Solution Selling & Value-based Selling

Are they the same?

The terms ‘Solution Selling’ and ‘Value-based Selling’ are sometimes used interchangeably. But are they the same?

The short answer is NO.

So, what are Solution Selling and Value-based Selling?

Let’s start with Solution Selling

Solution Selling is about how customers view solutions, not how salespeople define solutions. All the methods that support real Solution Selling encourage salespeople to work with their customers to gain an understanding of what the customer believes is an ideal solution for them.

Solution Selling is a sales method that has been, and continues to be, led by customer demands. In fact, it evolved from other methodologies around the 2000s driven by customer demands and expectations that forced sales professionals to re-think their one-sided approach to selling.

Let’s go a bit more forensic here: Solution Selling looks to fix problems and/or realise opportunities that clients define. This means gaining insights into our clients’ worlds, the likely issues they face, and solutions they are looking for.

Starting from the client’s perspective, salespeople need to create space and give clients the opportunity to define their problems, priorities, needs, objectives, etc. first. Once this is achieved then salespeople should be able to work with clients to craft viable solutions for them from single pointed options all the way through to more complex ones with several moving parts. At this stage, the expertise of the salesperson plays a big part to ensure the optimal solution is developed.

Solution Selling equals being client focused.

Now let’s look at Value-based Selling

As the world has become more complex and products themselves have become commoditised, clients and buyers need solutions that consider more than technical aspects of products or services; they need their suppliers to work with them to account for a range of variables that affect their success such as different types of industries, end-users and markets, locations and geography, use applications and variations, and so on. Clients are looking for how the solutions we offer can add real value beyond product efficacy to their business or situation.

We see Value-based Selling as being more encompassing of commercial and ecosystem considerations. While it incorporates delivering a solution to clients’ needs and wants, Value-based Selling extends to creating and delivering for clients commercial/economic value, i.e. ROI, money made or saved; risk mitigation; surety of supply chain; new market opportunities and collaborative value creation; capability uplift, performance improvement, improved shareholder value; culture change, client/employee attraction and retention; environmental impact, SGEs, reputational value, and so on.

Value-based Selling focuses on value delivered, in various forms, rather than the price. If customers know the measurable benefits and value they’re getting from your product, services, and solutions, they can better understand the price point.

Both Solution Selling and Value-based Selling are consultative in approach

They involve building relationships with customers over time, rather than just focusing on short-term transactions.

This requires us to work with our clients in partnership, alongside them understanding them and adding value from the start, whether that be through the insightful questions we ask, pilot projects we run, cost management calculations on offer, or something else.

With Solution Selling we look to ensure that our solutions are aligned with our clients’ priorities and goals. To master Value-based Selling, we, as salespeople, need to take it up to another level. We need to be more commercially savvy and small ‘w’ worldly i.e. know the interconnectivity of what we do across values chains and in our domains of expertise, understand the system of business, and PESTEL (political, economic, societal, technological, environmental and legal) environments we are selling into.

No longer can we just be technical products experts with a range of possible tech solutions, we must be domain experts in our field and understand the value our business can deliver to our clients in their world.

Ultimately, Value-based Selling is about creating a win-win situation for both the seller and the customer. By providing real value to the customer, the seller can build trust and loyalty, which can lead to repeat business and referrals and genuine, respected business partnerships built on substance. At the same time, the seller can achieve their own business goals by meeting or exceeding their sales targets and building a stronger reputation in the market.

Remember, everybody lives by selling something.

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