Once you’ve diagnosed a customer’s problem and ensured the customer understands its causes, associated costs, and consequences, you need to show the customer how a solution you propose can solve the problem.
As you work with the customer to determine the best solution, you need to ensure the solution you propose provides enough value for the customer and how much the customer will have to invest in the solution. Customers are more likely to support solutions that generate value for them, so it’s vital to focus on the value you can provide.
Viability of a solution
The viability of a solution will depend on two factors: the cost of the problem and the value of the solution. For a solution to be viable and worthy of a customer’s investment, its value must be greater than the cost of the problem. If the value of the solution is less than the cost of the problem, the customer is probably wiser to maintain the status quo.
To determine the cost of a customer’s problem (CoP) you add the direct costs, indirect costs, and costs of missed opportunities associated with that problem.
To calculate the value of the solution ( VoS) you subtract the cost of the solution (CoS) from the expected positive financial impact of the solution ( FoS). The financial impact of the solution refers to the amount of revenue the solution will generate or the decrease in expenses it will cause.
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