In my posts, I refer to value a lot: engaging customers in a way that has them see value in talking to you…asking questions artfully so you draw out their definition of value…but what is value, truly?
Defining value can take many forms. Let’s start by remembering that ultimately, value is defined by the customer; but what are the factors that they consider when thinking through how their needs translate into viable solutions?
In the simpler days as consumers, we purchased items based on a formula of knowing that if you wanted quality, you paid a higher price for it. Name brands like GE or Ford signified quality. The equation “quality = price” shifted when companies started competing to offer quality goods for a better price; auto leasing programs demonstrated this, enabling consumers to drive a better made car for less money. Volvo, considered well-built but expensive, delivered true value when they started selling their vehicles coming off lease for a great price. Today, generic store brands, often direct copies of their more expensive counterparts, offer great value.
But in today’s stressed economic environment, three other mitigating factors press against this simple equation of Value = Quality / Price: Time, Risk, and Outcomes. Will it take a lengthy amount of time to change or implement? What will be the risk to implementing this change? Will I get the intended outcome from my efforts?
Your customers are facing unprecedented pressures to get more done in less time with fewer resources, so the energy or time it takes to make a change in their routine can cancel any sense of value quickly. And risk is high if the intended outcomes don’t materialize or have unintended consequences on those that are affected by the change. It’s not that implementing your solution won’t benefit them; it’s just not worth the hassle, risk, or chance.
So how do you increase the urgency, or need, to solve the problems they are facing that directly relate to solutions you can offer? This is where your questioning becomes strategic. It’s easy to ask questions to find a basic problem or need; the art of Balanced Seller® questioning is in carefully taking the time to double click and build the need awareness and urgency in the customer’s eyes. YOU may see the problem or need, but does the customer? And, if they do see it, is it compelling enough for them to take the risk and time to change? Add questions to your repertoire that build the problem statement so the pain or gain of change far outweighs keeping the status quo. Ask questions that:
- Magnify the impact on processes: how could this streamline the way you do business? Where are there current roadblocks, sticking points, steps that could be executed more efficiently or effectively?
- Magnify the impact on people: one of my favorite questions to explore is, “If this problem isn’t solved, who gets the phone call?” You know THAT person will feel and express their pain!
- Magnify the pain of not changing: What happens now when that (situation) happens? Get them to describe the scenario, and you’ll see/hear the pain.
- Magnify the gain of better outcomes: This is not a “what would be the benefit to you if…” question; focus on the problem, not the solution. Instead, guide them with a question that explores the positive impact, e.g. “How would this help you…improve efficiency, save time, lower stress…?”
Magnifying questions are aptly named; they get the customer to express the magnitude of the problem, as well as picture the impact when the pain is reduced, making the problem statement feel compelling enough to solve. Done well, the customer will clearly describe and visualize what value means to them and what will motivate them to take action. They will see themselves in the picture and begin to appreciate your ability to help them solve the problem. When you deepen their understanding and awareness of the problem, your solution will practically present itself.
One last thought about our original value equation – Quality vs. Price. How many times do you get hammered with a price objection, when you know you offer a quality solution? When the customer defines value in terms that THEY believe will benefit them, it shifts the conversation away from price to thinking about total cost of implementation. Cost of change, risk of status quo, lost revenue, lost productivity, poor outcomes, lost time…these are all factors you can influence. In my next post, we’ll explore ways to position these elements as part of your solution, keeping the customer in the picture.