If you are looking for ways to improve your organization’s overall sales, you might be wondering which sales methodologies have the most success. Having a sales methodology can formalize the selling process by introducing principles and best practices that a rep can implement into their own selling strategy. Having a predetermined and practiced methodology equips your sales team with a practical and tangible framework for success. It also gives a uniform, yet flexible approach, which can in turn make it easier to manage expectations and understand bottom line figures. There are many sales methodologies, and picking the right one, or a combination, will always vary on the organization’s products, work culture, and other factors.
What is sales methodology?
Sales methodology is a framework that instructs sellers how to approach each part of the selling process. Unlike sales strategies, a sales methodology focuses on principles and best practices instead of a sequence of selling events that can be used in any sales strategy. Below are the top 10 sales methodologies to consider.
Top 10 Sales Methodologies
- Value-Based Selling
Value Based Selling focuses on how the product or service will provide value to the customer. Value-selling methodology focuses on the value delivered, instead of the actual product.
People buy things because it alleviates a problem or satisfies a desire for them. Each person or customer will have different needs and wants, and value-based selling discovers that on a personal level. Because, at the end of the day, value is subjective. Some people splurge on groceries because they value organic, while others pay increased pricing for certain brands that donate proceeds to underdeveloped countries. When a customer attaches value – which is the difference between the price and the benefits received –the focus on price becomes less important.
Value-based selling, however, requires research into the needs and wants of the customer. To be effective, a value-based seller must engage in targeted questions to determine customer needs. By focusing on customer needs, the value-based seller can then provide a clear explanation of the exact value offered, thereby developing differentiating factors. Best of all, the value-based seller shows the customer a level of ongoing dedication that’s becoming rare in the automated world.
- SPIN Selling
SPIN selling focuses on asking specific questions, in a particular order, and using active listening to translate a prospect’s need into your product’s features. Neil Rackham introduced the idea, and published its principles in a 1988 book titled, “Spin Selling.” The idea is that salespeople must abandon traditional sales techniques and instead, focus on value building as a trusted advisor.
SPIN, which stands for: Situation, Problem, Implication, and Need-Payoff, and elicits targeted responses helpful for each part of the selling stage.
- Sandler Selling System
The Sandler Selling System was developed by David Sandler in 1967. While it is one of the older sales methodologies, this system has lasted a long time for a reason. The Sandler Selling System requires commitment from both parties involved in the transaction. Instead of having the seller “push” a product or service onto the customer, both parties engage in a conversation. Once the parties have discussed timelines, budget constraints, and other variables that could alter a sale, then both parties can evaluate whether the deal is right for both.
The basic stages of the Sandler Selling System are:
- Build and grow the relationship.
- Qualify the prospect.
- Close the deal.
- Solution Selling
Solution Selling is a sales methodology that became popular in the 1980s and focuses on offering solutions to the problems, not on the product itself. A salesperson listens to the prospect’s needs to evaluate the problem and then recommends certain products or services.
- Signal Based Selling
Signal Based Selling is based on integrating customer experience beyond the world of marketing to include sales and services. The signals—either emails, social media interactions, and text messaging—make it easier to link sales and services with interests and needs.
- Inbound Selling
Inbound selling focuses on guiding the customer through the decision-making process based on their individual needs. It is not focused on closing the deal or selling a one-size-fits-all solution. Instead, inbound selling considers the needs, goals, and priorities of the individual buyer.
- NEAT Selling
NEAT selling is an acronym that stands for: Needs, Economic Impact, Access to Authority and Timeline. It is a strategy that recognizes that the decision-making process is nuanced, rather than linear, and works to eliminate customers for whom the offer is not a good fit.
- Challenger Approach
The Challenger Approach is based on a selling methodology introduced by Matthew Dixon who authored a book about it in 2011. He classified sales reps into five different categories:
-
- The Hard Worker
- The Lone Wolf
- The Problem Solver
- The Relationship Builder
- The Challenger
The Challenger-type seller is the most successful. Challengers make customers aware of challenges and opportunities in the market. The principle behind the Challenger Approach is that with the right combination of skills, anyone can become a challenger. Under this methodology, a Challenger teaches, tailors, and takes control to close sales.
- Conceptual Selling
Conceptual Selling was developed by Stephen Heiman and Robert Miller. It is similar to solution selling, except that the product isn’t being highlighted. Instead, this model focuses on the solution. It also aligns the selling process with the customer’s buying process.
- Customer-Centric Selling
This sales model focuses on the customer, and their challenges and goals. Many of the sales methodologies described above encompass customer-centric selling. In practice, it will be nearly impossible to close the deal without a focus on your customers’ needs first.
When choosing a sales strategy for your business, be mindful that your approach is a good fit for the needs of your prospective customers and the abilities of your sales team. Your approach should be effective and sustainable. Also, do not be afraid to experiment with new strategies and pivot when your approach is not working. When you identify what does work, lean in that, and then amplify your strategy.
