Value-Driven vs. Solutions-Driven: How Ag Retailers Can Turn ‘Innovation’ Into Real Customer Value
I’ve had a lot of conversations in the last eight to 10 months about solution selling. I know that it may be because of the economy and budgets being tight, but this has been a common conversation whether I’m talking to clients and associates here in North America or an associate in the U.K. We’ve been inundated with solution selling that isn’t providing any real value.
Let’s go back in time. Solution selling has been around for decades. And it has had a positive impact on industries and operations, ag and non-ag alike. But, like a lot of other terms, it has become cliché, overused and, eventually, meaningless.
In today’s technology environment, there has been a phrase that has become popular in relation to solution selling for products or services that don’t add any value. “It’s a solution looking for a problem.”
So, what happened to “solution selling?” Solution selling is a process that identifies a customer’s specific problems and needs and addresses those needs with a customized solution. In today’s environment, it seems that there are some technology products and services, while interesting, innovative, and forward thinking don’t really solve the problems of or add value to agribusinesses and farmers. And if they do, there’s a tendency that there’s no sustainable business model.
So, now let’s look at value selling. It’s very similar to solution selling, but with an important twist. Value selling isn’t just about solving problems; it’s about adding real value to an operation.
As we should all know, value can be very different among businesses and people. Value may be efficiency and production, more time with the family or hobbies, or could be purely profitability.
I was doing a presentation for a college group, and the topic of value came up and reminded me of when I was selling sprayers.
I was asked to talk with a farmer who wanted to buy a sprayer. I asked for pertinent information about the farming operation to have an idea of their needs. From the information I got, I determined that the smaller sprayer would be the better option. When I talked with the farmer, I asked him questions and filled in the gaps and determined that the smaller sprayer was still the better option. As I started talking about the features of the smaller sprayer, the farmer stopped me. He asked if I was talking about the smaller sprayer and I told him that I was. He looked at me and almost shouted: “But I don’t want the little one. I want the big one!” Yes, ego can be a value proposition, too.
Sometimes, people want something, especially products like technology, just because they want it. As a student at the presentation said: “I wanted it because it made me look good.”
No matter the reason, the value is based on the customer’s basis of value, not the company’s nor the salesperson’s. But in my opinion, it is the company’s and salesperson’s responsibility to be very clear on the value propositions and the potential return on their investment.
Now, some who are reading this may say that this is an article on semantics. There’s no real difference in solution vs. value sales. Either should get you to the same place — a sale and satisfied customers.
So, is it semantics? Maybe. But me and those I talked with would say that it’s more than semantics.
The bottom line: We need to keep the main thing the main thing. It is the customer who determines value to their operation, not an inventor, owner, engineer, salesman, or investor.
We build a business based on our customers’ value propositions, not ours.
Technologies can provide a number of solutions for an operation. But does it add value to the operation? If it doesn’t, what’s the point?
(By the way, the farmer more than paid for that big sprayer many times over.)
You must be strategic in your thinking. Develop tactics to accomplish your goals and be intentional in your actions to be successful.