Solution Selling vs Product Selling: What\’s The Difference?

If you\’re reading a comparison guide between solution selling and product selling, you will likely be a business owner. So, what are these terms and how do they differ?

Well, say you are in the SaaS business and have developed a great new product that tracks remote employees efficiently. So, it\’s an employee management and tracking software. Now there are two ways in which you can approach your leads while trying to sell your product.

Either you will start listing down the features of your software product versus your competitor\’s. This would be product-based selling in a gist; laying down why your product stands out.

Or, you can address the specific pain points that companies face while using a software product like yours, and put forth your product, as a \’solution to their problems\’. This would be a different approach, and this is solution selling in a gist.

Now let\’s break these points down and see how these two approaches work.

 

What Exactly Is Solution Selling?

 

Solution Selling is a customer-centric sales approach where the salesperson focuses on understanding the customer\’s unique challenges and needs. They then craft a tailored solution that combines products and services to address those specific requirements, delivering value and long-term benefits.

Imagine a sales rep working for a software company. Instead of simply pitching their latest software, they take the time to engage with the potential customer, asking questions to grasp the organization\’s pain points. After careful analysis, the sales rep proposes a comprehensive software package that not only meets the customer\’s current needs but also integrates seamlessly with their existing systems, streamlining operations and boosting productivity.

Pros & Cons

Pros:

• Builds Trust: It prioritizes understanding the customer\’s needs, fostering a strong sense of trust and partnership.
• Higher Value: Customers perceive solutions as more valuable than individual products, justifying higher price points.
• Long-Term Relationships: By focusing on customer success, paves the way for long-term relationships and repeat business.

Cons:

• Time-Consuming: It demands more time and effort in understanding customers\’ challenges and tailoring solutions.
• Complex Sales Process: Crafting intricate solutions can make the sales process more complicated and lengthy.
• Skill-Intensive: Sales professionals need strong problem-solving skills and product knowledge to excel.

 

And What About Product Selling?

 

Product Selling is a sales approach centered on highlighting the features and attributes of a specific product to convince the customer to make a purchase. It focuses on the product\’s strengths and how it stands out from competitors.

Picture a salesperson selling high-end cameras in a store. They enthusiastically showcase the camera\’s resolution, advanced autofocus capabilities, and various shooting modes, aiming to impress potential buyers with the product\’s technical excellence.

Pros & Cons

Pros:

• Simplicity: This is straightforward and requires less time, making it ideal for low-involvement purchases.
• Quick Sales: The emphasis on the product\’s features can lead to faster buying decisions.
• Easy Training: Sales teams can be trained quickly on product features and specifications.

Cons:

• Limited Differentiation: In highly competitive markets, this type of selling may struggle to stand out without a unique selling proposition.
• Customer Mismatch: Customers with complex needs might not find the right solution.
• Transactional Relationships: Focusing solely on the product may lead to short-lived, transactional relationships with customers.

 

How Do Product & Solution Selling Differ In Each Stage Of B2B Sales?

So there are majorly three stages in B2B sales. We will first discuss each stage in selling and then compare how product & solution selling operates in each scenario. This will give you a fair idea of how you can approach each stage in the sales cycle.

 

Stage 1: Lead Qualification Stage

This is the initial stage where sales reps assess potential customers to determine if they are a good fit for the product or service. They gather information, evaluate needs, and prioritize leads with the highest chances of converting into paying customers.

Solution Selling In Stage 1:

In solution selling, salespeople begin by identifying the customer\’s challenges and needs. They then assess whether their product aligns with the ideal solution for the customer\’s business or determine which aspects of their product resonate most with the potential buyers.

For example, you may ask the lead, \”Hey, what are the issues you\’re facing with customer relationship management? How big of a problem is it? And, how much time is your team spending on manual tasks daily?\”

Whether they answer, or not, you can follow up with the following.

\”I believe our solution can dramatically reduce that time. Interested in learning more?\”

Product Selling In Stage 1:

Those who engage in product-first selling will emphasize the features of their product and explain what it is, then inquire if the customer is interested in making a purchase. In the lead qualification stage, this approach is likely to fail, as it\’s more of a \’straight to the point\’ kind of approach. This also fails to understand the problems of the client.

 

Stage 2: Giving A Sales Demo & Pitching

In this stage, salespeople present their product or service to qualified leads. They showcase its value and benefits through demos and persuasive pitches, aiming to capture the interest and enthusiasm of the potential buyer.

Solution Selling In Stage 2:

This puts the spotlight on the end result—how the product will impact the prospect\’s life and business. It\’s all about helping them achieve their goals. The pitch from a solution seller is deeply customized, offering the prospect a glimpse of the positive changes they\’ll experience after buying the product.

Product Selling In Stage 2:

Product sellers typically rely on a well-rehearsed sales pitch that they deliver to every prospect, lacking personalization. Their approach revolves around technical details, highlighting product features, functionality, and pricing. Moreover, they often compare the product with competitors to demonstrate its superiority.

In this stage, however, both types of selling are effective, as by this time, the lead is already interested in buying. Knowing about product features can be crucial in this stage, so even during solution sales technique, provide details on the features of your product.

 

Stage 3: Negotiating & Closing The Deal!

Once the lead shows genuine interest, negotiations begin. This stage involves reaching mutually agreeable terms, addressing concerns, and finalizing the deal. Successful negotiations lead to a signed contract and a closed sale.

Solution Selling In Stage 3:

Solution sellers are great at bargaining. They propose a mix of features and an appropriate pricing plan to ensure customers get the best deal. They actively listen and address objections, proving how their product remains an ideal choice.

Product Selling In Stage 3:

Product sellers are tough negotiators. They firmly believe their product holds great value and often attempt to sell additional features. However, they may be less flexible in adapting to customers\’ specific needs, preferring to present the product as it is.

In the final stage, solution selling definitely is the better choice than product-based selling. This is because when the lead has already agreed to buy, why not be flexible and end the deal in a win-win situation?

 

So What Is A Better Approach To Selling?

Selling by concentrating on solutions rather than just products is typically the ideal approach for sales reps. However, it doesn\’t imply that sales representatives should neglect the technical intricacies of the solution they\’re offering. Every customer is unique, and some may desire more in-depth discussions about pricing or features compared to others.