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Reduce Risk for Your Buyers

In this short video, RAIN Group President Mike Schultz why making the ROI case in sales is no longer enough.


In our What Sales Winners Do Differently research, we learned that reducing risk has shot up in importance as a criteria for buying today.

Now, for every 100 times you as a seller find advice to sell the return on investment case, you might find just one piece of advice focused on minimizing the perception of risk for the buyer.

This is interesting, as well, because it was just 40 years ago that marketers and sellers didn’t focus much on results and impact. The transition away from features and benefits had just begun. But fast forward to today and every company’s marketing and sales messages promise some kind of results, often wild results, as their first foot forward.

Yet while everyone’s promising results, buyers regularly report disappointment.

In fact, in a study by Bain, 375 companies were asked if they believe they delivered a superior value proposition to clients. Eighty percent said yes. Bain then asked the clients of these actual companies if they agreed that the specific company that they bought from actually delivered this superior value proposition. You know what’s funny? Only eight percent agreed.

Buyers simply don’t believe they either get what they expected or were promised by sellers. They’ve been burned in the past and are therefore skeptical of sellers and their claims.

Most every seller I know has lost a sale to no decision where the seller believes that the buyer was crazy not to move forward because the return on investment case was so compelling. The seller will say something like this to me: "I can’t believe they didn’t see it." Oh, they saw it. They got it. They just didn’t believe it.

In these cases, the buyers typically perceive that the risk of not achieving results is too high or the buyer might think something like, "Well, this is impossible or it’s improbable to actually achieve these results." Or, they perceive that they provider themselves is too risky. They might think something like, "I think this is possible, but working with this provider is a potential liability because of this or that or the other reason."

In other words, if the buyer isn’t convinced of both the maximum return and the minimum risk together, the seller might lose to no decision or the buyer might just perceive someone else to be safer to go with.

And how do you reduce the perception of risk? You need to substantiate your claims and you need to get buyers to believe you in 4 different areas:

  1. They need to believe in you.
  2. They need to believe that the product or service will perform as described.
  3. They need to believe your company is a good company to associate with.
  4. They need to believe that they’ll actually achieve the eventual results that you promise them.
Additional Reading
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At the same time, there are some sellers and sales organizations who are consistently winning sales against lower-priced competitors and growing their margins.

On-Demand Webinar: Secrets to Selling with Value

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Everywhere you look, sales experts and pundits are talking about the importance of value in sales. And they're right.

Growing Accounts: Your Clients Want to Hear from You

Leaders at nearly every company we speak to agree that there is significant opportunity to grow their accounts, and they are looking for ways to capitalize on this opportunity.

In fact, growing your accounts is one of the fastest and most profitable ways to grow sales. The first and most basic step to growing accounts is reaching out to them to proactively create new sales opportunities.

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