Archive

Posts Tagged ‘value centric’

IT Study – Motivating Factors as to Why Client’s Buy

by Victor Antonio

Sales Consultant, Victor Antonio, Value Centric SellingLast week I posted a video titled “Reduce Costs or Increase Revenue” which highlighted the three primary motivating factors for a client to make a buying decision:

– Increase Revenue (sales)

– Reduce (cut) Cost and

– Avoid Missed Opportunities

I stated that the most impactful of the three was showing clients how they could ‘reduce cost’ because clients can quantify, control and make permanent those cost reductions.

I’ve had a few people question whether leading off a presentation with Reduce Cost scenarios has more impact than Increasing Revenues projections.  So I dug a little deep and found this IT survey done on small and medium size businesses (SMB) that further validates this point.

A sample of 500 SMBs where asked to list the top 3 motivating factors for buying new technology.  As you can see from the graph, second to “Increasing Productivity” (which is a cost cutting measure to increase cash flow) is ” Cut Cost”.  You’ll note that “Increase Revenue”  (sales) comes in sixth in terms of motivating factors.

(Click on image to enlarge)

 Value Centric Selling - IT-Buyers
Survey of IT Buyers

source: marone-lunsford (2005)

It’s important to emphasize once more that addressing cost cutting, increase revenue and avoid miss opportunities are all relevant and warrant a discussion with the client.  The only point I wish to make here is that putting more emphasis on how your product or service can help them reduce costs will probably resonate more with your client.

Product versus Profit Presentation

by Victor Antonio

_________________

Sales Consultant, Victor Antonio, Value Centric SellingIn any B2B sales situation, it is incumbent upon the salesperson to improve a client’s ability to circulate their capital quicker. This can be done through increasing sales, shortening account receivables or increasing inventory turns.

The ability to increase a client’s sales revenues or decrease their cost are the two main pistons that power any company.  The engine that drives these pistons is the ability to turnover (or accelerate) capital in the most cost effective way.  B2B buyers want to buy products or services that can help them achieve those goals.

So before you give your next sales presentation, here are some questions for you to consider:

  • Does my product (or service) help increase revenue or decrease cost?
  • Does my presentation describe how it does that?
  • Can I quantify those increases or decreases in terms of the client’s business?
  • If so, how soon can the B2B client expect to see a Return On Investment (ROI)?
  • Do I provide the B2B client with proof on how my products help increase revenue or decrease cost?

Whether you’re dealing with the CXO or a Product Line Manager, both want to know the same thing; how can you help me grow?  Your ability to qualify and quantify your proposal in terms of the client’s business unit is the key differentiator in any sales scenario with your competitor.  Selling in today’s environment has changed.

Value Centric Take-away:  Clients no longer want only a product presentation, they also expect to see your profit presentation!

—————–

Note: I’ll be posting a video in a few days to illustrate this point.