Most individuals and businesses are in need of someone who can understand their exact needs and can make sense of the myriad of options in financial services today. When a client feels good about you and your interest in them, they can entrust you with all the specifics of their dreams. They will tell you what they want and what they don’t want. With that, you have the basis for an enduring and mutually rewarding relationship.
Service goes far beyond smiling and using the customer’s name and returning their phone calls promptly. People who don’t understand what service demands of them quickly become low-performing sales people. So what’s the biggest mistake low-performing sales people make? They don’t understand “use value.”
Knowing what “use value” is and how to use this is the most important part of the foundation for successful sales. “Use value” simply means that people feel that by associating with you, they will get increase for themselves beyond their cost. People will always migrate where they feel they receive increase. “Always seek to give 10 times “use value” compared to the cash value you receive.”
Now, before you start to think this means you give away the farm, I mean exactly the opposite. You should, in fact, get the whole farm because you are giving your client what feels to be the whole state. No one has ever built a successful business by trying to do an even swap. “Use value” simply means that you go way beyond the commodity that you are selling to offer such extraordinary value that it does not make sense to go anywhere else for this service.
Here are some examples:
- If someone wants a CD, a low performer will quote the rates and only get the business if they have the best rate. Alternatively, giving 10 times “use value” looks like this:
- “I would love to share our rates with you. Before I do, I want to make sure we’re giving you the best advice so we’re not hurting you by putting you in the wrong instrument.
- Let me ask some questions to find out what you’re trying to accomplish and how you’re currently trying to get there.”
At that point, you get a list of all their CD’s, maturities, institution where they’re held and the rates. You talk to them about laddering the CD’s so they can get the best returns while maintaining the ability to get at their money if there is an unexpected need. You find out what they’re saving for, and if appropriate, encourage CD’s they can add to or that change rates or whatever is the right recommendation based on what they tell you they need. After you’ve asked your questions, you tell the client that because your rates are competitive, that shouldn’t be an issue.
The issue is that they need to have a program and system to effectively manage those monies under one roof to keep it simple and to make sure the best value is received for the long run. At this point you tell them you want to help them more. Show them a form that they can sign for each CD that can be sent now to the financial institution where the CD is held. The money will be automatically sent to you, as their adviser, when the maturity date hits and you’ll call the client on each of those dates and make suggestions for laddering CD’s to fit their plan. (Now, THAT’s “use value”.)
If someone is looking for a mortgage, and you quote just the rate, you’ve delivered NO “use value”. If, on the other hand, you tell them that there are hundreds of options of configurations and approaches to mortgages these days. Most people approach it incorrectly by shopping for rates only and getting the wrong program and paying too much in fees. By doing that, they almost always end up paying more. Let them know you will ask them several questions and guide them to the best value. That’s “use value”!
Remember, “It’s not what you do, but HOW you do it that determines your success.”