Where does value fit in the sales funnel? How do you structure your value proposition? The value discussion is often the most difficult conversation for salespeople to have. They like to employ likability, authority, and trust. They can’t always wrap their heads around value. But value and ROI are the single most important things that procurement looks at, so you need to be able to communicate value effectively. Ian Campbell will share how to do just that in this episode of Negotiations Ninja.
Outline of This Episode
- [1:26] Learn more about Ian Campbell
- [2:13] How value fits in the sales funnel
- [5:39] How to structure value in your funnel
- [7:24] Definitions of benefits, MPB, ROI etc.
- [10:37] Translating benefit(s) to ROI
- [16:57] Ian’s experience in the Ferrari Challenge series
How value fits in the sales funnel
One of the challenges salespeople face is bringing value into the discussion. It’s not usually included in sales training. Everything about sales training is around features, not benefits. But if done correctly, presenting the value can make it so someone is propelling themselves through the funnel—not being pushed.
Ian started his book by asking the question, “If I told you that you could make money raising baby alligators in your bathtub, would you do it?”
Most people say “How much money?” Everyone has a number where they’ll say “I’m in.” Let’s say it’s $5 million. Even if it’s the only bathroom you have and you need to shower at the gym for a year, you’d do it, right? Your spouse will think you’re the smartest person in the world.
But you were told nothing about the product. You don’t know anything about baby alligators. Yet you will come back and do the same thing for a product that’s utterly absurd because the salesperson has helped you understand the value.
Most salespeople lose deals because they don’t talk about what’s in it for the customer. But if you turn something into a value sell, they’re more likely to drive themselves through the funnel.
How to structure value in your funnel
Ian points out that flying an airplane is easier than it appears. It’s landing the plane that’s difficult. Building a business case isn’t difficult either. But you have to remember that you can only do three things for the customer:
- Reduce their costs
- Increase the productivity of their employees
- Increase their profitability
Stop talking about features by themselves. Learn to link them to one of these benefits throughout your conversation.
What is a benefit to the customer?
A benefit is something like making people more productive. It can be as simple as running more programs. If you walk into a sales situation, a customer is talking to you for a reason. A benefit is something that they want to achieve. It’s something quantifiable.
There are typically three steps to take in the sales funnel. You have to bring in the lead, qualify the lead, and align the proposition. The value message you want to weave in has three different steps:
- Talk about how you deliver value for the customer (the benefits)
- Show how other people have achieved those benefits
- Show how they will achieve the benefits
This gives you a framework to look at the benefits. How do you translate benefits into an ROI for your customer? Ian shares the four types of benefits and how you communicate them in the sales process in this episode of Negotiations Ninja!
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