You have a fantastic product, or maybe you provide an amazing service, and you know that what you have to offer could help so many people. There is just one problem: how do you get others to see that? It may seem logical to focus on how great your product or service is. Surely if you tell people about all the great perks and features, people will see the value of your product and sales will skyrocket, right? The problem with this approach is that is focuses on you and your business. Your focus should instead be on your prospect and their needs.
Let’s imagine that your product is a computerized bookshelf. This unique piece of tech has tons of futuristic features, such as pressurized air for self-dusting, the ability to automatically sort items, and adjustable dimensions. You would think that such a novel product would sell itself. However, potential buyers don’t seem to understand why they would ever need something like this. This is where value selling comes in to play.
What is Value Selling?
The history of value selling begins in the late 1960s. The Xerox Corporation developed what they called needs-satisfaction selling in response to increased competition in the photocopying market. This idea challenged the existing framework of generating customer interest in a product. Instead, needs satisfaction selling started with the salesperson showing interest in the customer’s needs first and foremost. This shift meant that the goal was no longer to use customers as a means to move product. With this new methodology, people began using the product as a means to benefit customers.[1]
Needs-satisfaction selling revolutionized the sales landscape. This method became so successful that Xerox started selling their sales training courses. Since then, many other methodologies have evolved from needs-satisfaction selling[2], but they all share the same value-centered principles. When we talk about value selling, we are referring to a sales methodology that puts potential buyers first. The foundation of value selling is the desire to demonstrate how your product or service can be of value to the individual in front of you.
The Four Ps of Value Selling
Depending on exactly what version of value selling you are utilizing, some sources may claim there are six[3], seven[4], or even as many as ten[5] steps to follow in the value selling formula. When you boil down value selling to its core principles though, there are just four fundamentals that you need to remember: potential value, pertinent value, proven value, and provided value.
Potential Value
The first step of value selling is to determine whether there is the potential for your product to actually help your prospect. Let’s return to our hypothetical computerized bookshelf scenario. If your prospect is a data collection company that stores all their information electronically, there likely is not much potential for your product to be of value to them. However, if your prospect is a bookstore chain, the potential value to them is much greater. Ensure that their goals and your deliverables align before investing time in relationship building.
| Do | Don’t |
| Know your product | Assume your product will speak for itself |
| Research your prospects to find the best fits | Waste time on incompatible partnerships |
| Be open to unexpected opportunities | Only focus on a small niche audience |
| Lean in to your desire to help people | Let setbacks discourage you |
Pertinent Value
The second step is key to establishing a needs-centric approach. Rather than focusing on your product and its features, focus on the prospect. Ask them about their goals, their pain points, and where they want to see improvements. Then – and this is key – practice active listening. Don’t ask just to respond. Ask to understand. Show the person in front of you that you care about what concerns are pertinent to them. In our bookshelf example, your prospect may not care about the adjustable dimensions if they rarely rearrange their space. This is valuable information that you can only obtain by giving them the chance to tell you. Remember that each prospect has a unique set of needs. Learn what theirs are so you can ensure that the value you communicate is relevant and resonates with them.
| Do | Don’t |
| Discover your prospect’s needs | Assume you know what they want |
| Listen more than you speak | Interject to talk about your product |
| Tailor your approach to match the prospect | Use a one-size-fits-all approach |
| Think about relevant product features | Emphasize features they don’t care about |
Proven Value
At this point, you have found a potential prospect and you understand how they will benefit from your product. Now it’s time to prove it to them. This is the stage where you begin educating your prospect. Again, this is not just listing off product features. This step is about explaining how the features of your product can resolve their particular concerns. Let’s say your prospect is concerned about the extra resources spent on organizing incorrectly placed books. Explain that your computerized bookshelf will save their workers time and energy by automating the inventory location and sorting process. By meeting their needs with targeted solutions, you are proving the value of your product.
| Do | Don’t |
| Reference their unique concerns | Focus on irrelevant features |
| Discuss specific solutions | List the generic benefits of your product |
| Foster a two-way conversation | Monologue your pitch at them |
| Allow them time to consider your points | Pressure them into buying immediately |
Provided Value
If you have made it this far in the process, congratulations! Your prospect loves your product and wants to buy! The final step is delivering on your promises. This involves more than just completing the sale. The value you provide should be continuous. This means ensuring that your customer is happy with the value that the product provides, as well as working with them to address new concerns where possible. This is key to maintaining a long-lasting positive relationship and building customer loyalty. In our bookshelf example, this might mean checking in periodically, providing information about new products and updates, or offering maintenance services. The value you provide your customers should extend beyond the product.
| Do | Don’t |
| Follow through with what you promised | Overpromise and underdeliver |
| Maintain your relationships | Cut the connection after the sale |
| Make sure your customer is satisfied | Refuse responsibility to your customer |
| Remember that what you do adds value too | Assume all value lies in the product itself |
Final thoughts:
The principles of value selling permeate many of the most popular sales philosophies used today, and it’s easy to see why. This methodology embodies the idea that you can help yourself by helping others. It challenges us to be curious, empathetic, discerning, and relational. When we seek to understand each other and meet the needs of the people around us, everybody wins.
[1] The History of Sales Methodologies – Part III – Sales Essentials
[2] A brief history of modern sales methodologies for sales leaders – Membrain
[3] 6 Key Components of Value Selling
[4] 7 Key Principles of Value-Based Selling — What Experts Have to Say