Introducing Value-Added Selling with Duane Weaver

Outline The Value-Added Organization The Value-Added Organization Value-Added Selling Value-Added Selling The Value-Added Selling Process The Value-Added Selling Process

The Value Added Organization “Value-added organizations are great because they deliver a valuable total experience” “Value-added organizations are great because they deliver a valuable total experience” Reilly, Value-Added Selling. P. 3. Three styles: Three styles: Equalizer: level the playing field; close gaps Equalizer: level the playing field; close gaps Differentiator: work to be better; expand gaps Differentiator: work to be better; expand gaps Value-Added Peak Competitors: Focus on customer’s reality and bridge the company to the customer; bridge the gaps Value-Added Peak Competitors: Focus on customer’s reality and bridge the company to the customer; bridge the gaps

The Value Added Organization (A closer look at V-A Peak Performers) Have a business excellence approach Have a business excellence approach 1. Outperform competition 2. Create lasting Value 3. Long term success Types of Foci: Types of Foci: Challenge Status Quo: “Does this process add value to our efforts or just cost?” Challenge Status Quo: “Does this process add value to our efforts or just cost?” Challenge Themselves: “Is this the best we can do with our resources?” Challenge Themselves: “Is this the best we can do with our resources?” Primary Mission: “To serve customer’s better, not just the competition” Primary Mission: “To serve customer’s better, not just the competition” Success by: “helping customers become more successful” Success by: “helping customers become more successful” Reilly, p.5

The Value Added Organization (focusing the lens on Organizational Excellence) “Organizational Excellence is the natural outcome of individual and team excellence” Reilly, p. 9 Individual as a cost center profit center Individual as a cost center profit center Peers as internal customers: Peers as internal customers: 1. “We” is greater than me (team approach) 2. Treat with same respect as they provide their best customers 3. Build each other up, not break each other down (avoiding the “silo effect”) Engage Customers as a Privilege Engage Customers as a Privilege Customer service is a philosophy held accountable by everyone in the organization Customer service is a philosophy held accountable by everyone in the organization Proactive customer service approach Proactive customer service approach Selling is relationship management Selling is relationship management (Debunking the Brand Loyalty Myth: while customers prefer brands they preserve loyalty for people) (Debunking the Brand Loyalty Myth: while customers prefer brands they preserve loyalty for people)

The Value Added Organization Group Exercise: Group Exercise: In groups of 4 or 5, think of an organization you know or have worked for that exemplifies the qualities of a “value-added” organization and provide three different examples that demonstrate some of these qualities. In groups of 4 or 5, think of an organization you know or have worked for that exemplifies the qualities of a “value-added” organization and provide three different examples that demonstrate some of these qualities. Share these examples with the class explaining why you think this organization has a value-added focus. Share these examples with the class explaining why you think this organization has a value-added focus.

Value-Added Selling What is Value? What is Value? Simple view: Price + Cost + Impact = Value Simple view: Price + Cost + Impact = Value Customer-Focused Value: walking in the customer’s shoes (what do they want) Customer-Focused Value: walking in the customer’s shoes (what do they want) Seller-Focused Value: Defined in seller’s terms, (if we don’t have it, they don’t need it) Seller-Focused Value: Defined in seller’s terms, (if we don’t have it, they don’t need it) Perceived Value: Reality in the mind of the buyer (the qualitative features of what you sell: style, reputation, packaging, knowledge )…getting the “warm and fuzzy” Perceived Value: Reality in the mind of the buyer (the qualitative features of what you sell: style, reputation, packaging, knowledge )…getting the “warm and fuzzy” Performance Value: quantitative; proof behind the promise of perceived value Performance Value: quantitative; proof behind the promise of perceived value …everything you do to something from the moment you buy it, sell it, and service it. It is not value until the customer says it’s value. …everything you do to something from the moment you buy it, sell it, and service it. It is not value until the customer says it’s value.

Value-Added Selling Is a business philosophy whereby: Is a business philosophy whereby: You are proactively looking for ways to enhance, augment, or enlarge your bundled package for the customer. You are proactively looking for ways to enhance, augment, or enlarge your bundled package for the customer. Promising a lot and delivering more (perhaps expectation management) Promising a lot and delivering more (perhaps expectation management) Value-Added salespeople sell: Value-Added salespeople sell: 1. The product 2. The company 3. Themselves (big part of solution)

Value Added Selling Skills Attributes Attributes Ego Strength (self esteem) Ego Strength (self esteem) Empathy (life is bigger than I, humility) Empathy (life is bigger than I, humility) Ego Drive (energy to “make it happen” – I WANT TO) Ego Drive (energy to “make it happen” – I WANT TO) Attitudes of Value: Attitudes of Value: Integrity (trust as foundation of all relationships) Integrity (trust as foundation of all relationships) Knowledge (well informed for knowledge is power) Knowledge (well informed for knowledge is power) Equity (mutually beneficial outcomes get what you give) Equity (mutually beneficial outcomes get what you give) Excellence (pleasure from doing it well) Excellence (pleasure from doing it well) Time (most precious resource-frugal with it) Time (most precious resource-frugal with it) Service (a pleasure…not a pain) Service (a pleasure…not a pain) Teamwork and Synergy (peer respect and value from the “we”) Teamwork and Synergy (peer respect and value from the “we”)

Value Added Selling Skills What Customers Really Want (TOP TEN LIST): What Customers Really Want (TOP TEN LIST): 1. Knowledgeable salespeople 2. Product quality 3. Product availability 4. Ease of doing business 5. Technical support 6. Acquisition price 7. Salesperson’s ability to get things done 8. Salesperson’s follow-up 9. Product performance 10. Support after the sale

Why some don’t sell Value-Added Fear of losing order Fear of losing order Lack of confidence in what is being sold Lack of confidence in what is being sold Lack of skills or knowledge to add value Lack of skills or knowledge to add value Mixed management signals (value-add supported as long as goals meet, if quota drops…push for sales regardless) Mixed management signals (value-add supported as long as goals meet, if quota drops…push for sales regardless)

Value-Added Selling PROCESS Traditional Sales Approach (the FUNNEL): Traditional Sales Approach (the FUNNEL): Acquire new business Acquire new business Fill pipeline Fill pipeline Pitch the product Pitch the product Close the deal Close the deal Value-Added approach (cradle to grave): Value-Added approach (cradle to grave): Identify customer needs…follow through until need satisfaction occurs: Identify customer needs…follow through until need satisfaction occurs: See chart on handout (p nd Edition)

Thanks Use the rest of your time today to get into your TEAMS and discuss plans for the sales project Use the rest of your time today to get into your TEAMS and discuss plans for the sales project