Selling on Value - The Two
Key Principles of Value Selling
The Difference Between Price And Value
Most agents and advisors know the difference between price and
value. The challenge they face is how to ‘Sell The Value’ to
their prospects. If you can't do this and your sales strategy is
based only on 'sell based on price' you will set yourself up for
failure.
Regardless of whether you are new to sales or are a sales
veteran, you must incorporate value added selling into your
sales toolkit. To do this, a good starting point is to look at
the two key principles behind every value added sales strategy.
Look at value from the customer's perspective...
This is the most important principle because you can't apply the
other principles if you don't or can't identify a particular
client's value drivers. A product or service has value only
when the customer perceives it to be so. This may sound like
common sense, but surprisingly, it is not common practice.
What are the key skills needed to implement this principle?
Quite simply, the ability to ask good questions, what
are called
‘value creation questions,’ are essential as the first step in
your value selling strategy.
Quantify your value proposition
The next step is to communicate your ‘value proposition’ as
persuasively as possible.
One guideline that will help you to do this is to use specific,
quantifiable ‘benefits’ that the customer will appreciate, such
as reduced taxes, elimination of debts, tax free income for
retirement, and so on.
An example… Which of these is most persuasive?
“We can show you how to be out of debt within 6 months.”
“How much better off would you be if you were able to pay off
all your debts within the next 6 months, and then put those
payments away for your retirement?”
“It's not the answer, it's the quality of the question.”
Here is quick tip from
Don Pooley that goes on to explain the importance of
perceived value.
How Is
Your Value Perceived?
It's all about perception,
really.
We are paid less for what
we know and do - what we think is our true worth - than we are
for our 'perceived value'.
For example, I asked
everyone who told me what E-book they'd buy, "What's the
maximum price you'd pay for it?" Answers ranged from $0 to
"unlimited". Most were $100.
But, we'll layout over ten
times that to attend conferences at distant places (e.g. MDRT
meetings) with no idea as to whether anything we hear there will
benefit us.
While a book, or E-book
that we've chosen for its relevance may be far more profitable,
and cost a fraction.
But we convince ourselves
that the MDRT meeting has greater value that justifies its high
cost.
This is not a criticism.
We are all like that.
It's an insight into our
nature.... and the nature of clients, and prospects!
The greater it’s
'perceived value', the more we are willing to pay for a
product or service.
This relates directly to
our earning power. The more your 'perceived value', the
more you are able to earn.
So the secret of making
more money is to increase your 'perceived value' to your
prospects and clients.
The operative word is
PERCEIVED. They have to see what you are doing for them, and
be reminded of you, and your value to them frequently.
So, what you are doing to
help your clients understand how you benefit them?
And ask yourself if they
actually 'perceive' it.
Don Pooley CLU, CFP,
CHFC, "The Advisor's Advisor" has shared his
marketing know-how with audiences of life insurance men in all
major Canadian cities, London, Australia, Chicago, New York, San
Francisco, Hong Kong, and Singapore, and now in his free ezine.
To get more ideas on marketing your services, plus free ebooks,
subscribe now at http://www.eTIP.ca/
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