Is it a Feature or a Benefit? How do you know ? (contd)
At some point in the buying selling process we agreed that there is a “Weigh-In”
In the red corner is the Cost and Risks to the business of going ahead with the project.
In the blue corner there are the BENEFITS to the business of going ahead…
Our job I would suggest is to help them and us to QUICKLY assess whether the Blue outweighs the Red…
If the Red outweighs the Blue then we need to move on quickly.
Why? Because unless TAMO selling is your trade (Then A Miracle Occurs ) your chances of success are low.
You will need to find a new prospect because this one won’t give you the deal you seek.
Ok Ok tell me then what is a benefit?
I believe that a Benefit can only come in 5 forms and answers these questions by quantifying the benefits.
1. To what extent does what you do result in your client growing their revenues?
Finding new markets?
Getting to market quicker?
Getting to more prospects sooner?
2. To what extent does what you do result in your client reducing their cost per transaction?
(Their costs may go up but their costs of processing an order etc should decrease)
Could they get more use out their assets?
Can they produce more with less effort?
3. In what way does what you do increase your clients employees productivity and engagement in the business
Can their employees do things faster (Pen vs Computer?)
What processes can be automated / Done away with?
4. In what way does what you will do with your client enable them to satisfy the needs of their clients?
Happier employees deliver better service to clients who become loyal and buy more at a lower cost of sales…
5. How do you enable your client to be compliant with the law of the land / Standards in place at the time?
Sarbannes-Oxley in the accounting world.
Disability access to buildings in offices
Consider this potential sale of an Outsourced IT Security system to a prospect..
Solution is that …. We offer to outsource the IT Security of our client’s systems.
Benefit Area 1.
It will by operating all the time (not just when they have staff available
It enables them to offer their products and services on the web 24x7x365 without taking on extra staff.
Benefit 3. Employees more Productive :
IT Departments always have a long list of projects “To-Do” that they never quite “Do”
We free up resources in the IT Department
This enables them to focus on other projects that will also deliver benefits to their business.
It also enables their sales and services deliverers to work from home.
Other Benefits that may be possible
Revenues may increase as a result of now being able to offer their products securely and with someone in attendance 24 x 7 x 365 ??
Sales and services people will have more time to generate proposals?
Costs will decrease as we will share the costs of monitoring with our other clients and automate the processes by investing.
We will save them hiring skilled IT Security people?
Employee productivity will improve as the systems will be less likely to be hacked?
We will do what they did less expensively?
Their Customer Satisfaction should improve as their systems have fewer failures and their customers trust them more?
Trying to Quantify the benefits with the customer?? Ask these kind of questions
What if they make 1% more sales?
How much is that worth @ the average profit margin?
What if they save hiring 1 more person @ £100k all up costs per year (x 5 years??)
Is that £500k vs Your outsourcing costs over that period??
What if the employees sell another 1% more due to better system reliability and being able to get 10% more proposals out on time?
What if loyal Customers re-purchase at lower sales costs ??
What could that be? Conservatively 1% vs 5% lower sales costs? What are your sales costs today?
No one in IT is made redundant they are merely re-deployed onto different projects that they would not normally do so no redundancy money is paid out.
What would those projects be worth to the business? How much might we claim that we are enabling those? What % 2% ?
If you’re not sure if your offers are features or benefits, here’s the test:
Do your words describe what you do and how you do it, or do they focus on what your client wants and gets?
When you talk about yourself or your work, you are almost always stating a feature.
When you talk about your clients and their desires, odds are you are naming a benefit.
If you have any great compelling business cases we’d love to see them.