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Glossary Terms
Compass - The Only Sales Glossary You Need
Value-based selling is a strategic approach for sales that mainly focuses on understanding the unique value that a product or service can provide. It doesn't solely focus on features and pricing but also emphasizes the benefits and outcomes customers would gain.
In value-based selling, sales professionals aim to uncover the customer's pain points, needs, challenges, and goals. Value-based selling involves effective and robust communication to collaborate with the customer throughout the sales process.
Value-based selling is a strategic approach that allows one to understand and demonstrate the unique value of products and services that can be offered to customers. Its sole purpose is to align the customer's needs, challenges, and goals by identifying the customer's pain point and positioning the product or services as the solution to cater to the pain points and deliver them with tangible or intangible value and building long-term relationships with the customers.
Some of the techniques of value-based selling are:
Value-based selling and solution selling are both considered customer-centric approaches. However, the difference is that value-based selling focuses on understanding and communicating the unique value that a product or service can provide to the customer. It highly emphasizes demonstrating the value proposition and ROI to differentiate the offering.
While solution selling focuses on identifying and addressing customer needs and challenges, solution selling involves comprehensive solutions that meet the customer's needs, where the sales professionals help to collaborate with the customer to identify the solutions.
The approach for value-based selling focuses on communicating the unique value that a product or service offers to the customers. The key steps are as follows:
Value-based selling and consultative selling aim to provide value and build relationships, yet they are distinct from each other.
Value-based selling focuses on understanding and communicating the unique value to the customers via their product or services, which involves identifying the specific benefits offered and can be achieved by using these offerings. This basically consists in aligning the customer offering with the needs and gaining value rather than just selling the product or services.
In contrast, consultative selling majorly focuses on building relationships. With the customers and be a loyal, trusted advisor. It involves understanding the customer's business and their challenges and tailoring the recommendations. Consulting selling majorly involves asking about problems and listening actively to offer insights with the expert guide to help make informed decisions for the customers.
Following are the example of value based selling:
