Like it or not, commoditization has hit the commercial integration industry hard. This is a good thing — and a bad thing.
On one hand, commonization reflects a strong need for a product, solution or service. (And it’s a lot easier to sell technology that people want!) On the other hand, commonization can create an environment that breeds price-based buying and selling. Chasing low-margin jobs becomes tiring for your team — and it’s no fun to work for free.
In this volatile market, customers aren’t always as confident about what they want. This chaos and confusion can create new opportunities for integrators. You can even protect your company from unpredictable economic headwinds by shifting away from selling based on price and selling based on value instead. That way, you and your client both win.
Is Your Current Sales Approach Working?
How does your sales team convey value to a prospective customer right now? If they still review and highlight product benefits or emphasize your company’s storied history and expertise in AV technology, then they’re doing it wrong (sorry!).
Outcome-based selling is all about your sales approach. Helping your salespeople be better question-askers to get to the root of what they need — and why they need it — is the first step. Instead of focusing on individual products or projects, their sales conversations are focused on the long-term goals and objectives of your clients. This also positions your organization as a trusted advisor because you understand what you’re offering and who you’re offering it to.
Instead of talking about products, solutions, features and benefits, your sales team should be focused on creating business outcomes for clients, helping them achieve a specific business goal like:
- Increasing cash flow coverage ratio (CFCR) above 1.2
- Increasing market share by 5%
- Eliminating downtime by 50%
- Increasing margins by 10%
- Boosting win percentage by 7%
- Pulling items out of the bid market
- Building technology roadmaps that customers can use to guide their investments and strategies
By focusing on the business outcomes and needs of your clients, you can also create more comprehensive solutions that include ongoing support and maintenance. This can lead to more predictable revenue streams and higher profit margins over time.
Why Outcome-Based Selling Is Different
Instead of solution selling, we’re encouraging integrators to talk outcome-based selling instead. Here’s how it’s different.
1. It always prioritizes the customer
Talk to a prospective customer about things they’re interested in. This is how you uncover their needs, targets, priorities and even personal goals.
You can also create a process which helps sales professionals know when and how to ask the right questions in four critical areas.
From there, the salesperson can show the client what they need to do to meet their goals and improve their business.
2. It addresses the concerns of all stakeholders
Sales conversations should change based on who you speak with: IT, operations, marketing, human resources, or finance, for example. Talk about business issues as they pertain to each area.
For instance, imagine you’re talking to a potential customer about creating a series of huddle rooms in their corporate office. Would you talk the same way to every C-suite leader about the outcomes these huddle rooms create? Your answer should be “no.”
Here’s an example.
The CEO, president, or general manager is concerned about growth, value and productivity. They want to know how huddle rooms will:
- Improve customer satisfaction and image
- Lead to profitable growth
- Provide an advantage that competitors don’t have
- Enhance employee satisfaction and retain talented staff
- Support new vendor partnerships or entrance into new markets
The CIO or CTO wants to make sure new technology aligns with standard operating procedures. They’re focused on information security, and they want to leverage their existing IT systems when possible. They want to know how huddle rooms will:
- Align IT with corporate goals
- Reduce technology maintenance requirements
- Streamline technology troubleshooting and improve the end-user experience
- Leverage existing IT investments
The CFO is focused on warranties and total cost of ownership. They want to know how huddle rooms will:
- Provide a quick return on investment
- Reduce costs in other areas of the business
- Improve cash flow and/or cash management
3. It moves conversations toward value and ROI
Outcome-based selling makes it more natural to weave in conversations about ROI and value — and even managed services. Discussions don’t focus on cost — they focus on your customer’s goals. Because your customers’ goals are rarely centered around cost.
ROI selling is key in an economy where customers may be facing staff shortages, budget cuts or stalled revenue.
4. It creates a foundation for trust
Relationship-building begins with the first conversation. If your salesperson can demonstrate their industry expertise, provide valuable insights, and prove that they understand what the customer needs, then trust and credibility will soon follow.
As the work progresses, the relationship only gets stronger. The sale doesn’t signal the end. Instead, the sale is a sign of a relationship that’s just getting started. Your company becomes the advisor that clients turn to when they have questions, need training, or want to improve their technology. They may also be more likely to recommend your company to others.
Turn Your Sales Reps into Superstars
The bottom line: You don’t need new or better sales reps to improve sales. You just need to provide them with better training on how to lead with outcome-based selling. No matter how they perform right now, every single person on your sales team could be selling more (and at higher margins), even as clients slow down their buying in this market.
To learn more about this subject, watch Commercial Integrator’s recent webinar, “How Sales Needs to Evolve for AV Businesses.”
Tyler Ebnet is the founder and principal consultant at Revenueify.
