“Sell the value, not the product!” This adage holds especially true for B2B SaaS companies, where sales employees face challenges in convincing potential customers about the value that their product or service can add. More than 90% of sales employees of B2B SaaS companies face the challenge of value management and value selling. How can companies overcome this challenge and ace the art of value selling? This article will answer that question.
Understanding the Challenge of Value Management and Value Selling in B2B SaaS Companies
The difficulty of convincing potential customers about the value of a product or service is something that sales departments across industries have faced. However, for B2B SaaS companies, this challenge is amplified. Given that B2B SaaS products are intangible, it becomes even more critical to showcase the value that they can add. More than 90% of sales employees working for B2B SaaS companies face this daunting challenge. That said, what exactly is value-added selling?
Value-added selling is the practice of shifting the focus of buyers from the cost of a product or service to the short-term and long-term impact it can create for them. In other words, it’s about showcasing the benefits of what the product or service can do for the customer, rather than simply discussing its features.
The Importance of Value Selling
The importance of value selling cannot be overstated. After all, it is more than just a sales tactic. It is a comprehensive approach that sales departments need to adopt holistically. In a study conducted by McKinsey and Company, it was found that 87% of high-growth businesses have adopted an end-to-end value-based selling approach for their processes and operations.
Benefits of Selling the Value of Your Product or Service
Selling the value of your product or service instead of its features can have several benefits. Firstly, it showcases that the brand cares about the customer’s journey. This is because value-added selling is all about how the product or service can benefit the customer. Additionally, justifying product prices becomes much easier when customers can see the value that a product can add to their business.
Effective Value-Added Selling for B2B SaaS Products
When it comes to B2B SaaS products, effective value-added selling should be all about showcasing how the proposed solution can solve customer problems and add value. For example, potential customers might be looking for ways to stay ahead of direct security threats or keep up with changing industry trends. It makes sense to showcase how the product or service can help solve these challenges and add value for the customer.
Moreover, educating your customers about how they can overcome specific problems, how others have overcome these problems, and what the current and expected industry trends are that will support the management of these problems can further cement the value that your product or service can add.
The Importance of Adding Value to Your Prospective Customers
It goes without saying that your product or service should add at least one type of value to your prospective customers. Whether it is cost reduction, time-saving, or increased productivity, your product or service should offer value that customers cannot ignore. By doing so, customers will be better equipped to make the decision to invest in your product or service.
In conclusion, value-added selling is more than just a sales tactic. It is a comprehensive approach that businesses need to adopt holistically. With the right strategy, businesses can showcase the value that their product or service can add, making it easier for them to justify the price. By doing so, businesses can generate more leads, win more customers, and gain a competitive edge.