Understanding Value-Based Selling: Why Is It Important for Sales Success?

Uncover the significance of this sales strategy and how it can transform your approach to sales.

Rory Sadler
August 7, 2023
February 24, 2024
Uncover the significance of this sales strategy and how it can transform your approach to sales.
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“The Used Car Salesman” is a character that can easily send a lot of people running screaming for the hills. This is the “sell at all costs” character who doesn't mind running roughshod over people's feelings and needs to make the sale.

The widespread nature of this character is one of the reasons sales reps have such a bad rep; a reputation of sleazy tactics, backhanded manipulation, and not having the customer’s best interests in mind became a plague upon salespeople that left a stain on customers' minds.

Not all salespeople have these traits and at this stage most don't. Unfortunately you only need a few bad apples to leave a bad taste in people's mouths.

To combat these bad sales tactics and attitudes that still float around in dusty corners of offices, new sales techniques, mottos and philosophies have come to the forefront to make personal and real connections with human beings.

This elevates selling from “selling” into "pain point consulting and solutions". Salespeople aren't going door to door trying to convince you to buy something you don't need. They're finding out what‘s causing problems in your business and your life and making real and meaningful efforts to help you with that using their product or service.

But what is value-based selling, and how does it fit into this concept?

What is Value-Based Selling?

Simply put, value-based selling prioritises customer needs over everything else (including closing deals and making quotas).

Salespeople present the product or service in terms of how it will help customers, how it has value in their world and their problems. It's called value-based because it focuses on value overall and adds value to every process step.

The Four Types of Value in Sales

Sales is all about value in one form or another and this can be divided into four sections. If you can identify the kind of value your client needs and wants and how to bring that to them you'll be delivering more than just a product. You'll get them a solution that shows you give a darn about the beyond and how they can benefit you.

Money Made

This one is usually the value that pops into our heads first when we talk about value. After all, money made is how our boss’s bosses fill our paycheques, so it’s not surprising. But it’s not always the most important value to offer.

Money Saved

You can offer ways to save money (almost as good as making money) by increasing productivity, streamlining operations, and showing ways to trim fat.

Risk Reduced

Businesses have a lot of risks, and reducing them is a constant concern. Risk reduction products and services (from business consulting services to cybersecurity services) help mitigate risks that can cost money, time, and even whole companies.

Qualitative Value

And then we have the more ethereal value, the kind that cold hard numbers can't back up. This kind of value can include customer survey software, which doesn’t affect your bottom line directly, but can make all the difference in dreaming up strategies that will.

Principles of Value-Based Selling

You can tattoo some basic principles on the inside of your brain to help you follow along with value-based selling. A lot of these aren't just sales techniques; they're communication gems that need to be treasured because they help you connect with your clients in a whole new way. These include:

  • Do your homework.
  • Don't jump into your sales pitch too early. Take your time, and build a relationship.
  • Communicate how your product offers value to your customer's specific needs.
  • Focus on teaching, not selling.
  • Guide them through the buying process.
  • Keep a personable approach.
  • Always be adding value.

Value-Based Selling Questions You Can Ask in Discovery

What Does Success Look Like to You?

Whoa! This is an in-depth question they might not have even considered, and asking it shows you’re paying attention and thinking outside the box. It shows that you're invested in helping them find ways to succeed and that you’re interested in their expertise.

And while it’s impressing people, showing that you’re invested in their success, it’s also giving you valuable information that can help you solve their problems with your products and services.

What’s Keeping You from That Success?

Everyone loves the opportunity to vent about the pebble in their shoe. And they might not get the chance to talk to someone who can actually help them get that rock out of there.

Since customers make purchases to solve problems, you suddenly become their hero when you offer that solution. This also allows you to hear about problems that specific features of your product or solution could address.

Value-Based Selling as a SaaS Company

SaaS apps are awesome and everywhere. This means that your potential clients are constantly being approached by companies that look like yours on the surface, being sold to. To set yourself apart, don’t sell to them. Learn what they need, learn how they’re hurting, and show how you can get rid of the hurt.

A great way of using value-based selling in SaaS companies is by offering tiered pricing. This lets your customers find and purchase the features they want at the scale they need. It’s almost like tailoring the service to them, meaning they can save money where they want to.

Show Customers They’re Valuable

Value-based selling is really just showing clients that they are important and that you're genuinely interested in helping them. Potential buyers aren't buying to line your pockets; they're buying to solve their problems. Showing how you can do that by making genuine connections is how you can value sell into a win.

trumpet is all about genuine connections and value-added. Our platform is designed with value-based selling in mind, trying to create ways to get information and value to your clients. For more information on how Trumpet brings value, visit our website.