Creating value with relationship strategy

Value Creating Relationships

creating value with relationship strategy

Chapter 3 Creating Value with a Relationship Strategy Developing a Relationship Strategy Relationships Add Value Partnering—The Highest- Quality. We look at ways to create value for customers, although salespeople must use any There are sales strategies, tactics and techniques for creating value for By solidifying the relationship, you'll be able to get a much better sense of their. Explain how partnering relationships add value. • Discuss how thought processes can enhance your relationship strategy. • Identify and.

Creating Value with a Relationship Strategy

So when a sales team beats its chest and rattles off the great wizardry that goes into its products, salespeople fail to position the product as the answer to the customer's pain, frustration or aspiration. Instead, they're actually positioning it as a commodity, allowing the customer to base more of their purchasing decision on price and thereby pressure profit margins.

The underlying goal of every sales process must be to create value for customers by understanding the problems or challenges, opportunities and aspirations confronting them.

Customer 'problems' manifest themselves in many different ways.

creating value with relationship strategy

In essence a problem is simply nothing more than the difference between what a customer is experiencing or achieving now their existing situation and what they need or want, that is what they'd like to achieve. The gap between the two is the problem, and it becomes our opportunity to create value; the scale and nature of the gap will usually determine how much urgency the customer feels to act on it.

Our sales challenge is to understand that gap, and develop solutions through our products and services that help the customer solve the problem and satisfy their needs.

When salespeople create value with their proposition in the eyes of the customer, the customer gains the opportunity to see it as unlike any other in the market — almost as if you've created a new market segment of one. This also has the effect of repositioning your competition, so that price becomes a less dominating factor in the purchasing decision. Sure, price will always be an issue, but if the customer perceives unique value, price will never be the issue.

creating value with relationship strategy

Creating value not only transforms sales effectiveness, it also provides insulation from price pressure. As professionals, we need to get inside the head of the customer and develop a good understanding of what they value. Because it should go without saying that all customers value different things; there's no cookie cutter model of what customers value and how to create it for them.

This even goes for people within the same organisation — what a purchasing manager values in your proposition can differ greatly from what a business owner, finance director or C-level executive values.

In your contact with all of the people that make up the customer buying team, you need to ensure your sales communication is appropriate for each of them. By solidifying the relationship, you'll be able to get a much better sense of their current business situation and where they want to be — information you can use to position your value proposition to address their problem and needs.

Use this time to ask the probing questions that will draw out this information and be sure to truly listen to their responses! On key points and issues, reflect their response back to them so you can confirm if you're understanding them effectively.

creating value with relationship strategy

Not only does this verify the information and allow them to clarify if necessary, it demonstrates your thoroughness and desire to understand their situation and needs, and how your value proposition may be able to help. Critically it builds their confidence in you, and your confidence in yourself and your solution.

Solidifying the relationship also allows you to learn how to communicate with the customer: Do they prefer to interact in a friendly and casual manner or do they want to remain very professional and to-the-point?

creating value with relationship strategy

Help the customer visualize future success, and discuss how to make that vision a reality. The vision for a brighter future that you present should include how you and your products or services will continue to add genuine value for the customer.

Chapter 3 Creating Value with a Relationship Strategy. - ppt download

Your value represents more than product features and benefits. In the grow phase, you drive success after the sale by developing the strongest possible relationship with your customers and extending your success to new opportunities. Did purchasing your product or service result in your customer achieving the goals you planned together beforehand?

5 Ways to Create Strategic Partnerships

They expect salespeople to deliver the value they promise and to maintain a relationship past the initial sale. Summarize how your customer secured value by buying from you. Try to help your customer attain additional success over time. Rely on the insights you developed through research and interactions to make your case.

Excellence before, during and after the sale requires a long-term approach, which leads to continuity and creates trust and understanding.

Lec 4 Creating value with relationship strategy | Duke Chua - btcmu.info

The changing role of service Some salespeople do a great job of selling until the prospect turns into a customer. Then, after the product or service is delivered, they drop out of the picture, moving on to close new sales. They focus on the next prospect before finding out if the new customer is satisfied with their product or service.

They fear they might hear complaints during a follow-up meeting.

creating value with relationship strategy

Top salespeople separate themselves from the ordinary by conducting after-sales checkups after delivery is made.