Why You Need Value Based Selling NOW!

It’s a sad fact that today’s average B2B sales person is still far more comfortable talking about their products than they are discussing business issues or customers’ problems. However the average B2B buyer regards a sales person’s relevant business knowledge and the understanding of his business problem as being far more valuable than their ability to regurgitate product features, functions and benefits.

This terrible mismatch has profound consequences - on average 87% of the revenues in complex B2B sales environments are being generated by just 13% of the sales population. So what these best-in-class sales organizations do differently ?

Very simply put they have mastered the technique to systematically create unique value to their customers through the disciplined application of value-based selling across their entire sales and marketing organisation. And the results can be seen in top line revenue growth that far exceeds market averages.

Value based selling is delivering value to a customer rather than just selling a product / service to them.  However, as some early definitions suggested – it’s not just about maximising the value of your solution to the customer. In fact focusing on your value too early in the development of a sales opportunity can actually compromise your chances of success. Because if there is no problem, there can be no solution.

Therefore, before the value of your solution is in any way relevant to yourpotential customer, they must first - hopefully with your help - recognise the value of solving the problem the first place, and acknowledge the cost of inaction and the urgent need for change. Otherwise, the most likely outcome is that they will simply decide to stick with the status quo.

Value-based selling requires in-depth understanding of how the customer uses the product and the contribution the product makes to his business operations. It also requires that service sales personnel understand cost behaviour and their customer’s P&L structure. They need easy-to-use tools to help demonstrate and quantify the financial contribution and service value to senior customer management.

It, therefore, demonstrates how this contractually assured service can make a significant contribution toward increasing customer productivity, profit, and in some instances, capacity. Rather than resorting to price reductions to avert contract cancellations, the sales force actually can sell premium products /service at a higher price.

To sum it up : The Value Based Sales  equips the sales force with the skill to identify each customer’s problem areas and then offer a unique solution to that problem with their respective products.

 To build sufficient VBS capability, a framework of sales effectiveness drivers must be evaluated and addressed.

 Value Based Sales Workshop Objectives:

• Improve average order values
• Increase the take of ‘Wallet Share’
• Move further up the value chain away from 'commodity hell'
• Improve your reputation as a value adding salesperson
• Analyse their personal performance, and through increased self-awareness reduce weaknesses and maximise strengths in their sales approach
• Build their confidence in presenting value rather than costs
• Develop business relationships which ensure customers want to do more business with them
• Review difficult sales situations and construct more effective sales presentations / pitch
• Develop greater opportunities for closing more business
• Increase job satisfaction and improve customer service scores through professional and effective needs alignment.

Write to us at contact@thesmartideas.in to schedule a meeting.

Branding is NOT Advertisement!

Off late I am meeting lot of branding “gurus” who are propagating what is branding and how do you brand a product. Nothing wrong in that though, because that’s the way this subject would flourish. However, since Marketing, Sales, Branding are more qualitative subjects and we can’t (generally) do 1+1= 2 here, we make our own assumptions. I mean, no one would say “In my opinion the 3rd law of Newton is ….. “ and run their imagination wild. You get the idea, right? 

For starters, Yes, there are fundamentals and definitions and re-definitions of these subjects and these definitions are based on empirical research over decades and then their minute analysis from both quantitative and qualitative aspects.

So here is a very quick look at these subjects as Experts, Thought leaders, Ivy League B-Schools and successful practitioners think globally:

Branding is part of marketing - the process of establishing a brand is based on the rational, emotional & functional attributes that connects the brand with the Target Customers.

 A brand is made of brand attributes (as above), brand promise (based on attributes) and brand delivery (final experience), which is created by intensive market research among its desired market segments and Target Audience. Based on these BA, BP & BD - the value proposition of a brand is established and is manifested as the Positioning Statement that the common people call tagline. 

Advertisement, on the other hand, is one of the communication processes to promote the brand through mass media.

Marketing (we can't leave this subject now) is a pull strategy which creates product / services to meet a particular need of a segment of people.

Sales is a push strategy where you produce products / services without any care of the market and then sell them through promotions to anyone who might buy. 

As a very sales driven country we are completely ignorant of the subject called “Marketing”. We think marketing is promotion and branding is advertisement. This is sad because this is the reason, why, instead of focusing on value proposing to pull the customers to us, we push the products with discounts after discounts thereby competing with our competition on just price.

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In these days of quick availability of information, it is very easy to learn about a subject and then be an expert by practice; which essentially means you really have to LEARN the subject to begin with to become the EXPERT you are trying to be. It’s not that difficult. :)

10 Statements that show your Company has an Out-of-date View of Marketing

We’ve all been there and I come across this quite regularly -- restraining a laugh or almost throwing up hands in despair, when a company’s leading men put forth an opinion any modern marketer would find outrageous.

But then, we can’t always blame the CEO or the owner. After all, many chief executives simply don’t come from a marketing or technical backgrounds, and even if they do, their knowledge is most likely to be not current.

(That takes it back to my earlier post – How old is your Marketing Head?

However, the fact today is that marketing has evolved to become increasingly technical as well as emotional, whether the CEO/ Business Owner believes it or not.

Here are 10 statements that we hear commonly that indicate that these CEO’s views of marketing are stuck in the past.

1.    “Social media is a waste of time.”

2.    “Our customers are not on social media.”

3.    “Our blog should talk more about how well we do things.”

4.     “What do you mean I can’t fight back on Twitter / Facebook?”

5.    “Every piece of content should always lead to a sale.”

6.    “Let’s get demand gen up by attending more trade shows.”

7.    “Listening to market feedback is a waste of time.”

8.    “We should rebrand to better communicate our value.”

9.    “Friction between Sales and Marketing is normal.”

10. “I know what the customers want.”

These examples are just the tip of the iceberg when it comes to CEOs / Business Owners not understanding the marketing intricacies that drive their companies’ growth and that prevent many businesses from moving forward and realizing their full potential.

Brand Strategy : Don’t Sell Your Products!

If your aim is to build a brand that is remarkably different and not to become just the best choice but to become the only choice, then read on.

The BIG mistake : you sell features, not the experience.

As a small to medium sized business owner, if you keep making this mistake you'll be hanging the closed sign for good, and we don't want that!

Therefore, when you think about the service or product you sell, you need to change the way you think.

Instead of listing out all the features you offer, put the customer first. Focus on all the benefits they'll get (what's in it for them) and how they'll feel when you solve their nagging pains and problems. Layer your personality on top of it, and voila! You become memorable, likable and trusted, and they grab hold of you and keep coming back for more.

Let’s take a look at a few examples.

An athletic club doesn't sell classes or memberships, they sell how great you'll look and feel in your two piece in Goa this winter.

A real estate company isn't selling houses, they're selling the place your babies will learn to walk and talk, and where you'll start traditions - they're selling the comfort of homes.

Disney doesn't sell theme parks and movies, they sell family fun with a little dose of magic.

So basically, you're selling the feelings they get when they do business with you.

It's all about the meaning, the idea, the spirit behind what you're selling.

The experience.

When you find the hidden emotional need you are meeting, over and beyond the actual physical product or service, your customers will grab on to you and never let go.

They trust you. You offer something unique and differentiated that solves a need nobody else understands. You make a big difference and they won't forget.

Let's try it as an exercise:

Think of your customers first, and what you really do. What's really in it for them? How do you make them feel?

Once you're clear on this, you'll not only be the best choice, you'll be the only choice! 

Complete the 4 step process to uncover what you really sell:

1) Make a list of all the reasons people buy from you.
If you don't know, ask them.

2) Include all the biggest pains and problems you solve for them.

3) When you're finished, pick the BIGGEST result/benefit your customer feels.

4) This is where you'll hang your hat. 

All the Best!

What is a Brand?

A lot of people are talking about it. But very few understand it.

The brand is the most powerful business tool you have.

Everyone seems to want it, but not very many know how to get it.

First, lets start with what a brand is not.

A brand is not a logo. It's a symbol for the brand, but it's not the brand itself.

Corporate colors, fonts, your website, and brochures are not a brand either.
They are the visual identity that communicates the brand.
So then, what is a brand?

A brand is the thoughts, feelings, words, or emotions you have when you hear a name.

It's all about how they make you feel.

Let me show you what I mean.

Think about these 3 strong brands:

Apple, TATA and Asian Paints

We all think the same thing, and we all use the same words to describe each of those strong brands when we hear their names.
Right?

Apple: innovation, creativity

TATA: integrity, passion

Asian Paints: colourful, friendly

Simply put, branding is recognition. Or perception.

It's not defined by what the companies think, but by what individuals, like you and I, think.

The brand is held in the hearts and minds of people.

So your brand isn't what you think it is.

It's what they think it is.

10 Things to Remember for an aspiring entrepreneur

1. Don't listen to what others are saying
2. Don't sit with your ideas. Make it happen.
3. Size of your idea doesn’t matter.
4. Be humble enough to know you can’t know everything. Be wise enough to know who to ask for help.
5. Be honest. Don’t cheat or take shortcut. Build your reputation.
6. Be here for the long run. If you want quick money / success – try smuggling.
7. Deliver what you promised. Promise what you can deliver.
8. Bring clarity to your thought. If your customers, investors or collaborators do not understand what you have to offer; they will never buy it from you.
9. Network well. Remember that networking doesn’t mean collecting business cards.
10. And help others first without expectations.