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3 Different Sales Strategies and How to Develop a Value Proposition

By Susan Hall

Have you developed your value proposition? Do you have an action plan to win the sale? In this video, Susan Hall, Bob Parks and Jeff Filipski discuss three different sales strategies that salespeople can use when positioning their solution for a complex sale.

Susan Hall: 00:01 In a previous video, we discussed the importance of understanding the client's formal and informal decision-making process and also the different roles that influencers can play in that decision to do business with you or not. So today, we want to discuss three different sales strategies that you can take, when to take them, as well as how you develop your value proposition. So, Bob, can you talk a little bit about the different strategies salespeople can use when positioning their solution for a complex sale?

Bob Parks: 00:42 Absolutely. Once we know how aligned we are with the prospect's political decision-making landscape, we can determine what our sales strategy should be. There are basically three strategies that we could employ. First is a direct or frontal approach. This is a strategy that most sales organizations use most of the time. The problem is that to win with this strategy, you need to have a three-to-one advantage over your competition, meaning that you must have a clear and unique solution fit. You have a previous relationship with this client. You are the first one they called for this opportunity, and they will make an immediate decision. It's a swift implementation once it's decided. If we don't enjoy a three-to-one advantage, we can employ an alternative strategy, meaning that we change the focus of the buying criteria to those that improve our value and our solution. This might include addressing your competitor's weaknesses, focusing on a specific business value you can provide, and finding an internal supporter that'll help you.

Bob Parks: 01:55 Finally, if neither of these strategies fit, then you can segment the sale, which means that you go and focus on that portion of the sale where your solution can provide the greatest value. If there is a piece of the sale where you can provide significant value, it can be a springboard to future opportunities.

Susan Hall: 02:15 Jeff, how do you develop a value proposition and action plan?

Jeff Filipski: 02:20 Susan, the value proposition must address the client's issues and focus on the payback, or ROI, as it relates to the client's business initiative, which should be clearly defined. It should include the following: How does your solution create value for them? This describes how we can help in both a qualitative and quantitative firm. What is the specific and measurable result that we will deliver? How does it deliver value as the customer defines it? How will they measure it? It needs to align with solving or helping them in accomplishing their business initiative. Does our value proposition create a sense of urgency for the client to take immediate action? Are you capable, and can you demonstrate to them a solution that is different? Describe how you have implemented somewhere else and the ROI associated with it. Will the client perceive your solution as offering a competitive advantage?

Jeff Filipski: 03:17 If you understand the client's business drivers and the associated business initiatives that are in place to meet those drivers, then you can match your company's capabilities and proposed solutions to them so that you'll differentiate yourself from the competitors. You'll have a strong enough business value to create a compelling event that'll drive them to help them accomplish their business initiatives. This is done through the alignment and discovery during the sales process.

Jeff Filipski: 03:44 A format for a value proposition should include the following elements to be effective: Describe the impact of your solution to help them meet their business initiative. Tell them what it will do for them and how it will solve their problem or initiative. Describe what the new scenario will look like. It will be an investment of X dollars compared to something else, and remember, it's not a cost. Explain that the ROI, or cost-benefit of the solution, is and the payback period. Use a reference if possible, by name, and tell them that they saved this amount of dollars.

Jeff Filipski: 04:21 If you have done a proper discovery, developing the value proposition is nothing more than a recap of the previously agreed-upon benefits, both monetary and intangible, that will solve a business initiative and make them more profitable. It will create a compelling event that will have them ACTING on your solution.

Susan Hall: 04:41 So, gentlemen. We've covered a lot of ground in a small amount of time today. I want to let our listeners and viewers know that if you're at all interested in helping your sales team close a higher percentage of proposals, please feel free to reach out to us at StrategicEnhancementGroup.com.

Susan Hall: 05:00 Our team is always happy to share ideas and best practices and explore how we can best help you and your team hit your goals. Thank you so much. Good luck, and have fun selling.

 

Published: June 19, 2024

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MEET THE AUTHOR

Susan Hall

Vice President - Business Development & Performance Improvement

Susan brings over 20 years of experience working with global markets and organizations, helping them navigate through tough economic challenges while maintaining their margins. Since joining SEG in 1995, she has had the privilege of working with organizations that truly value the development of their employees and recognize the impact their people have on their bottom line results. Susan graduated from Pennsylvania State University with a double major in business management and speech communication. She has also completed course work toward her master's degree at Johns Hopkins University.

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