Value Based Selling

What is the difference between value-based selling vs. solution selling?

Value-based selling and solution selling are both considered customer-centric approaches.  

However, the difference is that value-based selling focuses on understanding and communicating the unique value that a product or service can provide to the customer. It highly emphasizes demonstrating the value proposition and ROI to differentiate the offering.

While solution selling focuses on identifying and addressing customer needs and challenges, solution selling involves comprehensive solutions that meet the customer's needs, where the sales professionals help to collaborate with the customer to identify the solutions.

What is an effective value based selling approach?

An effective value based selling approach involves understanding the customer’s unique situation and presenting tailored solutions. Key components include:

• Assessing customer needs: Initially understanding the needs and challenges the customer faces and their goals. Asking questions and listening actively to gain insights about the problem areas and expected outcomes.

• Developing value proposition: Developing a compelling value proposition that clearly articulates the unique value and benefits offered. This mainly focuses on solving problems and saving time or money, and also helps increase efficiency.

• Analyzing ROI: Analyzing ROI demonstrates the product or services' financial impact and unique value. Highlighting over sales revenue growth or tangible outcome.

• Tailored presentation: Tailoring presentation to focus on the significant benefits and outcomes that foster engagement of customers. The display can include authentic lids examples to make it more engaging and offer value to the customers.

• Address customer's objective: Address customers by reframing them to context the value. Since the main aim is to solve the customer's problem, offer them the highlights of the product and services, which will help them resolve the issues.

• Collaborative problem-solving: Positioning the business as a trusted advisor and collaborating with the customers to find insights, ideas, and solutions that would be offered beyond products or services.

• Follow-up: Post sales, businesses should stay in touch with the customers to ensure the customer is experiencing the expected value. And in case the customer faces any issue, it should be resolved promptly.