Selling Benefits Doesn’t Work

Selling benefits doesn’t work, or at least it’s not enough to win consistently. Let’s dive in.

Let’s rewind the clock 100 years back to 1924, where the United States was in the midst of unprecedented post-WWI economic growth. Average household incomes were skyrocketing and large-scale consumer culture was born. About 15% of American households owned cars— they were a luxury after all— but Ford was making purchasing one more accessible. The only option to learn more about car specs was to go speak to a car sales representative. The vehicle valuation company, Kelly Blue Book, doesn’t yet exist. Selling the features: the allegedly competitive price, the leather interior, the highest quality radio, etc. was enough to close sales.

The information gap between the 1920s car salesman and the buyer was massive and sellers could easily exploit this. 

Fast forward to the 1960s where there are more American households with cars than those without. If buyers wanted to learn more about cars, they could open YellowPages to learn more about local and regional dealers. They could call these dealerships with their also ubiquitous phone to get different quotes. Or they could buy a copy of Car Magazine to be better prepared when they walk into the dealership. The information gap between dealer and buyer was closing, but getting the information still required significant research effort on behalf of the buyer. Because of this newer educated consumer, car salesmen needed to start selling the benefits of their product. 

Now, let’s move to 2014 where American car culture is still dominant. Kelley Blue Book’s fully digital experience lets buyers know down to the dollar how much their car is worth. The mobile-friendly information age is in full swing. Car buyers (who aren’t buying cars entirely online) walk into a dealership leveraging online comparison sites and already know comparable prices, features, and benefits. 

We’re in the middle of the consultant-guide-problem-solving seller era. Feature-based, (and to a large extent benefit-based) selling is rooted in 100+ year old sales tactics that depend on information disparity. I’m not saying it’s impossible to have an information gap anymore. What actually sets you apart is how you empower your client with key insights & recommendations to drive better outcomes. Let’s make sure we’re engaging with buyers in ways they both expect and dream of being treated: With a truly consultative approach.

Embody the “guide” and “consultant” persona as a seller. How are you solving problems for your customers that actually matter to them? 

89% of buyers agree that the salespeople they do business with are “trusted advisors” (source). These buyers aren’t just leveraging sellers as sources of information; they look to the sellers they ultimately buy from— and continue to buy from— for guidance.