Value selling and the 7 mistakes to avoid - with Mike Wilkinson
Jul 16, 2021
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Mike Wilkinson, a value selling expert and author, shares his insights on navigating the complex world of sales. He defines 'value' as a mystery, emphasizing the importance of understanding customer perspectives. The conversation covers the seven common mistakes in value selling and how to shift discussions from price to true value. Mike also outlines a four-step value selling process that enhances customer engagement and ensures sales success. Listeners will discover strategies to refine their sales approaches in a modern, transparent marketplace.
Understanding that value is customer-specific and actively seeking to define it through dialogue is crucial for successful value selling.
Avoiding common mistakes, such as defaulting to discounts and neglecting unique value propositions, can enhance overall sales effectiveness.
Deep dives
The Craziest Sales Experience
A memorable story about the extremes some sales teams go to in order to succeed highlights the competitive nature of sales. A sales team at a drinks company went to great lengths to win a promotion that offered a lavish weekend in Paris as a reward. The team cleared their garages of stock and offered significant giveaways to boost sales numbers, resulting in an expensive but successful outcome. This experience illustrates the risks involved in prioritizing immediate success over sustainable, strategic decision-making in sales promotions.
Understanding Value as a Mystery
The concept of value is often misunderstood, as evidenced by a revealing exercise conducted at a conference where attendees struggled to define it. This underscores a key insight: value is not a universally agreed-upon term, and it remains ambiguous until defined by the customer. By framing value as a mystery, sales professionals are urged to actively seek to understand each customer’s unique definition of value. The challenge then becomes identifying and solving this value mystery through effective dialogue with clients.
The Value Triad Framework
The value triad outlines three components crucial for defining and communicating value: revenue or performance gain, cost reduction, and emotional contribution. Revenue and cost aspects are tangible and should be measured with clear, quantifiable data, enabling sales professionals to address customer concerns with concrete examples. Emotional contribution relates to trust and relationships, emphasizing the importance of establishing rapport with clients. Together, these components help sales teams tailor their approach to meet customer expectations and enhance perceived value.
Mistakes to Avoid in Value Selling
A series of common mistakes in value selling includes the tendency to default to discounts when value isn’t effectively communicated. Sales professionals often neglect to establish their unique value proposition or fail to convey their understanding of the customer's needs, leading to price negotiations instead of value discussions. Moreover, organizations must avoid believing that value communication is solely the sales team’s responsibility, as everyone in the company plays a role in delivering customer value. These mistakes highlight the complexity of navigating price versus value dynamics in sales.
Value selling expert Mike Wilkinson joins us in this week's episode of the Sales Ladder. We'll discuss a great deal, including: - What is "value"? - What are the 7 common mistakes to avoid in value selling? - How do you move the conversation from price to value? - How do you solve the value mystery? - What is the 4 step value selling process?
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