to companies and salespeople if they could learn to communicate value to a buyer in a way that increases that buyer’s perceived value.
Higher Close Rates: All else being equal, the salesperson who can talk to the buyer about the value they should expect has a higher probability of winning the deal. Buyers don’t know how to make a decision and will listen to ideas from many people. But they will trust the ones that can demonstrate they care about that buyer’s outcomes.
Higher ASPs: Buyers trade money for value. The more they value your product, the more they are willing to pay. This means when a salesperson is able to convince a buyer they will get more value than they originally thought, the buyer is more likely to buy and should be willing to pay more. Salespeople should be building up the buyer’s perception of value.
Shorter Sales Cycle Times: Buyers often don’t purchase quickly because they are afraid of making a mistake. They are in analysis paralysis. If only they were confident they were making a good decision. Salespeople who demonstrate the value of the decision help buyers out of their paralysis. When buyers are certain, they will make a decision.
See More Deals: Face it, salespeople waste time chasing deals with a very low probability of closing. They are like a dog with a bone. Once they understand value the way buyers do, salespeople will be able to recognize which buyers will get a lot of value, meaning they are more likely to buy, and which buyers do not get much value. The buyers who will get little value should be avoided.
If selling value is so powerful, then why don’t salespeople do it more? Because they don’t understand what value means to their buyers. This is a topic we will cover in later blogs (and the new book.)