sales tools can help a struggling rep. “Reps have neither time nor inclination to read a balance sheet or a financial statement or an annual report. They’re afraid of the information in there. For lack of a better word, it’s a fear of hav- ing to learn how to do that.” That fear, however, is not well founded. “Salespeople think that an ROI or value justification model is all about financial metrics. And it’s not,” says the expert. “That is the misconception that everyone seems to be under. You don’t have to be a financial analyst to talk about ‘What is your problem?’ or ‘What is the cost of that problem?’ That doesn’t take a rocket scientist.”
GET OUT THE CALCULATOR While value quantification involves calculations, most of the heavy lifting can be done with software programs. Typically, value quantification soft- ware is based on models that align customer issues, pains, and goals with the features and benefits of the seller’s offerings. In the field, the essence of value
quantification lies in the questions salespeople ask their customers. “One of the things you will notice about salespeople is that they ask a lot of questions. That is what we teach them, right?” asks the expert. “But they never give you anything to do with the answers. And when you go in asking foolish questions, wasting people’s time, you lose before you begin. Salespeople work like hell to get in to see somebody; and, when they finally get in, they disrespect the person’s time.” Instead, in ROI selling, sales profes- sionals receive a “quantified” list of questions that show results and prove value. At a banking software company that sells teller automation, for instance, the salesperson would ask such basic questions as: What do you pay a teller? What is the average customer wait time? How long does it take to process a transaction? How many transactions do you process in a day? How many days a year are you
open? How many tellers do you have on staff? What is your average num- ber of tellers per bank? How many branches do you have? “We are asking questions to cap-
ture the status quo,” says the expert. “Many, many organizations don’t have all these numbers in one place so, when you capture them, you move from being a salesperson to being a consultant.” The customer’s answers to these
questions are plugged into software that calculates such metrics and per- centages as net present value, internal rate of return, payback periods, and ROI. In turn, these measures become a valuable deliverable that salespeople can offer back to their customers. “This is something that every customer gets once they answer the questions,” the expert explains. “So, it’s not like the customer is going to answer your questions and get noth- ing. Sales is give and take.”
INCREASED AWARENESS Even better, the value quantification process raises customers’ com- prehension levels as they become aware of the cost of their pain and the cost of delay. “Once you’ve helped them capture those current
SELLING TIP Have a Little Pride
As a salesperson who helps customers, improves company profitability, and contributes to the economy, you have a lot to be proud of. When you feel down, remember these additional reasons to keep your chin up: • Your ability to improve others’ lives. The products and services you sell make a difference not only for the people who buy them, but for those who have jobs because your company stays in business.
• Your skills. Professional selling requires a high level of skill in commu- nication, interpersonal relations, negotiating, and closing – to name only a few. Expect others to treat you with respect.
• Your reliability and punctuality. Take pride in keeping your word and being a person your buyers can always turn to in a crisis.
• Your honesty. Take pride in always selling with absolute integrity. Even when honesty costs you a sale in the short term, you can bet that nice guys do finish first in the end.
– LLOYD ALLARD
SELLING POWER SEPTEMBER/OCTOBER 2022 | 9 © 2022 SELLING POWER. CALL 1-800-752-7355 FOR REPRINT PERMISSION.
costs, you can apply the estimated value that your solution could de- liver,” explains the expert. “And that value isn’t just a number you pick out of the air. These are proof points within your ROI model.” With automated value quantifica-
tion tools, customers can participate in the process of determining the val- ue via the salesperson’s laptop. “Have your customer estimate the value you can deliver,” advises the expert. “Your prospects and your customers can take complete ownership of these models. They’re telling you what their pain is; they’re helping you help them capture their current cost of that pain; and they’re helping you estimate the value you can deliver.” “ROI selling gives you the ques-
tions to ask, a place to put the an- swers, and gives you a deliverable to give back to your prospect. No matter what process you’re using, you have to ask the right questions, collect the right data, and, then, you gotta do something with it,” says the expert. “If you are a mediocre salesperson, it will make you great. If you are a not- so-good salesperson, it will make you pretty good.” But all improvement is worth a lot in sales.
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