How To Sell Value Instead Of Commodities
The following is an excerpt from Alexandra Levit’s article on Forbes.com
When interacting with your customers, are you selling a product, or are you selling what that product will do to make their lives easier? In other words, are you providing value?
The competitive environment for virtually all products now stretches to the far corners of the globe. Increasingly, companies that have enjoyed market dominance are experiencing the commoditization of their offerings, and find themselves competing primarily on price.
One such example stems from the global shipping industry, where companies became accustomed to selling space. Customers made their choices based on the least expensive containers, and there was no guarantee they would arrive on time. In the 21st century, one Denmark-based company, Maersk Line, realized that the industry was letting customers down. They determined that increased timeliness and reliability would have a major impact on the customer value chain.
Maersk transformed their sales approach from commodity-based to value-based, to the tune of a 350 percent ROI in just 11 months. Could your business do the same thing? Here are some key lessons culled from my conversations with Maersk executives — and recommendations for making it happen.
Alexandra Levit is a bestselling author, speaker, and consultant who aims to help people find meaningful work and succeed beyond measure once they get there. A former nationally syndicated columnist for the Wall Street Journal and an adviser to the Obama administration on workforce issues, Alexandra is lucky to count Microsoft, American Express, Intuit, and DeVry University among her current clients.