Monday, June 22, 2009

How can we implement "value selling"

My BU deals with a commodity product day in and day out. Although we do as much as we can to differentiate ourselves, customers including the sales themselves take it as a transactional product. The main theme sometimes the only theme is price.

BU invests a lot of money trying to implant the value selling concept into sales head. But in reality, how much the concept is incorporated into our daily sales activity? I guess less than 10%.

I don't want to blame sales. As always, anything in our life has two sides. On the one side, sales might to work hard enough to implement the value selling; on the other side, do they have to do so or are they able to do so? The market is Oligopoly with few players. As the market leader, we have our advantage to penetrate the market without paying too much effort. In addition, customers don't appreciate the value selling so heartedly. The purchases manager only cares to get the product at possibly lowest price.

The pictures looks quite gloomy. But the answer is not hard to grasp. First, from sales end, they must be trained to use the value selling concept continuously and in long term. It would never be possible to change customer's paradigm overtime. The idea needs to be percolate into their heads little by little. It takes time and stamina to do so. But it will be paid off once the idea is getting through. Second, we need to build the "value selling" into the target setting and performance evaluation. The one who is doing it should get rewarded, who is not should get "punished".

People's mindset is always hard to change. Not mention to change both sales and customer's mindset. The right incentive and management force must be in place to make it happen.