Given the current circumstances - a Global Pandemic and an economy where so many industries have been shut down or compromised - selling value will be more important than ever.
The result of selling value is that you are able to win the business despite not having the best price. But when we talk about selling value, what does it really mean?
One sales expert who reached out to me last week was worried that when we are focusing on the Value Selling Competency, uninformed salespeople interpret that as an invitation to present the company's value proposition. They see it as an opportunity to show and tell and talk about capabilities. He's right. Most salespeople will seize on an opportunity to share what they know because it is so much easier than asking lots of tough, timely questions. Let's take a look at the science.
Objective Management Group (OMG) has evaluated or assessed 1,961,459 salespeople. In the table below, you can see the percentage of salespeople who are strong in 3 Sales Core Competencies, as well as Sales DNA (average score of the 6 competencies that make up Sales DNA). All of these impact one's ability to Sell Value and are presented below sorted by various groups of salespeople.
|Top 5% of All Salespeople||97%||85%||60%||100%|
|Less Than 2 Years Experience||6%||29%||6%||11%|
|More Than 10 Years Experience||53%||53%||20%||37%|
|Bottom 50% of All Salespeople||11%||27%||3%||1%|
This isn't a pretty picture because it basically shows that except for the top 5%, most salespeople suck at selling value.
There are four reasons for this:
- They aren't following or using a sales process that supports Value Selling - only 45% of all salespeople have Sales Process as a strength.
- They aren't using a consultative approach and value selling won't work without one - only 15% of all salespeople have Consultative Selling as a strength.
- Their Sales DNA doesn't support consultative or value selling - only 28% of all salespeople have Sales DNA as a strength
- The company hasn't been decisive about not discounting - it sends conflicting messages.
You can't really get salespeople to properly and effectively sell value until they have been trained on sales process, consultative selling and been coached up on Sales DNA.
Circling back to the sales consultant who reached out last week, I suggested that selling value uses a consultative approach where:
- The consequences of the problem are monetized or quantified and the solution is a fraction of the cost.
- The salesperson, as a result of their care, concern and expertise, becomes the value.
- The salesperson is valued as a trusted advisor compared to competitors who are mostly viewed as vendors.
Selling value will help your company navigate the economic ripple effect from the Coronavirus. You'll not only continue to generate revenue, you'll be able to maintain your margins too.
I've referenced only 3 (plus Sales DNA) of the 21 Sales Core Competencies in this article. You can view the data on all 21 Sales Core Competencies and even see how your sales team compares here.
Comments? Leave them in the LinkedIn discussion of this article.
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