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Are you making customers an offer they can't refuse?
...... with your competition' What are the real advantages to the customer of your proposition against the competition' What are the values of your company and proposition versus the competition' How do these values support and relate to the marketing claims of the product or service' How do these values support the price'
The elevator test
This is the 30-second explanation as to why the customer should invest his time in listening to your proposition. The sales person should really be able to pass this test. It should feel both natural and smooth. The salesperson should ooze confidence, enthusiasm and knowledge as to what's advantageous and distinctive about your company, product and services.
Why not try this out with three people from your organisation to see what happens' The question could be: 'Tell me very briefly why I should buy from your company'' Remember they should be able to support their claims with strong proofs if asked to do so.
The reference and proof test
How many of your salespeople have information to hand about positive reference stories supporting the claims of the proposition' The stronger the proof of the proposition the stronger the case for it to be accepted. The spectrum of proof varies from the weakest, which is an unsupported verbal claim, to proof of someone with credibility personally using the product or service.
This reminds me of a true story about a glass company that launched a new range of toughened glass products. The product was given to all salespeople but one particular person achieved disproportionate sales success. The Managing Director called him for a discussion to find out why he was so successful. He explained that after finding out what the customer needed he presented his proposition and took out a large hammer from his briefcase, put the glass on the table, and hit it as hard as he could. This proof convinced the customer to buy by supporting the claims of the proposition.
The Managing Director in response bought all the sales team hammers and built this process into their sales approach, but at the end of the second year the same salesman sold more toughened glass than any other salesperson.
He was again called into the Managing Director's office to explain what he was doing to make him the top salesperson again. The salesman replied 'I knew you would be supplying all the salespeople with a hammer so I considered how I might make my proof stronger. I decided I would take the hammer out of the case put the glass on the table and ask the customer to hit the glass with a hammer'.
Can you see the power of proofs in convincing the customer to buy'
The pricing test
A USE FOR JUNK MAILJunk mail works. Why does it work' How does it work' These are very important questions. To make it work, it .....
How many salespeople and business managers can defend the price of their product or service by understanding and articulating the proposition supported by advantages, proofs and value to the customer'
The greater the value of the product or service to the customer the easier it is to protect the price and retain profit margin.
Remember (V) Value Added to the customer = (B) Benefits minus (C) Cost.
How many companies set their pricing by looking at the value of the proposition being delivered to the customer' I have attended many meetings where the Finance Director sets the pricing based on the profit margin he requires rather than looking at the value to the customer. Concentrating on preparing, well-constructed propositions can add significant profit to the bottom line and increase customer satisfaction by convincing the customer of the real value of the purchase.
The differentiation test
Why is your product or service different to the competition's' The more differences you have that are advantageous to the customer the more you can place a premium on the price. If you can't highlight any differences why should the customer buy from you'
Summary
If your sales people, business managers and directors are unable to understand, articulate and present your sales propositions in a professional, consistent and coherent manner with knowledge and enthusiasm then your marketing investment may be leaking like a burst water pipe.
A professionally crafted sales proposition that is delivered to customers in a consistent manner, with thought and enthusiasm, supported by knowledge and understanding of the product or service as to how it will be of advantage to the customer will increase sales, profitability and increase the return on your marketing investment.
'Who has responsibility for Sales Propositions within your organisation'
'How well constructed are your Sales Propositions'
'How good are the skill levels within your organisation in terms of understanding customers' needs and wants and presenting your sales propositions in relation to those needs and wants in a way which conveys real, quantifiable business value'
'How do your propositions match those of the competition'
'How does the value of your product or service to the customer support your pricing'
'How do you set the pricing of your products and services'
'What actions are you going to take improve the quality and delivery of your Sales Propositions' ABOUT THE AUTHOR
Mike is an Accountant with 26 yrs experience of successful selling and marketing achievement in the IT industry.Having served on the board of many UK companies including Unisys and Acorn Computers, Mike now runs O'Riordan Lawes, a business consultancy working with CEOs to address the issues of improving business performance and is a Non Executive of Quantum, a leading company of sales practitioners specialising in improving sales performance.
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