The Benefit Selling Approach
Some thoughts on convincing customers to use Synthetic Oils
Familiar Scene ?
The Buyer
The Salesman
Competitive Sales Environment
Customers are;
• under pressure to perform at higher levels
• More knowledgeable
• More analytical and systematic
• Making more complicated decision making
• More demanding (e.g. value for money)
The Sales Process
The sales process starts because the customers “needs”
something or “has a desire to change or improve”
• Your job is to find out and confirm the “need”
• Satisfy the need.
• Do not try to satisfy a need, that has not been expressed or
confirmed.
• Don’t sell on features alone.
Product Features versus Benefits
• Products typically list a number of features.
• The features of a product have no meaning to a customer.
• The only thing that matters to him is the benefit that he can obtain from
those features.
• A customer is willing to pay more for a product, that can satisfy his needs,
than for another product that can not.
• Winners will demonstrate added value in the clients perception.
• Differentiators will include quality systems, service elements, performance
guarantees, builder approvals, payment terms, etc.
• In the absence of differentiators, it’s all down to price.
Product Features versus Benefits
Example:
Need: Wish to reduce exhaust heat boiler cleaning (engine)
Feature: Reduced volatility
Benefit: Less oil consumption, reduced boiler fouling, improved efficiency and less
maintenance activity.
Needs are not constant
Unaware - It’s almost perfect
Problems - Difficulties - Dissatisfaction
Strong wants or desires
Need / Payoff questions
The linking questions which seek to establish the value of a potential
solution
• Would there be a value in extending oil change intervals ?
• If unscheduled breakdowns were avoided would investment be easier ?
• Would the revision of service intervals avoid the use of contract labour ?
The real key to success is the link to real savings which in this process are readily
identified by the prospective customer for himself.
Demonstrating Capability
Example - Extract from report to Chemical Company in UK.
• “We have attached a spreadsheet based on the savings achieved on the trial gearboxes within XYZ
section. These trials confirmed savings of 5% when converting to Synthetic oil grades.
• All electrical costs are calculated using 2p/kwhr.
• As is clear from the attached data, significant Energy savings of £ 29,265 can be gained from the
selected gearboxes with “oil payback times” enclosed for your interest.
• We should point out that this project is viable on energy savings alone, however increases in oil life
and reduced component wear are the area where even higher levels of savings due to reduced
downtime can be achieved.
Demonstrating Capability
Example – Cement Mill Gearbox
•
Main problem in the gearbox was the very high operating temperature
that caused regular shutdown of the gearbox when the temperature
reaches 90°C. Loss of production.
•
High operating temperatures degraded oil, reduced oil life and increased
wear.
•
Many brands of mineral lubricants (ISO 460) were used but the problem
remained the same.
•
Gearbox filled with ISO 460 PAO based synthetic oil.
Results
•
The oil temperature immediately decreased by around 5°C.
•
After one week of operation the temperature panel was indicating 10°C difference between the east
gearbox operating on synthetic oil and the west gearbox which is operated with mineral oil (82°C).
•
Shutdowns due to high temperature were virtually eliminated.
Increased oil life, improved oil films, reduced wear, energy savings......
Example – Refrigeration Compressor
Demonstrating Capability
Com pressor Oil Volum es ,
Drain Interval,years
No of Drains
Drain Volum es , Litres
Top-ups , %/yr
Top-ups ,Litres
Total Oil Consum ed, Litres
200
1
6
1,200
20
240
1,440
Oil Cost , USD/Litre
Total Oil Cost, USD
2.0
2,880
Com pressor Pow er, KW
Operating Hours / year
Efficiency Im provem ent, %
KWH Cost , USD
Total Energy Cost, USD
400
5,000
-
0.03
360,000
200
6
1
200
5
60
260
5
1000
15
180
1180
9.0
2,340
540
400
5,000
0.03
360,000
0
Drain , hours
Maintenance Hour Cost, USD
Drain Costs, USD
4.0
100.0
2400
4.0
100.0
400
Filter Changes, no
Cost / Filter, USD
Filter Costs, USD
6.0
100.0
600
1.0
100.0
100
500
0.2
240
0.2
40
200
Pay-Back, Year
3240
540
2.6
Waste Disposal Cost , USD/litre
Waste Disposal Cost , USD
TOTAL SAVINGS (6 Years ), USD
Total Savings / Year , USD
Per Com pressor
2000
5
Demonstrating Capability
Example - The problems of high oil consumption
9 High maintenance cost of exchanger cleaning
9Catalyst blocking
9 high environmental risk (oil dropout)
9 Cylinder liner wear
9 Misfiring/ knocking/ spark plug fouling
9 Deposits in combustion chamber and turbocharger
9 loss in production .....................…
Demonstrating Capability
Development in specific oil consumption
g/kWh
1,2
1,0
0,8
Mineral oil
Semi Synthetic Oil
0,6
0,4
0,2
hours
32954
37841
Demonstrating Capability
Financial situation after 20000 running hours
9Oil costs:
9Mineral oil =
9Semi-Synthetic oil =
70430 Euro
55780 Euro
9Oil consumption reduced by
18000 ltr over 20000 hour
running period
9Cleaning expense = 6050 Euro
Saving on 1 engine
20698 Euro
Saving on 4 engines
82796 Euro
Summary
The sales process starts because the customers “needs”
something or “has a desire to change or improve”
• Find out and confirm the “need”
• Satisfy the need.
• Demonstrate capability and benefits
• Don’t sell on features.