What’s in it for Them? Three Keys to Value-Based Selling

What’s in it for Them? Three Keys to Value-Based Selling

There’s a big problem in the car sales industry. Customers are equipped today with more information than ever when shopping for a car and rely less on the salesperson’s expertise. The internet now allows for a big chunk of the guesswork to be taken out of the car-buying process. For this reason, it is no wonder that 91% of customers don’t trust sales reps. A recent study by BusinessWire showed that half the Millennials who started off feeling excited about buying a new car were overcome with fear upon entering the showroom. This is simply because too often the salesperson’s focus is on closing the deal rather than selling based on the value provided to the customer.

What is Value-Based Selling?

Value-Based Selling is the process of understanding and reinforcing the reasons why your product is more valuable to the purchaser than the money it would take to buy it. Essentially, value-based selling focuses on the steak rather than the sizzle. The “sizzle” could be exemplified in a pitch like, “This particular car was offered at $3000 more last week, so you’re getting a good deal.” The “steak” sounds more like, “This car offers exceptional room for your three kids, along with the highest safety rating.” While managing a car dealership, you want your sales reps to constantly be in the frame of mind to sell value, rather than focus on profit. In the long run, the value will dictate the profit. Here are three priorities that any dealership must have to be properly value-based:

1) Understand the customer as a whole.

 Studying how a customer searches for and buys a new vehicle is key. There are many books and articles on car shopping habits (like these 25 Amazing Statistics on How Consumers Shop for Cars), and you want to provide as much of this education to your reps as possible. For example, all sales staff should know the difference between the logical and emotional impulses that drive decision-making. The logical desires begin with the internet search for things like the year, make/model, color, mileage, and price. The emotional component comes into play at the dealership, where the consumer usually is driven by excitement, trust, confidence, perceived value, and ultimately a fair price. Notice how different these two realms of motivation are, and when they occur. Facts like these should be common knowledge among all your salespeople.

2)  Understand the customer as an individual.

In order to sell value, you must understand the particular customer’s needs, wants, and fears. Therefore, the key to any sale will be in the ability to ask the right questions and to ask enough of them. The salesperson must never lose their curiosity about what brought that particular person into their dealership that day. The questions asked must do several things. They must:

·      Expose both the needs and desires of the customer

·      Make the customer think of needs or desires not previously discerned

·      Earn credibility

·      Establish relationship and rapport

·      Be specific enough to suggest specific cars, not just brands or types

3) Understand the product. 

The questions asked must be answered by the salesman’s product knowledge. This knowledge, in response to answers given by the customer, builds value long before the haggling takes place. Remember that 78% of consumers use the Internet to research products, and 82% will actually be comparing prices while in your store. For this reason, the salesperson is more responsible than ever to know everything there is to know about the cars on the lot. Simply, your reps need to be product experts. When the rep is an expert, they can offer advantages and disadvantages about a vehicle proactively, without waiting for the customer to ask. In addition, the salesperson must be able to demonstrate proof, and not just repeat facts. The question of “how does this particular car fulfill your particular need?” needs to be asked and answered constantly. Only then can a deal be offered.

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