Business Value

P roviding business value to a prospect or customer in a sales situation depends on a lot of factors. However it all comes down to providing a positive perceived impact on their business through your solution.

Why Companies Buy

Companies spend their money for many reasons. They selectively invest in the operations of their company to eventually provide them with the highest return and revenue from the marketplace. When you're providing your solution, keep in mind that there are only so many reasons why a company will buy your product and service. The key reasons are:

• Enhance Quality
• Increase Productivity
• Efficiency
• Effectiveness
• Add Versatility
• Increase Reliability
• Add Convenience
• Provide Entertainment
• Provide Security
• Gain Positive Economic Impact
• Impact the Marketplace and Customers
• Build Brand Image and Awareness
  

Where Companies Invest

There are also only a limited number of areas where a company will invest their money. As you are engaging in the sales process and planning a solution, determine where you can impact the company's operations.

• Plant and equipment - fixed assets
• Intangible assets - image and awareness
• Financial investments
• Operations and product - Opex
• Capital - Capex
• People
  

Components of Value

Value is often in the eyes of the beholder. Each person perceives value for different reasons, based on their roles, responsibilities, and life experiences. The components of value are limited to four basic areas.

1. Benefits
• Anything that a company feels makes them better for whatever reasons the perceive
• Review the list of above on why companies buy, and think about how your product or service will be perceived as beneficial to their operations and individuals.
2. Risk reduction
• Remove risk from their current state and situation.
3. Negative consequences
• Avoid unintended negative impact on your prospect's business
4. Cost has many facets. You can add value by impacting any of these categories in a positive way.
• Purchase
• Ownership
• Usage
• Taxes
• Maintenance
• Add-on enhancements
• Support
• Training
• Upgrades
• Depreciation
• Replacement
• Disposal

Where You Can Add Organizational Value

Every company has multiple business and the service units. Each of those organizations has people, infrastructure, and overhead costs associated with it. You might be able to contribute to any of these organizational entities.

• Employees
• Marketing
• Sales
• IT
• HR
• Administration
• Product development
• Legal
• Service
• Support
• Manufacturing
• Maintenance
• Partners

Unique Business Value

When presenting your solution to a customer, think of the unique ways that you can provide value. Adding the same value as your competition will not help you win the sale. Adding more value, and unique value that no one else can, will put you ahead in the sales campaign.

Unique solution will differentiate you in the view of your customers and provide you with a competitive advantage.

Conclusion

Providing a solution that delivers business value is the main objective of any sales campaign. The real value is ultimately determined by people. Those people have their unique view of what business value really is. Use the information above to help you think through the different areas where you can provide value to a business, and to help you think of how that value will be perceived.

Related Articles

• Opportunity Management
• Opportunity Assessment
• Opportunity Plan
• Key Business Issues
• Political Alignment
• Solution Presentation

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