By now, we are all familiar with the challenges of selling services or solutions with “soft” value. The customer wants our assistance quantifying the value, and we want to put our best story forward. However, the “customer” is usually a committee of six people charged with making the recommendation. What will we do?
Defining Value
It is best to start at the beginning and ensure we understand the definitions to address complex problems.
Value can be a slippery term used in many different ways. According to experts, here are the keys to defining value:
- Value is the monetization of the benefits – as perceived by the customer. It can change depending on the context of the decision and the decision maker.
- Value can be quantified – economic value can be quantified in a currency; other aspects have their forms of quantification, such as Quality Adjusted Life Years in healthcare or Carbon Footprint for green solutions.
- Value is composite and decomposable – value can be analyzed into a set of value drivers.
There is more than one aspect of value. In B2B, the most crucial element is the economic, but other aspects such as emotional, environmental, and social value can also be considered.
We are all good salespeople who clearly understand and embrace the concept of the Challenger Sale (also known as the consultative sale). So we have learned that our value calculation must be relative to the current favorite alternative, do nothing. That is, if we continue doing what we always do, this is what it will cost (including benefits) per day, week, month, or unit of output. Our value calculation has to say,
“if you implement our solution, this is how much it will cost per unit of time or output and these are the total new benefits you will enjoy.”
And part of these new benefits has to address each committee member’s emotional needs and wants. This post will identify examples of some new benefits, but you, the salesperson, have to package them to work for your unique Purchasing Committee.
Physiological needs, safety, and security are given, so a seller can do little to positively impact these emotions unless selling insurance or wage and salary consulting. Even in this situation, it is unlikely that any gains will improve the mental state of the decision-makers. As a guide, let’s use the famous Maslow’s Hierarchy of Needs:
However, your offer can result in a negative situation for the decision-makers. For example, if implementing your proposal significantly reduces force, then the executive who must take public ownership of the action will undoubtedly have negative feelings. It is not unheard of for an executive to reject a cost-saving proposal that results in significant layoffs, mainly if the organization is located in a “company town” where everyone knows everyone and shops in the same stores, etc. Suppose you get yourself or your organization into this situation. In that case, your best course of action is to discuss this with the decision maker frankly and, if necessary, co-create a problem that may be sub-optimal for both parties yet still adds some value to the business. It is possible that the rest of the plan can be implemented at a later date.
Love and belonging do not usually come to mind when creating customer value. Yet, we are now being barraged in the press and on social media to build sustainable relationships with prospects and customers. I think we just discovered at least part of the reason.
Self-esteem is about respect and the need to be positively recognized by others. If you can make a case that by selecting your solution, the business will receive significant tangible benefits, and the spotlight will shine on the decision maker, you have created some intangible value. This is why many organizations have conferences where users and the public interact, and decision-makers who took the leap of faith are given awards or asked to tell their unique stories in a keynote address. Talk about stroking someone’s ego.
Self-actualization is the ultimate level of ego satisfaction. This is why business people write books and attend significant conferences as keynote. It is also why successful individuals join non-profit boards or make large donations, including getting their name on something like a building. While most of your customers will not achieve this level, there may be ways that you can utilize your network and introduce them to “important” or “special” people. And, of course, pictures create permanent evidence of these successes. Think about how many politicians at all levels and other leaders have an “I love me” wall of images in their offices. If you can help them, you make a friend and earn their trust.
In this post, I am not suggesting that your sales approach should be based on brainwashing or manipulation, but if you are convinced that your solution is the best one for a business and a decision maker or influencer is on the fence, then addressing the intangible needs can, at least, create enough trust that your solution gets the consideration it deserves.
Related article: Creating Lasting Shareholder Value By Creating Customer Value
About Middlesex Consulting
Middlesex Consulting is an experienced team of professionals with the primary goal of helping capital equipment companies create more value for their clients and stakeholders. Middlesex Consulting continues to provide superior solutions to meet the needs of its clients by focusing on our strengths in Services, Manufacturing, Customer Experience, and Engineering. If you want to learn more about how we can help your organization grow by defining value for your customers, please contact us or check out some of our free articles and white papers here.