Many organizations today believe that they are a value-based selling organization based on the premise that they can simply command a price higher than their competition because they are worth it. I will typically challenge them to articulate what exactly they offer to their clients that deserve a premium price, thus proving their differentiation. Typically, I will hear a list that includes things like we have the best customer service, speed to market, experienced staff, or local decisioning.

When building an organization that is truly value-based in their selling process, there are two main things that need to exist: Premium tangible value and differentiation that connects to what is important to your customers business, not yours. One of the biggest things that organizations have to understand is that it cost nothing for your inferior competition to make the same claims as if they are reading from the same script. When two competing firms have roughly the same products and are saying the same list of value-propositions, the only thing left is to compete on price.
One of the ways to start getting your organization and sales force on the same page is to use this simple five step process that helps get your team to the root of your companies’ value proposition and turn that information into a sales presentation.

First, invite everyone from your sales team to the receptionist. On a white board, brainstorming a list of all the competitive advantages that your organization has over the competition. Try to get at least 25 or more benefits on the list. Keep going if necessary, until there is silence for 5 minutes. I have found that #18 through #25 usually has some real good ideas because your team is forced to go beyond the things that your competition is saying.

Secondly, tell them that they need to cross off all the ideas that would be easy for our inferior competition to claim without any proof. This would eliminate things like, we have great customer service or knowledgeable staff. It does not mean that you do not shine in these areas but you want to make the point to your team that unless you have tangible proof that these advantages exist, then these claims will just drown out against your competition.

This part of the exercise is very eye-opening for your team because they will feel like you are taking a security blanket of long held beliefs away from them.

What you want to assure them is that these advantages that you crossed off are still extremely important but the exercise is designed to help with finding your unique tangible differentiation. Usually if there are thirty ideas listed on the white board, this will eliminate close to 20 or more of them.

The third step is to tell the team that they need to cross off all the ones on the list that are left that the focus is all about your organization, not the clients. This would be claims that are made or centered around your product and service offerings. This continues to be very uncomfortable because the list of advantages that most of your team had initially in their minds are slowly dwindling.
The reason for this third step is extremely important as we start to tie our advantage into our sales story we related to clients. In most of our industries, the products and services will be very similar to our competitions so we cannot focus on our product offerings as the main differentiator. I used to say when I was leading sales teams in the banking industry, “A loan is a loan, a checking account is a checking account, if you focus on products that our competition has as well you are only left to compete on price!” Sales professionals make this mistake in sales meetings by using part of the meeting to talk about all the products and services that they have. Yawn…. No value created here so this is why these get eliminated from your list.

In the fourth step, you may only have a few remaining on the board and in some cases none and that is not a problem. The purpose of the previous steps is two-fold; to find something client centered and tangible that differentiates you from your competition and to get rid of the things we used to think of as creating value.  Now, keep driving the conversation with your team down to why, what, and how we create value for the client that is all about them. This exercise will produce amazing conversation and insights from the entire team. When completed, the process can give a sense of purpose and direction that aligns everyone in the organization.

The fifth step is to convert your teams’ ideas into a concise story that can be told to your dream clients. It is so powerful to be able to talk to a customer or prospect about what trends you see in their industry, present options that is all about them, and be able to tell a story in which they are the hero if they make a choice to work with you. You can then create differentiation by having a conversation of value that goes farther than the products and services you offer.

Remember, to back these stories with facts, case studies, and applicable examples and you will begin to win customers at the prices that you want. The goal of any sales call is to provide so much value that your customers are willing to pay you for the conversation alone. You can only do that if you can articulate tangible value to them and this five-step process will help to find your organizations create differentiation.

About the Author
Larry Young is a serial entrepreneur, author, speaker, business development and leadership strategist that gives Entrepreneurs and Executives freedom. His expertise is based off the idea that growing profitable sales cures most business problems. Organizations that focus on wanting higher margin sales, improved cash flow, and be in a position to seize business opportunities consult with his company, Boiling Frog Development – Recognizing Your Business Environment Has Changed. ™