Last week I wrote about the benefits of the Value Selling Model, i.e. going beyond just touting the features, functionality, and pricing of your solutions. I talked about a paradigm-shift in your selling approach by focusing on the customer's pains and translating that to the value they would receive with your offerings. Sounds great, right?
Value selling doesn't always work. So, in this week's article, I'd like to cast a light onto when value selling might not work and the ways around this. Let's jump right in shall we!
Limitations of Value-Based Selling
- Complex Decision-Making Processes: In industries with complex buying processes involving multiple stakeholders, aligning everyone around the perceived value can be challenging. Value-based selling may require additional effort to address each stakeholder's unique needs.
- Lack of Quantifiable Metrics: Sometimes, it can be difficult to quantify the value your product offers, especially in cases where the benefits are more intangible or subjective. This can make it harder to convince customers solely based on value.
- Competitive Pricing Pressure: In highly price-sensitive markets, value-based selling may face challenges when customers prioritize cost over perceived benefits. Competitors offering similar features at lower prices may pose a threat.
The Vertical Angle
While value-based selling is effective in many industries, there are a few sectors where it may face challenges:
- Commodity Markets: In industries where products or services are highly commoditized, such as generic hardware appliances, customers often prioritize price over perceived value. Since there is little differentiation between competing offerings, value-based selling may struggle to gain traction.
- Highly Regulated Industries: Certain industries, such as healthcare or financial services, are heavily regulated, and decision-making processes involve strict compliance requirements and complex approval processes. In these cases, value-based selling may face challenges as stakeholders prioritize regulatory compliance and risk mitigation over perceived value.
- Cost-Conscious Markets: Some markets are highly price-sensitive, especially when customers have limited budgets or face intense cost pressures. In such scenarios, customers may be more focused on obtaining the lowest price rather than considering the long-term value or ROI of a product or service.?
- Established and Ingrained Solutions: Industries where customers have long-standing relationships with existing vendors or solutions can present challenges for value-based selling. Customers may be resistant to change and find it difficult to justify the perceived value of a new offering when they have been using a familiar solution for an extended period.?
- Emerging and Unfamiliar Technologies: When introducing emerging technologies or innovative solutions to the market, value-based selling can face hurdles. Customers may have limited awareness or understanding of the technology, making it challenging to quantify the value or ROI. In such cases, education and building awareness become crucial components of the sales process.
Building awareness and educating customers about emerging technologies requires strategic approaches to effectively communicate the value and potential of these innovations. Here are some effective strategies to consider:
- Content Marketing: Develop a content marketing strategy that focuses on creating informative and educational content about the emerging technology. This could include blog posts, whitepapers, case studies, videos, and infographics. Provide valuable insights, explain the technology's benefits, and address common questions or misconceptions.
- Thought Leadership: Establish yourself or your organization as a thought leader in the field of emerging technology. Publish articles or research papers in industry publications, participate in speaking engagements or webinars, and contribute to relevant industry forums and communities. This positions you as a credible source of information and expertise.
- Targeted Events and Webinars: Organize or participate in industry events, conferences, or webinars specifically focused on the emerging technology. These platforms allow you to showcase the technology's features, benefits, and real-world use cases. Engage with attendees, answer their questions, and provide demonstrations to generate interest and understanding.
- Partner with Influencers and Experts: Collaborate with industry influencers, subject matter experts, or reputable organizations who have an established audience in the relevant field. Seek opportunities for joint webinars, guest blog posts, or co-developing educational resources. Leveraging their credibility and reach can significantly enhance awareness and education efforts.
- Customer Success Stories: Share compelling customer success stories that highlight how the emerging technology has positively impacted businesses or individuals. Case studies and testimonials demonstrate the tangible benefits and ROI, making the technology more relatable and understandable to potential customers.
- Demos and Proof of Concepts: Offer interactive demos or proof of concepts that allow customers to experience the emerging technology firsthand. This hands-on approach helps customers visualize how it can address their specific pain points and provides a concrete demonstration of its capabilities.
- Training and Workshops: Conduct training sessions and workshops to educate customers about the emerging technology. Offer comprehensive training programs that cover the fundamentals, best practices, and implementation strategies. This empowers customers to explore and adopt the technology more confidently.
- Collaborative Pilots: Consider offering collaborative pilots or trial programs to select customers. This allows them to test the technology in their own environments and measure its impact on their specific needs. The hands-on experience can lead to increased understanding and buy-in.
- Social Media and Online Communities: Engage with your target audience through social media platforms and online communities relevant to the emerging technology. Share valuable content, participate in discussions, answer questions, and address concerns. Actively listening and engaging with potential customers in these spaces can foster awareness and build trust.
- Continuous Learning and Updates: Stay up to date with the latest advancements and developments in the emerging technology space. Continuously educate yourself and your team to ensure you can effectively address customer inquiries, adapt messaging, and provide accurate information as the technology evolves.
Key Takeaway
Value-based selling is a potent approach to selling that focuses on delivering value to the customer, and while it has its limitations, it can be adapted to various scenarios. Moreover, educating customers about emerging technologies, although challenging, can be achieved through a multifaceted approach that combines content marketing, thought leadership, and interactive experiences. By mastering these strategies, sales professionals can harness the power of value-based selling and effectively communicate the value and potential of innovative solutions in today's competitive business landscape.
