4 MIN. READ
Value based selling forces companies that market their products to other companies (B2B sales) to reevaluate their business model. Instead of focusing on the number of new clients per year, the goal is to realign and emphasize providing lifelong value to the customer.
So what does that mean to your company? In the past, you may have been able to succeed primarily by scouting new customers. Value based selling turns that concept around, concentrating on how your product can provide true value to your current customers by solving long-term needs. It is not a temporary solution to a deeper problem. Rather, it requires that you develop a stronger relationship with your existing customers.
One such example is industrial technology. The last several years have seen a rise in robots, co-bots, warehouse inventory systems, billing systems, shipping systems, and more. Manufacturers eager to embrace the Industrial Internet of Things (IIoT) acquired each system that seemed reasonable and offered savings. However, these disparate systems have not always interacted with one another collaboratively.
Your new mission, as confirmed by over 40% of B2B organizations polled, is to break down those technological silos. Your product must provide actual value to your client. That means ensuring not only that the billing department is pleased with its technology but that the given tech also interfaces with warehousing and shipping. Your product provides the value of tracking a part from the moment it enters the manufacturing phase until the moment it leaves the facility. This holistic approach comprises your value-based selling plan.
Value based is the natural extension of value added. Value added B2B sales only account for the value you add to an existing product. Integrating value based B2B sales into your process is the next step — how your product improves your client’s overall performance metrics or bottom line.
To return to the technology example, your company may have sold hundreds of copies of your proprietary accounting software. You certainly made life easier for the front-office individuals in charge of paying invoices and billing, with your value-added service to the manufacturer’s original software.
Now it is time to up your game and include a software suite that encompasses not only the front office but the warehouse, so that your client can track an item throughout its journey. This value based service provides definable results for your manufacturing client. The client not only saves time in the front office but can track savings in the warehouse with such visibility, gaining instant insights such as what stock arrived as ordered and what stock arrived damaged. Damaged materials can then be deducted from invoices immediately, eliminating the need for time-wasting claims against the original shipper or parts manufacturer.
You can stop adding value in a piecemeal format and instead approach the company’s entire operation, with your value based services.
Millennials and Gen-Z individuals comprise the majority of B2B consumers. They are tech-savvy individuals who rely on social media and have no problem purchasing items without ever interacting with a company representative.
Adjusting your marketing strategy to accommodate that format means making your outreach more flexible. Influencers and other businesses that share your company’s values provide an excellent starting point for gaining social media momentum.
You will need diverse content to find new customers and form fuller relationships with existing ones. A scattershot approach such as a pop-up ad will not work as well as would a video explaining your company’s product or a consumer testimonial about your company’s value based services.
At the end of the day, you need to reach all of your customers with a personalized vision of how your company can help them achieve their overarching goals. Value based selling allows you to do just that.
Post-pandemic customers are not interested in working with a company that has a “me-first” attitude. B2B marketers will need to rethink their strategies, to accommodate an uncertain economy. The winning strategy, both for retaining current customers and attracting new business, is value based selling.
Your customers are no longer interested in the “latest and the greatest.” Developing shiny new products will not increase your bottom line. Find a way to consolidate your products into a package that improves the overall health of your customer, to seal the deal in 2023.
Channel marketing – using one outreach method to appeal to one part of your customer’s operation – will also go by the wayside. Your new business model should support your customer through all phases of acquisition. Customers are interested in cradle-to-grave solutions that serve the needs of everyone, from the purchasing department to the end user.
Event selling will likely never return to pre-pandemic levels. Equipment shows, conferences, and other large gatherings fell dramatically during the pandemic. Now, a few years after the closures, savvy companies are rethinking that strategy. Event planning fell between 17% and 48%, replaced by digital means to reach the customer on a more personalized level. This personalization paves the way for your value based selling.
Fortunately, data leaders such as IndustrySelect can provide you with a wide range of opportunities to connect with the nation's nearly 400,000 US-based manufacturers and one million exectuives. IndustrySelect is the industrial database that helps sales and marketing professionals find and contact U.S. manufacturing companies. IndustrySelect seamlessly integrates with commonly used apps such as Salesforce and Hubsoit, ensuring that any data you receive can be put to use immediately. You can also utilize IndustrySelect's exceptional depth with tools such as Customer Match, which identifies the best potential new customers for your business based on analysis of your current customers' profiles.
Contact IndustrySelect today, to start your free demo and put the power of value based selling to work for your company.