<img alt="" src="https://secure.half1hell.com/195196.png" style="display:none;">

How Small Businesses Can Embrace Value Based Selling to Grow Sales

I’ve previously written about when and why you need a cost-justified business case to close deals. As a quick primer, the more your solution disrupts your customer’s business and as the size of the investment grows, the more likely you’ll need a business case.

Large corporations have the advantage of large budgets and the ability to staff sales and marketing roles in-house. They have employees to fulfill positions like: 

  • Front Line Sales Representative
  • Product or Solution Expert
  • Value Engineer or Value Consultant 

Read This Before Talking about ROI

How frequently do you use the term “ROI” in front of customers and potential buyers?

I frequently hear sales and marketing professionals talk about “ROI” inaccurately. In a casual conversation, people might still give you the benefit of the doubt and have faith that you know your stuff. However, if you’re making a formal presentation or having a serious conversation with a prospect who’s well versed in financial terminology, any misuse of the term could obviously leave a disastrous impression about you and your company.

Why Don’t Reps Use Sales Enablement Tools?

Each year, sales operations and marketing managers purchase sales enablement tools to help their sales teams increase win rates and close deals faster. So why do so many of these tools gather dust in the salesperson’s toolbox? In my experience, this happens for two main reasons.

Why Having an ROI Calculator Is Good for Sales

I truly believe in the power of ROI tools and value calculators to help generate better, more qualified leads for B2B marketers and enhance a B2B salesperson’s ability to close a deal. (If I didn't, I wouldn't be in the business of selling them.)

You Aren’t Preparing Your Reps to Make Sales Calls!

Recently Gerhard Gschwandtner, founder and CEO of Selling Power, gave a presentation for an audience of Ohio-based sales leaders in the technology industry. Here are some of the key facts from his presentation that struck me as particularly interesting.

ROI Selling: Four Opportunities to Advance Your Sale

When customers make a purchase, they typically go through a few different stages. As a seller or marketer, your job is to help shepherd the customer through these stages quickly and efficiently.

3 Tools to Communicate Value at Different Stages of the Sales Cycle

Depending on where the prospect is in the buying process, there are different tools or calculators to help you with your value-based selling approach.

In the earliest stages of the sales cycle, you want to establish the prospect’s pain and how much that problem is costing them. This will help set you up for a conversation about how much your offering can help. A value calculator helps you show how much money the prospect is leaving on the table each month, or how much they’re spending that’s unnecessary. This helps you establish the “value” of solving the problem. (Here’s a good example of a value calculator.)

How do you make labor savings believable in your business case?

There are a couple of categories of value dimensions that will often be challenged by a prospect when you are building an ROI-based business case, and labor savings is at the top of that list. Labor savings tend to be tough to get customer buy-in for a number of reasons:

  1. Labor Savings are often spread across many people’s time and thus are considered soft or indirect benefits without real economic impact
  2. In order to capture the labor savings, the company often needs to take some action (reduce headcount, avoid hiring more workers, or reallocate employees to other value-added activities)
  3. Often the people that you are dealing with when building the business case are the people that will be impacted by the actions required (e.g., selling a technology solution to the IT department that reduces IT headcount may be difficult)
  4. Companies have been promised productivity gains many times, but rarely have they seen the results.