Business Insights ‘Leading edge thinking for growing your business and unlocking your people potential’
‘How compelling is your value proposition?’ One of the biggest challenges any business professional faces in today’s 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 www.pti-worldwide.com
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 you’re in sales, customer services,
management, or whatever your role, you’re probably passionate about what you do. You’re enthusiastic about your products and services, you believe they’re 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 products…which may not always reflect your customer's motivations!
When talking about your products and services in this manner, your message often sounds to your customers as;
This is what I sell, and I’m running “through a long list of reasons why I think you should buy it. ”
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 product’s features or capabilities.
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’
Here are a few examples of weak value propositions: However, what your customers want to hear is a clear statement that demonstrates that you understand their situation and their needs. 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 service’s features.
• ‘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 that’s 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 what’s in it for them, and the benefits to them…and that's all customers’ care about.
The superior man understands “what is right; the inferior man understands what will sell.” - Confucius
DO NOT explain the product or services that you are selling, or embellish its features.
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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, you’ll get the decision maker's attention even faster.
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 one…they just get caught up describing ‘what’ they make or ‘how’ they do things.
“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
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. Pti Worldwide PO Box 4109 Warwick Warwickshire CV34 9AY W: www.pti-worldwide.com T: +44 (0)870 850 8931 E: enquiries@pti-worldwide.com
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