Selling Solutions rather than Products
Have you heard of solution selling? Solution selling is a sales methodology which takes Guess-work out of selling intangibles like – Software and related services. Salespeople can use an engaging question-and-answer process to learn potential customers’ individual needs. With this diagnostic approach, the salesperson can specify the product or service that meets those needs.
The solution selling methodology has become a key component of professional selling in IT product and services space. Most of the IT product selling organisations use the key principles of solution selling as part of their sales methodology. Solution selling also covers some of the dimensions from value selling and consultative selling.If you are a sales professional with commodity or product mind frame as a sales approach for selling to large enterprise having complex requirements and long sales cycle, you are most likely to fail. It’s simply not enough to have a great product – as Customers are looking to solve their problems rather than looking at buying your product.
If I’d asked people what they’d wanted, they’d have said a faster horse.” Henry Ford
- People know what their obvious pains are and what are the problems that they experience every day.
- Most people examine these pains at a surface level.
- Customers focus on their current pain and want it to be solved at the earliest. They’re would be happy if you do so
- Finding about the Latent Need / Problem is the KEY
If someone tells you about difficulty in managing their password, they may not be able to think of adding a biometric fingerprint scanner which could save effort and time but they’re amazed when you discover a latent problem and propose a solution. This makes the salesperson a very important resource in sales organisations value chain as not only he can help identify the problem for the customer but also propose the solution, which helps his company generate revenue for it.
Why Solution Selling is important for your Large Accounts?
- 80% of your Sales come from only 20% of your Customers. These are typically your Large Enterprise Accounts
- Large Enterprise Accounts have complex requirements and an equally complex buying process
- Typical “Product” mindset sales professional will fail to Sell in such complex customer environment
It becomes important for companies to build right strategies and practices for covering and managing their Large Enterprise accounts. The sales person managing these types of accounts, needs to have solution selling skills as building relationship with these customers is not enough to win business. Selling in these types of accounts require different mindset than “Product Centric” sales approach.
How Solution Selling is Different from Product Selling?
Solution Selling Approach
- Sales presentation is focused on customer problem and value proposition
- Sales Proposal is customised each time as per customer needs
- Selling style is investigative and consultative. Sales person will ask lots of question to tie it down to the solution presented
- Sales cycles are typically longer
- Sales complexity is very high as the requirements are complex and multiple stakeholders are involved in decision making process
- Sales collaterals are focused on case studies, ROI, white papers
- Negotiation is linked to the value creation thru’ offered solution
- Buying Cycle involves multiple rounds of information sharing and presentations in solution and approach
Product Selling Approach
- Sales Presentation is focused on product features and functions
- Standard proposal with minor tweaks
- Selling style is standard product-based pitching
- Sales cycle is typically shorter
- Sales complexity is low as the buying decision is typically based on simple requirements and product meeting those requirements
- Sales collaterals are focused on product features, product brochures
- Negotiation is primarily pricing driven
- Buying cycle is focused on time bound promotional offers
Solution Selling training program from TransformzU Consulting is a one-day program which covers the solution selling approach and methodology. Participants will learn :
- How to create solution buy-in
- How to Build a personal brand and expertise
- How to engage customers in conversations that helps them recognise the problem
- How to connect with advocates and influencers early in sales cycle
- Strategies to align with key decision makers
- How to help customer overcome the risks and move towards procurement
- How to negotiate with confidence