Just the Logical Conclusion

Selling value that you receive compensation for requires sweating the details. However, when you continuously verify that you and customers are at the same step in the same Measurable Phase, you eliminate wasted efforts and guesswork. The order becomes the logical conclusion to a series of engineered commitments (MPCs).

Case Study: Business-to-Consumer Transaction

John Peters is now ready to move to the next measurable phase in this case study of a business-to-consumer transaction.

MP 3: Cement Solution

John Peters illustrates how to apply the steps and strategies of this chapter in detail as he concludes the last two phases with Brian Walters.

Before Meeting the Customer MP 3 Steps

The three steps that occur before John Peters meets again with the customer in person are as follows.

Step One: No Blanks

John Peters fills out his Connecting Value sheet before making his presentation. He uses the specifics gathered during MP 2: Measure Potential to select the features. Although his product has no unique strengths, his confidence is building because of all the features he connects to the measurable benefits of Brian's goals. (Note that he omits the Focus column. Brian is not a business, so the benefits can only be internal. Also, because none of the features are unique strengths that column is omitted also. See Exhibit 7-10.)

CONNECTING VALUE SHEET
Customer Goals	Benefits of Achieving Goals (time or money)	Systems of Evaluation	Products	Specifics of Features and Benefits (features are in italics)	Value Type and Focus (all focus is internal with consumer sales)	Unique Strength/Feature Value Rating
Increase shower water capacity	Reduces wait between showers by 67%	Time between showers	XLX 9000	90-gallon tank	Measurable	No (1)
			XLX 9000	60% more heating coils	Measurable	No (1)
	50% more capacity than existing heater to accommodate three showers in one hour	Size of water tank	XLX 9000	90-gallon tank	Measurable	No (1)
Improve energy efficiency	Reduces utility costs by $18 a month; $648 over three-years	Energy required to heat water	XLX 9000	Most efficient heat transfer surface	Measurable	No (1)
Receive 3-year payback	Saves $180 on warranty costs	Costs of typical or past repairs	XLX 9000	Five-year parts warranty	Measurable	No (1)
Conditional Commitment: Three people can take a shower during a one-hour period, the new hot water heater will provide a three-year payback, stay within a $600 budget, and be installed by the end of next week.

Exhibit 7-10: Connecting value sheet.

Note

The key point: Even if your products don't have any unique strengths, how you make value measurable becomes your unique strength.

Note

The key points and commentary are in italics and parentheses for easy reference.

Step Two: Benchmarks

John Peters connects the features to the measurable benefits as defined in Exhibit 7-10.

Step Three: Oops!

All of Brian Walters's measurable benefits have a feature connected to them. There are no misses (until Chapter 8).

At Meeting MPC 3 Steps

John Peters is now prepared to let Brian Walters know that he understands Brian's goals—and can help him to achieve them.

Step Four: Purpose and Summary

• Brian: Good to see you again, John. I look forward to seeing what you came up with. (Brian indicates he is ready to discuss business.)

• John: Brian, good to see you, too. Thanks for taking the time to meet with me again. I'd like to explain over the next ten minutes how you can have enough hot water for three people in an hour, justify a $750 price, and achieve a three-year payback by reducing utility costs. I almost forgot, and have it installed by the end of next week—if these requirements are met. Is there anything else you'd like to cover? (John puts Brian at ease by telling him how much time he needs. Brian does not have to wonder how long the presentation will take. John does not mention any products by name yet; he instead focuses on Brian's goals. He makes the "agreement" subject to meeting all of Brian's stated requirements. Finally, John verifies there is nothing else to address.)

• Brian: No, John. If you can satisfy all those issues, I'm ready to go. (John receives his confirmed conditional commitment to ensure he has accurate details.)

Step Five: Connect the Dots

John takes out a cutaway, 3-D model of the XLX 9000 to show Brian as he explains how its features achieve his goals.

• John: Brian, I'm confident that our high-efficiency water heater (at this point in the sales process, he gives the product a "name" to encompass the features and benefits), the XLX 9000, can meet all your requirements. Let's start with increasing your capacity (first goal) to provide enough hot water for three people to take a shower in one hour (first measurable benefit of goal). The XLX 9000 has the largest tank size available at 90 gallons (first feature). It's 50 percent larger than your current 60-gallon capacity (first benefit of this feature). Additionally, with 60 percent more coils and heat transfer surface than your current unit (second feature), the XLX 9000 requires just one third the reheat time (second benefit of the second feature). Instead of needing sixty minutes to reheat fully, you only need twenty minutes (second measurable benefit of goal). You'll have plenty of hot water whenever your family needs it. No more taking turns on who goes first.

  A second priority of yours is to improve energy efficiency and reduce utility costs (second goal and vague benefit). The XLX 9000, with its increased heat transfer surface (third feature), has the highest energy efficiency (first benefit of third feature) on the market today. It will cost $18 a month less than your current system (first measurable benefit of second goal) while providing 50 percent more hot water (second benefit of third feature). You could almost think of the XLX 9000 as a new savings account. (Analogy).

  In addition, with a price of $750, you achieve a three-year payback (third goal) and justify its price. You can save $648 on your utility bill over the next three years (first measurable benefit of third goal). In addition, due to the XLX 9000's five-year parts-and-labor warranty (fourth feature), another $60 a year can be saved on your existing warranty contract (first benefit of fourth feature). This increases your three-year savings to over $820 (second benefit of fourth feature). (Note how John connected all the appropriate benefits and features to each goal before proceeding to the next one. The explanations were simple and vivid, one had an analogy, and John was brimming with confidence.)

Step Six: Conditions Met

• John: Brian, can you see how the XLX 9000 can meet all your hot-water requirements of capacity and efficiency and save you over $800 over the next three years and exceed your payback schedule based on its price of $750? This price also includes a five-year full warranty. (John satisfies conditional commitment ands keep the focus on the Column 2 benefits, not the features. He also makes Column 1 price what it is, just another function of the requirements of the conditional commitment, not a stand-alone issue)

MPC 3: Solution Confirmed

• Brian: Yes I can. You did a very good job of explaining how the XLX 9000 could benefit us.

MP 4: Implement Agreement

John is now ready to implement the agreement.

Step One: Deal

• John: Brian, are you ready to go ahead with the purchase of the XLX 9000? (John feels confident enough to make a well-earned direct request.)

• Brian: You bet. We have ourselves a deal. (John receives final verification.)

Step Two: Logistics

• John: Great, you made a good decision and will be happy with the results. All we need to do to start is for you to sign this standard contract you reviewed previously and a $200 deposit. I can then order the materials and schedule the installation for next Tuesday. (John provides good positive reinforcement. In addition, he explains the need to get the "paperwork" out of the way so they can finish by next week.)

MPC 4: Agreement Confirmed

• Brian: Here's my John Hancock and a check for $200. (Nothing is more professionally satisfying than customer-oriented solutions that result in well-thought-out and well-earned orders.)

  Note

  John would schedule a follow-up visit in six months to confirm the XLX 9000 is fulfilling Brian's conditional commitment. John wants to add Brian to his list of documented and measurable successes and references.