Selling Service Value

This guide presents best practices for positioning and selling services and defines the steps required to define a compelling service value proposition.

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Description

Selling services demands that you establish a credible and compelling value proposition. The value proposition describes the relationship between the price and benefits from the services a customer receives. To be compelling, the benefits must exceed the cost. Service benefits may be intangible – insurance against risk, or tangible – a commitment of specific resources or attainment of a specific outcome. Although difficult, it is imperative to quantify the value of all service benefits so that they can be compared to the price. A compelling value proposition is fundamental for successful sales and renewal activities. Selling the value of services requires the following:

  • Understand your customers’ needs and expectations.
  • Offer a robust portfolio of services. Not all customers will need or benefit from the same types of service so develop offerings that can align to the customer segments you serve.
  • Set reasonable prices for your offerings. This does not suggest that reasonable is low, but it must be justifiable. Customers must understand and agree that the benefits of service are consistent with the price they pay.
  • Create a clear and compelling value proposition. Help sales channels and renewal teams understand the elements of the value proposition so that they can clearly articulate it to customers
  • during sales and renewal activities.

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