Value Proposition Test - Sales Pitch

Conducting a sales pitch as a smoke test is when an entrepreneur pitches a value proposition to a potential user or customer for the purpose of gathering feedback on a problem. This versatile method can also help us gather insight on a solution we have built and decide whether or not a target market is willing to pay to use our solution. During a sales pitch, we are looking to discover pain points, learn their impact, and confirm that there is value to the customer in solving them, and then to pitch a solution. This is related to the Flyer Smoke Test.
- Will a customer pay money for the product?
- Does the customer see value in the product's value proposition?
- What objection(s) do customers have?
- B2B
- B2C
- Behavior
To paraphrase Thomas Watson, if you are building a for-profit business, nothing really starts happening until something is sold. While it's a test of founder gumption, the primary (learning) purpose of pitching a product is to force the target prospect to make a decision.
As a smoke test, initial sales are particularly valuable when testing in the early stages. The ad copy, product packaging, and value proposition are still up for grabs in a B2C context. In a B2B context, it's often possible to tailor the product or service to the company's needs. Actual sales prove that you have a combination that works in the prospect's eyes.
Tends to vary significantly based on cost of product and method of distribution.
- At one extreme, you have a low-dollar-value product. Figuring out where to sell and place the product tends to take some time. Yet the actual purchase will tend to be an impulse buy.
- At the other extreme, a large enterprise sale can take months, if not years, and many meetings with multiple decision-makers. For the main decision-maker, it's not just a financial decision, as the success of the purchase can impact their career trajectory.
- 1.Establish contact via a channel that is working for you. Traditional techniques include cold calling, door-to-door sales, or piggybacking on existing marketing and lead generation systems (if any).
- 2.Meet with the prospect in person.
- 3.Establish rapport and trust.
- Show warm interest.
- Don't be needy.
- Do your homework and check out the prospect on social media before meeting them (LinkedIn, Facebook, etc.).
- 4.Ask well thought-out and observant questions. Match the customer's motivations with product attributes.
- 5.If/when appropriate, pitch the product.
- 6.After the pitch, expect objections and be ready to handle them.
- This is where you will learn the most about how your prospect perceives your offer and your product.
- Listen closely, and give the prospect a chance to explain what's bothering them.
- If appropriate, repeat the concern back to the prospect to make sure that you understand what they're saying.
- Explore the underlying reasons.
- 7.Close the sale.
- "Does this sound like something you want?"
- "So do you want to pay now or pay next Tuesday?"
- "We’ve got a 20 percent discount for customers who sign up today.”