One of the biggest challenges in any sales presentation is building value. Showing the prospect that your product or service is of more value than the money that they are being asked to spend is never an easy task, but for a sales professional it is an essential one. Many sales professionals struggle with building value, so in an effort to compensate for the lack of value they build in the eyes of the prospect they discount on the price of the product or service. The result is a lower average sale price which directly impacts both the company’s profit margins and the sales professional’s paycheck.
To understand the way to build value in a sales presentation the sales professional must first understand the prospect’s perspective. Your prospect will be focused on one of two things in the sales presentation; either he or she will be focused on getting something (your product or service) or giving up something (money). Simply put, if the money the prospect is being asked to give for the product or service is perceived as a higher value than the product or service the sale will not occur. However, if the sales professional has built the value of the product or service up in the prospect’s eyes so that the product or service has a higher perceived value than the price that is being asked for it then there is a strong likely hood that the sale will take place. For example, imagine that during a sales presentation the sales professional built up the value of the product or service so that the prospect felt as if he or she was getting a $10 bill in exchange for a $5 bill. If this were to occur then the sale would be almost inevitable as the prospect’s focus is on what he or she is getting and not what they are giving up.
How to Build Value
Building value is a skill that can be taught and when utilized effectively can allow the sales professional to not only earn more sales, but also sell at a higher price point resulting in more revenue for the company and higher commission checks.
That being said, how does a sales professional build value for their product or service? What are some strategies that can be used to aid in building value that will have immediate impact on sales? There are four primary strategies that will aid the sales professional in creating value.
Strategy One: Discovery
The first strategy for building value is doing a comprehensive, poignant Discovery. The Discovery is the blueprint that dictates the entire sales process. In the Discovery the sales professional acts as a consultant and utilizes a non-manipulative approach that serves the client and meets its needs. The Discovery is the part of the sale where the sales professional asks the prospect relevant questions that are directed at uncovering the four objectives of a Discovery. The four objectives of the Discovery are the following:
1. Find the PBM (Primary Buying Motive)
2. Uncover any objections that may surface during the close
3. Find the problem (why the prospect would need your product or service)
4. Self Discovery (Allow the prospect to accurately understand the need they have for the product the sales professional is selling)
Every good Discovery must seek to uncover those four objectives. The way to tell if you have done an effective Discovery is if after the Discovery you can answer the first three objectives; if you can answer the first three then the fourth objective will take care of itself as it will naturally happen when the first three are executed effectively. If you cannot answer the first three objectives then the Discovery is not over. The Discovery should not end without understanding those three objectives because without understanding them there is no sale.
A key component to the Discovery is listening. This may sound basic, but it is often one of the top things sales professionals need to work on. Most people listen simply as a way to know when it is their turn to talk, not so with the sales professional. He or she must listen to truly understand the prospect and achieve the objectives of the Discovery. Top sales professionals will not only listen so that they will know what to say, but so they will know what not to say. When sales professionals do not listen properly two determinal things happen:
- They sell benefits that are irrelevant to the prospect and as a result the prospect will believe that the product or service is not for them
- They can seek to answer objections that were never there and thus create objections that the prospect had never even thought of
So now that you understand what the Discovery is how exactly does one build value through it? The primary way that the sales professional builds value through the Discovery is through the Primary Buying Motive (PBM). The PBM is extremely important in the sales process and is the single most important piece of information that the sales professional can gather about the prospect. There is nothing that can stop a sale faster than not identifying the prospect’s PBM and there is nothing that can earn sales more consistently than knowing the PBM and selling to it. Once the PBM has been identified the sales professional can use it as the foundation and build upon it. The PBM is powerful because it is the prospect’s emotional reason for purchasing a product or service. Value can be built by aligning your product or service with the prospect’s PBM. This is value the prospect will immediately recognize because you are building on that which they already have identified as of high value. Also, aligning your product with the PBM is a way to keep their interest and earn the right to advance the sale.
Finding the PBM requires focused questions that deal with why the prospect would need your products or services. This is achieved by asking first, second and third level questions, with the goal being that you want to get to the third level or emotional reason that the prospect would buy. Third level questions deal with either one of the two motivating factors (desire for gain or fear of loss). The sales professional begins by asking first level question to earn the right to get to second and third level questions. Remember people buy for emotional reasons and justify those reasons with logic so getting to the third level questions is crucial. A few simply strategies to help you get to into third level questions are:
· Ask Deeper Questions about an initial question, continue to delve deeper and deeper
· Ask more “why” and “how come” questions: These questions naturally bring out an emotional response
If this one strategy can be mastered it will powerfully increase the sales professionals sales success as it is the number one way to build value in the sales presentation.
Strategy Two: Tie Downs
Second, a strategy that is vital in building value is using a sales strategy that is called a Tie Down. A Tie Down is a statement that is converted to a question directed at the prospect. This is powerful because too often in the sales presentation the sales professional becomes prey to making value building statements about the product or service without getting commitment from the prospect. It is vital that the sales professional remember that if he or she states something about the product or service that is being presented it does not mean that the prospect agrees with him or her. The definition of a sale is the transfer of belief and/or enthusiasm. Tie downs aid the sales professional in ensuring the transfer of belief and/or enthusiasm for the product or service. Read through the below examples and notice the difference between using a tie down and not.
Example #1 (Not using a Tie Down)
Sales Professional: “This training will save your company money?”
Prospect: (no response)
Example #2 (Utilizing the Tie Down)
Sales Professional: “Wouldn’t you agree that this training will save your company money.”
Prospect: “Yes, I can see how it would.”
The power in Tie Downs is that they take your statement of facts and turn them into questions that force your prospect to answer. This not only keeps them involved in the presentation, but it allows you to understand where their thoughts are and if they are understanding the value building concepts that you are presenting. If, for example the prospect would say “no” to your tie down then you would instantly know that you have lost them in the sales process and it gives you time to dig down and recover the sale. Whereas if you find out at the close of the sale that they have simply been passively listening to your presentation without agreeing anything you said there is little chance of recovering and making the sale. Tie Downs also allow you as a seller to not merely be “teller” but to actually be a “seller” and involve your prospect actively, not passively in the sales process. Tie Downs allow the prospect to say “yes” to your value building statements and the more they say “yes” the closer you are to the sale.
Tie Downs are powerful strategies that aid the sales professional in closing the sale. That being said, there is a danger in overusing them to the point where they cause the prospect to get defensive as it can appear that the sales professional is becoming pushy. Use Tie Downs to keep your prospects engaged in the value building process, but use them throughout the entire presentation and not just at the end. Tie Downs should be incorporated consistently and inconspicuously throughout the entire presentation.
Tie Downs are easy to think of regardless of the question. One simple method is when presenting a value building statement incorporate one of the following phrases within the statement and turn it into a question aimed at your prospect.
· Wouldn’t it?
· Isn’t it?
· Wouldn’t you agree?
· Couldn’t it?
· Doesn’t it?
Strategy Three: 3rd Party Stories
The third strategy that will aid the sales professional in building value are third party stories. A third party story is a story about a third party that directly relates to your prospects situation. There is a cliché that states, “facts tell, but stories sell” and that is correct. Telling a prospect facts is not bad, but if you can utilize a third party story to say those things that is far superior. I have found that prospects enjoy hearing a good third party story as not only are they entertaining, but prospects are more likely to remember them. Also, third party stories allow the sales professional to say things in a story that they may not be able to say otherwise.
The key to third party stories is understanding how to utilize them effectively. One way to make sure you are doing this is through understanding and adhering to the purposes of a third party story, which are:
1. A third party story must serve a purpose – it must either hit a primary buying motive or answer an objection
2. A third party story must be relevant
3. A third party story must be based on truth
4. A third party story should in most cases be about a third party.
There are three main ways that third party stories can be used to build value. First, the sales professional can use third party stories to speak directly to the Primary Buying Motive. This is an extremely powerful strategy as prospects naturally tend to see themselves through other people like themselves so when you tell a story about a client similar to them who bought your product or service and had significant results it has a very moving effect, particularly if the third party had the same PBM.
Second, the sales professional can utilize third party stories to overcome prospect objections. It is very effective to show through a third party story that others who have had the same objections and yet purchased your product or service and had positive results. This is a strategy that is far more effective than simply stating your opinion or some facts to overcome an objection.
Finally, third party stories build value by being a testimonial for your service or product and displaying why they are needed. It is very difficult to argue with a good third party story. Not only do third party stories testify to the validity of your product or service, but they also add credibility to it by showing the value that it has given to those who have utilized it.
Strategy Four: Enthusiasm
Fourth, conducting the sales presentation with enthusiasm will also go a long way in building value. Incorporating enthusiasm as a necessary element in the sales presentation is easy to dismiss because it appears on the surface as an overly simplistic strategy, but before the sales professional dismisses this he or she should be aware of the power that this has upon the sales presentation. A recent University of Chicago study stated that the belief in ones product or service is the most important factor in sales process. A passion for your product of service shows the prospect that you believe in what you are selling and think that is important enough to have strong belief in. A definition of the sales process is the transfer or belief and/or enthusiasm for a product or service. When the sales professional has passion for what he or she is communicating to the prospect is that the product or service is important and this can influence the prospect to view the product or service in a similar manner.
There are numerous ways to show enthusiasm. First, enthusiasm is shown through non verbal communication. Studies have shown that 93% of communication is non verbal so when you are talking about your product or service be aware of your facial expression, posture and what you are doing with your hands. Even sales professionals who spend most of their time selling over the phone know that their body language directly influences both them and their prospect that they are speaking to. The way that we communicate non-verbally is extremely important and the sales professional should have an awareness of what he or she is doing non-verbally at all times during the sales presentation.
Second, the sales professional can show enthusiasm through there sincerity for what they are saying and doing. People can sense, both consciously and unconsciously if someone is faking enthusiasm. If you must “fake” enthusiasm for what you are selling then you are most likely in the wrong job. Enthusiasm must not only be genuine, but also controlled. I once managed a sales person who was so enthusiastic that it was almost scary. If those around you are concerned for your health due to your extreme enthusiasm then relax, tone it down, as it is a major hindrance to building value if your enthusiasm is turning off the prospects from listing to what you are saying. Your enthusiasm should support your presentation, not dominate it or become the presentation.
Third, you must believe what you are saying is important. Do you really believe that your product or service will help the prospect? If so then act like it, don’t treat those things which are important as trivial pursuits. The sales professional’s voice inflections, words and actions should all show the importance of what he or she is selling.
In Conclusion
The following strategies are crucial if you want to master the art of building value. I would encourage you to seek to work on each strategy as if you just master one it will make you a better sales person, but if you master all four it will make you a superstar. Remember, don’t just absorb this knowledge but apply it and put it into practice.
