Once in a while, we get a different type of project that gives us new ways to think about value-based selling. We recently had the pleasure of working with an organization that sells to higher education institutions. We had to think about the dynamic of selling in a non-profit instead of a traditional B2B model. Here are some takeaways from our engagement:
Understanding your customer (Know your audience)
Effective value identification starts with understanding your customers. In the case of higher education, the customers could differ significantly depending on several factors, like the size and type of institution. This will determine how well your offering fits customer needs and who the decision-makers could be.
In our case, larger institutions with significant research funding received much more value from our client’s offering than smaller teaching-focused institutions. It became apparent that the communication of offerings needed to be adjusted to meet the needs and values experienced by different institutions.
Monetary value may not be the most impactful (Cash is not always king)
The promise of increased revenue is often not the most important value driver for buyers in the non-profit space. These non-monetary value drivers can sometimes be intangible or difficult to quantify. Sellers will need to have value-based conversations to uncover value drivers that truly matter to the buyer – and in this case, things like work-life balance, equality, and quality of teaching were directly aligned with the institution's values and mission but difficult to quantify.
However, we still recommend having strong quantifiable value drivers because leadership in higher education is increasingly data-dependent in their decision-making and budgets are constantly tightening. ROI and financial benefits are increasingly being considered as purchase decision criteria.
Competing value for a limited budget (Be creative in lean times)
Higher education budgets can swing widely depending on politics and institutional changes. We are entering into a tightening cycle with the incoming presidential administration, and the competition for your offering might be other priorities fighting for the same budget rather than competitors with a similar product.
To be successful, sellers could benefit from finding additional values for the buyers. One way to do that is to identify other parties within the institution who could benefit from your offering. This may require learning more about other stakeholders within the institution, other departments, other colleges, or even individual faculty. By broadening the stakeholders, we can help our buyers realize more value, making the purchasing decision easier.
Successfully selling to higher education institutions requires a deep understanding of the audience, a nuanced approach to value communication, and strategic alignment with institutional priorities. By tailoring messaging to different types of institutions, recognizing the importance of non-monetary value drivers, and navigating budget constraints with a broader stakeholder approach, sellers can position their offerings more effectively. In an environment where financial pressures and competing priorities are constant challenges, the key to success lies in demonstrating both tangible and intangible value while aligning with the institution’s mission and goals.
