How Best-in-Class Companies Embrace Value-Based Selling

Ty Curry

Video Transcript – Ty Curry, Managing Principal

The amount of information available to buyers, the proliferation of things like buying committees, the sophistication of our buyers and the knowledge that they have around what's available from us and our competitors, increasing levels of competition in many different industries, I think are all reasons why companies should consider value-based selling today.

What that likely means is that many organizations are going to have to change longstanding practices of selling on price, friendship, features, and really try to prove the economic value of their offerings.

And one of the things that we see pretty regularly in our consulting work, and that we saw through a recent study that we commissioned, is in fact that companies that do embrace value-based selling approaches outperformed those that don't.

What the study found, with respect to best-in-class companies relative to average and laggards was fairly striking. In fact, best-in-class companies much more consistently adopted value-based selling practices. In fact, two-thirds of those companies used systematic ways to get at customer needs and preferences, and then took that information and applied it to tailoring their messages, tailoring their selling activities, etc. A much smaller portion of the lagging companies did the same thing.

I think the financial rewards of putting that capability in place will absolutely speak for themselves. The competitive advantage that comes from being able to demonstrate economic worth and prove that the economic value to customers will result in higher share of wallet, fewer opportunities going out for RFP versus coming back to the company itself, [and] higher average selling prices. And I think the recent study that we have done underscores the impact of the companies that are willing to commit to the journey of transforming their organizations to true value-based selling companies.