Value Propositions and Competitive Advantage

I still remember the first sales training class I attended over thirty years ago. . It was called "Needs Satisfaction selling". In those days we owned a patch of dirt and every account that resided on that patch of dirt. We had trunk files and 3 X 5 cards that we kept precious customer information on. We also carried roles of dimes in our car so we could stop at a pay phone and call in at least twice a day. It was mandatory. We didn't have the internet and cell phones in the old days.

Territories used to be defined geographically in those days. If you go way back to when I was young, as my daughter says "back before MTV when dinosaurs ruled the earth," a Sales Person got a chunk of geography and you were told this is your patch of dirt. You go out and you farm the soil and you build the business. I call this the Lone Wolf Mentality.

In times past, salespeople were trained to focus on their product. They knew everything about it - what features it had, the benefits, how long it could last and what the red button did when pressed. Salespeople talked about the product until they were blue in the face. Armed with brochures and warranties, they were ready to attack. But, in today's environment, customers want more, not just the latest technology and the best "widget" a person can buy. They want complete solutions to all their problems. Suddenly, the brochure and other marketing materials are simply support functions. Buyers are more educated, more professional and seek more than just products. They want efficiencies, market share and profit generation.

It's not about Features and Benefits

Today it's not about the features and benefits of your product. It's about value and how your customers are going to make a profit. You no longer just sell yourself and everything falls into place. Today, relationships are still very important but they are the ante to play. Customers are smarter and more educated. You must bring every resource your company has into play and leverage those resources to create competitive advantage. Learn to really listen to your customers. Let them talk and when there seems to be a pause in the conversation resist the temptation to start talking again. Chances are good that the customer has more to say. The quieter you are the more they will tell you. Listen long enough with a few strategically placed questions and the customer might just tell you exactly how to gain his business. (And it won't just be about price)

Today it's About Value

Don't blow this concept off as some sales training jargon. Value propositions are extremely important. You have one, your company has one and your products have them. What is it about you that creates value for your customer? What is it about your company that creates value for your customer? What is it about your product that creates value for your customer? It's not features and benefits.

Customers don't want features and benefits; they want profits - or ways to make profits. They want satisfaction, feelings of comfort, pride, praise and self-esteem. They are people just like us. Well, maybe they don't have the same crazy genetics that we have as salespeople, but they are just as smart, just as caring and have similar personal needs and feelings. Consider this;

"Perceived Value Drives Customer Expectations"

Exactly what does that mean? It means that the higher you raise customer expectations of you as a supplier, the closer you come to creating competitive advantage. Be careful though. If you raise the customer's expectations so high you can't perform, you shoot yourself in the foot.

The only way to raise customer expectations to the level necessary to create competitive advantage is through the ability to explain, educate and sell the customer on your value propositions. Remember, several value propositions come into play even if you are selling a commodity product. If you're not selling a commodity you have the product value proposition which include the value created by the features and benefits. But remember, it's about the value created for the customer because of those benefits. If the customer finds no value in them and you can't educate them, you have no value proposition. Burn this into your brain;

"It's the Customer That Defines Value!"

The product itself is not the only value proposition at your disposal. In fact, unless you have some exclusivity on product or distribution product value propositions are the last to come into play because your competition can match them. In many cases, this prevents you from raising expectations from a product standpoint high enough to create competitive advantage. However, don't despair; you have company value propositions and personal value propositions. Personal values are generally built around your relationship equity with the customer. Most sales people have customers that do business with the company simply because they like and TRUST the sales person. That is a personal value proposition. This is created by the way you treat the customer, handle their transactions and supply value in your relationship by helping them solve problems even if those problems have no relationship to your products.

As today's sales environment leans toward a more multifaceted atmosphere, salespeople must become strategists with a plan. This plan requires more knowledge about the business, better relationships and better solutions. Some old school salesmen may believe they know what it takes. They have the experience. They've been around a long time. They also may be wrong. The world is changing. Today, effective sales professionals are doing things differently. Sales representatives are successful today because they gain the majority of their targeted customers business. They manage the relationship and continuously build relationship equity. That doesn't mean they operate with the old lone wolf mentality doing everything under the sun for the customer. They are successful because they take full advantage of all the resources their company has to offer. They are able to educate their customers on their value propositions. Transactions and promos flow through a managed relationship. They also dedicate a specific amount of their time to new account development and penetration of those accounts with high potential rather than over providing service functions to existing accounts.

Sales is a Profession to be Proud Of

Learning your product, making a clear presentation to qualified prospects, and closing more sales will take a lot less time once you understand value propositions and care about the prospects you are calling upon. You must become a total solution provider regardless of the circumstance or situation. Sometimes solving a customer's problem will have nothing to do with your product or your company. That doesn't matter. Solving the problem builds relationship equity and enhances your personal value proposition. Relationships are still extremely important even in this century when a relationship is required to even get into the game.

The Company Value Proposition

The company value proposition is defined in terms of what your company stands for. It's about creating that ultimate customer experience in the way they partner with their customers, how they have produced for others, and how they serve others. It's a chance to talk about capability and loyalty without mentioning the words integrity or ethics. It boils down to being easy to do business with backed up by value added services that recognize special customer needs as a priority.

Competitive Advantage

The value proposition, if used properly, can create competitive advantage. The Value Proposition can raise customer expectations to the point that you become the only choice. When you get involved in the three bid process, make sure you compare apples to apples by suggesting making your value propositions part of the quote requirements.

Instead of simply learning to "do what we have always done a little better," we need to become aware of and practice understanding that involves re-examining everything we do - including how we think about our customers and our role in their future.

This often means letting go of our existing knowledge and competencies, recognizing that they prevent us from learning new things.

This is a challenging and sometimes painful, but ultimately rewarding, endeavor.

Check out Rick's new CD series and workbook "Unlocking the Secrets to Amazing Sales" @ http://www.ceostrategist.com/resources-store/unlocking-the-secrets-to-amazing-sales-incredible-profits.html It is a must addition for your sales training initiatives. Order today and get a bonus copy of Rick's book "Turning Lone Wolves into Lead Wolves ----56 ideas to maximize sales.

Thanks to PF& Associates for their contribution to the content in this article. http://www.ceostrategist.com - Sign up to receive "The Howl" a free monthly newsletter that addresses real world industry issues. - Straight talk about today's issues. Rick Johnson, expert speaker, wholesale distribution's "Leadership Strategist", founder of CEO Strategist, LLC a firm that helps clients create and maintain competitive advantage. Need a speaker for your next event, E-mail rick@ceostrategist.com. Don't forget to check out the Lead Wolf Series that can help you put more profit into your business.

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Increase Sales Coaching Tip - Embrace an Authentic Attitude of Gratitude

Great sales professionals understand that many attitudes contribute to sale success. One of these attitudes is gratitude. Is this one of yours? And more importantly is it authentic?

What I mean by authentic is this attitude part of your persona? Are you consistently demonstrating an attitude of gratitude?

Zig Ziglar wrote that attitudes are habits of thought. Our habits then become our outward behaviors.

What behaviors then reflect an authentic attitude of gratitude? During the course of my business training coaching practice, I consistently demonstrate these actions:

• Send handwritten thank you notes after all meetings
• Mail a note or postcard after meeting someone at a networking event
• Send postcards or notes to others who have earned some special status or recognition
• Send special cards to family and friends
• Call clients and friends to keep in touch
• Acknowledge most emails even if they are trying to sell me something
• Thank people in person when they make a compliment such as I read your business column
• Take some private time to reflect and acknowledge everything that I have received

Also, by demonstrating these behaviors, I have become a better listener because I am grateful for the opportunity to meet with potential clients to centers of influence. This attitude of gratitude has been noticed by others since I consistently hear remarks directly or indirectly like:

• You are so good about taking the time to send out notes.
• Leanne is one of the few people who takes the time to listen to you and is not in a hurry to rush off to that next meeting.

Having an authentic attitude of gratitude means you truly appreciate each and every opportunity as you conduct your daily business behaviors. Your understand that your sales success is based upon how others view you. Sales Coaching Tip: People judge you more by your actions. Actions always speak louder than words.

The results from this authentic attitude of gratitude have begun to dramatically increase from new speaking opportunities to increase sales. So if you want to increase sales for yourself then maybe you need to embrace an authentic attitude of gratitude as part of your sales skills.

Did you know that loyal customers are worth their weight in gold? This free audit looks to how you can build loyal customers.

Looking for other sales coaching tips and advice? Then visit the sales coaching gym.

Leanne Hoagland-Smith, chief customer officer, helps organizations through business training coaching services to return to the purpose of business that being building raving fans while increasing productivity and profitability. With offices in Chicago, Indianapolis and colleagues nationwide, she can help you become the Red Jacket in the Sea of Gray Suits. Call 219.759.5601 to schedule a free business coaching consultation.

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Crossing the Finish Line

If you cringe at the sound of the words, "closing the sale," you are not alone. Many small business owners or solo-preneurs don't like to think about closing the sale because they don't like to think of themselves as salespeople.

Sales has earned a tarnished reputation due to the snake oil sales tactics of a small percentage of the selling population. As a result, the minority has managed to ruin a perfectly good, and highly lucrative, profession in the minds of the majority.

So whether you like to think of yourself as being in sales or not, the truth is that everyone is in sales. Allow me to illustrate: Ever been out on a date? Ever been married? These are two of the greatest sales pitches of all time. Rather than fight or deny the notion that you are in sales, you'll do well to find a way to get comfortable with it.

In fact, it seems that we are hard wired with the gift of persuasion and begin putting the skill to use at a very early age. If you are a parent who has ever spent the day at a theme park, zoo, beach, playground or restaurant with an overgrown rodent for a mascot, against your will and better judgment, then you know exactly what I mean.

From a business owner's perspective, closing the sale is part of the marketing cycle. It is the final step and the only part of the process that causes money to flow into instead of out of your checkbook. A truly effective and well constructed marketing cycle will set the stage for a natural flow to the finish.

If your marketing efforts aren't yielding the rate of conversion from prospect to client that you'd like, then you may want to revisit the steps of your marketing process to see what's missing.

1. Are you taking the time to build a relationship before asking for the sale? People buy from people or companies they like (possible exception being Wal~Mart.)

• Do your prospects know you?
• Do you know them?
• Do you show them as well as tell them that you care about what is important to them?

2. Are you giving before you ask to receive?

• Do you publish a complimentary e-zine or newsletter with helpful tips and information?
• Do you offer incentives for loyalty or referrals?

3. How's your follow up?

• Do you keep in touch with past clients?
• Are you sporadic with your communication? Consistency communicates stability and reliability and is comforting. That's part of why franchise and chain restaurants do so well. People know exactly what to expect.

So, if you want to enjoy more closed sales without feeling like a salesperson; take a fearless inventory of your marketing cycle. Chances are you'll uncover one or two places where you could improve the process and enrich both your business and the lives of those you serve.

Lisa Almeida is a Marketing on a Shoestring Mentor and owner of Planit Production. She teaches business owners how to apply do-it-yourself techniques to proven and powerful marketing methods to get big business results with small business resources. If you are in the market for strategies that can deliver the results you want then visit http://www.PlanitwithLisa.com today and sign up to receive the weekly ezine, Going Soul-o. Because success doesn't just happen; are you ready to planit?

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Key Stages In Making A Sale

There are some key stages in trying to achieve a sale.

1. Opening. Let's assume someone has contacted you about buying your product or service. This is not a closed deal. There is still a lot of work to do. Ask them why they contacted you, what they intend to use your product/ service for. Try and understand their need. Try and understand what is important to them.

2. Meeting. First impressions count for a lot. It is very important that your potential client likes you. And trusts you. Help them build up that like and trust from the start. Listen to what they're saying and give feedback to demonstrate understanding.

3. Gather information. In the beginning, do not give too much information away. They have contacted you, so they have some idea of what you're offering, but you have no idea about them or what they need. Try and understand where the client is now (A), and where (s)he wants to go (B). What has to happen for them to get from A to B?

4. You may have to make a presentation. Armed with the information you have gathered in the previous two stages, you are in a good position to make a presentation to suit the client's needs. Make your recommendations fit their goals. Help them to get to B! Start with a high price and go lower - not the other way round. Tell stories to help them relate what you're selling to real situations.

5. Experience will soon help you understand all the questions that may arise. The next stage in your development, therefore, is to pre-empt these by including the answers in your presentation. Common objections are around the budget, the timing and the decision-makers so find out the answers to those questions in the information gathering stage.

6. Closing. This is a critical stage. Try to asking test-closing questions as you present. Questions such as "does this seem like a good idea?", "can you see how this will help you?", "Is there anything that needs clarifying?" are very useful. Try to recognize buy decision signals. Behavior often changes when the decision to buy has been made. Experience will help you spot that. If your test closure reveals uncertainty, then go back over the points to help understanding. Have empathy with the client: "I understand you...", "I know how you feel...". In this way you helping to build harmony and rapport with your client.

7. Cementing. When the client has agreed to buy, treat them as a client. Thank them, send them a letter, tell them what happens next and when. They could be great for future referrals.

Author: Garry Pierrepont

Interested in selling? Want to make it a career? Before you do, find out more about the truth behind sales. See http://www.thetruthaboutsales.co.uk

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