Sales is all about understanding your customer’s needs and delivering a solution that meets those needs.
Sounds easy enough, right?
In reality, it can be a lot more complicated than that.
Different customers have different needs, and you need to be able to adapt your sales pitch to match them.
In this blog post, we’ll walk you through the basics of needs based selling so you can gain a better understanding of your prospect’s desires and close more deals.
Needs based selling often referred to as consultative selling, is a sales approach used to understand the potential customer’s needs, goals, and challenges and then position a particular product or service to address their objectives.
Every customer is different and has their own specific needs.
The goal of needs based selling is to figure out what those needs are and then offer solutions that address them.
At the core of this sales approach is customer-centricity.
As a sales rep, your goal is to have the mentality that you’re helping your customer by getting a clear picture of their underlying needs.
Sales reps must act as trusted advisors who do more than sell products. Instead, they have to help the customer diagnose their business problems and guide them in finding the right solution. They’re objective and present both the risks and opportunities.
To be successful in selling, you’ll need to be able to read your customers and figure out what needs they have that your product or service can fill.
In the past, sales reps would pitch their product or service to a prospect before understanding if there was a business need.
Whereas today, modern sales reps take a more consultative approach. They will first run an sales intro call to uncover the needs of their prospects, confirm their pain points, and only show their product afterward. This approach adds more value to the prospect-seller relationship.
For example, let’s say you’re selling project management software. Rather than walking through all of the features and functionality, the sales rep would first ask about the buyer’s requirements, needs, and budget. With all this information, they present the best possible solution that addresses their needs.
There are plenty of products for prospects to choose from, but they rather work with someone who has their best interests in mind and can address their unique needs.
Customer expectations are at an all-time high, so they also expect more from sales reps.
Needs based selling can be beneficial for both the customer and the company. Here are several important benefits:
Customers are more likely to be satisfied with a purchase if they feel that their needs have been met, and companies are more likely to earn repeat business when they focus on meeting customer needs.
Needs based selling can help to build trust between the customer and the company. When customers feel that their needs are being listened to and addressed, they are more likely to develop loyalty to the company.
As a result, needs based selling is a win-win approach that can benefit both customers and businesses.
Needs based selling often results in more new business, repeat customers, referrals, and higher customer retention.
Here are the four basic stages of needs based selling:
Prospects typically have their guard up when speaking with a sales rep. It’s not the sales rep’s fault; it’s unfortunately due to bad prior prospect-seller relationships. This is one of the reasons why needs based selling can help you differentiate yourself.
Building rapport and trust are important aspects of needs based selling. Your prospect has to be comfortable sharing their pain points with you, or else you won’t gather the right information.
Research your prospect and their company before your first meeting. Look them up on LinkedIn or Google to find valuable insight about their business. It will show that you’ve done your due diligence and deeply understand their needs.
Tonality in sales also plays an important role in building rapport. Speak in a confident and friendly way because it helps invoke trust.
As a sales rep, it is essential to be able to identify the needs of your customer.
Only by understanding what they need and want can you hope to provide them with the products and services they are looking for.
First, you can simply ask them. Relevant questions are an integral part of needs based selling because they help you analyze what problems your customer is trying to solve. Or what requirements and criteria they need to be fulfilled.
Actively listen to what your prospect says so that it is a two-way conversation rather than an interrogation. Listen, and ask more questions if you need more context.
Needs based selling also relies on strategic thinking to assess your prospect’s needs and how they can be addressed through your products.
Through the questioning process, you should be able to uncover insights that sometimes the customer wasn’t even aware of.
After you’ve gained a strong sense of what your prospect needs, you can demonstrate your product.
Avoid showing everything in your product because it can overwhelm the prospect. Instead, highlight specific parts of your product as a solution to the prospect’s pain points.
By understanding the prospect’s needs, you can deliver the right message, present the right solution and deliver the right value.
Demonstrate the value of your product or survive and then ask questions such as, “can you see how this product or feature can help you solve [pain point]? This will give you confirmation on if you’re on the right track.
People are more receptive to stories. Share specific customer stories with the same use case or pain points. Walk through their initial business problem and how they used your product to address them.
By taking these steps, you can ensure that you are always meeting your customer’s needs.
By understanding your prospect’s needs, you can tailor your pitch to address their pain points and demonstrate how your offering can provide value.
According to Salesforce, 84% of business buyers are likelier to buy from sales reps who understand their goals. To do so, sales reps need to ask relevant questions to get to the heart of the problem.
Some examples of needs-based questions you can ask include:
By asking relevant questions, you can gain a deeper understanding of your prospect’s needs and position your product or service as a solution that can add value.
As a sales rep, it is important to have a customer-centric mindset when using a needs based selling approach.
This means you put the customer’s needs first and try to find the best solution. Even if that mean’s another company’s product offering.
By doing this, you will be able to build trust with the customer and show that you are interested in helping them solve their problem. Additionally, this approach will help you identify the right solution for the customer, enabling you to close more sales.
To be successful in sales, it is essential to have a customer-centric mindset.
Take the time to research your prospect, their company, and their industry.
It may feel like additional work, but it’s worth it to build relationships with leads that have the potential to turn into lifelong customers.
By understanding their business better, you can tailor your sales pitch to address their specific pain points and demonstrate how your product or service is the best solution.
In addition, research builds trust and rapport because it shows that you care about them.
To have an effective conversation with a prospect, it is important to actively listen. This means engaging with what the prospect is saying and taking the time to understand their needs.
By doing this, you can create a dialogue rather than an interrogation.
Asking questions can help you dig deeper and better understand the prospect’s needs. However, ensuring that the conversation does not feel like an interrogation is also important.
Active listening will help you build a rapport with the prospect and better understand their needs.
Needs based selling is a powerful sales approach to help companies win more deals. By identifying the needs of your customer and addressing them, you can create a more positive buying experience for them.
The benefits of using this technique are clear: better customer relationships, increased confidence, and improved win rates.
You can adopt a consultative approach to your sales process with the right steps, techniques, and tips. Are you ready to try out needs based selling?
Daniel is a sales and marketing leader with a decade of experience in B2B SaaS. Daniel has previously built and led revenue-focused teams. He is a go-to-market professional with a keen focus on sales processes, strategies, and tactics.