{"id":42578,"date":"2020-07-06T00:00:00","date_gmt":"2020-07-06T00:00:00","guid":{"rendered":"https:\/\/newrcblog.wpengine.com\/value-based-selling\/"},"modified":"2025-03-13T07:26:57","modified_gmt":"2025-03-13T14:26:57","slug":"value-based-selling","status":"publish","type":"post","link":"\/us\/en\/blog\/value-based-selling\/","title":{"rendered":"How to use value-based selling (and how it boosts customer retention)"},"content":{"rendered":"<p>Many businesses sell products and services.<\/p>\n<p>You probably work at one.<\/p>\n<p>Then there are businesses that sell value. And we\u2019d argue that these also tend to be the businesses that mark up their prices more, have more customers, get more referrals\u2026<\/p>\n<p>Why? Because they can afford to.<\/p>\n<p>Because when you\u2019re practicing value-based selling, you\u2019re not just selling the material that a piece of clothing is made of. You\u2019re not selling the taste of a bottle of gin. You\u2019re selling an emotion, an experience, the promise of more customers and fewer expenses.<\/p>\n<p>Below, we\u2019ll dive into:<\/p>\n<ul class=\"table-of-content\">\n<li><a href=\"#What value-based selling is and why it\u2019s especially important for small businesses\">What value-based selling is and why it\u2019s especially important for small businesses<\/a><\/li>\n<li><a href=\"#How you can train yourself (and your team) on value-based selling\">How you can train yourself (and your team) on value-based selling<\/a><\/li>\n<li><a href=\"#How to sell on value in 6 steps\">How to sell on value in 6 steps<\/a><\/li>\n<\/ul>\n<p><a name=\"What value-based selling is and why it\u2019s especially important for small businesses\"><\/a><\/p>\n<h2>What value-based selling is and why it\u2019s so important for small businesses<\/h2>\n<p>So, what is value-based selling? Well, at its core, it\u2019s a mindset that you, your sales staff, and any customer-facing employees can adopt. The key is to focus on selling an <i>outcome<\/i>, not a product.<\/p>\n<p>It works with just about any product or service\u2014for example, you aren\u2019t selling software, but how that software helps your customers manage their business better. You aren\u2019t selling a course, you\u2019re selling the benefits of an education and how that education will change their life. You aren\u2019t selling a dress, you\u2019re selling confidence.<\/p>\n<p>By focusing on value, you\u2019re freeing yourself from having to compete on ticky-tack things like price and giving yourself more freedom to charge a higher price based on the <i>perceived<\/i> value of your product or service.<\/p>\n<p>Another benefit of value-based selling is <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-retention\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention<\/a>. Why? Because if your customers have a clear understanding of what they\u2019re getting out of your product from the start, that makes it easier for you to <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-expectations\/\" target=\"_blank\" rel=\"noopener noreferrer\">meet their expectations<\/a>, upsell and cross-sell them, and provide a better <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-experience\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer experience<\/a>. And as long as you deliver on that promised value, they\u2019ll be more likely to stick around\u2014and keep buying from you. Fifty-six percent of customers stay loyal to brands that \u201cget them.\u201d<sup>1<\/sup><\/p>\n<p>It may not seem like much, but a good <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-retention-rate\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention rate<\/a> is especially important for small businesses that don\u2019t have big teams dedicated to <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-service-vs-customer-experience\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer service<\/a>. It\u2019s up to 25% more expensive to acquire a new customer than it is to retain an existing customer, so keeping customers around can have a significant impact on your bottom line.<sup>2<\/sup><\/p>\n<hr \/>\n<div class=\"download-form-widget standart-download-form\" data-url=\"https:\/\/netstorage.ringcentral.com\/documents\/outbound_playbook.pdf\" data-id=\"69f38d15f00d5\" id=\"69f38d15f00d5\">\n\t\t<button tabindex=\"on\"  on=\"tap:69f38d15f00d5.toggleClass(class='open')\" class=\"open-modal-download-action download-form-button\" type=\"submit\">\ud83d\ude80  Learn how to hit those KPIs<\/button><\/p>\n<div class=\"download-form-modal\">\n<div class=\"download-form-modal-body\">\n<div class=\"download-form-modal-content\">\n<div class=\"download-form-modal-title\">\ud83d\udcf1 Get your team pitching, prospecting\u2014and closing\u2014with this free outbound sales playbook. <\/div>\n<form class=\"download-form SMB\" method=\"post\">\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Full Name\" aria-required=\"true\" aria-invalid=\"false\" type=\"text\" name=\"fullname\" placeholder=\"Full Name\" data-dl-events-hover=\"true\" data-dl-element=\"text\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Email (please enter a work email address)\" aria-required=\"true\" aria-invalid=\"false\" type=\"email\" autocomplete=\"on\" name=\"email\" placeholder=\"Email (please enter a work email address)\" data-dl-events-hover=\"true\" data-dl-element=\"email\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"popup_form\" value=\"1\">\n\t\t\t\t\t\t<\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"Lead_Entry_Source__c\" value=\"RC Blog\" class=\"download-form-input\"\/>\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<button class=\"download-form-submit\" type=\"submit\" data-dl-element=\"button\" data-no-auto-dl=\"true\" data-dl-additional-info=\"download form\" data-dl-name=\"Get it now\">Get it now<\/button>\n\t\t\t\t\t\t<\/div>\n<\/p><\/form>\n<p> \t\t\t\t\t<button on=\"tap:69f38d15f00d5.toggleClass(class='open')\" role=\"button\" tabindex=\"0\"  class=\"download-form-modal-close\"><\/button>\n\t\t\t\t<\/div>\n<div class=\"download-form-modal-thank\"> \ud83c\udf89 Enjoy!<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<hr \/>\n<p>&nbsp;<\/p>\n<p>Value-based selling also offers justification if your product has a higher price tag. To use the dress example from earlier, if you\u2019re just selling the dress, then your price is restricted to the material and labor that went into the dress. But if you\u2019re selling on value, which in case would be confidence, or style, or whatever your dress is meant to evoke, then you can possibly charge a lot more. How can you put a price on something like confidence? You can\u2019t. Confidence\u2014the reflection of the <i>value<\/i> you\u2019re selling\u2014is priceless.<br \/>\n<a name=\"How you can train yourself (and your team) on value-based selling\"><\/a><\/p>\n<h2>How can you train yourself (and your team) on value-based selling?<\/h2>\n<p>While value-based selling is largely about mindset, there are some tangible ways to bake it into the foundation of your business and your <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/sales-management-books\/\" target=\"_blank\" rel=\"noopener noreferrer\">sales management<\/a> strategy, whether you\u2019re working on a <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/cold-calling-scripts\/\" target=\"_blank\" rel=\"noopener noreferrer\">cold call script<\/a> or about to close a sale.<\/p>\n<p>First, focus on product education. If you or your team don\u2019t really know how the product or service works, there\u2019s no way you\u2019re going to be able to communicate the value to a potential customer.<\/p>\n<p>If you\u2019re selling a digital product or software, encouraging employees to use it is the best education. Share any <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/team-knowledge\/\" target=\"_blank\" rel=\"noopener noreferrer\">team knowledge<\/a>, give them full access to your product, and encourage them to play around with it, see how it works, and even find bugs.<\/p>\n<p>For physical products, you can similarly encourage the team to use the item, and even go one step further by educating them on where it comes from, how it\u2019s made, and how customers use it.<\/p>\n<p>Ask <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/happy-customers\/\" target=\"_blank\" rel=\"noopener noreferrer\">happy customers<\/a> to share their <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-success-stories\/\" target=\"_blank\" rel=\"noopener noreferrer\">success stories<\/a> via email or on social media and share them with the team so they can see all of the problems your product or service is helping people solve.<\/p>\n<p>Frame your sales and product education so that it\u2019s focused on the problems you solve for customers, and how you do it. As tempting as it is to make your brand the star of the show, it\u2019s not\u2014your customers are!<\/p>\n<p>Alongside sales numbers, start tracking retention or <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/return-customer\/\" target=\"_blank\" rel=\"noopener noreferrer\">return customers<\/a> as well, so there\u2019s a long-term vision and emphasis on providing continual value for your customers\u2014not just making the initial sale. Play the long game.<br \/>\n<a name=\"How to sell on value in 6 steps\"><\/a><\/p>\n<h2>How to sell on value in 6 steps<\/h2>\n<p>The actual process of value-based selling is simple enough, but requires subtle shifts every step of the way. Depending on your product, sales cycle, and the size of your team, not every step will apply to your business. But, whether you\u2019re selling real estate or a <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-service-apps\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer service app<\/a>, a value-based mindset can help you sell more, more easily.<\/p>\n<h3>1. Pre-sales research<\/h3>\n<p>Before you start <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/sales-call-planning\/\" target=\"_blank\" rel=\"noopener noreferrer\">planning the perfect sales call<\/a>, you should understand your <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/how-to-find-your-target-audience\/\" target=\"_blank\" rel=\"noopener noreferrer\">target audience<\/a>. If you don\u2019t have a lot of customers yet for a decent sample size, this might mean creating a customer profile using what you think your best customers might be.<\/p>\n<p>Begin by checking your customer relationship management (CRM) platform or <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/best-customer-service-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer service software<\/a> to see whether anyone on your team has spoken to your prospect before. Check out their past questions and conversations, and see if they\u2019re on your email list.<\/p>\n<p>Use your <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/sales-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">sales software<\/a> to see if a prospect has interacted with your business through messaging, live chat, a previous <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/email-sales-pitch\/\" target=\"_blank\" rel=\"noopener noreferrer\">email sales pitch<\/a>, or even social media. For example, here\u2019s how it looks in RingCentral\u2014everything is pulled into a customer profile in one handy dashboard:<\/p>\n<p>Then, you can start doing a little more research on this specific prospect. This doesn\u2019t have to be super time-consuming, but a quick search to find out some key details about them can go a long way to understanding why they might benefit from your product or service.<\/p>\n<p>For instance, if you\u2019re working on a B2B sale, you might check out your prospect\u2019s company\u2019s social media to see if there have been any big changes lately and take a look at their LinkedIn account to see how long they\u2019ve been with the company.<\/p>\n<p>This foundation will get you in the mode of understanding them so you can deliver the most value.<\/p>\n<p>Make sure to take notes, and if you\u2019re managing a team, try to build good habits. Specifically, entering notes into your <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/cold-calling-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">cold calling software<\/a> or CRM during and after every call. This way, even if different people are picking up the conversation with the prospect later on, they\u2019ll all have the same record of what they last talked about with you.<\/p>\n<h3>2. Listen<\/h3>\n<p>Once you start getting into actual conversations with the prospect, listening is the key to value-based selling. Instead of going into your first interaction with a prospect focusing on your <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/client-sales-meeting-agenda\/\" target=\"_blank\" rel=\"noopener noreferrer\">client sales meeting agenda<\/a> or the product features you want to tell them about, start by thinking through your list of questions.<\/p>\n<p>For a physical product, this might mean a quick conversation about what they\u2019re looking for or what features matter for them. For a B2B sale, it might mean asking about business goals or struggles during your first <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/sales-call-planning\/\" target=\"_blank\" rel=\"noopener noreferrer\">sales call<\/a>.<\/p>\n<p>The key is to really listen to the answers\u2014and to take good notes in your <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/cold-calling-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">cold calling software<\/a> or CRM so that you (and other people on your team) have this information to refer to later.<\/p>\n<p>As they\u2019re telling you about the struggles they have, you\u2019ll hopefully start to hear opportunities and gaps\u2014which your product can fill. Remember not to rush. Liste and build that trust, so that later when you do make your pitch, you\u2019re making specific and tailored recommendations that address what they\u2019re telling you now.<\/p>\n<h3>3. Educate<\/h3>\n<p>Taking the time to your potential customers is one of the best ways to show that you\u2019re invested in providing value, not just closing the deal. Plus, it makes it more likely that they\u2019ll trust you and what you have to say\u2014which paves the way for when you ultimately recommend your product.<\/p>\n<p>If you sell online, send educational content so your prospects can learn something new. Maybe in a <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/sales-follow-up-emails\/\" target=\"_blank\" rel=\"noopener noreferrer\">follow-up email<\/a> after a call with some helpful articles to address what you discussed <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/touch-base-email-alternatives\/\" target=\"_blank\" rel=\"noopener noreferrer\">instead of just \u201ctouching base.\u201d<\/a><\/p>\n<p>Education works with an in-person interaction too\u2014think of a boutique salesperson teaching why a certain color works on you or how to pair pieces to make an outfit.<\/p>\n<p>This is also an opportunity to show that you\u2019re listening to your prospect\u2019s biggest headaches.<\/p>\n<p>Think back to the challenges they shared with you, even if they aren\u2019t directly related to the product you\u2019re selling. You want to be a trusted advisor, not just a salesperson.<\/p>\n<div class=\"tip\">\n<div class=\"tip-heading\"><b>Pro-tip<\/b>:<\/div>\n<p>Learn more about<a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/sales-demo-best-practices\/\" target=\"_blank\" rel=\"noopener noreferrer\"> sales demo best practices<\/a>.<\/p>\n<\/div>\n<h3>4. Skip the hard sell, focus on the value of the product<\/h3>\n<p>When it does come time to talk about your product, it\u2019s important to focus on how it solves <i>this<\/i> prospect\u2019s needs. Skip the hard sell or the long list of features, and refer to your notes for this prospect instead.<\/p>\n<p>Find the pain points that this prospect has mentioned already, and focus your pitch on how this product or service will help with those.<\/p>\n<p>If your prospect is complaining about how busy they are, show them how your solution saves time. If they\u2019re worried about learning how a new product works, showcase your educational videos.<\/p>\n<p>Sometimes, you need to dig a little deeper than the initial struggle your prospect is mentioning. (This is why we mentioned that it\u2019s important to not rush in that earlier step.)<\/p>\n<p>For instance, if you\u2019re a photographer and a prospect mentions how they hate getting their photo taken, you might ask what they don\u2019t like about being photographed or what they want to use their photos for to really understand the root of their problem.<\/p>\n<p>Once you discover that they want photos that they can share on their business social media page, you can understand how their stiff headshots don\u2019t serve them and show them how your more relaxed sessions can solve that problem.<\/p>\n<p>Stay focused on how you can solve their specific problems.<\/p>\n<h3>5. Think long term<\/h3>\n<p>This is probably the hardest shift for salespeople and businesses that are used to tracking goals against the calendar. But there can be benefits to moving to a long-term mindset. For example, you\u2019ll be able to avoid pushing prospects too hard and making them uncomfortable. Unless your prospect is ready to buy, use the <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/cold-call-script-to-get-appointment\/\" target=\"_blank\" rel=\"noopener noreferrer\">cold call to get an appointment<\/a> first, not the sale.<\/p>\n<p>Plus, if you\u2019re tracking retention and repeat purchases, you\u2019ll be able to reframe the sales cycle so that you\u2019re focusing on the overall lifetime value of your customer\u2014not just the speed of that initial sale. If a sale takes a little longer, but that customer understands your value better and stays with you for a few more years, that\u2019ll pay off in the long run, no?<\/p>\n<p>Of course, if you have a longer sales cycle, that does increase the chance that you\u2019ll forget or drop the ball on crucial details that would\u2019ve helped you offer value on, say, a phone call. That\u2019s where having a <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/find-best-phone-service-for-small-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">phone service<\/a> that integrates with your CRM can be really useful.<\/p>\n<p>For instance, by using <a href=\"https:\/\/www.ringcentral.com\/apps\/ringcentral-salesforce\" target=\"_blank\" rel=\"noopener noreferrer\">RingCentral\u2019s Salesforce integration<\/a>, you can have informational pop-ups triggered by <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/inbound-calling\" target=\"_blank\" rel=\"noopener noreferrer\">inbound calls<\/a>:<\/p>\n<p><a href=\"https:\/\/www.ringcentral.com\/apps\/ringcentral-salesforce\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter wp-image-7245 size-medium\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/07\/image2-180.png\" alt=\"By using RingCentral\u2019s Salesforce integration, you can have informational pop-ups triggered by inbound calls.\" width=\"664\" height=\"400\" \/><\/a><\/p>\n<p>That means you\u2019ll have all the information you need to really deliver value to a prospect based on what you\u2019ve learned about them over time.<\/p>\n<h3>6. Work with your marketing team<\/h3>\n<p>Value-based selling isn\u2019t something you can try for one call and then go back to your old way of doing things\u2014it\u2019s an all-or-nothing approach.<\/p>\n<p>And because value-based selling is all about the long term, you should be thinking about how you can add value in <i>every <\/i>interaction with a prospect.<\/p>\n<p>Even if your small business doesn\u2019t have a high-touch sales process, you\u2019re probably sending marketing emails, posting on social media, and publishing blog posts. Those aren\u2019t sales conversations, but you should be offering value there. This is where <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/effective-teamwork\/\" target=\"_blank\" rel=\"noopener noreferrer\">effective teamwork<\/a> can really help with your end goal of closing a deal\u2014and why long-term thinking is so essential.<\/p>\n<p>If a prospect has been receiving value from your brand and marketing team from the get-go, way before you have that first sales call, then you\u2019re essentially setting the stage for your sales team and making their job much easier.<\/p>\n<p>If you\u2019ve done this groundwork, when you <i>do<\/i> breach the sales conversation, your prospect will be eager to convert because they already know and love what you do, feel connected to your brand, and are confident that you know what you\u2019re talking about.<\/p>\n<p>By becoming a trusted resource, you\u2019ve not only secured a sale, but you\u2019ve also created a fan who will be loyal to you and might even send referrals your way. It takes a little more effort, but, in the end, it makes for a much more valuable customer. (The value goes both ways!)<\/p>\n<h2>Value-based selling for your small business<\/h2>\n<p>While value-based selling requires a shift in mindset, it\u2019s a sales strategy that works particularly well for small businesses. It encourages the kind of customer retention that gives small businesses stable ground to stand on.<\/p>\n<p>No matter what product or service your small business sells, by focusing on the value you provide and working to create a relationship with customers, you can not only make more sales, but also create avid fans while you\u2019re at it.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<div style=\"font-size: 14px;\">\n<p><sup>1<\/sup> smallbizgenius.net\/by-the-numbers\/customer-loyalty-statistics\/#gref<\/p>\n<p><sup>2<\/sup> hbr.org\/2014\/10\/the-value-of-keeping-the-right-customers<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Many businesses sell products and services. You probably work at one. Then there are businesses that sell value. And we\u2019d argue that these also tend to be the businesses that mark up their prices more, have more customers, get more referrals\u2026 Why? Because they can afford to. Because when you\u2019re practicing value-based selling, you\u2019re not &#8230;<\/p>\n","protected":false},"author":29,"featured_media":42581,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17901,43336],"tags":[380,18325],"class_list":["post-42578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-leadership","category-sales","tag-sales","tag-value-based-selling"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to use value-based selling (and how it boosts customer retention) | RingCentral<\/title>\n<meta name=\"description\" content=\"Learn about what value-based selling is, and how to use it to close more deals, retain more customers, and sell more efficiently.\" \/>\n<meta name=\"robots\" content=\"index, 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