Elements of a Proposition that Will Wow Customers
Posted by David Bennett Mon, 05 Jun 2006 20:37:00 GMT
People don’t buy good service. They buy help for their problems.
Calm the Fears
The two biggest fears people have when making a buying decision are:
The two biggest fears people have when making a buying decision are:
(1) they’re wasting their money by not getting the solution they really need, and
(2) they’re not going to get the kind of results they want.
The successful sales associate will address these fears at the outset and calm them by demonstrating the specific value of the proposed solution.
The problem is value propositions often view services with an internal focus. Tired of seeing credentials and histories, one customer tossed out an interesting challenge. "If you want to sell to me, address the things I wake up worrying about: Am I getting the best price or a good deal? This is a huge purchase. How can I be certain I’m not getting stuck with a dog? If you can help me with concerns and solve my problems, I’ll buy from you or let you sell my home."
The closer you can come to answering the customer/client’s concerns before they even ask about them, the more carefully they’ll consider your value proposition.
Show Me the Payback
A value proposition is the message that differentiates you from the competition and tells why your solution will help solve the customer’s problem. There are two principles to follow when crafting your value proposition.
A value proposition is the message that differentiates you from the competition and tells why your solution will help solve the customer’s problem. There are two principles to follow when crafting your value proposition.
- Focus on what the customer cares about. Suppose you have some data showing that your listings are sold with the fewest days on market and that they close on time. That’s only valuable if the customer wants a quick sale. If what they really care about is getting top dollar, you need to present the data that supports your claim you are the one that can get it for them.
- Quantify the value proposition with numbers. For some reason, they’re more persuasive than words. Even if the consumer doesn’t really buy into your analysis, the fact that it’s quantified tends to give it impact.
In trying to show value to customers, don’t mistake features for benefits. A common example of this tendency is to focus on your listings, your sales, your great service as a reason for the customer to buy from you.
Let’s say you have twenty years experience and hold the GRI, CRS, ABR designations. Their response may be, "So what?" Unless you can demonstrate you can find them the home that is perfect for them to buy, it’s meaningless. And even worse, a lot of other people can claim the same thing.
Stand Above the Rest
To stand out, you need to focus on your differentiators—things you do differently or that nobody else does—but always show how those differentiators deliver value to the customer. Differences based on processes or systems or methodologies are generally longer lasting and harder to overcome than your technology tools, your education or your experience.
To stand out, you need to focus on your differentiators—things you do differently or that nobody else does—but always show how those differentiators deliver value to the customer. Differences based on processes or systems or methodologies are generally longer lasting and harder to overcome than your technology tools, your education or your experience.
Draw Them a Picture
Help them see how you are different. Pictures, charts, success stories can strengthen your image in your customer’s mind.
- Documented success stories make you believable and that leads to a more compelling value proposition.
- When you can present your data graphically in charts, you’ll add punch.
- Pictures talk even louder than numbers.
Finding the Payback
- Show the impact on revenue: The difference between selling with your assistance and FSBO sales. (The median selling price of FSBO homes was $210,000 compared with $255,000 for agent-assisted home sales.) or the effect on value of unrealistically priced homes
- Show what costs they will not incur by using your services – advertising, marketing, holding open houses, etc.
Quantifying the payback is more persuasive than just claiming your services are a good thing. If baseline measurements aren’t available, that’s okay. Offer an estimate or a projection based on market averages. Even if they dispute your numbers, you’re still discussing the overall value of your unique offering.
By connecting your payback analysis to what really differentiates you from competitors, you’re in a much stronger position: They can’t use the easy "Me, too" comeback.