Could your salespeople be eroding profit margins through excessive discounting?How about through unnecessary product, service, or contractual giveaways?
Margin erosion usually stems from the failure to establish differentiated value early in the sales process. The proof: 86% of B2B customers don’t see enough “value difference” between suppliers to pay a premium for it.*
How can you prevent your margins from eroding? Provide salespeople with the training and tools they need to create value from the very first conversation they have with a customer.
Here are 3 tips for turning margin erosion into margin generation:
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(1) |
Stop selling products and start solving problems. To win the battle for margins your sales team must search for compelling customer problems—we call them “care-abouts”—and link their sales message to them. |
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(2) |
Shift the planning focus from closing deals to creating value. Train your sales team to go beyond the typical “how will I close this deal” planning approach. Instead, show them how to quickly and credibly articulate the differentiated value customers are willing to pay a premium for. |
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(3) |
Show salespeople how to get out from behind their slides and make a credible, compelling connection with their customers. Most B2B sales reps lose the battle for margins as soon as they begin delivering a “canned” PowerPoint presentation. The alternative? Give them the tools and skills to engage their buying audience with conviction and executive presence—from the very first sales call. |
Does this problem sound familiar? Struggling to improve your margins? Contact us to discuss how we can help.
Mandel has worked with sales teams from some of the most successful companies in the world to help them prevent the all-too-common problem of eroding margins.
And download the new infographic, Why Early Cycle Selling Skills Matter, to see just how costly of a problem margin erosion can be—and what you and your team can do about it.
*Google and CEB Marketing Leadership Council
