Raybec Sales Effectiveness Blog

The Sales Effectiveness Scorecard. Invest 120 seconds and put your sales team to the test.

How Important is Customer Value?

Posted by Robert Beckerman
Robert Beckerman
Find me on:

how-important-is-customer-valueCustomer value is the basis of all sales that a sales person makes. If prospects do not see or understand the value proposition of your offering, they will not be inclined to buy. Similarly, existing customers who do not appreciate the value received in a purchase will not be as likely to repurchase or participate in add-on sales. Although there are other aspects to sales success, value must come first. Following are a few reasons demonstrating why customer value is so important.

Customer Value Determines Sales Strategy

Customer value should be driving your sales strategy by assisting you in determining which leads and prospects are the best match for your offering based on the customer value points that you can build. Without a firm idea of where the value in your offering is coming from for each market segment, it is more difficult to target specific prospects with a compelling value proposition. Additionally, by knowing the importance of customer value and building your sales strategy around it, you can focus on the leads and prospects who are most likely to respond to your value message.

Customer Value Increases Prospects Readiness to Buy

A prospect buys when he or she sees the value in your offering, and not before. By helping your prospects see value and how the value you are creating applies to their unique situation, you can accelerate the sales cycle. This benefits you, but also benefits your customers as well; the earlier an offering can be implemented, the sooner your customers will see results. In this way, the importance of customer value is demonstrated as a function of efficiency and added value. Use this knowledge to guide your sales process by:

  • Allowing value to guide your approach to selling, even if prospects are focusing on other aspects of a deal. For example if a feature intrigues a prospect, focus on the value that the feature creates – and how it relates to your other value points.
  • Recognizing that each prospect will likely perceive value differently, and tailoring your approach accordingly.
  • Always centering your sales discussions on how specific value will be realized from the prospect’s perspective.

Customer Value Builds Lasting Sales Relationships

Sales relationships in which a customer returns to you for his or her organization’s needs and takes the additional step of recommending your services to others are the most profitable sales relationships that you can build. To create this kind of win-win situation, there must be a strong feeling of value on the customer’s side. The work that you put into each lead and prospect that you find can help demonstrate the higher lifetime value of such a customer to you and your organization. Ensure that value is creating relationships for you through:

  • Understanding the importance of building value from the early stages to ensure that a lasting sales relationship can be created.
  • Recommending offerings that create the most value for the prospect or customer, even if those offerings are not currently your personal focus.
  • Listening to customers not only in the lead-up to a sale but following the close so that you can target areas to create new value.

Customer Value Shapes Expectations

Customer value guides what leads, prospects, and customers expect from a sales person and an organization as a whole. If the value that a contact perceives is lacking, it will erode value and lead to lost sales. The key here is being able not only to build customer value but also to execute on it so that the expectations of prospects and customers are not only met, but exceeded. By doing so, you can improve perceived and actual value for prospects and customers and ensure that the sale not only closes, but leads to future sales success down the road.

Topics: Lead Nurturing & Conversion, Customer Development & Retention, Sales Process & Performance