Think of the last time you won a close, competitive sales opportunity. What tipped the scales in your favor?
In sales situations where it’s difficult to differentiate your solution from the competition’s, you often win by offering your buyer extra services or Value-Added Benefits.
Chances are you're already providing your buyers Value-Added Benefits, but you're not getting credit for them.
Value-Added Benefits (VABs) are the extra services above what you provide with your primary solution, which are provided without additional cost to the buyer. Providing Value-Added Benefits as part of your solution can make the difference between winning and losing in a competitive situation. They can also help reinforce with the customer on why buying your solution is a good decision and make for an effective sales presentation.
Of course, a Value-Added Benefit must address a specific customer need, otherwise, they won’t value it.
When leveraging value-added benefits to gain a competitive edge, it's important to understand that you can offer different categories of value to your customers.
Here are four types of common Value-Added Benefits:
Support services are extra services provided by your company, not by you. Support services can include:
Consulting services are services that you offer personally such as:
Consulting services can require an extensive time commitment on your part, so offer these services only to high-potential accounts.
Exceeding expectations can make a significant difference in sales. By offering these personal touches, you show your customers that you genuinely care about their success and are willing to go the extra mile to support them. Personal services can include:
Personal services are enhancements that you personally bring to an account, so be careful not to over-commit yourself.
Promotional services encompass a range of offerings, including point-of-purchase materials, advertising support, free samples, job aids or tools, and technical guides. These services enhance the customer experience and contribute to their overall growth and effectiveness. Promotional services can include:
Remember, any Value-Benefits you offer should relate to the buyer’s needs. Use these categories to trigger your thinking and help you identify which Value-Added Benefits you can provide your customers.
To maximize the competitive advantage that Value-Added Benefits give you, it's important that you quantify their value. Buyers will have a greater appreciation of your total offering when you can quantify the value of Value-Added Benefits.
Not all Value-Added Benefits are easily quantifiable. However, make Value-Added Benefits tangible and memorable by quantifying them whenever possible.
Here's how to quantify Value-Added Benefits:
Whenever possible, quantify the value the buyer receives. This method provides a concrete figure that highlights the value customers receive. As a backup, if specific buyer benefits are challenging to quantify, you can quantify the cost to your organization of providing the benefit.
For example, "Based on your volume, our free shipping will save you $500 per month."
To make the quantification even more impactful, try to express the value-added benefits in dollars rather than percentages or time. While percentages or time frames can be useful, converting them to monetary values helps stakeholders easily grasp the bottom-line impact.
For example, instead of saying, "This could save you up to $8,000 a month," you can say "Your efficiency will increase by up to 10 %."
Look for as many Value-Added Benefits as possible. When you identify one benefit, it leads to others you might not have considered.
For example, if your product offers increased efficiency, this may lead to reduced labor costs, improved customer satisfaction, or faster time-to-market. This approach not only strengthens your argument but also expands the perceived value of your solution, making it even more enticing for potential buyers.
Here's an example:
"To save you start-up time, which was one of your priorities, I'd like to offer you training and access to our high-priority technical support. If you do have problems, you'll be able to get access to a technician within one hour without any extra charge. Of course, you can always call me directly if you have any urgent issues."
Value-Added Benefits are crucial in setting your solution apart in a highly competitive selling situation. By going beyond your core products or services, these additional offerings enhance the customer experience and contribute to their overall success.
By effectively quantifying your Value-Added Benefits, you can enhance buyers' appreciation of your total offering and solidify your position as a trusted partner. Some of the most effective Value-Added Benefits include support services, consulting services, personal services, and promotional services.
Have you seen any value-added services used in sales? Share your tips and experiences here.