E magazine value proposition

VALUE PROPOSITION VALUE PROPOSITION

Crucial to commercial success Crucial to commercial success

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Introduction

Value propostion

Successful account management requires commitment and effort from both parties. It is not something you do "for" the client, but something you do together with the client.

You provide the right input and structure to help the customer achieve his goals

The PDCA cycle is a perfect tool for continuous improvement and development of the customer. It revolves around four steps: Plan, Do, Check and Act.

So your product or service is a means, not the end. The goal is to solve or complement what the customer needs.

The value proposition must convince the customer to buy. It is a brief but powerful explanation of what problem it solves and the benefits it will give to the customer It also makes clear why the product solves problems better than other similar competitor offerings.

Examples of value proposition

This Dutch bank writes on its site: "We are a bank for young and old, rich and poor, for sole traders, SMEs, Large Companies & Institutions and Corporate Clients. We want to empower these people and companies to realize their own ideas for a better future, no matter how big or small."

This clearly shows that they are for everyone, and what gap in the market they want to fill (banking for all). Again, this has responded to a gap in the market:

ING has made it possible for everyone, including individuals who are not wealthy, to bank and realize their ideas with a good feeling.

ING BANK

A value proposition stands for

Who the offer is intended for, the persona, target audience

What problem it solves, what need is met

What result it delivers to the buyer/user, the benefits, advantages Why to buy from you instead of the competitor

'Your value proposition is the answer to the question;

Why should I buy from you and not from your competition?'

Neil Patel

Crucial to commercial success

Value proposition

As a sales professional, you want to convince your customers to buy your products and/or services.

A good value proposition makes it easier for your customers to see how your products and or services help the customer's needs. In other words; how do your products and or services create values for the customer.

A value proposition can be used in:

Sales and sales material

Promotional material

Websites

Emails

Sales pitch

Benefits of a good value proposition

Increase differentiation from competitors

Bring in more leads/prospects

Higher quality leads/prospects (better conversion)

Increase market share within the target group

More turnover because you convince customers to buy

Ensures that everyone in the organization carries the same message

More satisfied customers because the product "really" adds value

More loyal customers because the organization has proven to add value

Develop products that customers want

Speak the right language to convince customers to buy

A strong value proposition moves your customer to action, which is where you as a sales professional benefit.

A strong proposition moves the prospect to action, to purchase.

"Care enough to create value for customers. If you get that part right, selling is easy"

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Anthony Iannarino sales leader en auteur van The Sales Blog

Value proposition Canvas

The Value Proposition Canvas was developed by Alex Osterwalder, Yves Pigneus, Greg Bernarda and Alan Smith and is part of their Strategyzer series

The Value Proposition Canvas relates to value propositions. According to the authors of the model, a value proposition consists of "the benefits customers can expect from a collection of products and services.

Example Value Proposition Canvas

A case example: the pet store (courtesy of buro koorts)

Suppose you are the owner of the pet store and have conducted research among your customers. From that, four customer tasks emerged, shown in the image below. Your customer wants to train their dog, buy toys, feed their pet and buy dry food It also revealed that they seek a total of four customer benefits, namely convenience, gaining knowledge about nutrition, saving money and buying food for several weeks. Finally, five customer pain points emerged: too expensive, overweight dog due to wrong food, no time to buy, wrong advice and not the right food.

After you complete the customer profile, it's time to look at the value card The products and services you provide are pet food, dog toys, cookies and advice The pain relievers you provide is that you sell diet food, you give discounts, you have high quality food and you are dependent. Finally, your benefit providers. You offer nutrition in advantage packages, you have a wide selection, you are specialized and, finally, you have years of experience. That all sounds good, right? But let's start matching it up. Some examples:

Your customer's job is that they want to buy dry food. You offer pet food, so that's where we see a match. A benefit your customer is looking for is that she wants to buy food for several weeks. She wants to be a customer all at once for the upcoming period. You, as a benefit provider, offer a "benefit pack. So there is a match there as well.

A pain point of your customer is that she does not have time to buy it Your customer works a lot and finds it annoying that she can only visit the store during business hours. But: your business is indeed open only with business hours. There is no other option. So here is a mismatch!

When you discover a mismatch, it's up to you to think about it. Do you want to act on this, do you think it's crucial enough? Then take action In the example, you might think about opening an online store that offers home delivery Or make late night shopping possible, or work with a pickup point Plenty of opportunities!