Building a Value-Driven Sales Team

A sales team focused on value can be your biggest asset. Here’s why.

The success of a sales team hinges not just on their ability to close deals but on how well they communicate and deliver value to clients. Shifting the focus from price to value can transform a sales team, leading to increased customer satisfaction, loyalty, and long-term profitability. Here’s how training and motivating a sales team to focus on value can lead to outstanding results.

The Downside of Price-Centric Selling

Selling based on price is an all too common approach, where sales teams compete primarily on price, often leading to a "race to the bottom." Adopting the "discount default" to winning business can erode your profit margins, dilute brand perception, and create a customer base that lacks loyalty and is always seeking the next cheapest option - the minute someone is cheaper than you they're gone!

Of course price is an important factor in the decision-making process, but it should not be the sole focus. A value-driven approach addresses these issues by emphasizing the overall benefits and long-term advantages of a product or service.

The Transformation Journey: From Price to Value

Step 1: What is value?

Training is the cornerstone of building a value-driven sales team. And training starts with making sure everyone on your team understands value as a concept, and then what it means to customers. It's a word that is used all too freely, often without a real understanding of what it means. What do your customers mean when they talk about value? From a sales perspective, it doesn't matter how great you might think your value is, if the customer doesn't see it that way it's not value,

Value is defined by the customer, not by you

Example: Our training always starts with getting a clear understanding of value, ideally not just for the sales team but across the business (ask me about The Value Triad?). Everyone has a role to play in understanding, communicating and delivering great customer value. Does everyone in your business know what that is? Getting confident about having value discussions with customers and communicating your value proposition effectively is a big step. It's a mindset shift for many and transforms the customer conversation from product first to customer first.

Step 2: Customer-Centric Approach

For many sellers this is the transformational step. Moving from presenting products and services to engaging in customer first sales conversations. A value-focused sales team prioritises understanding the customer’s problems, issues and challenges. Understanding the outcomes the customer is looking for - and not mentioning their company and what they can do until they have a full understanding of the customer and what they want done. This involves active listening and empathy, and a genuine interest and curiosity in the customer, both as individuals and in their role in the business. By doing this well, the sales team can position the product or service as the best solution, not just the cheapest option.

Example: One of our clients had a customer who was price driven and difficult to work with. They had an offer from a competitor that was significantly cheaper than my client's price. Despite warning of the potential problems they were going to face, the customer went cheap - and paid the price. And they came back. By shifting your sales conversation to how your solution provides better outcomes you can win business despite being higher-priced than competitors - only sometimes it might take a while for the customer to see it!

The customer went cheap - and paid the price.

Step 3: Reinforcing the Value Message

Consistent reinforcement of the value message is crucial. Moving from a price to a value based approach won't happen just because you want it to. It requires on-going training, coaching and support. There are many ways to do this, but regular team meetings, sharing success stories, and continuous learning sessions all help. Celebrate wins that were achieved through a value-focused approach and treat every win as a potential learning opportunity. What did you do that worked?

Also treat every loss as a learning opportunity and learn from mistakes.

Example: In the 12% Club (my client coaching forum) we get together every month to learn from wins and losses and also to conduct Deal Review Sessions, a monthly focus on a key, live opportunity. These stories not only motivate the team but also provide practical examples of how to effectively communicate value to clients and manage the value sales conversation.

The Results: A Case Study

Increased Customer Loyalty: By focusing on value, your sales team built stronger relationships with clients. Customers appreciate the focus on long-term benefits and are more likely to stay loyal even if competitors offer lower prices. There is a balance between the price a customer pays and the value they perceive they receive. Managing that balance means understanding value - especially the power of emotional value.

Higher Profit Margins: Competing on value allows you to maintain healthier profit margins. Clients are generally willing to pay a premium for the additional benefits and superior service, that deliver the value they are looking for. But to know that you will need to have effective Value Discovery conversations.

Enhanced Brand Perception/Credibility: If you are known to discount to win, you'll tend to attract price driven customers. If you are known to focus on understanding and delivering value you are more likely to attract customers who prioritise quality and are less price-sensitive.

If you are looking for premium prices, you must understand customer value.

Conclusion: The Power of Value-Driven Sales

Building a value-driven sales team is not an overnight process, but the rewards are substantial. By training and motivating your sales team to focus on value, you can differentiate your offerings, foster customer loyalty, and achieve sustainable growth. A sales team that understands and communicates value becomes a strategic asset, driving your business forward in ways that competing on price alone can never achieve.

Join the Conversation: Have you experienced a transformation in your sales approach from price to value? Share your stories and insights in the comments below.

Would you like to transform your sales approach? Get in touch.

Let’s learn from each other and continue to focus on value and value delivery.

"Keep Selling the Value!".

#value #valueselling #valuepricing #valuechallenge #TheValueTriad? #sales #salestraining