Customer Benefit Plan

While purchasing products, customers weigh options and choose the product that they stand a chance of benefiting more from its consumption. These benefits are termed customer benefits. In a nutshell, consumer benefits are reasons why a commodity or service is valuable to a customer. The benefits may be core, expected, or augmented benefits. Core benefits are the main benefits of a product; expected benefits are hardly stated but anticipated by consumers, while augmented benefits are added value or unexpected benefits from consuming a product. On the other hand, a customer benefits plan is a salesperson’s tool of work consisting of information used during a salesperson’s sales and marketing presentation or conversations. It is, therefore, necessary to assess the major components of a customer benefits plan.

There are four major components of a customer benefits plan: FABs, Marketing Plans, Business Proposals, and A suggested Purchase order. In sales, FABs stand for Features, Advantages, and Benefits of a product or service. FABs outline a product’s characteristics, beneficial components, and advantages gained from using it. The salesperson uses this document as a basis for their sales and marketing tactics. Marketing plans are also significant components of a customer benefits plan. A marketing plan outlines the sales and marketing strategy that the salesperson intends to adhere to in the work process. In addition, it includes new market entries and market research to support the pricing decisions.

Business proposals are also essential in a customer benefits plan. A business proposal, in this case, is a document used by a salesperson to convince an organization or a  customer to purchase their commodity. The proposal describes the product and why it is necessary to buy it. Finally, a salesperson must include a suggested purchase order to their customer benefits plan. A proposed purchase order is a suggested list of products, quantities, and prices that salespeople use in their sales and marketing tactics. Majorly, a proposed purchase order helps discuss the cost benefits that the client stands to gain from purchasing the salesperson’s products.

Case Study: What is the difference in developing a customer benefits plan for a General Foods salesperson selling consumer products versus an industrial salesperson selling products for a company such as IBM?

 Developing a customer benefits plan for these two diverse sectors requires different approaches. Notably, one involves consumer products while the other involves industrial products. For instance, in developing the Customer Benefit Plan for a general food salesperson, much of the focus should be on the benefits to the salesperson and the company. Consumer products are final products (Heinemeyer, Jantunen &  Hakinen, 2020). Hence once consumed, the salesperson and the industry cannot benefit further from the product. Therefore, a salesperson should be keen to ensure that they note the benefits they gain and their industry from the sale of their products. On the other hand, IBM is a vast corporation dealing with industrial products (computers), which are sold to be used to produce other goods. Once sold, benefits accrue once the product serves the purpose of making other goods.  This reason necessitates creating a consumer benefit plan that should be on the benefits to the entire corporation. Generally, the consumer benefit plan for consumer goods focuses on the benefits to the salesperson and the industry. In contrast, the IBM consumer benefit plan focuses on benefits to the entire corporation.