By Debbie Depp
If you don't know and/or can't articulate what fundamental
value you provide to a customer, (e.g. How is the customer
better off when you leave?), then how can a prospective
buyer know what it is?
Many people struggle with this because they prefer
to do what's comfortable or interesting or trendy, but
they don't want to try to associate their inputs with
actual customer outputs. Sorry, but no one really cares
about what you do or how committed you are to it. They
only care about how they are better off. I'm amused
by companies who tell me about their 'vision, mission,
and values'. As a customer, I don't care. I care about
what mine are and how you can help me achieve them.
The value proposition is NEVER about what you do. It
is always about how the customer benefits - a business
outcome. What do they receive by having a relationship
with you? You're creating competitively dominant customer
experiences. It can also serve the purpose of creating
a brand for you (image, reputation, position). The value
proposition is not a 'how' but a 'what'. That means
it is virtually never your methodology or approach,
but rather an outcome. That also means it's an output
not an input. And it's always phrased in terms of the
buyer's benefit.
It's a concise and articulate rendition of how you
improve a customer's condition. A value proposition
describes the result the buyer achieves as a consequence
of doing business with you. How is the customer's condition
improved after you walk away? Build on your strengths.
Value propositions don't have to be clever or cosmic.
But they should be clear, concise, and compelling enough
to induce the buyer to say, "Tell me more" or "We probably
need that." In delivering a value proposition,
you don't want to talk too much. You want to listen.
It's not about giving the right answers; it's about
asking the right questions. A value proposition whets
the appetite, prolongs the initial conversation, and
gets the customer talking. Then you're able to zero-in
on just where your competencies can most dramatically
improve the customer's condition, using what you've
just heard.
A winning value proposition is the one that best meets
the full set of customer needs, including price. That
is, certain critical elements of the experience deliver
on the customers' most important needs better than the
competition. The key is the customer experience. You're
creating mutually beneficial value exchanges with customer
segments.
Your website, collateral materials, brochures, slides,
handouts, and especially your conversation should reflect
a consistent value proposition and therefore, assist
in a long-term branding process. Value propositions
can and should change. You can and should have several
value propositions, which may or may not be synergistic,
depending on your offering.
The sale is made in the customer's mind and heart;
therefore you need to decide what you want customers
to think about.
- What does your company communicate?
- What does your customer perceive?
- What singular feature stands out in the market?
Think of yourself as a trusted advisor, when you ask
yourself these questions. And remember, logic makes
people act; emotion makes people buy.
- How is the customer better off after you walk away?
- What is the improved state that the customer has
achieved?
- What have prior customers said about your success
for them?
- What is the main reason that customers have bought
from you?
- What is your main reputation or brand at the moment?
- What has changed most about the customer's product,
service, or relationships with their customers?
- Why have you acquired repeat business?
- Why do customers refer you to new business sources?
- What part of the organization is most profoundly
affected by your offering?
- What types of employees are most profoundly affected
by your offering?
- Develop your value propositions.
- Practice stating them conversationally.
- Work them into all of your materials.
If you do that, it will probably result in more sales and better margins. How's that for a Value Proposition?
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