Salespeople must understand and be able to articulate how their offerings differentiate from competitors. They need to be intimately familiar with their place in the market, and also that of their competition. And of course, they also have to ask questions and solicit real-world feedback to gain insight into how the industry perceives them.

Getting Past the ‘So What?’ Factor

The two words a salesperson least wants their prospects to think are “so what?” When a pitch does not clearly differentiate the organization’s offerings from that of the competition, the prospect is left wondering where the value lies. Then, the only thing left is a discussion about price.

You do this at this price point. So what? So do companies A, B and C.

Salespeople must go into meetings armed with a differentiator. Maybe the differentiator is a feature that a competitor doesn’t offer, maybe the product or service is more cost effective or maybe the competition operates in a different end of the market. Either way, salespeople have to understand exactly where their offering stacks up when it comes to price, performance, perception and value.

Only then can they present the product or service in a way that puts distance between themselves and their competitors.

Knowing Where You Stand in the Marketplace

The sales team must approach every prospect mindful of their station in the marketplace. Are they a premium business, an economy business or something in the middle of the road? This information will form the foundation of everything from qualifying guidelines to the salesperson’s pitch.

For example, low-cost airlines sell on the promise to get customers to their destinations at a cheap price — but fliers shouldn’t expect much else. Premium airlines like Emirates or British Airways, on the other hand, bill themselves as the Rolls Royce of air travel and sell their seats based on luxury accommodations.

Marketplace Identity and the Mind of the Salesperson

It is important for MDs to remember that marketplace identity affects the salesperson’s mentality.

Take the examples of supermarkets in the U.K. Every shopper knows Waitrose is more expensive than Lidl and Aldi. Waitrose shoppers don’t see value in the cheaper option, and Lidl and Aldi shoppers don’t see value in paying more for higher-end items.

Waitrose, therefore, can’t change its business model without losing their current buyers. Lidl and Aldi, on the other hand, are able to snipe at Waitrose customers, which is why the two more affordable chains are gaining market share.

In the end, customer perception determines what kind of business you are.

Feedback: Does the Industry’s Perception of Your Business Match Your Own?

So, in order to differentiate from their competition, MDs have to understand the corner of the marketplace they occupy, the same regarding their competition, and how that affects the minds of their salespeople.

None of this is possible without documented feedback and strategic sales reviews. Associates have to reach out to customers, lost customers and prospects that they didn’t win in order to get real-world feedback from the actual marketplace.

This is sometimes best handled by an outside entity that has no axe to grind, no emotion invested and who won’t corrupt the process with their own opinions. The MD should sit with the person or people who will be conducting the survey, determine what topics must be discussed, and develop a list of questions.

The results will help reveal two important facts: whether the organization has achieved differentiation from the competition, and whether the industry perceives the business the same way the business perceives itself.

MDs have to arm their salespeople with the knowledge of what separates them from the competition. Salespeople can only demonstrate value when they know where their offerings stand, where they fit into the marketplace, and how the industry perceives their service or product.