Wednesday, November 16, 2016

A Failure to Close

If you ask the average sales rep why the deal didn’t close, they’ll likely tell you “Price”. 

In fact, an Aberdeen survey of sales leaders indicated that “Price” was cited as the main reason 73% of the time, far beyond any other supposed cause.

Sales reps are clear, in the majority of stalled / lost deals, it’s “all about the Benjamins”.

However, when buyers were surveyed, they provide completely different reasons as to why they decided to not move forward with your proposal.

According to research firm SiriusDecisions, only 9% of buyers rated price as the key-deciding factor.  Clearly, from a buyers’ perspective, it’s not about price at all.

For pipeline deals that stalled (some 61% of a typical pipeline), it wasn’t that the price was too high, but that the buyer wasn’t convinced as to the “priority of change”. Likely, the sales rep didn’t convince the buyer that the “do nothing” costs were worth addressing now, and the benefits worthy of investment.

For the deals where the buyer did make a “go forward” decision, the spoils go to the solution provider, not based on price, but to those best at:
  • Identifying and aligning with needs
  •  Responding to requests for content / information and the overall quality of the buying experience
  • Proving unique and superior business value.

The Bottom Line

If your sales reps immediately jump to features and price you are not alone, but the research proves you will be less than effective, losing more deals than ever to “do nothing” and the competition.

The key, providing the content, tools and training to help your sales reps and channel partners better assess and align with needs, prove the high cost of “do nothing”, and communicate and quantify your unique and superior business value.

From CSO Insights, we learn that taking your ROI selling skills from “good” to “great” can improve win rates from 37% to 51%.  And, according to IDC, those who apply business value / ROI to deals discount much less, elevating deal sizes by 20% compared to deals where business value / ROI was not used.


This proves that if “Price” is the main reason for your “Failure to Close”, evolving from features / price to business value could be your ticket to sales success.


Sources:
Aberdeen - http://www.aberdeenessentials.com/cmo-essentials/is-price-the-real-reason-that-deals-dont-close/
SiriusDecisions Interview: The Value of Value Marketing and Selling - http://alinean.com/the-value-of-value-selling-marketing-november-10-2016/
CSO Insights - Decoding the Decision Dynamic - Sales Enablement Optimization Study 2015 Key Trends Analysis

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