What’s the ROI of your product?
If you can answer that question in your sleep, you’re probably into value-based selling. You like to focus on the numbers, bring real data into your pitch, and close deals smoothly by heightening the perceived value early on.
Pushing value before anything else is a good way to build expectations and help close more deals. But how does value-based selling compare to solution selling? With two models that are so similar, what are the real differences? And how can you use each (or both) in your sales process?
Let’s dig into:
- What is value selling?
- What is solution selling?
- Value selling vs solution selling: how are they different at a glance?
- How value and solution selling differ in the sales process
What is Value Selling?
This model takes the challenges, roadblocks, or goals of a prospect and helps define these with real numbers. Then, using average ROI from current customers, the value seller focuses attention on how much will be improved by using the product.
The goal of the value-based selling model is to prove that the product is worth its price tag. Especially in the world of SaaS sales, it can be hard to justify a higher price tag when your competitors have similar features. This is where value-based selling can be useful—it helps focus attention on and clarify the real value prospects will get from your product.
The key is making sure your value-based arguments are parallel to the type of value this prospect is looking for.
What is Solution Selling?
Your prospects have a problem. The solution selling model digs deep into the root causes of that problem and then positions the product as the perfect solution to the problem. The focus is on the results—what will life be like for your prospect after purchasing the product?
Value Selling vs. Solution Selling: How are They Different at a Glance?
When comparing value-based and solution selling, you’ll see that the two models are relatively similar.
For example, both focus on the prospect rather than the product. Both aim to provide a valuable solution to the prospect’s problems and start by identifying needs.
So, how do they differ in practice?
How Value and Solution Selling Differ in the Sales Process
In a practical way, there are some slight differences between how value selling and solution selling are used inside the sales process.
Where do they match, and where do they differ in the day-to-day life of a sales rep?
Qualify
At the qualification stage, both value sellers and solution sellers will ask lots of good questions.
These will include open-ended questions like:
- Tell me more about your process for…
- Walk me through how your team handles…
- Can you give me an example of…
These types of qualifying questions help sellers determine true needs, dig into the roots of current problems, and determine how to present the value of their solution.
Psst… looking for more ideas of good qualifying questions to ask your prospects? Check out our free resource, 42 B2B Qualifying Questions
Pitch
The pitch is where these two sales models start to branch off. How do value sellers and solution sellers differ in presenting their solutions to the prospect?
With value: Since this sales pitch is all about the product's real-world value, it maintains a high focus on the dollar value attached to current problems and how implementing the solution could improve that number.
With solution: Using the information gathered during qualification, the sales model examines the product's results. The solution selling pitch may alternate between real customer stories and a personalized narrative that helps the prospect envision their life after using the product. It focuses on goal achievement, job satisfaction, team morale, and other non-measurable results.
Negotiation and Close
How do sellers using these two sales models act when it comes time to negotiate and close the deal?
With value: Value-based sellers focus on building the perceived value of the product they’re selling in the early stages of the sales process. So, when they get to negotiation, they’ll be harder negotiators than solution sellers. They’ll bring in rock-solid social proof that’s relevant to the prospect and focus on the ROI rather than the price tag.
With solution: Solution sellers are ultimately focused on bringing the best solution to their prospects. At this stage, they’re more willing to make compromises when possible and adapt the product to the customer's needs. The goal is to enable customers to reach their goals, so solution sellers work as advocates and advisors at this stage, bringing the deal to a close by proving with real data that their solution works for other similar businesses.
Comparing Value-Based Selling to Solution Selling: Is There a Winner?
After comparing both of these popular selling models, is one better than the other?
Nope.
Some sales "gurus" will dogmatically tell you that THIS sales model is the best, you must only use THIS sales model if you want to win.
That, simply put, is a load of crap.
The best sales model for you and for your business is highly dependent on:
- Your personal sales style
- The industry, needs, and attitudes of your prospective customers
- The type of product you sell
- The type of business you work for
Sales leaders and their teams must work together to build their own sales methodology that works for their team repeatedly. This can pull from different aspects of popular sales models, such as solution and value selling.
The point is to keep learning, keep improving, and build a sales model that works for you.
Whichever sales methodology you chose to adapt for your company—our free collection of templates, scripts and worksheets will help you set up a winning process faster.
