Transactional selling: Strategy, definition and how it works
Transactional selling is a popular sales strategy some businesses use to drive quick sales and grow revenue. Learn all about it here.
What is solution selling? Glad you asked. Solution selling is the sales practice of uncovering a customer's needs and pain points, and then providing a solution in the form of a product or service.
Solution selling has become many companies' sales methodology of choice because it allows sales reps to better understand their prospects' real needs. By using data, asking questions, and listening closely, a sales rep can tailor their pitch to perfectly position their service as the solution the prospect has been looking for.
In many cases, the customer may not recognize that they had a need in the first place. But a talented salesperson can uncover underlying problems and prove they're worth solving.
In contrast to solution selling, many sales reps make the pitch about the product itself without regard for the specific needs of their audience. For example, imagine going to Best Buy, telling someone you need a TV, and they hurry off and bring one back without gathering any information. It's unlikely to be the TV you need.
On the other hand, the Best Buy rep could ask you about your budget, what size will work best in your room, if you have any brand preferences, and what types of programs you watch most to determine an appropriate refresh rate. Now, when the rep hurries off to find a TV, you can be confident they'll bring back the right one for you.
In many ways, solution selling is seen as the superior strategy. Nowadays, most people expect to be sold to in a way that meets their specific needs. So why is product selling still a sales strategy?
The cynical answer is that it's easier. Salespeople can slip into a practiced routine, falling into a monologue with little input from the client. It can be more or less memorized.
However, there are also times when product selling makes the most sense. For example, shopping at a grocery store is the ultimate form of product selling: you literally just see a product, and buy it without any discussion.
There are plenty of reasons that solution selling is becoming more popular, but there are a few drawbacks, too:
While any sales team can effectively use solution selling, it works better when prospects have unique needs. A salesperson can have a greater impact in these cases when presenting a solution.
To use a simple example, consider someone selling golf clubs. A salesperson will want to understand the golfer's skill level, biggest issues (distance, slicing, etc.), and personal preferences.
On the other hand, a customer interested in a TV package that shows football games isn't that different from everyone else who calls in wanting the same thing.
Solution selling can also be impactful when selling a complicated product or service, especially if different packages are involved. The salesperson then has plenty of options when providing a solution.
Transitioning to a more solutions-based, consultative sales strategy can throw even the best sales teams for a loop. Here are a few ways to move to a solution sales approach seamlessly:
When training your sales team or sharpening your own skills, learn everything there is to know about the products and services you're selling. You will need more than a bulleted list of features and benefits (which might be adequate for product selling).
A solution selling methodology requires sales reps to expertly present features as solutions. Sales reps should also have plenty of hands-on experience using the product. Many sales teams can benefit from role-playing scenarios with each other.
The more you know about a prospect, the better you can use a solutions-based selling approach. With more information, you can spend less time on the call asking questions, although even great data shouldn't replace all questions. Upfront data becomes paramount if you're preparing ahead of time with a big client.
Here are some good ways to gather more data:
When following this sales approach, the name of the game is flexibility and adaptability. However, it can help to have a set of questions on hand designed to uncover background, needs, and goals. There can be a few that you always ask and a number of others that are asked only if the situation calls for them.
Finding a successful solution to what they're looking for will be the meat of your approach. In reality, this step will likely integrate with the step above. Often the best way to find a spot for your solution is by asking great, thoughtful questions that build on what they've already shared with you.
For example, "Can you see how our security software could eliminate the data hacks you've been struggling with?"
There are dozens of closing techniques — not a one-size-fits-all approach to sealing a deal. Our main advice is simple though: Don't leave a prospect interaction with a vague answer or confusing next steps. They may have more obstacles to work through (like talking with a decision maker) but try to get a commitment.
As
Something like, "If your boss agrees, would you be willing to move forward with us?"
Here are a few simple ways that you can improve your solution selling:
If there's a specific set of questions your team likes to use, perhaps swap a few of them out and see if any others work better. In a large department, have one or two reps change things up to see what works.
When customers are consistently confused about the basics of your solution, start giving those areas more coverage on sales calls.
Entire organizations can benefit from this, especially customer support. Solving what a customer is literally asking for may not be what they actually need. Find out what they're trying to achieve and offer the best solution, which occasionally isn't one the customer had in mind.
This could involve surveys, one-on-one interviews with customers, or pooling knowledge from teams of sales reps in recurring meetings.
In 1983, a man named Michael Bosworth trademarked the term "Solution Selling." He eventually wrote a book called Solution Selling: Creating Buyers in Difficult Selling Markets.
For more reading on the topic, you can check out Keith Eades' updated version, The New Solution Selling: The Revolutionary Sales Process That is Changing the Way People Sell.
Another great way to master solution selling is to study how successful companies (especially ones selling complex services) go to market with their products and services. Spend some time on the phone with them as if you were a customer, and take notes on what they're offering. A few examples could be companies like IBM or Salesforce.
As we mentioned earlier, CRM software is one of the behind-the-scenes resources that makes this whole sales strategy work. You need a way to organize your contacts' data, track your sales pipeline, and easily access information for each person you and your teammates meet with.
Luckily, Streak integrates seamlessly with Gmail, adding CRM features to a platform that you already know how to use. With built-in pipelines, automated messaging, and all client communication centralized in one place, you can make solution selling more effective and trackable than ever before. Try it for free for 14 days if you're interested!