By David Tomas, on 5 December 2022
Many brands focus their marketing strategy on the customer's needs, conveying that the price they have paid for a product or service is less than the problem or need it solves. This type of strategy is known as value based selling, but what exactly is it and how can it be incorporated into a sales strategy?
What Is Value Based Selling?
Value based selling consists of conveying to the customer that the price they are paying for the product or service is lower than the value of the problem or need it will cover. The aim is to get the consumer to visualize what their day-to-day life will be like if they decide to make the purchase. The customer should visualize themself enjoying the product and feel that they are paying a low price for the benefits they will obtain.
Key Features of Value Based Selling
In order to apply value based selling correctly, it is important to take into account the following characteristics:
The sale must be closed by putting the customer's needs first. This means that prior work must be done to find out what needs or problems the customer has and how your brand can solve them. In this part, you can also look for information about competitors, since knowing what they do is a way of obtaining data on the sector.
Listen to the customer. Before presenting the product or service, you should listen to the customer and offer them information that is relevant, thus establishing a relationship of trust. By doing this, you can obtain more relevant information to close the sale.
Present the product highlighting the value it will have for the customer. Here the characteristics of the product or service offered by the company should be highlighted, emphasizing that it can be the solution to the customer's problem.
It is necessary to focus on informing, not selling. When the main objective is to teach and give relevant information to the customer, the results are usually better.
Accompany them through the buying process. The customer must feel that the information they are getting is sincere and honest.
Create a pleasant and trusting environment. The conversation with the customer should be very similar to the one you would have with a friend. Do not be afraid to ask open questions or have conversations that at first glance may seem trivial in order to establish a relationship of trust.
Benefits of Value Based Selling
It has been proven that companies that have applied value based selling have seen an increase in sales and profits. In addition to this, brands claim that it has also allowed them to establish much closer and more trusting relationships with customers, which leads to a higher loyalty.
Another benefit is that your team will gain a much deeper understanding of how the company works and the characteristics of the product or service it offers. This gives them more tools and greater confidence to carry out the sales process or to design a better sales strategy.
Examples of Value Based Selling
Now that you know what value based selling is, its characteristics and benefits, here are some examples of this type of strategy.
The courier company, UPS, is one of those that applies this sales model. On its website, you can see how it offers customized solutions and lists the benefits of relying on it for any shipment. It also offers a free brainstorming session with companies, which gives it added value as a brand.
Microsoft is another great example, as it is a company that has no problem offering a free guided tour of all its products that is tailored to the customer's needs. The company describes the characteristics of what it offers, as well as the possibility of speaking with a member of the team to go over any questions or get personalized attention.
Apple is another example because of the personalized attention in its stores and the features and benefits it offers.
Implementing a value based selling model may seem complicated and may involve time and effort at first, as it is a matter of re-educating your team. However, the future benefits, as well as the perception that consumers will have of the brand can be much more positive.