Value selling vs. benefit selling – is there a difference between value selling and benefit selling, or are they the same thing? Someone asked me that last week, and I thought it would make a great topic to share with you.
Many sales people think it is giving someone the most they can give a customer – more services, or benefits, more products … for the least amount of money.
Actually, it’s showing your prospect the impact your products or services will have for them or their business, compared to how much it will cost them. Even going so far as to showing them how much it can cost them to not use your product or service.
Telling prospects the benefits of using your product or services, and how it will help them.
So, to answer the question of value selling vs. benefit selling, is there a difference? – you can use the benefits to help create the value, but you first have to know and understand your prospects’ goals before you just start presenting benefits.
Your products or services may have some great benefits that your prospect could care less about! They want to know how what you are offering fits into their ideas and goals. And every prospect is different.
Now that you know what value selling is, I’m going to share with you
8 tips on how to sell based on value vs selling based on price.
1. Ask questions to find out what is important to them.
Don’t just assume that what would be important to you will be important to them, because it may not be important to them. So find out what’s important to them and give it to them.
Take your time, have a conversation with your prospect. Let them talk and you listen. Are they looking for something to save them time, increase their productivity levels? Find out their needs and fit your product or Services into their goals. Use their words and terminology.
2. Talk about what you know to show your expertise to earn your prospects trust, not to show off how smart you are.
Keep it simple and meet them where they are. And ask them their experience with other companies like yours. What did they like? Where did the other salesperson fail them, and how?
3. Use stories and testimonials from your happy customers to help overcome their fears about making the wrong decision.
4. Be an educator – earn their trust and help solve their problems.
5. Highlight the benefits of your products or services.
This is where you show them how the benefits work, once you have learned about them, Then highlight the benefits of your product or services. Use the benefits that you have learned that would be important to your prospect.
If you know your competitors, and you should, you can explain to your prospects the things that your product or service will do – that your competitors’ will not do, without even mentioning the competitors name or bad-mouthing them.
Use your competitors inadequacies to show the superiority of what you are offering.
If and when your prospect talks to your competitor again, they will ask if they can do what you promised you can do, which of course you already know, they can’t.
Your prospects will notice this difference and it will be important to them.
I always like when my prospects talk to me after they have met with my competitor first. For one, if they are now talking to me, there’s a reason they did not buy from my competitor. I just have to find out what that reason is. Maybe the competitor was missing an important thing the prospect needed, or maybe they just didn’t trust them.
When I can determine the reason and give them what they want and earn their trust, price may not even become an issue.
You can see why it is so important to find out what is important to your prospect. Take the time and have a conversation and listen.
Have I said that before? Yes, and I am sure I will say it again.
You can use stories here about how buying your product or service tremendously helped someone else. You can talk about how much money it’s saved them, or how and help them stand out from their competitors. Show your prospect how you can help them achieve their goals.
Unless you have asked the right questions and taken the time to listen, how will you even know what their goals are?
Buyers make decision based on emotions, and justify their decisions with facts.
If you geek out about stuff like that, here is an article by Gerald Zaltman, a Harvard Business Professor that you might like.
7. Add a bit of humor.
Ask the prospect what their savings would be by not buying what you are offering. They will probably laugh and repeat the dollar amount of your offer. For example, “Well, I’ll save $5,000!”. You can laugh with them and then say, “Seriously, how much more will it cost you in time, productivity (whatever they say was important to them) to not make this decision?”
Get them to think about the cost of their indecision.
How could we have a conversation about value without talking about — discounts? Include your prospects in “earning” their discounts.
For example, are they part of an affiliate program that company you offer a discount to?
Are they buying in quantity where they can “earn” a discount by buying more?
Do you have a referral program where you can offer your prospect a discount if they give you a referral?
Find creative ways for your prospects to participate in the amount of their discount.
Remember, value selling vs. benefit selling, is there a difference? – you can use benefits to help create the value, but you first have to know and understand your prospects’ goals so that you will show them only the benefits that will serve them.
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