Top ISO agents, ISVs, and VARs know that winning a sale is about more than simply offering bargain-basement pricing, or falling into the “everything for free” trap that’s nothing but a race to the bottom. More often than not, the most successful salespeople in the POS and payments space sell on value, focusing on each merchant’s business goals to determine the solutions that address their pain points, and explaining the various ways their business will see a return on investment (ROI).
Why selling on value makes more sense than competing on price.
Low prices are appealing, and based on the rise of companies offering “free” payment devices with merchant services contracts, it’s an approach that can get a sales rep’s foot in the door. However, price is only one factor in a consumer’s purchasing decision, especially as businesses expand to new channels and look for ways to create the best customer experiences.
You can appeal to these prospects with more than a budget-friendly number. Finding a solution that delivers real value also appeals to emotion. A study by Google found that B2B buyers are even more emotionally connected to vendors than consumers. B2B buyers are looking for solutions to problems that can make them heroes, get them a promotion, or even help their business stay open. The value you can offer these buyers will mean so much more than just providing a cut-rate solution at the lowest price.
So, how does price factor in?
Of course, price will always play a part in buying decisions. However, it’s just a part of the overall sales equation and should be a smaller factor than the problem-solving, advantages, and positive perception your prospect has of the solution.
Price + problem + perks + perception + person = value.
Achieving the right balance that allows you to effectively communicate value takes training and practice. Encourage your sales team to start by putting price sheets and calculators away for the time being, instead focusing on your value proposition, including the “why” of your solution. Also, make sure your value proposition answers questions such as the benefits your customer will receive, as well as how the solution you’re offering will continue to deliver value in the future.
Value-selling also takes some investigation and effort. Talk to your prospect, taking care to listen to their unique needs. Also, be sure to collect feedback from your current customers to understand the benefits of your solutions from their perspective.
The value you in particular bring to the table.
Remember that one of the advantages of a merchant choosing your solutions is the value your customers receive by working with you. Starting the business relationship by selling on value positions you as a trusted partner and business advisor to a merchant, rather than merely their sales rep. Make sure your merchants see that you are committed to identifying and removing both known and unknown pain points, while delivering solutions that can save time, increase profitability, and improve overall customer satisfaction. Doing so should lay the foundation for a mutually beneficial, long-lasting relationship.
In the complex payment processing arena, selling on value can be an especially effective strategy. It gives you a way to compete against agents offering free hardware, software, or other solutions by keeping the focus on the total cost of ownership, lower fees, and increased profitability. Furthermore, you can ensure that your merchants can offer the convenient payment methods and frictionless customer experience that today’s consumers have come to expect.
Selling on value starts with offering a feature-rich, flexible payment solution that can provide your clients with the functionality they need. Contact us to learn more about the value that NAB allows you to deliver to your merchants.