A low price is not a value
Talking to sales professionals, I often get the feeling that they don’t see that special value in the product they are selling. Compared to the competition, it seems to be more a matter of price than anything else. What does this mean?
It means that the product is perceived as a commodity and that sales focus on discounts rather than promoting the unique values delivered. The fallback solution, in this case, is even higher discounts.
It also means that the overall probability is reduced due to an invalid misconception. Looking back at projects I’ve been working in over the last 15 years, I’ve seen very few commodity products. The truth is that CPQ-users normally provide premium offerings targeted to specific needs. So, what can we do?
Identifying the real value
First, we must understand that the value of the delivered solutions is different for every customer. It’s necessary to understand what the product means in terms of increased revenue and reduction of both cost and risk – for that specific customer.
To do this, we can utilize the information we’re collecting daily in our CPQ solution. Some information might come from our CRM or ERP system, but most valuable is the information we can extract from the actual sales situation in CPQ.
By knowing the customer size, if it’s a returning customer, and, of course, what type of solution they are looking for, we can easily define what should be the primary drivers behind that specific product purchase. By making the sales reps aware of unique benefits the product delivers to this type of customer, we can create a targeted solution that resonates with the specific needs of that specific customer.
This is the way to make your product stand out from the rest. We must make sure the sales reps understand that your product offering is not a commodity. Rather, it is optimized for the intended usage - and your CPQ solution can support in getting this message across.
The first step to make this possible is to use your existing data to revile and understand your value drivers. We do this by analyzing won-lost, hit-rate on feature level in combination with analysis of active selections. All within the context of the segment we’re serving.
Tomorrow we will discuss this topic in a Get Techy webinar. You’re very welcomed to join.
Since this blog post was written, the webinar recording has been posted on our website. Watch it here.