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{{Short description|A type and style of sales and selling methodology}} |
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{{cleanup AfD|date=October 2011}} |
{{cleanup AfD|date=October 2011}} |
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'''Solution selling''' is a type and style of [[sales]] and selling methodology. Solution selling has a [[salesperson]] or sales team use a [[sales process]] that is a problem-led (rather than product-led) approach to determine if and how a change in a product could bring specific improvements that are desired by the customer. The term "solution" implies that the proposed new product produces improved outcomes and successfully resolves the customer problem. Business-to-business sales (B2B) organizations are more likely to use solution selling and similar sales methodologies. |
'''Solution selling''' is a type and style of [[sales]] and selling methodology. Solution selling has a [[salesperson]] or sales team use a [[sales process]] that is a problem-led (rather than product-led) approach to determine if and how a change in a product could bring specific improvements that are desired by the customer. The term "solution" implies that the proposed new product produces improved outcomes and successfully resolves the customer problem. Business-to-business sales (B2B) organizations are more likely to use solution selling and similar sales methodologies. |
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Solution selling has value and application in high complexity sales and selling situations. This complexity can be the result of existing customer circumstances, or the proposed combination of new products required, or a combination of each, such that the seller and the buyer must consider and compare many interrelated factors to achieve the desired solution and outcome. Enterprise-class software development projects, technical integration projects, large plant engineering projects, or construction projects are examples that illustrate high complexity situations. Selling organizations use a solution selling approach when one or more of the following circumstances exist: |
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* High levels of business, operations, technical, and or risk complexity are present in the current and or proposed solution |
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* Specialized experience is needed to assess the current scenario |
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* Specialized knowledge is required to develop and proposed a viable and appropriate solution that produces the desired outcome |
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* A combination and collaboration of products and services is necessary to create the desired results; third-parties organizations may need to supply and support portions of the solution |
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* Financial, technical and operational levels of risk exist for the buyer, the seller, or both parties |
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* A successful outcome requires high economic costs |
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* A comprehensive understanding of the issues and a clear set of answers is not readily apparent to buyer or seller |
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{{quote|So what is the definition of the word solution? The typical response is, "An answer to a problem." I agree with this response but feel it's important to expand the definition. Not only does the problem need to be acknowledged by the buyer, but both the buyer and salesperson must also agree on the answer. So a solution is a mutually agreed-upon answer to a recognized problem. In addition, a solution must also provide some measurable improvement. By measurable improvement, I mean there is a before and an after. Now we have a more complete definition of a solution; It's a mutually shared answer to a recognized problem, and the answer provides measurable improvement.|Keith M. Eades}} |
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== Origins of solution selling and terminology == |
== Origins of solution selling and terminology == |
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| quote = He'd worked for IBM at one time and liked their 'solution sale' approach to business - first find out what is needed, then come up with an answer. |
| quote = He'd worked for IBM at one time and liked their 'solution sale' approach to business - first find out what is needed, then come up with an answer. |
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}} |
}} |
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</ref> |
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Mike Bosworth founded a [[sales training]] organization known as Solution Selling in 1983,<ref>Sant, Tom (2006) [https://books.google.com/books?id=tcXIcylsfzoC |
Mike Bosworth founded a [[sales training]] organization known as Solution Selling in 1983,<ref>Sant, Tom (2006) [https://books.google.com/books?id=tcXIcylsfzoC&dq=solution+selling&pg=PA57 "The giants of sales: what Dale Carnegie, John Patterson, Elmer Wheeler, and Joe Girard Can Teach You About Real Sales Success."] Amacom books. {{ISBN|0-8144-7291-5}}</ref> based on his experiences at Xerox Corporation (the Huthwaite International SPIN (Situation, Problem, Implication, Need-payoff) selling pilot project<ref> |
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Compare |
Compare |
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{{cite book |
{{cite book |
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</ref> |
</ref> |
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While 'solution selling' has become a generic term in many sales and selling organizations, Solution Selling as a brand denotes distinct characteristics. |
While 'solution selling' has become a generic term in many sales and selling organizations, Solution Selling as a brand denotes distinct characteristics.<ref> |
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For example: |
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{{cite book |
{{cite book |
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| title = Handbook of business strategy |
| title = Handbook of business strategy |
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| quote = The VP of sales believes reps should present only those products that speak to identified needs, and sponsors sales training based on this 'solution sale' assumption. |
| quote = The VP of sales believes reps should present only those products that speak to identified needs, and sponsors sales training based on this 'solution sale' assumption. |
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}} |
}} |
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</ref> generally apply a consultative sales approach to all aspects of their sales process (or cycle) including: |
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{{div col|colwidth=22em}} |
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* [[Prospecting]] |
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* Diagnosing [[customer requirement|customer needs]] |
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* Crafting a potential solution |
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* Establishing [[Value proposition|value]] |
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* Understanding the [[buying center]] / [[decision making unit]] (DMU) |
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* Bargaining for access to decision-makers{{clarification needed|date=December 2017}} |
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* Positioning proof, [[return on Investment|ROI]] and the total solution |
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* Negotiating a [[win-win]] solution |
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* Following up to ensure customer success |
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{{div col end}} |
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The solution selling methodology has evolved as key components of professional selling evolve.{{Citation needed|date=October 2011}} As a result, solution selling has become more broadly defined — to include dimensions of "sales process", "competitive selling", "[[Value added selling|value selling]]" as well as "consultative selling" or "complex selling" which set the focus on the team's aspects of the sales. |
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== Solution Selling Questions == |
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To completely recognize your prospect's pain points, we would have to focus on equitable questions. There are basically three main objectives of this stage. |
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* Identify the cause: Which all factors are responsible for the prospect's pain ?? And How they are ranked in terms of importance. |
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* Calculate the immensity: It's basically, How is this pain affecting your prospects, the departments, or the entire organization? How many people will get benefited once the problem is solved ?? |
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* Get buy-back: Measure the buyer's interest in your product. Are they also excited about the solutions that you can provide ?? |
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== Solution selling in management contexts == |
== Solution selling in management contexts == |
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| first = Robert L |
| first = Robert L |
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| title = The Way of the Road Warrior: Lessons in Business and Life from the Road Most Traveled |
| title = The Way of the Road Warrior: Lessons in Business and Life from the Road Most Traveled |
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| url = https://books.google.com/books?id=rxoXo4rV9FMC |
| url = https://books.google.com/books?id=rxoXo4rV9FMC |
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| accessdate = 2014-11-23 |
| accessdate = 2014-11-23 |
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| edition = 1 |
| edition = 1 |
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| page = 112 |
| page = 112 |
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}}</ref> |
}}</ref> |
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== See also == |
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* [[Presales]] |
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==References== |
==References== |
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{{reflist|30em}} |
{{reflist|30em}} |
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{{DEFAULTSORT:Solution Selling}} |
{{DEFAULTSORT:Solution Selling}} |
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Latest revision as of 18:00, 31 March 2024
Solution selling is a type and style of sales and selling methodology. Solution selling has a salesperson or sales team use a sales process that is a problem-led (rather than product-led) approach to determine if and how a change in a product could bring specific improvements that are desired by the customer. The term "solution" implies that the proposed new product produces improved outcomes and successfully resolves the customer problem. Business-to-business sales (B2B) organizations are more likely to use solution selling and similar sales methodologies.
Origins of solution selling and terminology[edit]
Frank Watts developed the sales process dubbed "solution selling" in 1975.[citation needed] Watts perfected his method at Wang Laboratories. He began teaching solution selling as an independent consultant in 1982. He presented his sales process as a one-day workshop to Xerox Corporation in 1982. By 1983 Electronics magazine would portray solution selling as "an unmistakable trend in the distribution of systems-related products".[1] In a 1984 account Dick Heiser could look back to IBM's pre-1975 "solution sale" methodology.[2][3]
Mike Bosworth founded a sales training organization known as Solution Selling in 1983,[4] based on his experiences at Xerox Corporation (the Huthwaite International SPIN (Situation, Problem, Implication, Need-payoff) selling pilot project[5]) and began licensing affiliates in 1988. With intellectual-property contributions from his affiliate network, Bosworth's methodology continued to evolve through the years. He sold the intellectual property in 1999 to one of his original affiliates, Keith M. Eades.[6]
While 'solution selling' has become a generic term in many sales and selling organizations, Solution Selling as a brand denotes distinct characteristics.[7]
Solution selling in management contexts[edit]
The advent of solution selling may have an impact on business models and on organization practices.[8] Eades and Kear discuss solution-centric organizations and the focal role of solution sales in such environments.[9] Robert J Calvin compares some of the financial implications of various type of sales: transactional sales, value-added sales, solution sales, and feature/benefit sales.[10] Robert L Jolles proposed that, among managers and salespeople, a chosen solution is not always the best solution.[11]
See also[edit]
References[edit]
- ^
"Electronics". Electronics. 56. McGraw-Hill: 92. 1983. Retrieved 2011-10-15.
The solution sale is an unmistakable trend in the distribution of systems- related products and is simply what the business is all about.
- ^
Lunch Group (1984). Steve Ditlea (ed.). Digital deli: the comprehensive, user-lovable menu of computer lore, culture, lifestyles, and fancy. Workman Pub. p. 71. ISBN 978-0-89480-591-2. Retrieved 2011-10-16.
He'd worked for IBM at one time and liked their 'solution sale' approach to business - first find out what is needed, then come up with an answer.
- ^ "Entering the Store Age".
- ^ Sant, Tom (2006) "The giants of sales: what Dale Carnegie, John Patterson, Elmer Wheeler, and Joe Girard Can Teach You About Real Sales Success." Amacom books. ISBN 0-8144-7291-5
- ^
Compare
Sant, Tom (2006). The giants of sales: what Dale Carnegie, John Patterson, Elmer Wheeler, and Joe Girard can teach you about real sales success. AMACOM Div American Mgmt Assn. p. 31. ISBN 978-0-8144-7291-0. Retrieved 2011-10-14.
[...] Xerox [...] adopted the IBM sales model [...]. And from the Xerox professional sales methods, either directly or by inspiration, have arisen many of the most successful sales approaches used in our own time - Professional Selling Skills, Strategic Selling, Solution Selling, SPIN Selling, and many others.
- ^ Keith Eades is CEO and founder of "Sales Performance International".. Bosworth author two books on the topic of "creating buyers in difficult selling markets". Bosworth, Michael. Solution Selling: Creating Buyers in Difficult Selling Markets, McGraw-Hill, 1994. ISBN 978-0-7863-0315-1
Bosworth, Michael; Holland, John. CustomerCentric Selling, McGraw-Hill, 2003. ISBN 978-0-07-142545-2
In 2003, Eades authored an updated version of the solution-selling methodology released as The New Solution Selling Eades, Keith M. (2003). The new solution selling : The revolutionary sales process that is changing the way people sell. New York: McGraw-Hill. p. 299. ISBN 0-07-143539-5. - ^
Handbook of business strategy. Warren, Gorham & Lamont. 2003. p. 64. Retrieved 2011-10-16.
The VP of sales believes reps should present only those products that speak to identified needs, and sponsors sales training based on this 'solution sale' assumption.
- ^
Kagermann, Henning; Österle, Hubert; Jordan, John M. (2010). IT-Driven Business Models: Global Case Studies in Transformation. John Wiley and Sons. p. xiii. ISBN 978-0-470-61069-5. Retrieved 2011-10-15.
The switch from product to solution sales calls for new price structures [...] that until recently would have generated far too much administrative outlay. More important, the entire sales process and value proposition must be rethought and restructured. In nearly every case that we have seen, merging products and services into solutions requires a change to the business model and the supporting business concepts.
- ^
Eades, Keith M; Robert E. Kear (2005). The solution-centric organization. McGraw-Hill Professional. p. 98. ISBN 978-0-07-226264-3. Retrieved 2011-10-15.
Aligning compensation and reward programs with a solution-centric approach involves ensuring that behaviors that lead to more solution sales are rewarded.
- ^ Calvin, Robert J. (2004). Sales Management. McGraw-Hill executive MBA series (2 ed.). McGraw-Hill Professional. pp. 105, 138. ISBN 978-0-07-143535-2. Retrieved 2011-10-14.
- ^ Jolles, Robert L (2005). The Way of the Road Warrior: Lessons in Business and Life from the Road Most Traveled (1 ed.). John Wiley & Sons. p. 112. ISBN 978-0787980627. Retrieved 2014-11-23.