Solution selling
Encyclopedia
Solution selling is a sales
methodology. Rather than just promoting an existing product, the salesperson focuses on the customer's pain(s) and addresses the issue with his or her offerings (product and services). The resolution of the pain is what constitutes a true "solution". A limitation of this approach is that not all customers buy to address a "pain", not every need is a problem needing a solution.
Keith M. Eades, author of The New Solution Selling, defines a solution as:
dubbed "solution selling" in 1975. Watts perfected his method at Wang Laboratories
. He began teaching solution selling as an independent consultant in 1982. He presented his sales process as a one-day workshop to Xerox Corporation in 1982. By 1983 Electronics
magazine would portray solution selling as "an unmistakable trend in the distribution of systems- related products".
In a 1984 account Dick Heiser could look back to IBM's pre-1975 "solution sale" methodology.
Mike Bosworth founded Solution Selling in 1983, based on his experiences at Xerox Corporation (the Xerox SPIN (Situation, Problem, Implication, Need-payoff) selling pilot project)
and began licensing affiliates in 1988. With intellectual-property
contributions from his affiliate network, Bosworth's methodology continued to evolve through the years. He sold the intellectual property in 1999 to one of his original affiliates, Keith Eades (CEO and founder of Sales Performance International).
Bosworth authored Solution Selling: Creating Buyers in Difficult Selling Markets (1994), and after leaving Solution Selling he co-authored CustomerCentric Selling (2003). Less than a year later, Eades authored an updated version of the solution-selling methodology released as The New Solution Selling: The Revolutionary Sales Process That is Changing the Way People Sell (2003)
and also co-authored a follow-up guide The Solution Selling Fieldbook (2005).
While the term "solution selling" has become somewhat generic in the marketplace, the core brand of solution selling still carries distinct characteristics. Followers of "solution-selling"
generally apply a consultative sales approach to all aspects of their sales process (or during a sales cycle) including:
The solution selling methodology has evolved as key components of professional selling evolve. As a result, solution selling has become more broadly defined — to include dimensions of "sales process", "competitive selling", "value selling
" as well as "consultative selling" or "complex selling" which set the focus on the team's aspects of the sales.
s and on organization practices.
Eades and Kear discuss solution-centric organizations and the focal role of solution sales in such environments.
Robert J Calvin compares some of the financial implications of various type of sales: transactional sales, value-added sales
, solution sales, and feature/benefit sales.
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
methodology. Rather than just promoting an existing product, the salesperson focuses on the customer's pain(s) and addresses the issue with his or her offerings (product and services). The resolution of the pain is what constitutes a true "solution". A limitation of this approach is that not all customers buy to address a "pain", not every need is a problem needing a solution.
Keith M. Eades, author of The New Solution Selling, defines a solution as:
- "So what is the definition of the word solution? The typical response is, "An answer to a problem." I agree with this response but feel it's important to expand the definition. Not only does the problem need to be acknowledged by the buyer, but both the buyer and working woman must also agree on the answer. So a solution is a mutually agreed-upon answer to a recognized problem. In addition, a solution must also provide some measurable improvement. By measurable improvement, I mean there is a before and might be after. Now we have a more complete definition of a solution; It's a mutually shared answer to a recognized problem, and the answer provides measurable improvement."
Origins of solution selling
Frank Watts developed the sales processSales process
A sales process, also known as a sales tunnel or a sales funnel, is a systematic approach to selling a product or service. A growing body of published literature approaches the sales process from the point of view of an engineering discipline .Reasons for having a well thought-out sales process...
dubbed "solution selling" in 1975. Watts perfected his method at Wang Laboratories
Wang Laboratories
Wang Laboratories was a computer company founded in 1951 by Dr. An Wang and Dr. G. Y. Chu. The company was successively headquartered in Cambridge , Tewksbury , and finally in Lowell, Massachusetts . At its peak in the 1980s, Wang Laboratories had annual revenues of $3 billion and employed over...
. He began teaching solution selling as an independent consultant in 1982. He presented his sales process as a one-day workshop to Xerox Corporation in 1982. By 1983 Electronics
Electronics (magazine)
Electronics was an American trade journal that covered the radio industry and its later spin-offs in the mid to late 1900s. Published by McGraw-Hill and Penton Publishing , its first issue was dated in April 1930....
magazine would portray solution selling as "an unmistakable trend in the distribution of systems- related products".
In a 1984 account Dick Heiser could look back to IBM's pre-1975 "solution sale" methodology.
Mike Bosworth founded Solution Selling in 1983, based on his experiences at Xerox Corporation (the Xerox SPIN (Situation, Problem, Implication, Need-payoff) selling pilot project)
and began licensing affiliates in 1988. With intellectual-property
Intellectual property
Intellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...
contributions from his affiliate network, Bosworth's methodology continued to evolve through the years. He sold the intellectual property in 1999 to one of his original affiliates, Keith Eades (CEO and founder of Sales Performance International).
Bosworth authored Solution Selling: Creating Buyers in Difficult Selling Markets (1994), and after leaving Solution Selling he co-authored CustomerCentric Selling (2003). Less than a year later, Eades authored an updated version of the solution-selling methodology released as The New Solution Selling: The Revolutionary Sales Process That is Changing the Way People Sell (2003)
and also co-authored a follow-up guide The Solution Selling Fieldbook (2005).
While the term "solution selling" has become somewhat generic in the marketplace, the core brand of solution selling still carries distinct characteristics. Followers of "solution-selling"
generally apply a consultative sales approach to all aspects of their sales process (or during a sales cycle) including:
- Prospecting
- Diagnosing customer needs
- Crafting a potential solution
- Establishing value
- Bargaining for access to decision-makers
- Positioning proof, ROIReturn on investmentReturn on investment is one way of considering profits in relation to capital invested. Return on assets , return on net assets , return on capital and return on invested capital are similar measures with variations on how “investment” is defined.Marketing not only influences net profits but also...
and the total solution - Negotiating a win-win
- Following up to ensure customer success
The solution selling methodology has evolved as key components of professional selling evolve. As a result, solution selling has become more broadly defined — to include dimensions of "sales process", "competitive selling", "value selling
Value added selling
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 customers...
" as well as "consultative selling" or "complex selling" which set the focus on the team's aspects of the sales.
Becoming a naming cliche
The success of solution selling has led many companies to adopt "solution" names. The proliferation of this cliche has created some funny, but bad names, such as "Kids Party Solutions", "Shoe Solutions", and "Professional Bat Management Solutions". While the word "solution" is rapidly losing meaning, the sales technique continues to work under any name.Solution selling in management contexts
The advent of solution selling may impact on business modelBusiness model
A business model describes the rationale of how an organization creates, delivers, and captures value...
s and on organization practices.
Eades and Kear discuss solution-centric organizations and the focal role of solution sales in such environments.
Robert J Calvin compares some of the financial implications of various type of sales: transactional sales, value-added sales
Value added selling
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 customers...
, solution sales, and feature/benefit sales.
Further reading
- Bosworth, Michael. Solution Selling: Creating Buyers in Difficult Selling Markets, McGraw-Hill, 1994. ISBN 978-0-786-30315-1
- Bosworth, Michael; Holland, John. CustomerCentric Selling, McGraw-Hill, 2003. ISBN 978-0-071-42545-2
- Eades, Keith. The New Solution Selling: The Revolutionary Sales Process That is Changing the Way People Sell, McGraw-Hill, 2003. ISBN 978-0-071-43539-0
- Eades, Keith; Touchstone, James; Sullivan, Timothy. The Solution Selling Fieldbook: Practical Tools, Application Exercises, Templates and Scripts for Effective Sales Execution, McGraw-Hill, 2005. ISBN 978-0-071-45607-4