By Rachel Serpa
As salespeople, we are competitive by nature. We relish pitch-offs with our fiercest competitors, and take pride in our ability to come out on top. Finding a way to add value to our prospects’ lives and convincing them to sign on the dotted line is a rush.
That’s why there’s nothing more disheartening and degrading than when a sale simply turns into a pricing war. We’ve all been there: the competitor offers a 10% discount, so you have to offer 15%. Now they’re throwing in 2 free seats a month, so you need to make sure that you can give them 3. Yuck.
The biggest problem is that this type of pricing war has a snowball effect. Once it starts, your discounts will just keep getting bigger until you’re the last, cheapest vendor standing. Where’s the fun in that? Here are three tips to help you avoid this nightmare before it has a chance to begin.
Know the types of leads generating value for your business.
When leads are just a name in a list of hundreds or even thousands of other businesses, it’s hard to know what you’re going to get. Because of this, reps will often just start at the top of a list and work their way down. So how do you know what makes one lead better than another? And how do you help your team prioritize and focus on the leads that will drive the most value for your business?
Lead yield is just one example of a Yield Measure – measures that are used to understand how much value you get in return for your investments at each stage of the sales pipeline. The equation for lead yield is as follows: Sales Revenue / # of Leads Generated.
To help you understand what sets one lead apart from another and identify the types of leads generating the most value for your business, you want to segment your deals by lead profile dimensions like those listed below, and measure their lead yield:
– Lead source (paid search, partners, social advertising, organic search, etc.)
– Company industry (media, travel, financial services, eCommerce, etc.)
– Solutions already in use (HubSpot, Datanyze, Yesware, etc.)
Completing this exercise should hopefully start to uncover qualities that high-yielding leads have in common, so that your reps can prioritize these in their efforts and lower their risk of getting caught in discount battles. You can see an example of a yield comparison for leads from two different sources below. For a more detailed breakdown of how to use lead yield, check out this blog post.
Leverage the right content at the right moments.
The idea behind this tip is that it will help you engage in value-based selling. Value-based selling is a sales tactic that requires reps to fully understand their prospects’ problems and clearly establish the value of solving them.