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Thomas Menthe. A new era of Value Selling
List of figures and tables
1 What is changing
What is the impact if companies do not adapt new technologies?
1.1 Trends. 1.1.1 Future sales needs and how personal emotions fuel B2B purchases
Trends and sales approaches for the new era of value selling:
Forrester suggested to B2B companies to reshape their channel strategies and fundamentally rethink the role of their sales people by:
In 2017, the “Death of a (B2B) salesman report” has been updated by the author Andy Hoar as business leaders are continuing to automate sales processes and promote digitally enabled commerce:
First, understand the customer, then increase the value
1.1.2 E-commerce within multi-channel strategies
1.1.3 The linear funnel model – outdated?
1.1.4 The future of B2B sales
Companies say they are already struggling to deal with challenges such as:
1.1.5 Value through Digitization
2 Creating and defining customer value
Customer benefits
2.1 Concept of Customer Value
2.2 Value of Goods and Relationships
Creating value assessments for customers is one option to identify new business models. This can be realized in five steps:
2.3 Decision-Making During Sales
2.3.1 The Phenomenon of Unreasonable Decisions
2.3.2 ‘Complimentary’ – an Emotional Hole-in-One
2.3.3 Luxury – The consumer’s increasing Desire for the Noble
2.3.4 Added Value Project Coordination, Documents and Books Included
2.4 Buyer Decision Processes – The Fear of Consequences
Choices
Consequences
Consequences for bargain hunters
2.5 How Customers Buy Today – A New Decision Model
The Individual Phases
Does Target-Group-Specific Advertising Make Sense?
A short story:
Convincibility Influences our Purchase Decision
Authority
Shortage
Returned Favor – the law of reciprocity
Social Approval
Sympathy
Obligation – Being Consequent
2.6 Consequences for Sales Situations
3 The Use of Neuroeconomics
3.1 Decisions and Restrictions
Selected research works in the field of neuromarketing can be found in the following areas:
For a thorough observation of the influence of emotional and rational value, first results have emerged that can be considered valuable for sales-related approaches and marketing:
3.2 Five Aspects that Determine our Actions. The following five aspects determine our actions:
3.3 Perceiving and Recognizing
Example Sales Presentation
Example
The following features can be differentiated in decision-making:
3.4 Trust, Rationality and Irrationality
Example
3.5 The Role of Trust in the Contract Phase
Example
Conclusion:
Let us summarize the most important aspects:
4 The New Sale – a Relationship-oriented Approach. Managing One’s Own State – Mentality Quotient (MQ)
Emotional Selling
What to do in this seemingly difficult sales situation?
4.1 Emotional Selling: A Story of Success
5 The Limbic System: Neuroselling
Producing and Enhancing Emotions
6 Customer-specific Decision Structures
6.1 Structures in the Buying-Center
In the analysis of a company’s decision structure, the following questions should be answered:
The organization and construction of the buying-center depends on the following factors:
6.2 The Environmental Dimension
The TCO factor includes the:
6.3 Supplier Selection and Trends in Sales
Typical criteria of the supplier segmentation are:
6.4 Customer Benefit and Added Value-Factors
The illustration shows the classification into:
6.5 General Decision-making Criteria in the Customer’s Buying Process. General Decision-making criteria are:
Exemplary influential variables on the economic benefit are:
6.6 Decision-makers and Characters. The following characters can be identified and assessed in a Buying-Center:
The four most important decision-maker types and their needs: 1) The financial decision-maker
2) The technical decision-maker
3) The User
4) The Supporter
Guiding questions for individual people in the buying center
6.7 Winning over decision-makers
Recommendations for an early access to the buying process:
Possible emotional buying needs and recommended actions are:
7 The benefit makes all the difference. 7.1 Who is clueless otherwise, talks about the price
7.2 Who does not provide benefits, ultimately sells discounts
The car is a nice example for this
8 The Benefit Model
Check questions:
8.1 Added Value
The added value is compiled of
8.2 The Determination of Benefit
8.3 Product Features – Advantages – Benefit (FAB) and Motives
8.4 Benefit Categories. As describes before, our model divides the benefit into three parts:
The methods of measuring the benefit in category I are simple. They are about
The benefit of category II, on the other hand, is
In category III the benefit is mostly
8.5 Turning Soft Success Factors into Financial Benefits
Example Staff Contentment
8.6 Determination of Benefit – a reference Model
As you have noticed, an effective benefit argumentation requires the entire spectrum of competences:
Summary (add all transfer sum values)
The automated benefit calculation consists of
Considering 1:
Considering 2:
Considering 3:
8.7 The Proof of Benefit
Business Consulting
The BANT-criteria can be a big help in this:
The Conversation Guideline for the Order Clarification
Examples
Why is a Proof of Benefit Important?
The reasons for a low success rate are diverse, as the following – certainly not complete - list shows:
9 What counts in B2B is rational and emotional ROI
Emotional value-add through stories:
Example Amazon Web Services (AWS):
10 Creating value through product and service quality. 10.1 Creating value through product quality
10.2 Creating value through service quality
Category 1 – pre-purchase transaction
Category 2 – transaction
10.3 Service as a competitive advantage
Ask yourself:
Value-based pricing Defining customer value
Defining customer value
10.4 Expected benefits and sacrifice
Search attributes
Experienced-based attributes
Credence-based attributes
Expected sacrifice
Transaction costs
Life Cycle costs
Risk
Value profiles
Reference points
Zone of Acceptability (ZOA)
10.5 The Value Quotient
Potential buyers evaluate benefits mainly from two areas:
11 Why Value – selling
11.1 Customer Value Management and Value Calculation
Based on the study, the following eight key elements and activities of VBS help implement the approach successfully:
11.2 Drivers not feature count
12 How to implement Value Selling and ensure success
12.1 Relationship and Consultative Selling
12.2 Enterprise selling – The 5 steps of execution
1. Be an expert
2. Know your customers
3. Sell to C level
Proven example to approach an CIO:
List of proven questions to investigate an executive’s area of responsibility:
Differentiators that impact a client’s financial metrics could be:
4. Offer specific next steps
5. Make sure your client succeeds
12.3 Outcome-based Account Management (OBAM)
12.4 Value-based Selling Training Concept
Measurement of training program effectiveness
Conclusion and Recommendations
Managerial Implications
12.5 Implementing a value-selling strategy
Recommended value-selling skills and competences:
Belz et al (2016) suggested a list of activities to introduce value-selling:
12.6 Value-based pricing
13 Bibliography
