Business Value Not Just ROI – BV2

 

Value-Based Selling Approach

 

Rather than focusing solely on ROI, a better approach is to emphasize the benefit your customer will achieve in terms of the overall value the initiative will deliver. This is the value-based selling approach, which focuses on business value realized and combines all the aspects of the initiative (internal and external) that should be taken into consideration. 

 

Using value-based selling, you will engage with your customer to jointly build a vision around the value the customer will receive; along the way, you will articulate exactly how your solution is uniquely positioned to help your customer achieve substantial benefits. 

 

Let’s turn the earlier ROI proposition into a value-based statement. Let’s say your customer spends that same $10,000 and that your solution will enable your customer to realize $100,000 in business value in the first year—along with expected additional value in future years. This business value could be stated in terms of additional revenue, additional profit, increased productivity, or increased market share. 

 

Articulating your solution benefits using a value-based approach is much more compelling. This leads to more productive conversations about how this benefit can be achieved and the actual process that will lead to how the value is realized. You are creating a vision for your customer about how these benefits will positively impact their business.  

 

You are also positioning yourself and your company as the experts to lead your customer on the journey to understanding how this business value can be attained. This opens the doors to deeper discussion about how the value generated could be used for investment in new programs, new systems or equipment, and human capital that could generate future additional value. This approach creates a multiplier effect that is much more effective than a simple ROI calculation. 

 

I’m DJ Sebastian, and we will continue this discussion on creating customer value in the next briefings. 

 

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