Value Selling
Angelo Santinelli
Adapted from work of Professor Tim Marken - Babson
What percent of workers in the world
are in Sales?
A. 2%
B. 5%
C. 16%
D. 27%
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How much time is spent on sales
regardless of position held?
A. 26%
B. 34%
C. 43%
D. 70%
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Sales Heuristics
• WHAT % OF SALES PEOPLE GENERATE 80% OF YOUR
REVENUE?
– 80/20 – 20% of sales people generate 80% of revenue
• WHAT % OF SALES PEOPLE DO NOT COVER THEIR
EXPENSES?
– 25% -- One quarter of sales people don’t cover their
expenses
• WHAT % OF SALES PEOPLE LOSE THEIR JOBS EACH YEAR?
– 30%-40% -- Sales people lose their jobs each year
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With such high turnover in sales, why invest
in training? Why not just hire experience?
Typical Goals of A Salesperson
• Where do I find the right customers?
• How do I convince them to buy?
• What are the right questions to ask?
• Whom should I speak with?
• How do I deliver value to the right customer?
• How do I close deals more quickly?
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Characteristics of Good Sales People
• Balance of Ego and Empathy
– Aggressive
– Optimistic
– Open Minded
– Smart/Expert
– Patient
– Trustworthy
– Good Listener/Observer
– Self Starter
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BABSON COLLEGE — ALL RIGHTS RESERVED
VALUE SELLING
Source: Prof Tim Marken, Babson
Value Selling is Not
• Providing your prospect with the product/service information
• Demonstrating the benefits of your product/service
• Presenting your perceived value of your product/service
• Showing up at a prospect meeting and regurgitating the
knowledge you have about your product/service to your
prospect
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Prospects Need Answers to 3 Questions
• Should I buy?
Is there a business issue to solve?
Is there a need to be fulfilled?
• Will I buy?
Is it worth it?
Is there return in value greater than business and
personal cost?
• Can I buy?
Capability and courage to purchase?
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
What is Important to the Prospect?
Open – Probe – Confirm
• Ask the relevant questions to open a dialogue
• Listen and ask a follow-up question
• Be aware of how you ask the questions
• Establish credibility
• Learn what the prospect thinks
• Learn about the context
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Typical Probing Questions
• Have you ever experienced…..?
• Is it difficult…..?
• Do you find…..?
• Can we estimate the loss of not taking action….?
• How much does this affect your bonus….?
• What is the consequence of…..?
• Does this loss affect….?
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Uncover Problems and Potential Value
Problem Value
• What keeps you up at night? • How would you quantify the
• Why are you having impact?
difficulties? • What is the impact on your
• What is causing this? business?
• How will you measure
success?
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Establish Trust and Rapport
• Be consultative, not sales focused
• Ask questions:
– What is important to you?
– What is preventing you from getting your job done?
• Listen, Listen, Listen
• Know your client’s business
• Be accountable
• Participate in the solution
Uncover, Not Create
Source: Prof Tim Marken, Babson
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Trust and Rapport: Empathy
• Prospects trust people who demonstrate an understanding of
their business and issues
• People enjoy talking about themselves and what they know
• People buy from people (that they like and respect)
• Without Trust and Respect you have not earned the right to
share in the VISION
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
VISION
Share in the VISION
• People need a reason to change
• Unique to each prospect
• Clarify the problems that relate to the business issues
• Identify the consequences of the problem
• Consequences can be tangible or intangible
• Prospect’s personal connection to the solution
• Prioritize the prospect’s problems based on the consequences
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Knowledge and Preparation: Ego
• Clarify Value or Define the Problem
• Requires knowledge of typical problems so you can
probe with credibility
• You need to know what you are probing to better
understand and clarify
• Solution probe allows you to see if the prospect is open
and realistic about your solution
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Typical Confirming Questions
• Let me see if I have this right
• So what I am hearing is
• Can I play this back to you?
• Are there any other options with more value to you?
• It is my understanding that
• Is this enough value to take action?
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Differentiation
• Without differentiation you are forced to compete on price
• You must uncover and make visible the issues and problems that
you can uniquely resolve
• Requires you to know your competition
• Differentiation is a deliberate process
• You can differentiate on terms, service, delivery, maintenance,
etc.
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
VALUE
The Crucial Step: Determining Value
• Confirm the benefits of being able to solve the
prospect’s business problem
• Communicate a solution statement: If I can show you
the following, would that be of benefit/value to you so
we can move forward?
• It seems as though we are in agreement….
• ENJOY THE SILENCE
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Source: Prof Tim Marken, Babson
Emotion and Logic
• People make emotional buying decisions for logical reasons
• Value is in the mind of the prospect and must connect back to
the buyer’s issue
• Connect to the motivations of the prospect
• Connect the value to their business issues
• You don’t create value you uncover it
• Bring the business issue ALIVE
• Know why you are different than the competition
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
POWER
Authority to Act: Power
• Are you working with the right person
• Lower level people tend to say “NO” more than “YES”
• Do they have the authority to act?
• Are they willing to work with you vs. willing to buy from you?
• How are you using your time/resources effectively?
• What is the decision making process?
• Can they make the decision?
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
PLAN
Confirmation and Reconfirmation
• Know where you are in the process
• Demonstrate that you understand and have listened
• Clarify any misinformation
• Verify that you have uncovered the right issues
• Trial checkpoints and closes
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Plan – Must Be Mutual
• Plan for every meeting
– Demonstrate your understanding of the situation
– Outline activities required by the prospect and you
– Identify access to the key decision makers
– Verify all details to date and Confirm
– Eliminate any confusion
– Predictable process
– You are in control
Source: Prof Tim Marken, Babson
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QP = Vision Value Power Plan
Source: Prof Tim Marken, Babson
Qualified Prospect Process
• All parts of equation must be included
• They can be completed in any order, but…
• You must confirm before moving on the next area
• Customized by the seller
• Allows you to control the sales process
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Value Selling Is….
• Asking the right questions to get the critical information
• Confirming and understanding vision match so you and your
prospect are on the same page
• Developing true value based on the business and personal
objectives of your prospect
• Engaging with the prospect
• Structuring a mutual plan that positions you for building a close
relationship
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
Final Tips
• Do not ASSUME ever
• Don’t show up and throw up
• Listen, Listen, Listen
• Do not solve the prospect’s first problem – develop and build a
case together
• Ask questions, then ask more questions
• Wait for the answer – first to speak loses
• Be comfortable being uncomfortable
• Practice
• It’s NEVER about price
Source: Prof Tim Marken, Babson
BABSON COLLEGE — ALL RIGHTS RESERVED
