Training Tuesday:Fixing Sales Talk Mistakes

“Open mouth, insert foot.” It’s a saying used to describe what we feel happens when we say something that we should not have said because it could potentially be interpreted as inappropriate, hurtful, embarrassing for either party, or just awkward. In sales, you can occasionally say something and immediately want to take it back.

There are a few reasons this typically happens:

* We’re so excited and nervous to be talking to the customer that we get on a roll and can’t seem to stop ourselves

* We get defensive when we hear an objection – about our company, office, or service, and we rush to give an explanation

* We become uncomfortable or impatient with the silence after we ask a question, and we start speaking without waiting for an answer

* We say something we know didn’t sound right, but instead of stopping to regroup, we stumble on to the next potentially bad comment

The problem with this is that we can never fully take back those words. More importantly, we can’t predict a customer’s reaction to them.

What can you do when you’ve said something you wish you hadn’t?

  1. Offer a sincere apology. Give a genuine “I’m sorry” or “I apologize” followed by specifics of what you said or did.
  2. Use humor. With the right person and context, self-deprecating humor is helpful and almost always works.

Admitting that you did or said something wrong can be powerful in building a new customer relationship. We’re all human and we all make mistakes. Your customer knows that. Sometimes demonstrating the ability to admit your mistakes, and trying to remedy them, makes a customer want to work with you even more. It lets them know that you’ll be honest with them going forward.

We all make mistakes. Very few are fatal. Apologize when you make them. Learn from them and make it your goal to make fewer mistakes and more sales.

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Training Tuesday:Sales Listening

Sales listening is patient listening. Don’t anxiously wait for an opportunity to jump in and solve all the customer’s problems right away. After I ask a question I shut up and allow my prospect to speak. Sometimes I wait for several minutes. Most salespeople can’t stand a pause in the conversation. Take a deep breath, relax, and listen. Some prospects want to be listened to more than they want their problems solved. People love to talk about themselves, their jobs, and their companies; encourage them to do so.

Transportation salespeople who have been in our industry for a long time should re-visit how they qualify and maintain accounts. It’s easy to start believing that you have all the answers, but you never know what changes may have happened since your last call.

Never waste the prospect’s time. There will come a point when the customer is ready to move past the small talk, and it’s usually quicker than you might think. Everyone is short on time these days and most traffic managers, purchasing managers, and other decision-makers will appreciate you getting to the point. You can do this tactfully without jeopardizing the emerging relationship.

First, give the prospect a reason he or she should answer your questions and ask for permission to proceed. The prospect always expects to answer questions and will give this permission. When you move on to the questions, make sure you are actively listening and not just mentally preparing for the next thing you are going to say.

Take notes! Taking notes can be one of your most powerful sales tools as it will reinforce the reason you made the appointment in the first place: to learn more about the prospect and their company’s needs.

Taking notes also helps you listen. There’s something about holding an empty notepad in front of you that makes you pay better attention to what is being said and makes it more difficult to miss important points.

Taking notes puts you in a position of authority. It encourages the prospect to open up and generally sends strong positive signals to them. It says, “I’m listening to you and I won’t forget.”

Be sure to pay attention to the fine line between asking questions and making the prospect feel that they are being cross-examined. Be natural and at ease to create a comfortable two-way conversation.

Listen, Learn, and Earn.

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Training Tuesday:Mastering the Sales Presentation

Increase your odds of closing more sales by practicing your presentations. After you’ve made sales presentations, they become practice sessions for presentations you’ll give in the future.

Collect the ideas you’d like to suggest or selling points you want to make; then organize them according to your purpose and the needs of your prospect. Give your words greater credibility by backing them up with data or testimonials. Keep your words as simples and direct as possible; use active, not passive language; and vary your tone, volume, and pitch to keep the prospect interested. Illustrate your words with examples and interesting stories to add color to your presentation.

Lastly, get to know everything you can about the transportation business – both SunteckTTS and the competition. When you demonstrate how much you know about your industry you’ll gain the respect of your customers and prospects. When people believe they are dealing with an expert it’s a lot easier to close the sale. Most customers want you to advise them. When they realize that you have a great knowledge of the transportation industry and of available carriers, then they’re happy to let you take control. It’s when a salesperson doesn’t know much about the transportation industry as his or her prospect that people resent a strong sales approach. However, there’s no doubt that traffic and purchasing people are better informed today than they’ve ever been.

The best way to make a compelling sales presentation is by demonstrating that you’re an expert in your business as well as theirs. When you exemplify excellence in your sales presentation, the customer is eager to find out what you can do to offer solutions to their particular transportation problems.

To make the best presentation possible, you must have conviction in the services you’re there to sell. A customer instinctively knows whether you believe in your service. If you do, they in turn will believe in you. Only then can you make a sales presentation that turns into a sale every time.

 

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Intermodal 101:Mutual Commitment Pricing Programs

Intermodal 101: Mutual Commitment Pricing Programs

Rail controlled door to door shipping does have several advantages, as discussed in previous weeks, but it also has its drawbacks.

Many shippers have a transportation budget that gets created once per year.  This budget relies on some level of consistency when estimating pricing.  Utilizing the door to door pricing, which is subject to change on very short notice, does not afford them the opportunity to properly budget.

Shippers must be able to add in transportation charges to the cost of their products.  They are not typically able to change their pricing to their customers every time the railroad decides the balance of equipment in each location is out of kilter.

But perhaps the largest reason an intermodal shipper might want to avoid the transient pricing opportunities of door to door is the ability to lock in capacity at a given price.  Many of the equipment providers who offer the door to door service options will also commit to providing capacity if the shipper will commit to a price for year-round business.  They can execute a plan on capacity because they are able to plan based on the shipper’s commitment.

These mutual commitment programs (MCPs is a generic term as used here) provide the stability needed by the shipper for their long-term planning.  Getting a cheap price from spot-market rates is nice, but it does not provide the consistency needed by most shippers.

When should a shipper look to door to door and when should they look to MCPs?  In our next update, we will discuss how shippers should take advantage of one or both of these rate types.

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Training Tuesday:Balancing the Sales Pitch

Training Tuesday: Balancing the Sales Pitch and Silence

Often the most important part of your sales pitch is when you are completely silent. We often rush through all the great benefits of why a customer would buy, without really listening to them tell us what they need and why they might buy from us.

Most people hate mimes. Why do they exist? Are they evil? If a tree falls on a mime does he make a sound? But, silence is the one important sales attribute that mimes demonstrate in abundance. So, on your next sales call, be a mime, at least for part of the call. Silence just may turn out to be the most important piece of the sales puzzle. 

Why is it that so many salespeople think they must tell everything they know before allowing the prospect to talk? Why is it that some think the sales process involves a lot of talking when, in reality, the most successful salespeople do more listening than talking? It’s a fact that the more we listen, the more we can learn about our prospects and the easier we can find their “hot buttons.”  It’s not what we say that makes the sale, it’s what we can get the prospect to say.

Begin With Questions

Think about how many times you launch right into your presentation thinking you know what the prospect wants. Sometime later, often too much later, you find you’re on the wrong track. The prospect has an entirely different need – one you might have uncovered by asking open-ended questions that required more than a yes or no response. Then you could have focused on what the customer wanted instead of what you had to sell. Stop thinking so much about what you are going to say and concentrate on what the prospect is telling you.

It’s a paradox: the more we try to tell the prospect up front, the more barriers we create to the purchase. However, the more we listen to why he or she wants to buy, the more we can tailor our delivery to providing very specific information concerning how our product or service fits his or her needs.

Ask More Questions

The opening question is merely the first in a series of questions that guide the dialogue. It’s an approach as old as the art of miming. If we want to involve someone – the first step in convincing that person – every comment we make should end with a question that solicits more information. The person asking questions is the person controlling the direction of the dialogue. The one who is talking is providing information that helps the other adjust the direction.

After you ask a question, however, don’t be too anxious to fill the silence. Let the silence work in your favor. Too often we answer the question for the prospect by jumping in and providing him with an objection:

“Perhaps you don’t like the price,” or, “Maybe you don’t like the resources it would involve.” 

Beware of the very real temptation to fill in the silence with a product weakness – the one we are most worried about.

Don’t Rush In With Answers

Salespeople have a terrible tendency to try to get their point in as soon as the customer stops talking. Think about how often you find yourself stepping on your prospect’s last words, rushing in right after the prospect has finished making a point.

Salespeople can break themselves of this self-defeating habit by training themselves to wait several seconds after the customer has stopped talking before they begin. That gives you ample time to think about your response and answer in a way that reflects the customer’s concerns.

Get in the habit of paraphrasing what the prospect has said. This will accomplish two things. One, it reduces the likelihood of misunderstanding what was said, and two, it boosts the prospect’s ego. People like to hear their thoughts repeated – it makes them feel like what they said was important.

Learn to Listen

Don’t listen with just with your ears. Listen with your eyes and your entire body. Use body language that shows you are paying more attention, and your listening habits will automatically improve. Lean forward intently, look the prospect in the eye, and focus on the valuable information you are hearing.

And finally, listen for buying signals. You’ll never notice a buying signal from the customer when you’re doing the talking. Sure, we want to talk so the prospect will learn how smart we are. But the prospect only really knows how smart we are when we’ve “listened” to the information he or she wants to share.

 

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Training Tuesday:Asking Questions

Training Tuesday: Asking Questions

Asking good questions can make the difference between making a bad sales call and engaging the prospect in a worthwhile conversation. Here are some important tips to remember:

Use ‘assumptive problem’ open-ended questions
Instead of saying, “Do you have any problems with moving your product now?” say, “How are you handling problems that occur while transporting your product?” If you know your industry well enough, you’re aware of the problems that everyone seems to have. You are asking your prospects to quantify and explain the implications and consequences of those problems.

Use ‘instructional statements’
Don’t ask for information; tell them to give it to you. Use phrases like, “Tell me a little about……….”; “Share with me……….”; “Give me some idea of……….”; “Detail the way………” and, “Let’s talk about how you……….”

Ask yourself questions before you make the call
Think about the call before you make it. Ask, “What do I want them to do as a result of this call?” This will determine your primary objective. Then ask, “What information do I need from them?” This will provide whatever qualifying or information-gathering questions you must ask. Finally, ask, “What do I need them to think and believe in order to take the action I desire?” The answer to this question provides the points you’d ideally like to get across….without actually making the points yourself. They are ideas for them to discover through your questions. The reasoning is that people always believe more of what they say and think than of what you say. One of the surest ways to give yourself a fair chance at making a sale is to ask the right questions.

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Training Tuesday:Addressing Problems

Training Tuesday: Handling Problems

It doesn’t take long for anyone in the transportation business to realize that occasionally bad things happen to good people. You name it, it can and occasionally will happen.

When customers aren’t happy, whether it’s because a shipment is late, damaged or lost, five things can happen—and four of them are bad:

THE CUSTOMER DOESN’T LET US KNOW THEY WERE UNHAPPY WITH SUNTECKTTS’ SERVICE. NOT GOOD.

THE CUSTOMER CHANGES CARRIERS IN SILENCE. NOT GOOD EITHER.

THE CUSTOMER TELLS HIS OR HER FRIENDS. WORSE.

THE CUSTOMER TALKS TO THIRD PARTIES. WORST OF ALL.

THE FIFTH OPTION IS COMMUNICATION.

The best possible outcome is that your unhappy customer talks to you.  This gives you a second chance to understand their needs, identify and correct problems, and convert your dissatisfied customer into a happy customer – one who’ll keep coming back.

Here are the proper procedures to best help your customer.

1.Inform the customer as soon as you can—they’re absolutely going to find out—no news travels more swiftly than bad news.

2.Get to the point quickly by saying something like, “You’re not going to like hearing this”

3.If your customer approaches you with a complaint, don’t interrupt.  Don’t become defensive.

4.Take complaints seriously, no matter how trivial the issue may seem to you.

5.Don’t create distance from SunteckTTS by referring to it as “they.”  Use “we” instead, and proudly stand behind our service without making excuses.

6.Apologize sincerely.

7.Avoid focusing on fixing the blame; instead focus on fixing the problem.

8.Let your customer suggest alternatives.  Every customer has some idea of what they want as a solution to every problem.

9.Do something extra. Correcting the problem isn’t always enough.

10.Trust the customer’s sincerity.  It’s better to err by believing too many people than by not believing enough people.

11.Never just say, “I don’t know.” When you don’t know an answer, simply say, “I’ll look into the matter,” and then look into it, soon.

12.Empathize with the customer.  If you can’t relate to the complaint itself, at least relate to the process of complaining.

13.If the timing is appropriate, ask for future business—let the customer know this does not represent SunteckTTS’s usual high quality of service.

14.Follow-up.   Make sure the customer is truly satisfied.

15.Don’t let it affect your interaction with the next customer. And most importantly:  Most customers will accept occasional mistakes.  How you deal with the problem and how you resolve it is what will distinguish you as a real professional.

16.Always remember that listening to your customer is the best way to help in an uncomfortable situation.  Some people want to be listened to even more than they want their problems solved.

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

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Training Tuesday:Confirming the Sale

Training Tuesday: How to Confirm the Sale

There’s no magic to confirming the sale.  Right from the initial approach to the very end of your presentation, bit by bit, you should be confirming the sale. Relatively early in the presentation I let the prospect know that I expect him or her to make a decision at the close of my presentation. I go with my instincts.  I close the sale when my customer lets me know it’s time.  Closing or confirming the sale is the most natural thing about selling.

You have to have complete confidence in your ability to close the sale, if not, the prospect becomes consumed with doubt.  The prospect can sense when it’s time for you to confirm the sale, and it’s up to you to ask for the order.  They knew you were a salesperson when they agreed to see you, and if you lack confidence to ask for their business, they’re going to lack confidence in making a decision.  Hesitation is as contagious as confidence.

Your sales presentation should be smooth.  The close should have a rhythmic flow that naturally blends in with your proposal so that the prospect is unaware of a precise moment when he can think, ‘Ah, now he’s putting pressure on me to buy.’ Pressure selling is outdated and counterproductive.

The longer a customer has to think it over, the lower the odds become that you’ll make the sale.  I go with the odds and always make a strong attempt to close the sale while eye to eye with the prospect.

Do not oversell!  Some salespeople enjoy a successful close so much that they want to hear it again – even if it re-opens the door to a “NO.”  When the customer says yes – you should SHUT UP!  The sales pitch is now over.  You and the customer are now business partners.  Learn to take YES for an answer.

Be a closer (confirmer).  Your main objective is to get new business.  At the end of the presentation, a real sales professional will confirm with their prospect that they’ve done a good job.  That confirmation will come in the form of a sale.

 

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

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Training Tuesday:Fact Finding

I’m a big advocate of consultative selling. But before I tell you how great I think the consultative sales approach is, I want to warn you of the negative impact this type of selling has had on some salespeople. Some sales reps visit a customer two or three times, ask them every question they can think of except the most important question of all – asking the customer to buy their service.

If on the second call you don’t ask for the shipper’s business, it then becomes a social visit and not a sales call. You can and should qualify the customer and re-visit their needs on a regular basis. If they’re qualified to buy and you don’t offer Sunteck’s help, then you’re doing them a disservice. On the other hand, if you keep calling on a customer who’s not qualified, you’re stealing time and money from yourself. Be sure after you’ve made a consultative sales call that you follow up by asking for their business.

Treat all your sales work as a consulting assignment. Consultative selling turns salespeople into experts and clients into partners. When you first meet the prospect take your “sell” sign down for the majority, if not all, of your first call.

The best salespeople are professional problem solvers. We’re in the business of solving transportation problems. But you have to know and understand the problem first before you try to solve it. You have to be willing to walk in the door without any preconceived notions as to how best to solve the problems identified.

Since you sell to other companies, you should consider yourself in the business of solving profitability problems. That’s the key concern you’ll ultimately be addressing: how to increase profitability. Everything you do should eventually lead to the goal of the clients’ company increasing its level of profitability. If you can’t break your sales efforts into solutions that help the customer, you’ll either base your sales on manipulating others or fail to persuade prospects that you’re offering anything of value.

On every sales call, be the student, because you really are. In real estate, they say it’s all in the location. In transportation sales it’s questions, questions, and more questions. You’ll be surprised and sometimes shocked at what a customer will tell you.

Not only is the consultative sales approach effective in finding the correct sales solutions, it’s also very helpful in eliminating people who are not potential customers, thus saving you time in the long run.

Even though it’s okay to call an initial visit with a customer a qualifying call, don’t only make the call to qualify. Make the call primarily to learn.

Sales listening is patient listening. Don’t anxiously wait for an opportunity to jump in and solve all the customer’s problems right away. After I ask a question I shut up and allow my prospect to speak. Sometimes I wait for several minutes. I don’t feel threatened by the silence. Most salespeople can’t stand a pause in the conversation. Take a deep breath, relax, and listen. Some prospects want to be listened to more than they want their problems solved. If a client or prospective client has had a bad day, let them talk about it. Don’t try to stop them. Once they lighten themselves of their burdens they can better concentrate on Sunteck’s services.

Everyone is so busy that asking for someone’s time is a big request. A prospect that agrees over the phone to give you a ten-minute appointment will give you an hour in person once you establish value. One of the best ways to establish value is to show that they are important and that you recognize that fact. People love to talk about themselves, their jobs, and their companies. Encourage them to do so.

“Pretend that everyone you meet has a sign around their neck that says MAKE ME FEEL IMPORTANT. Not only will you succeed in sales, you will succeed in life.”
– Mary Kay Ash

Transportation salespeople who have been in our industry for a long time should re-visit how they qualify and maintain accounts. It’s easy to start believing that you possess all the answers. Too often we make assumptions based on outdated information. Visit accounts often and ask questions. You never know what changes might have taken place since your last call until you ask.

Take notes! Taking notes during your meeting with the prospect can be one of your most powerful sales tools. It will reinforce the reason you made the appointment in the first place: to learn more about the prospect and his company’s transportation needs.

Taking notes helps you listen. There’s something about holding an empty notepad in front of you that makes you pay better attention to what is being said. It also makes it more difficult to miss important points.

Taking notes puts you in a position of authority. You can also glance at notes and questions you prepared prior to making the sales call. Taking notes will also encourage the prospect to open up. Taking notes sends strong positive signals to the prospect. It says, “I’m listening to you. I won’t forget. I’ll use the information you’re giving me to find solutions when I get back to my office.”

It’s a fine line between asking questions that will help the prospect solve their transportation problems, and a cross-examination. Be sure your prospect feels at ease. Be natural. The consultative sale should be a comfortable two-way conversation.

Never waste the prospect’s time. That may seem like an obvious point, but many of your competitors never know when to get to business, or for that matter, even when the appointment is over. There will come a point when the customer will be ready to move past the small talk, and usually it’s quicker than you might think. Your contact, like most of us these days, is short on time. Most traffic managers, purchasing managers, and other decision-makers you call on appreciate you getting to the point. You can tactfully do this without jeopardizing the emerging relationship.

First, give the prospect a reason he or she should answer your questions. Second, make sure everyone involved in the decision making process is present if at all possible.

Salesperson: “We currently work with General Motors, ASW Technologies, and (use your own local examples of similar companies) in several areas to improve their service while reducing their costs! I feel there’s a good chance we can do the same thing for you, but I’m not sure yet. Do you mind if I ask you some questions?”

The prospect expects to answer questions and they’ll give you their permission to proceed.

Salesperson: “At most of the companies I’ve mentioned more than one person was involved in carrier selection. Are there any other people here that would be involved in this decision?” (If NO, proceed on. If YES, obtain their names and ask if they could also be present). Next, move on to your questions.

The following list will provide you with good examples of questions that you can adapt to your sales presentation. Know the questions you’re going to ask before you arrive at the customer’s desk. The list below is provided to stimulate ideas that will help you customize your own list. The information you collect from the customer’s answers will increase your chances of putting together a great proposal after you’ve made the consultative sales call.

1. What does your company do? Manufacturing? Distribution?

2. What do you ship? In what quantities? Expedited? Air? Truckload? LTL? Intermodal?

3. What commodities do you ship?

4. Where do you ship? Intrastate? Interstate?

5. What are some of the cities you ship to?

6. How often?

7. What service level is required? To where?

8. How is your product packaged? Skidded? Banded? Loose?

9. Average weight?

10. What is the normal pick-up time? What unusual pick-up requirements do you require?

11. Are your shipments normally prepaid? Collect? If so, what percentage?

12. What are your average monthly freight transportation costs?

13. Who’s handling these shipments now?

14. How long have you used them?

15. Do you have any vendors that you receive products from on a regular basis?

16. Who chooses the carrier that handles those shipments?

17. Where are those vendors located?

18. What commodities are they?

19. What is the frequency of those shipments?

20. Who’s handling those shipments now?

21. How long have you used them?

22. What percentage of shipments is routed by your customers?

23. How do you feel about your current service?

24. How do you feel about your current pricing?

25. What would you like to change about your current carrier’s pricing?

26. What is most important to you: service, carrier stability, technology, or something else?

27. Why?

28. How do you rate carriers? How is the rating communicated to the carrier? How often?

29. What are the ratings of the carriers you use today?

30. If you could change one thing overall about your current logistics provider, what would it be?

31. Does this problem lead to… (Build up problem with multiple implications / need pay-off questions)?

32. Would you change anything else?

33. What would cause you to begin using a different 3PL or carrier?

34. What is the volume of your cargo claims? Do you experience any frequent service failures?

35. Would you be interested in our EDI capability?

 

Last, but not least, be sure to wrap up the appointment by asking for the next appointment, and by getting a positive response on a trial close. It should sound like this:

Salesperson: “Mr. Smith, I’ve learned a lot here today, and I want to thank you for taking the time to talk to me. We’re at the point now where we should set up another appointment, one where I can come back after having sorted through everything I’ve learned here, and show you more about what Sunteck may be able to do for your company. Is Thursday at 2PM okay?”

Prospect: “Sure, next Thursday at 2PM will be just fine.”

Salesperson: “Great! One last question ( pause ) if you like the program I develop for you, would you be willing to give us a try?”

OR

Salesperson: “I really appreciate you taking the time to answer these questions. Based on what I just learned, I’m confident there’s a fit between our companies and that we can definitely help you solve some of your shipping problems. I’m going to make a commitment to you to develop a customized proposal, which will include my recommendations to you and your company. What I’d like in return from you is a commitment to give us a shot. Let us prove how good we are. I’m confident you’ll be very happy! Can I get that kind of commitment from you?

“Great! I’ll need about a week to get with my team back at the office and develop a package just for you. Is this time next week good for you?”

Both of these approaches let the prospect know that when you come back for your second appointment, your sale sign will go up. It prepares them to say “yes” when you come back later and ask them to buy.

We’ve focused so much of our respective sales energies on the consultative approach that very little emphasis is placed on the sales presentation. I think this is a huge mistake. In the old days, many salespeople could care less about what the customer wanted or needed; all their energy was on the presentation. Nowadays some people in transportation have no definable presentation at all. They just go back to the customer and answer any questions or shipping requirements that surfaced in the qualifying call. I think both are hugely important—the consultative call and the presentation. Give your customer a dynamic sales presentation. He deserves it. It will make you stand out from the other freight reps.

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Value AddedSales

There are more and more salespeople who have adopted a value-added approach to sales as a means to differentiate themselves from competitors, but few of them put a real dollar value on the value-added benefits and services they provide.
Don’t forget, all benefits are claims, which means they are largely intangible and often difficult for your customer to grasp. When presenting value-added benefits, the proof of their value is even more intangible. The customer is usually not seeking it or paying for it, and may not even realize that they exist. However, identifying value-added benefits often requires a number of resources or services. A salesperson must make the value-added benefit as concrete and tangible as possible, and then present it effectively, in a way that decision-makers both understand and appreciate it.
HOW TO QUANTIFY VALUE-ADDED BENEFITS
With a bit of creativity and some number-crunching, a salesperson should be able to quantify most value-added benefits. Also, while all value-added benefits should be presented and reinforced – including benefits that are difficult to quantify, like relationships and trust – quantified benefits are more visible and leave a positive and lasting impression with the customer. Here are some pointers on quantifying these benefits.
• Start with the value of the benefit. If the benefit cannot be measured in specific terms, try to compute the cost of the service that provides the value-added benefit. For example, your company provides its customers with a customer portal (value-added service), and while the entire transportation department at the customer location can now easily access specific shipment information in one location (invoices, POD’s, other shipment related paperwork), instead of making multiple calls to carriers to check on the status of a particular shipment, there’s no way of measuring how much this has contributed to their bottom line. However, with research you can determine that the portal, based on the number of shipments and confirmation calls required prior to offering that service, will save the customer four hours per week.
• Measure value in bottom-line dollars. Think in terms of profit increases, reduced overhead, increased productivity, and so on. As an example, it’s more effective to say, “If you follow my inventory suggestion, you’ll be able to generate a $10,000 annual return on the space saved,” than it is to use the less effective statement, “You’ll be able to find a more productive use for the 3,000 square feet saved by the inventory reduction.”
• Link value-added services or benefits to make a more sizable benefit. Keep this in mind when quantifying the total value-added contribution. Measure values individually but link them to increase the total amount of the benefits accruing to the customer.
• Project the values over a longer period of time. Obviously, if a value-added benefit has a life cycle of six months or isn’t enhanced over time, you’re limited. However, if you provide ongoing benefit to the customer, you have earned the right to value it over a longer period of time. Many salespeople project value over a period of one to three years. Use common sense to choose a time period appropriate to the specific value-added benefit. For example, it’s more effective to say, “We estimate that our just-in-time service will allow you to save $8,000 a year in inventory costs,” than it is to say, “Our JIT service might help you save up to $150 per week.”
SELL VALUE ON EVERY CALL
If you’ve provided a significant value-added service to a customer, you should capitalize on it immediately, which may be on your next sales call.
Value-added benefits are special and should be presented on their own stage. Do not merge them with product benefits or present them casually. Set the stage by using a transition, such as, “In addition to our normal service, we are pleased that we could allocate staff specifically to manage your freight needs for your eight distribution centers during the quarter. I estimate that this extra service will save you over $6,000 in actual costs and, in addition, adds value by ensuring each shipment gets individual attention and receives the best price and service.”
Always document your data to reinforce the specific and measurable values. Either show the customer your figures in a clear presentation prepared in advance, or dramatically recreate your estimates and calculations on the spot.
When you’re presenting to a new decision-maker or new account, be prepared to cite value-added success stories that you have generated for other accounts. Treat these experiences as “case studies,” and use them to differentiate your offering and improve your presentation.
Value-added summary
1. All value-added benefits provide value to the customer, and most values can be quantified.
2. When quantifying value, the ideal method is to measure the benefit. If this can’t be done, quantify the cost of providing the service (what it costs your company to provide this benefit).
3. If more than one value-added benefit, service, or resource is involved, link them by adding or multiplying as needed.
4. To maximize the value, project the benefits over the long term.

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