The Importance of Quantifying Value
As the economy softens, customers become more concerned about the value of each dollar they spend. Consequently, salespeople must be able to demonstrate the value they bring to customers in a quantifiable way. Simply telling a customer that your product or service is better than your competitors’ is no longer enough. Multiple stakeholders are often involved in purchase decisions, and many of these stakeholders want to understand the tangible benefits they will receive from your solution (or “special resource”), and they want to know exactly how much they will save or earn as a result of your intervention.
Quantifying your value to customers should be a collaborative process that the salesperson engages in with the key stakeholders – especially your Inside-Outsider (the person inside the organization who is highly motivated to move the organization out of its status quo). This quantification effort requires you to understand the customer’s goals and work together with them to determine the key metrics or indicators that will be most relevant to them. By doing so, you can better demonstrate the tangible benefits of your solution and show the customer how your intervention will impact their bottom line.
A common way to show value is through cost savings. For example, your customer may be in an industry that is facing increasing energy costs outside of their control (their villain). They may realize that their production process is inefficient (their flaw) and as a result, their profits are eroding. In this case, your special resource could be an energy-efficient lighting system. Rather than focusing on the features of your system, it would be better to make the effort to show your customer specifically how much they can save by using your solution. You can work with their important stakeholders to figure out how much less energy they will use and calculate how much they will save. This information will show the decision maker the real economic benefits of your product and how much they can save.
Another way to show value is by increasing revenue. For example, if you sell a tool to help with sales, you might show your customer how it will help increase the amount of sales they can make, the average value of each sale, and how much shorter their sales cycles may be. By working with the customer and their important stakeholders, you can show them how your tool will impact their sales and overall business success.
Showing the economic value you can bring to your customers is increasingly important in today’s economy. By working together with the customer and their key people, you can understand their needs and goals and show them how your solution can help. By doing this, you can give the customer a strong reason to do business with you and make your customer relationships stronger.