Business Insights
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unlocking your people potential
How compelling is your value proposition?
One of the biggest challenges any business professional faces in
todays crowded market, and perhaps even THE biggest is effectively
communicating your story or your mission statement.
Take a minute to consider what value your business and its
products and services deliver, who it is delivered to and how it is
delivered.
Why is your value proposition so important?
In simple terms, a 'value proposition' is the sum of the total
benefits that customers receive when they purchase a specific
product or service from your organisation. Your product or service
value proposition is a powerful, compelling statement designed
to capture the mind and the heart of your customers by
demonstrating a relevant advantage in buying from you. It is
usually articulated as part of your brand reputation in advertising
or marketing collateral, as a tag line appearing on product
packaging, or communicated directly when speaking with your
customers. Getting the value proposition right for what your
business sells is so important, because it provides the basis for
your business relationship with your customers; it answers the
question foremost in every customer's mind:
Why should I buy from you?
Does your value proposition communicate effectively?
Whether youre in sales, customer services,
management, or whatever your role, youre probably passionate
about what you do.
Youre enthusiastic about your products and services, you believe
theyre better than your competitors and understandably, want to
tell as many people as possible about them - how your food is
tastier, how your clothes are more fashionable or how your software
has better functions.
The problem is that when you use this style of language to talk
about your products, the core message you are communicating is
centred on your own view of your productswhich may not always
reflect your customer's motivations!
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When talking about your products and services in this manner,
your message often sounds to your customers as;
This is what I sell, and Im running through a long list of
reasons why I
think you should buy it.
However, what your customers want to hear is a clear statement
that demonstrates that you understand their situation and
theirneeds.
You recognise the challenge they wish to solve, or the outcome
they wish to achieve, and you provide a specific offer or
explanation as to how you are going to help them to address their
situation.
Ideally, the value proposition will not only explain how owning
your product or using your service will allow them to achieve a
desired outcome; it will also explain why your business is uniquely
positioned to create that outcome!
The most important guiding principle for creating a compelling,
customer-focused value proposition is
The value proposition should focus on your customer's needs, NOT
on the product or services features.
DO NOT explain the product or services that you are selling, or
embellish its features.
INSTEAD, detail the benefits to the customer of owning your
product or using your service.
Most people and businesses have lousy value propositions.
They're weak - and we mean really weak. Often they're simply a
description of the products features or capabilities.
Here are a few examples of weak value propositions:
It's the most technologically advanced and robust system on the
market
We improve communication and morale We offer training classes in
a wide variety of areas My product was rated the best in class
by leading authorities
You're probably saying "so what?" to the above examples, and
thats exactly what most customers think when you share a weak value
proposition with them. They've heard lines like that a zillion
times before and don't believe them one little bit! Besides, they
still don't know whats in it for them, and the benefits to themand
that's all customers care about.
With today's tight economy and overburdened decision makers, you
need to have a strong and compelling value proposition to really
get their attention. In essence, you need a financially oriented
value proposition that speaks to the critical issues they're
facing. And by including specific numbers and/or percentages, youll
get the decision maker's attention even faster.
Now here is a much stronger value proposition:
Our clients grew their business typically by a minimum of 30 50%
over the last 12 months. They did this without having to work 80
hour weeks and sacrificing their personal lives
In summary
So how does YOUR value proposition look? Can you describe what
you do in terms of tangible business results? Do you have
documented success stories?
Or, do you need to do some work to enhance your value
proposition? If it's not strong and compelling enough yet, don't
despair, most people and businesses already have a much stronger
onethey just get caught up describing what they make or how they do
things.
Don't let another day go by with a weak value proposition. A
strong one can literally open doors of major potential customers
for you, while a weak one keeps you on the outside.
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Pti WorldwidePO Box 4109 Warwick WarwickshireCV34 9AYW:
www.pti-worldwide.comT: +44 (0)870 850 8931E:
[email protected]
The superior man understands what is right; the inferior man
understands what will sell.
- Confucius
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To discuss how we could support you in creating your compelling
value proposition, differentiate you and your business in a
crowded market place and aid your business growth, just get in
touch
Laura Wrigley Marketing Manager
