There's a sales training adage that goes, "If you can't differentiate by what you sell or how you sell it, then the only thing left is price." True, but when it comes to differentiation, the real question is: What really matters and does it have anything to do with Y.O.U. — Your Outstanding Uniqueness.
When I ask salespeople to describe their sources of differentiation, typical answers relate to product or service superiority. This makes sense, as traditional sales training focuses on teaching people to understand the features, advantages and benefits of their products, particularly as they relate to both the customer and competition. The problem is, if you’re not selling for the number one or number two player in the industry, you frequently may find yourself in a losing sales campaign.
I went to work for Xerox at a time when the top competition was selling its products at prices equal to our manufacturing costs. If I had relied on product and price as selling points, I'd have been toast. Yet Xerox overcame this vulnerability and kept valuable customers while transitioning their product line, by teaching their sales organization to differentiate on something other than their products.
Six Categories of Sales Differentiation
So, what are the sources of sales differentiation? I talk to my clients about six general categories of differentiation and ask them to assess how they rate in each area. These categories include:
1. Your Organization: What is it about your company, its mission, business philosophy, community focus or management that makes it different from the competition? Are you locally owned, or women-owned? Does your company have a similar mission or philosophy as that of your customer?
2. Product/Service: Even if you are selling for the #1 player you should know your product inside and out. You should also know your vulnerabilities and have a proactive approach to handling them before your competitor puts you on the defensive.
3. Price: The "low cost leader" is a differentiation strategy. Hopefully this is the corporate strategy—and the business model supports the approach—not an "I'll make you the best deal" sales pitch that may capture short-term business, but keep you from ever really understanding the customers’ business and their needs. Price as an objection usually means you have not done a good enough job selling your product in the first place.
4. Changing the Game: Is there something that your company has accomplished that changes the way business is done in your market? Think Amazon.com and buying books over the Web, and Levi's customized jeans.
5. Sales Approach: If you or your company has invested in upgrading your sales training skills, whether it's to be more customer focused, solution oriented, or with advanced certifications or training, then use those skills as a differentiator. Jim Holden in his book, Power Base Selling, which also serves as the basis of his training for hundreds of companies, states that “Competitive salespeople … do not ignore customary aspects of selling; they augment themselves as a separate and distinct source of competitive advantage because of their abilities.” This was (and continues to be) the Xerox approach, as well as that of many other companies in a variety of industries. Be warned, however, that if you use your sales approach as a differentiator it must be demonstrated, not talked about, in order for the customer to acknowledge its value.
6. Y.O.U. - Your Outstanding Uniqueness: The most powerful and controllable differentiator is what you personally bring to the equation. This includes your style, personality and approach to business. Do you listen more than you talk? Do you really understand your customer's business—their customers as well as their competitors. Do you understand what is personally important to them? Do you help solve your customer's problems? Are you a person of your word? Do you set high goals for yourself? Are you thorough when necessary, and brief when required? Do you utilize resources well? Are you creative, communicative and conscientious?
Fortunately, when it comes to things that can be done to make Y.O.U. a real source of differentiation, the list can go on and on. It is limited only by what you choose to do to make yourself stand out from the crowd!
Carole Hyatt, in her book, The Woman's New Selling Game, provides an excellent model for understanding how to develop yourself into a powerful differentiator. She states that women must possess three qualities, which in combination will help them achieve success—or as she calls it, “total career power.” The qualities are:
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Professional expertise — being very good at what you do and having the credentials to prove it;
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Confidence — a positive outlook about yourself and your abilities; and
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Selling ability — understanding the sales process, the nuances of selling, and how to create a win-win outcome.
Hyatt observes, "The three (elements) operating as a totality comprise the dynamic that can make a person truly successful. It is the framework for mature professionalism, the structure whose elements are inextricably linked. Weakness in one diminishes strength in others; strength in all three underlies every success."
The key to what Hyatt outlines is balance. We all probably know someone (maybe it’s you) who has tons of professional experience and confidence, yet has no idea how to go about persuading people how what she has is of value to them. Or someone who is enthusiastic, confident and persuasive, yet cannot deliver as promised because of her lack of knowledge and expertise. If you believe that you make a difference in a sales campaign then this simple model can help you articulate why. On the other hand, if you want to make Y.O.U. be a sales differentiator, then the following assessment, developed by Carole Hyatt, should help you identify areas in which you may need to improve yourself.
Rate yourself on a scale of 1-10 as follows:
- 1-3 Needs Improvement
- 4-6 Fair to Good
- 7-10 Very Good to Excellent
(Write your scores on a piece of paper)
To evaluate your professional expertise:
| 1. |
Rate your credentials or educational degrees. |
_____ |
| 2. |
Rate your work experience in the field. |
_____ |
| 3. |
Rate your life experience touching on your field. |
_____ |
| 4. |
Rate how well you know your product. |
_____ |
(Professional expertise: take the total and divide by 4)
To evaluate your confidence:
| 1. |
Rate how confident you feel about your professional expertise. |
_____ |
| 2. |
Rate how confident you feel about selling. |
_____ |
| 3. |
Rate how clear and confident you are about your immediate goals. |
_____ |
| 4. |
Rate how clear and confident you are about your long-range goals. |
_____ |
(Confidence: take the total and divide by 4)
To evaluate your selling ability:
| 1. |
Rate how well your product stacks up against the competition's. |
_____ |
| 2. |
Rate your ability to get leads. |
_____ |
| 3. |
Rate your ability to make appointments. |
_____ |
| 4. |
Rate your ability to tell your product story convincingly. |
_____ |
| 5. |
Rate your ability to close a deal. |
_____ |
(Selling ability: take the total and divide by 5)
How did you rate in each category?
The next time your sales are stalled, ask yourself if you're doing all you can to make Y.O.U. be the difference. Your customers will appreciate it and your business will soar.
ABOUT THE AUTHOR
Sandy Lindstrom is President of Leadership Initiatives, a consulting and training practice focused on helping clients maximize the potential of their sales and marketing teams. She can be reached at
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