Great salespeople know the difference between transactional and consultative sales; they understand where they can create value and they focus there. The prerequisite for value creation is that the sales force must be able to create value independent of the product/service they sell.
‘Value’ Remains Most Significant Sales Challenge
Sales still remains challenged to add value during the sales process, and prove the value of proposed solutions to ever more empowered, sceptical and frugal executives, this according to a significant study by Blue-Sky, a UK sales performance consultancy.
The new independent survey of 212 sales executives worldwide, sought to identify the biggest sales challenges and priorities facing Fortune 1000 firms worldwide,
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Develop a ‘value calculator’ tool to document actual value created;
2. Build a financial case (ROI) for the decision maker;
3. Use a ‘lifetime cost of ownership’ sales strategy;
How to sell on “Low Risk”
Risk is the potential cost to the individual customer if he/she makes a mistake. It’s not just the money, although that is part of it. It is also the social, psychological and emotional cost that your customer will pay if their choice isn’t the best one. The lower the risk of the decision, the more likely your customer will say ‘yes’ to you – regardless of the price. Let’s become comfortable with this concept of risk.
In order to really understand risk, you must first see this issue from your customers’ perspective. Try to put yourself in their shoes, and calculate the amount of risk that you expect your customers to take when you offer them an opportunity to say ‘yes’ to
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4 strategies to reduce risk and build value
1. Build solid, deep relationships with the key decision-makers.
Relationships reduce risk. The greater the relationship, the lower the perceived risk. That’s why the salesman with the longer relationship almost always has the benefit of the doubt in a competitive situation. It’s not the price – it’s the risk and the value.
2. Make ample use of third party recommendations, customer lists, case studies and testimonials.
All of these say to the customer that someone else, or lots of other people, have used the product or service. That means its less risk and high value for your customer to buy it.
3. Try to get your customer as physically involved with the product as possible.
For example, if you’re selling a piece of equipment, try to get the customer to trial the equipment, or at least visit somewhere its being used. The more your customer can see and feel the actual thing, the less risk it is to them.
4. Finally, work with your company to create offers that reduce the risk.
Trial periods, money-back guarantees, delayed billing, warranties, service desks all of these reduce your customer perception of risk. The winners in the competitive selling arena of the Information Age are those who are the low risk providers, and high value not the low price
What our company needs is an increase in customer lifetime value. We can do this by building long term relationships, creating strong brand loyalty, using the right incentives to attract new clients and incentivizing current customers to retain them and offering superior customer service. To build strong term relationships the company has to stop thinking short term, but focus on long term lasting customer relationships. We have to be honest; although our main job is to sell we should not treat our customer as pay cheques.
111). The main reason why this is one of my favorite aspects of this book is that it encourages “reasonable down-selling” (Spoelestra, 1997, p. 112). I think that too often salespeople try to only upsell customers, and that can end in a bad experience for the customer, or not sale for the organization at all. I believe that if all salespeople abide by this rule, then organizations will be more successful, as customers will actually be purchasing something they actually want and will enjoy, which increases the chance that they will be a repeat
Risks are a possibility of loss or injury; all humans at least once in their lifetime have to do something risky. If life has no risks, you’re not really living it, since we humans do not grow as a species (or society) if there is no challenge in life. People in this world must have challenge and struggle to overcome an obstacle in their life to discover the real world. This way a person will grow physically and most importantly, mentally, to never do something adventurous or take the easy way out is on them. Krakauer, Emerson and Thoreau all have their own ideas on risk, but they all have in common is that risk can change a person for the good or bad.
The utility of this philosophy is clear only demand exceeds offer. Its greatest draw back is that it 's not forever necessary that the client on every occasion purchases the cheap and simply on the market product or services. 2. Product
Discounting our products may seem antithetical to increasing sales, but even offering a slight discount can make your products and services more attractive to a client. 3) Use Social Media to Your
Customers worry that the products would not perform like they want the products to (Lurie, 2004). The customer may have confidence with trying new products with a money back guarantee. If Ron could provide a guarantee the customer would be more prompt to try Mid-Town products. The customer may be overwhelmed by all the products Mid-Town can supply (Chang & Chen, 2009). Customers may be concerned the products may not be customized for their company (Chang & Chen, 2009).
Being an active listener allows the salesperson to know their customer’s point of view, and attend to the needs and wants of their customer. The third part of the book consists of twelve principles to win people to your way of thinking. A principle in particular that I intend to apply more often in life and in the workplace is being sympathetic with other person’s ideas and desires. Too often I ignore or disregard others opinions or ideas, when I should encourage them and see things from their point of view. According to Carnegie, to be successful in life and in my career, I need to show more respect for others
Name: Professor: Class: Date: How Value Based Healthcare Blends Strategic Planning, Healthcare Marketing and Quality and Strategy in Health Care Marketing Value Based Healthcare The concept of value-based healthcare refers to the restructuring of the various global healthcare systems with the fundamental goal of fostering increased value for the patients (Moriates, Arora, & Shah 5).
Discussion: Sales are the most dominating factor for any organization. In any circumstances, sales will always
4.4 Pricing Strategy For a number of reasons, price is one of the most important aspects of an effective marketing strategy (Gerstein & Friedman, 2015). First, price is the only marketing variable that generates revenue. Second, buyers see price as an attribute of value (Tanner & Raymond, n.d.). Consequently, an organization must carefully assess its internal and external environment to choose the most effective pricing objective, which—in turn—will drive a product’s initial pricing strategy.
Salespeople create value for their firms’ customers by advocating and communicating the customers’ needs, desires, concerns, and preferences back to the company and find solutions (Tanner and Raymond, 2010). Also, since the salespeople are experts in regards to their products, they can best advise the customer as to which product is the best fit for them or adapt offerings to fit. In this way, salespeople create value that would not have
This is the comparison of the benefits offered by a company's product to its customers relative to the price it asks customers to pay. To do this, companies can influence the value proposition in one of two ways mainly. This can be done through long term brand building. They can also offer a relatively low cost to enhance value. Ultimately, the key is that customers perceive that the product's merits exceedingly justify its price.
When the value a customer receives from a product is greater than that of another then they are more inclined to stick with that
A customer refers to anyone who purchases and utilizes a company's products and services. Customers can be an immense concern for some companies due to customers changing their minds frequently along with other factors. Companies must understand the needs of its consumers
Pizza Hut was established by Dan and Frank Carney in Wichita, Kansas, USA in the year 1958. Pizza Hut Inc. is one of the prevalent pizza companies worldwide. It was a subsidiary of Pepsi Co Inc. from the year 1977 – 1997. It is a wholly owned subsidiary of YUM! Brands since 1997 to present.