6 Key Components of Value Selling

If you’re over pitching vague, generic sales presentations, value selling might be more your speed. Oftentimes, showing clients your product or service’s specs isn’t going to be enough to seal the deal. But tailoring your pitch to their pain points? Now we’re talking. 

In our ultimate guide, we’ll introduce you to value-based selling, including what it is, how it compares to traditional selling, six key components to help you build your own framework, pros and cons of using this approach, and how sales leaders can implement it. 

What Is Value Selling?

Value selling — also called value-based selling — is a sales framework that focuses on how the solution benefits the client. Throughout the entire sales process, this methodology emphasizes showing the true value of the service or product as opposed to simply discussing its features. 

That way, the buyer’s decision is based on the overall value your solution provides. There’s special emphasis on the return on investment (ROI) when using this type of approach. 

Value selling vs. traditional selling

Although value-based selling and traditional selling have their similarities, they also have distinct differences. With traditional selling, the approach is usually focused on the product itself and what sorts of benefits and features it has to offer. Value selling is similar in that reps aim to show the client the value of the product. However, a value-based framework takes it a step further in that the approach is very customer-centric. 

Instead of a one-sided conversation where the seller gives their pitch with much engagement, a value selling framework encourages reps to connect with the customer by understanding their specific needs through active listening and customizing their sales pitch to their client’s needs.

For example, a traditional seller might focus only on the features and specs of their product, where someone trained in value-based selling would lean into the client’s pain points and show them how the solution benefits them specifically. 

As mentioned above, the emphasis on ROI to demonstrate value differs from traditional selling, which often hones in on the solution cost. On top of that, this approach uses more customer engagement and relationship building. 

6 Key Components of Value Selling

With value-based selling, building a solid framework is essential. It should differ slightly from client to client since customized presentations and pitches are central to this kind of methodology. Still, once you understand its key features, you’ll be in a much better place in terms of tailoring it to your customers. 

Here are six key components of value selling that’ll help reps build better relationships with clients and close more deals.

1. Know your customer inside and out. 

First and foremost, a successful value selling framework requires reps to know their client, inside and out. You want to know everything you can about them, but specifically their frustrations, needs, and objectives.

To do this, it’s a good idea to ask open-ended questions — questions that require more than a “yes” or “no” — to get their underlying motives. For example, depending on where you are in the conversation, some good open-ended questions to ask could include: 

• What are your goals? 
• What would you say are your biggest pain points or difficulties?
• Could you give me the rundown on your current situation? 
• How does [client’s pain point] affect you?
• When you’re thinking about addressing [client’s pain point], what are your priorities? 
• What’s holding you back from trying a new solution? 

This first component is arguably the most critical as your entire value selling framework will revolve around their pain points (so you can best sell them your solution).

2. Quantify the value proposition through relevant data.

Using data-backed insights and other metrics is a non-negotiable for building a value-based selling methodology. That’s because this framework is all about directly addressing the client’s pain points and tailoring the entire pitch to them. To best do this, you’ll need to show how your service or product will directly address whatever pain points or needs your client has expressed. 

Reps need to go beyond sharing the features or benefits of their solution and instead, demonstrate tangible evidence of the solution’s value. In other words, reps should quantify the value proposition and ROI using existing data to support their solution. 

3. Create a customized pitch just for your client.

Generic, vague sales pitches aren’t welcome with value selling. In fact, you could call vague pitches the antithesis of value-based selling. Once you’ve gotten to know your customer, be ready to personalize your sales pitch or presentation to focus on their specific concerns, needs, and wants. 

Making your pitch customized for your client makes them feel valued, heard, and listened to, and can lead to more closed deals down the road. 

4. Be ready to handle objections

Like nearly any other framework, reps need to be comfortable with objection handling. Although it can be tricky, especially for brand new reps, learning how to handle objections appropriately goes a long way. 

Part of handling objections is knowing what potential objections your customer might have. Anticipating what they want addressed can help you better prepare and feel more confident going into the conversation. Don’t forget to leverage data and other evidence to address any resistance coming from the client. 

5. Focus on building a solid relationship with the client.

Similarly to other methodologies, like SPIN selling, value selling places a special emphasis on rapport and building relationships with the client. This goes beyond getting to know who the client is and their pain points and extends into a relationship built on mutual trust and respect. 

Each interaction with the client should be transparent, honest, and open. If you’re not reliable, it’s much less likely that the customer will want to continue the relationship. Learning how to listen with empathy will go a long way, too.  

6. Leverage ROI.

Focusing on ROI is another key component of value selling. Honing in on this aspect helps the client know what they can expect from the solution you’re offering, be it a service or product. If your customer were to invest in your solution, what’s the financial return they can expect? For example, there may be benefits like boosted revenue, savings with regard to cost, or other economic benefits you’d want to highlight. 

Clearly illustrating the value proposition using easy-to-understand examples can make a big difference, too.

How to Implement Value Selling via Yoodli 

A customer-centric approach like value selling usually requires lots of practice, especially for reps new to the industry. However, getting a team of sales reps trained and confident in a sales approach they’re unfamiliar with — at scale, across an entire organization — can feel like an impossible task. But that’s exactly where Yoodli shines. 

Yoodli is an AI-based virtual sales coach that specializes in at-scale sales training and implementation. It’s a tried-and-true solution used by major brands like Korn Ferry, Dale Carnegie, and Google. Sales leaders at any company can easily tap into Yoodli to train their reps and assess their progress to ensure they’re ready to go.

For example, sales reps can practice using a value-based selling framework in simulated sales roleplays that are completely realistic, yet risk-free in that there isn’t an actual deal at stake. By having reps practice their new skills in cold call simulations, organizations can streamline value selling training and implementation. 

Because the conversations use generative AI, salespeople will be kept on their toes as they navigate inbound customer discovery situations through a value-based lens. Plus, following each simulated call, reps receive sales coaching feedback for improvement based on their own strengths and weaknesses. 

In fact, Google Cloud recently used Yoodli to increase seller attainment while also decreasing ramp. Specifically, Google needed a solution to train over 15,000 sales reps to get them on the same page. Yoodli provided the solution through its sales coaching capabilities and the case study was such a success that Google extended its partnership with Yoodli for other internal programs, too. 

Whether you’re a sales enablement leader or an existing rep looking for a way to improve your skills, learn how you can use Yoodli to practice and implement value selling at https://yoodli.ai/. 

Value Selling Framework Pros and Cons

If you’re looking for a sales methodology that puts the client at the forefront while also expertly demonstrating the product’s (or service’s) value, value selling is a powerhouse of a framework. Many successful reps swear by it. Here are the top pros and cons to using a value selling framework.

Value selling benefits

One of the most significant benefits to a value-based approach is the boost in client satisfaction. Not surprisingly, honing in on the client’s specific pain points and offering up solutions tailored to them yields higher levels of satisfaction. 

As a result, this approach can lead to better close rates, too. When reps efficiently (and directly) acknowledge client frustrations and handle objections, the team can close more deals much more efficiently. The relationships reps build with this approach can even lead to long-term relationships or partnerships with clients.  

Of course, value selling can also lead to a boost in overall revenue. Because showcasing your solution’s ROI is so central to this approach, you can more easily justify higher costs, leading to more revenue.  

Not only that, but value selling in and of itself helps teams differentiate their solution and stand out from the competition. Demonstrating the product’s signature benefits — tailored directly to the client’s concerns — can place it in a more appealing light. 

Cons of the value selling framework

Like other customer-centric frameworks, one of value selling’s disadvantages is the time it takes to really build relationships. Compared to more traditional selling methods, reps need to invest much more time into client research and rapport, trust, and credibility building. 

In a similar way, it also requires solid “people skills” — particularly effective communication. As a salesperson, this might come naturally to you. It’s a critical component to successful selling, but for reps who struggle with efficient communication, this framework might be difficult. 

If you don’t have strong communication skills, or you struggle with persuasion or negotiation, a little practice goes a long way. Other sales frameworks are more forgiving for reps who struggle with communication, like features-based selling.

Another disadvantage is that it isn’t a universal approach. In other words, it might not work for all solutions. There are some services or products that might prove nearly impossible to succeed with value selling simply because they’re hard to quantify in terms of value proposition or ROI. 

The Main Takeaway

Value-based selling is a trusted approach that’s made to showcase a product or service’s value, specifically targeted at the client. A customer-centric framework like this is perfect for folks who have great communication skills or feel very confident quantifying through ROI. Plus, when coupled with a sales enablement tool like Yoodli, this approach can revolutionize your sales process.  

Sources

• HubSpot: “7 Key Principles of Value-Based Selling.”
• Salesforce: “What Is Value Selling?”
• Gong: “What Is Value Selling?”
• sales-i: “Value-based selling: What is it and why is it important?”