Product knowledge refers to knowing the attributes and characteristics of a product and its applications and limitations. It empowers employees to articulate the value proposition very clearly and also help customers decide best for themselves.
Defining Product Knowledge
Product expertise consists of the knowledge the employees must have about a product. It comprises the characteristics, advantages, cost, different types of usage for a product, competitors, the problems customers face, and the objections they can raise.
One major part of product knowledge training is getting employees to see beyond memorizing facts and figures but to understand how those facts relate to customer needs - that is, the ability of the product to solve a customer problem.
Take the case of a learning technology salesperson and how he should be selling the product - he needs to know the features of the product and then, be able to describe how that product over time solves skills gaps, enhances learning, or supports business goals.
Significance of Product Knowledge
Nowadays, purchasing decisions are more informed and buyers often come to sales reps with questions having already done their homework about a product. HubSpot data claims that a significant portion of sales reps (91%) believe their prospects already know their product when they make the first call.
In this context, product knowledge enables salespeople to present beyond basic information only but to also provide insights, respond to customers' concerns, make their selling point, and identify suitable offerings.
According to research by HubSpot, it is 42% customers that approach salespeople in need of details or the kind of the information you have to give the best product answer. 78% of them say salesperson professional qualifications is a major factor in decision-making or even an extremely important one.
Advantages of Product Knowledge Education
1. It fosters the development of trust with customers through employees who have solid knowledge to rely on when answering questions and who can say what they don’t know without lying.
2. Sales staff can deliver a better experience by matching product advantages with a customer’s particular problems and not relying on the same kind of sales pitch as a salesperson usually does.
3. Employees are better equipped to handle the customers' questions regarding price, functions, features, or alternative products with knowledge and understanding.
4. When product knowledge is on par, service teams also provide better customer care through their understanding of issues and their ability to offer workarounds or alternatives if necessary.
5. Employees who recognize product connections are in an excellent position to cross-sell.
A study by Training Industry showed that through an immersive type method of product learning, stores' staffs learned better and 31 stores that participated in this product learning also noted that their sales increased by 93% and 26% respectively.
Ways To Expand Product Knowledge
Instead of treating product knowledge as only a part of the induction process, the company needs to continuously provide learning.
- Orient employees via brief, focused learning modules specific to particular roles.
- Develop a searchable database where product knowledge resides.
- Introduce demonstrations, and realistic customer scenario situations to the curriculum.
- Empower the employees in the area of competitive product details as well as the nature of objections.
- Conducting short quizzes and evaluations to identify what needs improvement.
- Skill refreshment is necessary every time products, pricing, or marketing positioning, change.
- Giving opportunities for practice along with coaching, that is, reinforcing learning through these ways.
What makes learning from scenarios a powerful technique is that the learners are forced to put their knowledge into action rather than just remember it.
The Evolving Nature of Product Knowledge
With the introduction of AI, the availability of new features, and the increased number of the product release schedules companies are going to see, there might be a need to revise the product info continuously.
Therefore, the most effective combination involves, first, planned product training, second, making the knowledge resources as searchable as possible, third, creating chances for applying the knowledge (practice), and, finally, reminding or refreshing employees on a regular basis. Once product training leads employees, in particular those facing customers, to not only become product knowledgeable but also to be passionate to see why that product is important to customers that they are helping, the level of product knowledge then becomes not just a part of training but a core business competence.
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