Introducing Value-Added Introducing Value-Added SellingSelling

with Duane Weaverwith Duane Weaver

OutlineOutline

The Value-Added OrganizationThe Value-Added OrganizationValue-Added SellingValue-Added SellingThe Value-Added Selling ProcessThe Value-Added Selling Process

The Value Added OrganizationThe Value Added Organization

““Value-added organizations are great Value-added organizations are great because they deliver a valuable because they deliver a valuable totaltotal experience”experience”

Reilly, 2003. Value-Added Selling. P. 3.Reilly, 2003. Value-Added Selling. P. 3.

Three styles:Three styles:Equalizer: level the playing field; close gapsEqualizer: level the playing field; close gapsDifferentiator: work to be better; expand gapsDifferentiator: work to be better; expand gapsValue-Added Peak Competitors: Focus on Value-Added Peak Competitors: Focus on

customer’s reality and bridge the company to customer’s reality and bridge the company to the customer; bridge the gapsthe customer; bridge the gaps

The Value Added OrganizationThe Value Added Organization(A closer look at V-A Peak Performers)(A closer look at V-A Peak Performers)

Have a business excellence approachHave a business excellence approach1.1. Outperform competitionOutperform competition2.2. Create lasting ValueCreate lasting Value3.3. Long term successLong term success

Types of Foci:Types of Foci: Challenge Status Quo: “Does this process add value to our Challenge Status Quo: “Does this process add value to our

efforts or just cost?”efforts or just cost?” Challenge Themselves: “Is this the best we can do with our Challenge Themselves: “Is this the best we can do with our

resources?”resources?” Primary Mission: “To serve customer’s better, not just the Primary Mission: “To serve customer’s better, not just the

competition”competition” Success by: “helping customers become more successful”Success by: “helping customers become more successful”

Reilly, 2003. p.5Reilly, 2003. p.5

The Value Added OrganizationThe Value Added Organization(focusing the lens on Organizational (focusing the lens on Organizational

Excellence)Excellence)““Organizational Excellence is the natural outcome of Organizational Excellence is the natural outcome of individual and team excellence”individual and team excellence”

Reilly, 2004. p. 9Reilly, 2004. p. 9 Individual as a cost center profit centerIndividual as a cost center profit center Peers as internal customers:Peers as internal customers:

1.1. ““We” is greater than me (team approach)We” is greater than me (team approach)2.2. Treat with same respect as they provide their best customersTreat with same respect as they provide their best customers3.3. Build each other up, not break each other down (avoiding the Build each other up, not break each other down (avoiding the

“silo effect”)“silo effect”) Engage Customers as a PrivilegeEngage Customers as a Privilege

Customer service is a philosophy held accountable by everyone Customer service is a philosophy held accountable by everyone in the organizationin the organization

Proactive customer service approachProactive customer service approach Selling is relationship managementSelling is relationship management

(Debunking the Brand Loyalty Myth: while customers prefer brands they preserve (Debunking the Brand Loyalty Myth: while customers prefer brands they preserve loyalty for people)loyalty for people)

The Value Added OrganizationThe Value Added Organization

Group Exercise:Group Exercise: In groups of 4 or 5, think of an organization In groups of 4 or 5, think of an organization

you know or have worked for that you know or have worked for that exemplifies the qualities of a “value-added” exemplifies the qualities of a “value-added” organization and provide three different organization and provide three different examples that demonstrate some of these examples that demonstrate some of these qualities.qualities.

Share these examples with the class Share these examples with the class explaining why you think this organization explaining why you think this organization has a value-added focus.has a value-added focus.

Value-Added SellingValue-Added Selling What is Value?What is Value?

Simple view: Price + Cost + Impact = ValueSimple view: Price + Cost + Impact = Value Customer-Focused Value: walking in the customer’s shoes Customer-Focused Value: walking in the customer’s shoes

(what do they want)(what do they want) Seller-Focused Value: Defined in seller’s terms, (if we don’t have Seller-Focused Value: Defined in seller’s terms, (if we don’t have

it, they don’t need it)it, they don’t need it) Perceived Value: Reality in the mind of the buyer Perceived Value: Reality in the mind of the buyer (the (the qualitativequalitative

features of what you sell: style, reputation, packaging, knowledgefeatures of what you sell: style, reputation, packaging, knowledge)…)…getting the “warm and fuzzy”getting the “warm and fuzzy”

Performance Value: Performance Value: quantitativequantitative; proof behind the promise of ; proof behind the promise of perceived valueperceived value

……everything you do to something from the moment you everything you do to something from the moment you buy it, sell it, and service it. It is not value until the buy it, sell it, and service it. It is not value until the customer says it’s value.customer says it’s value.

Value-Added SellingValue-Added Selling

Is a business philosophy whereby:Is a business philosophy whereby: You are proactively looking for ways to enhance, You are proactively looking for ways to enhance,

augment, or enlarge your bundled package for the augment, or enlarge your bundled package for the customer.customer.

Promising a lot and delivering more (perhaps Promising a lot and delivering more (perhaps expectation management)expectation management)

Value-Added salespeople sell:Value-Added salespeople sell:1.1. The productThe product

2.2. The companyThe company

3.3. Themselves (big part of solution)Themselves (big part of solution)

Value Added Selling SkillsValue Added Selling Skills AttributesAttributes

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 SkillsValue Added Selling Skills What Customers Really WantWhat Customers Really Want

(TOP TEN LIST):(TOP TEN LIST):1.1. Knowledgeable salespeopleKnowledgeable salespeople2.2. Product qualityProduct quality3.3. Product availabilityProduct availability4.4. Ease of doing businessEase of doing business5.5. Technical supportTechnical support6.6. Acquisition priceAcquisition price7.7. Salesperson’s ability to get things doneSalesperson’s ability to get things done8.8. Salesperson’s follow-upSalesperson’s follow-up9.9. Product performanceProduct performance10.10. Support after the saleSupport after the sale

Why some don’t sell Value-AddedWhy some don’t sell Value-Added

Fear of losing orderFear of losing orderLack of confidence in what is being soldLack of confidence in what is being soldLack of skills or knowledge to add valueLack of skills or knowledge to add valueMixed management signals (value-add Mixed management signals (value-add

supported as long as goals meet, if quota supported as long as goals meet, if quota drops…push for sales regardless)drops…push for sales regardless)

Value-Added Selling PROCESSValue-Added Selling PROCESS

Traditional Sales Approach (the FUNNEL):Traditional Sales Approach (the FUNNEL): Acquire new businessAcquire new business Fill pipelineFill pipeline Pitch the productPitch the product Close the dealClose the deal

Value-Added approach (cradle to grave):Value-Added approach (cradle to grave): Identify customer needs…follow through until Identify customer needs…follow through until

need satisfaction occurs:need satisfaction occurs:

See chart on handout (p. 38 2See chart on handout (p. 38 2ndnd Edition) Edition)

ThanksThanks

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