Increasing Sales By Focusing On The Benefits
Increasing Sales By Focusing On The Benefits
Many years ago I worked for a computer hardware company that developed and sold super-minicomputers along with a full suite of software. As the Database Product Line Manager in the Marketing department, I frequently worked with Sales reps doing presentations and demos. I also had the chance to observe how people with all sorts of backgrounds and experiences functioned in sales situations. One of the more seasoned reps, and a good friend of mine, used to tease the newer reps who focused too much on product features instead of what benefits the customer would see. His little taunt went something like this:
"When you discuss the hardware, don't just tell the client about all the parts and pieces. Instead, explain what quarry we got the sand from to make the silicon for our chips, how the silicon was made, and how the chips are manufactured."
That was his way of saying -- “…don't bore the poor prospect with all the features. All they care about is what it will do for them – or what the benefits are.” So, Don't Sell The Quarry. Sell the Benefits!!
This little parody has helped remind me over the years that we should be selling and presenting solutions and benefits, not just features and functions. It's amazing how often this is forgotten. I see it all the time. During an initial sales call, do you find yourself presenting all the detailed features of your favorite product, such as showing your prospect how to create detailed processes instead of discussing how a process can work to help streamline their workflow? Or have you ever found yourself describing the equations used for calculating the customer’s new mortgage rate? Or my favorite, show the prospect how "easy" it is to create a dynamic link to interface to another application. Snore! These are sure-fire ways of putting your prospect to sleep – and losing the deal!
Any one of these examples has the potential of scaring the client away because they won’t understand how it will benefit them. There's plenty of time to show exactly how a product works along with all its power and strengths. But not in a one or two hour meeting when you're trying to convince the client that a) your product can solve their problems, b) your company is solid and viable, and c) YOU are an experienced sales professional with many years in the industry providing solutions to clients, just like them.
One of your primary goals during initial visits with prospects should be to keep them thinking about why they should buy from you, instead of why they shouldn't. The best way to do this is to avoid any objections the prospect may have about you or your product/service. Getting involved with detailed feature descriptions will almost always raise objections and fears that your offering is too complex to use or customize. Another major goal of your initial visit should be to find out as much as you can about what problems your prospect is trying to solve. Once you understand where their pain is, you can better direct the proper benefits in their direction instead of showing them all the detailed features.
A good test to make sure you are on the right track is the “So What” test. Every time you say something, imagine your customer saying “So what!” In other words, you tell them something that you think is important, but the customer says “So what. Why is that important to me”? If you can’t answer that simple question, then what you told them is unlikely to be important to them. Here’s an example. I say to you, “Our new underwater basket weaving system uses molecular, bipolar logic which is faster than the older framastat switch technology.” You say “So what!” Then I say, “This system will allow you to double your production without raising your costs.” You see, it’s the answer I gave you that is the benefit, not the initial statement. Therefore, you should remember to go to the benefit part first. Before you ask the question out loud, ask it to yourself and say, “So what.” Then answer it out loud.
We tend to discuss features first because that’s what we are usually more comfortable with. It is harder to discuss benefits because we have to take that additional step to really understand what the benefits are of a particular feature. Plus, we need to direct the benefits toward particular prospect needs. Unless we focus on their specific needs and pains, then we could be discussing benefits they don’t really need. The way to understand their unique needs is to ask, then listen.
Let’s assume that a prospect is not worried about production capacity. They could not increase the capacity of their plants if they wanted to. If you tell them that your product can double their production because it’s faster, it will fall on deaf ears. However, let’s say you ask them what their problems are and they tell you the overall production time takes too long because of all the steps their current system requires. You can now tell them that your new product can reduce some of the steps in their production cycle, and thus reduce their production time. You now have their full attention. Therefore, focus on their needs and pains and direct the benefits to them.
The entire sales cycle should take this into consideration. It should also consider the human elements of buying. We sell to humans, not corporations. When it comes right down to it, people buy for emotional reasons, then justify the purchase later with facts and analytical information. So, be sure to appeal to their emotional side when presenting benefits. An effective method for doing this is to make sure you present the value to your customer. It’s not as important what the product or service costs as it is to increase the value to the customer. If the customer has a problem that you can solve, then make sure you understand how much that problem is costing them in lost revenue, decreased customer base, increased costs, or similar business concerns. Then, present your solution with how it can solve these specific problems and the value they will realize. The cost will become less important if the value is high.
Here are five Quick Tips to remember when selling benefits and value to your customers.
1. Emphasize the Benefits. If you present benefits that your prospect isn't interested in, they won't be motivated to buy. So be sure to know what your client is looking for and sell the right benefits.
2. Put a Price Tag on the Benefits. Once you find out what your prospect wants, find out what those benefits are worth to them. Will your product/service save them time? Reduce labor costs? Increase profits? Show them what problems it can solve and the goals it can help them meet. This information is also useful after the installation in order to measure the success of the project.
3. Focus on Value, not Price. What's most important to the customer is what they get for their money, not just how much it costs. For customers who press you for discounts and deals, point out that this may help them save money initially, but sacrifices in quality will cost more money in the long run.
4. Sell to People. Even though the prospect's company has a need for the product, make sure you show how the decision maker(s) will personally benefit from it. Then provide them with examples. I once told an IT Manager that because of the modularity and flexibility of our product, he can make customizations on his laptop at home and at night after he spent quality time with his newborn baby, instead of spending late-night hours at the office tethered to his desk. He really related to that benefit.
5. Appeal to their Emotion. Paint an emotional picture of your prospect using your product or service in their particular environment. Help them to see how pleased they'll be that they won't need to create reports any more, or that their people will be more efficient and be using their time more wisely. Remember the last time you bought a car and the sales rep had you sit in it. He might have kept referring to it as "Your" car and how well "You" look sitting in it. This is a trivial example, but nevertheless, it's true that we buy emotionally as well as logically and analytically.
Selling is hard enough. We must remember not to make it harder by overwhelming our prospects with features and details. We all do it, but we must resist the temptation to show the client just how much we know. There will be plenty of time to do that, once you get invited back. By then, you could even take them on a tour of the quarry if you want.
Good Luck & Good Selling!
Russ Lombardo
russ@PeakSalesConsulting.com
702-655-5652
Increasing Sales By Focusing On The Benefits - To learn more about this author, visit Russ Lombardo's Website.
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Are you having problems keeping your prospect’s attention? Do you spend a lot of time talking about what your product or service can do, but your customer just doesn’t “get it”? Are you treated with hostility after your sales presentations? If you said “yes” to any one of these questions, perhaps your problem is that you are selling “features” instead of “benefits”.
Many years ago I worked for a computer hardware company that developed and sold super-minicomputers along with a full suite of software. As the Database Product Line Manager in the Marketing department, I frequently worked with Sales reps doing presentations and demos. I also had the chance to observe how people with all sorts of backgrounds and experiences functioned in sales situations. One of the more seasoned reps, and a good friend of mine, used to tease the newer reps who focused too much on product features instead of what benefits the customer would see. His little taunt went something like this:
"When you discuss the hardware, don't just tell the client about all the parts and pieces. Instead, explain what quarry we got the sand from to make the silicon for our chips, how the silicon was made, and how the chips are manufactured."
That was his way of saying -- “…don't bore the poor prospect with all the features. All they care about is what it will do for them – or what the benefits are.” So, Don't Sell The Quarry. Sell the Benefits!!
This little parody has helped remind me over the years that we should be selling and presenting solutions and benefits, not just features and functions. It's amazing how often this is forgotten. I see it all the time. During an initial sales call, do you find yourself presenting all the detailed features of your favorite product, such as showing your prospect how to create detailed processes instead of discussing how a process can work to help streamline their workflow? Or have you ever found yourself describing the equations used for calculating the customer’s new mortgage rate? Or my favorite, show the prospect how "easy" it is to create a dynamic link to interface to another application. Snore! These are sure-fire ways of putting your prospect to sleep – and losing the deal!
Any one of these examples has the potential of scaring the client away because they won’t understand how it will benefit them. There's plenty of time to show exactly how a product works along with all its power and strengths. But not in a one or two hour meeting when you're trying to convince the client that a) your product can solve their problems, b) your company is solid and viable, and c) YOU are an experienced sales professional with many years in the industry providing solutions to clients, just like them.
One of your primary goals during initial visits with prospects should be to keep them thinking about why they should buy from you, instead of why they shouldn't. The best way to do this is to avoid any objections the prospect may have about you or your product/service. Getting involved with detailed feature descriptions will almost always raise objections and fears that your offering is too complex to use or customize. Another major goal of your initial visit should be to find out as much as you can about what problems your prospect is trying to solve. Once you understand where their pain is, you can better direct the proper benefits in their direction instead of showing them all the detailed features.
A good test to make sure you are on the right track is the “So What” test. Every time you say something, imagine your customer saying “So what!” In other words, you tell them something that you think is important, but the customer says “So what. Why is that important to me”? If you can’t answer that simple question, then what you told them is unlikely to be important to them. Here’s an example. I say to you, “Our new underwater basket weaving system uses molecular, bipolar logic which is faster than the older framastat switch technology.” You say “So what!” Then I say, “This system will allow you to double your production without raising your costs.” You see, it’s the answer I gave you that is the benefit, not the initial statement. Therefore, you should remember to go to the benefit part first. Before you ask the question out loud, ask it to yourself and say, “So what.” Then answer it out loud.
We tend to discuss features first because that’s what we are usually more comfortable with. It is harder to discuss benefits because we have to take that additional step to really understand what the benefits are of a particular feature. Plus, we need to direct the benefits toward particular prospect needs. Unless we focus on their specific needs and pains, then we could be discussing benefits they don’t really need. The way to understand their unique needs is to ask, then listen.
Let’s assume that a prospect is not worried about production capacity. They could not increase the capacity of their plants if they wanted to. If you tell them that your product can double their production because it’s faster, it will fall on deaf ears. However, let’s say you ask them what their problems are and they tell you the overall production time takes too long because of all the steps their current system requires. You can now tell them that your new product can reduce some of the steps in their production cycle, and thus reduce their production time. You now have their full attention. Therefore, focus on their needs and pains and direct the benefits to them.
The entire sales cycle should take this into consideration. It should also consider the human elements of buying. We sell to humans, not corporations. When it comes right down to it, people buy for emotional reasons, then justify the purchase later with facts and analytical information. So, be sure to appeal to their emotional side when presenting benefits. An effective method for doing this is to make sure you present the value to your customer. It’s not as important what the product or service costs as it is to increase the value to the customer. If the customer has a problem that you can solve, then make sure you understand how much that problem is costing them in lost revenue, decreased customer base, increased costs, or similar business concerns. Then, present your solution with how it can solve these specific problems and the value they will realize. The cost will become less important if the value is high.
Here are five Quick Tips to remember when selling benefits and value to your customers.
1. Emphasize the Benefits. If you present benefits that your prospect isn't interested in, they won't be motivated to buy. So be sure to know what your client is looking for and sell the right benefits.
2. Put a Price Tag on the Benefits. Once you find out what your prospect wants, find out what those benefits are worth to them. Will your product/service save them time? Reduce labor costs? Increase profits? Show them what problems it can solve and the goals it can help them meet. This information is also useful after the installation in order to measure the success of the project.
3. Focus on Value, not Price. What's most important to the customer is what they get for their money, not just how much it costs. For customers who press you for discounts and deals, point out that this may help them save money initially, but sacrifices in quality will cost more money in the long run.
4. Sell to People. Even though the prospect's company has a need for the product, make sure you show how the decision maker(s) will personally benefit from it. Then provide them with examples. I once told an IT Manager that because of the modularity and flexibility of our product, he can make customizations on his laptop at home and at night after he spent quality time with his newborn baby, instead of spending late-night hours at the office tethered to his desk. He really related to that benefit.
5. Appeal to their Emotion. Paint an emotional picture of your prospect using your product or service in their particular environment. Help them to see how pleased they'll be that they won't need to create reports any more, or that their people will be more efficient and be using their time more wisely. Remember the last time you bought a car and the sales rep had you sit in it. He might have kept referring to it as "Your" car and how well "You" look sitting in it. This is a trivial example, but nevertheless, it's true that we buy emotionally as well as logically and analytically.
Selling is hard enough. We must remember not to make it harder by overwhelming our prospects with features and details. We all do it, but we must resist the temptation to show the client just how much we know. There will be plenty of time to do that, once you get invited back. By then, you could even take them on a tour of the quarry if you want.
Good Luck & Good Selling!
Russ Lombardo
russ@PeakSalesConsulting.com
702-655-5652
Increasing Sales By Focusing On The Benefits - To learn more about this author, visit Russ Lombardo's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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