If you have clear differentiating value, do your customers continue to push back and relentlessly negotiate on price?
If your customers are considering your solution for the first time, they may very well be confused as to its unique value and will focus on the specific costs and risks associated with changing their current situation. Without a clear understanding of the problems to solve and the financial impact of your solution on various areas of their business, they will gravitate to what they do understand – cost – and push to negotiate on price while pulling out valuable components of your solution.
If you are seeing “the unique value of your solution” as a clear competitive advantage, that value will fall short if sales professionals can’t immediately establish relevancy, credibility and trust with customer executives and the key individuals that would be impacted by your solution’s value.
If the problem to be solved, exposure to risk, and associated costs are significant enough to cause an executive to want to change, a “business level” conversation is required with the executive in order to establish the net profit impact of your solution’s value on their business. Today, the business focused conversation is challenging even for the most experienced professionals. When you add the complexity of a very competitive and price driven market, a “value strategy” often fails, and salespeople, intent on taking their case to the executives, are either sent to lower levels of the company or simply rejected.
Leadership is often faced with forecasted business falling short of expectations and the pressure to explain their situation to shareholders while adjusting their strategy to get the numbers right next time. They often cut cost and delay investing in their business as their growth strategy takes a hit. Why does this continue to happen?
Salespeople often forecast opportunities based on their view of an opportunity as a whole and their reaction to what customers are telling them. They may not be focused on the business impact of their solution across multiple functions, decision makers and influencers involved in the decision to invest in the solution. Each individual involved needs to be guided through a quality decision process by which they will understand how to quantify and measure the value impact of a solution on their job responsibilities and on their business as a whole. If any individual falls short on clarity and “The Progression to Change,” they can undermine the sales process, which could result in drawn out sales cycles, surprises at the 11th hour, or “no sale.”
Prime Resource Group helps its clients quantify and measure unique competitive value and execute a value strategy with a comprehensive, end-to-end, Diagnostic Business Development® methodology, all supported by highly sophisticated tools, reinforcement programs, and an exceptional team of management consultants.
Prime Resource Group can help translate your market strategy into profitable sales results.
Results: Wayne Hutchinson of Shell Global Solutions