Value added selling is one of several
sales techniques that relies on building on the inherent
value of a product or service. By its nature the value add technique is a more flexible and customized selling approach that requires input from a defined range of average
customer
In sales, commerce, and economics, a customer (sometimes known as a Client (business), client, buyer, or purchaser) is the recipient of a Good (economics), good, service (economics), service, product (business), product, or an Intellectual prop ...
s. This customer feedback helps
sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. A period during which goods are sold for a reduced price may also be referred ...
and
marketing
Marketing is the act of acquiring, satisfying and retaining customers. It is one of the primary components of Business administration, business management and commerce.
Marketing is usually conducted by the seller, typically a retailer or ma ...
professionals to outline
value proposition
In marketing, a company’s value proposition is the full mix of benefits or value (economics), economic value which it promises to deliver to the current and future customers (i.e., a market segment) who will buy their Product (business), product ...
s that are likely to benefit the largest number of customers.
The value add may not be initially apparent in the sales overview and is often tied to
upselling
Upselling is a sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons to generate more revenue. While it usually involves marketing more profitable services or products, it can be simply e ...
or
vertical selling within a specific
market segment
In marketing, market segmentation or customer segmentation is the process of dividing a consumer or business market into meaningful sub-groups of current or potential customers (or consumers) known as ''segments''. Its purpose is to identify pr ...
. The utility of the product or service, ease of integration into the customers' business operations or time saving benefits are just a few areas that may be capitalized on when focusing on value add.
Examples
* Food sold in a plastic box or a glass that can be used after its content is consumed.
* Camera sold with converter to old type of photographic lens.
* An automotive company implemented an after-sales support program that included extended warranties and complimentary maintenance services. This initiative aimed to address customer concerns regarding long-term vehicle reliability and contributed to a reported 25% increase in customer retention.
* A gaming console manufacturer established an online user community designed for sharing experiences, tips, and custom content. This community-building effort enhanced the overall user experience and was associated with a 15% rise in subscriptions to the company’s online services.
References
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Selling techniques