Unfortunately, many sales presentations and proposals contain no value proposition at all--even when the vendor has a good story to tell.
If we don't spell it out for the customer, they probably won't figure it out for themselves. They may not have the time, may not see how our unique products or approaches can add value, or may assume that all vendors are the same. In the attached message, we look at ways to improve the impact of your value proposition.
That is our topic this time.
Regards,
Your Value Proposition--Creating an Impact
Bringing a deal to closure can seemingly take forever. It may be even more difficult today than ever before. Think about the characteristics of selling in today's markets.
Here's a question for you: Would you rather buy customer support software that costs $10,000 or $35,000?
Everything being equal, that's not a hard choice, is it?
But what if the $35,000 package includes free training, maintenance, and upgrades. And what if it works so much more efficiently, you can reduce your customer support staff by one full-time equivalent position? Now which one is more tempting?
It's the difference between price and value. And sometimes we forget to show our customers what that difference is. We need to communicate a value proposition that equates to an advantage for our solution. The basic value proposition can be expressed like this:
(Values - Costs > (Valuea - Costa)
where the value of our solution (Values) minus its cost is greater than the value, minus cost, of any alternative.
Customers are often willing to spend a little more if they see they are getting a lot more. But if there's no compelling difference among vendors, if there's no compelling value proposition, they'll buy whatever is cheapest.
That's why it's so important to offer a value proposition. And to do it in a way that gets noticed.
Here are some tips that will help you create a big impact with your value proposition:
1. Focus on what the decision maker cares about.
A good value proposition should demonstrate impact in an area the customer cares about. If the customer is trying to reduce the cycle time involved in processing data, focusing your value proposition on reduced training costs for operators is a little bit off the mark.
2. Quantify the impact of your value whenever possible.
For most decision makers, numbers are more convincing than words. That's especially true if you've based your numbers on data the customer has shared with you. The second-best source of numbers is information published through public sources--trade associations, for example.
3. Show the impact graphically.
A study by the University of Minnesota showed that a graphic could increase the persuasiveness of a piece of text by 47%. There's probably nothing you want to be more persuasive than your value proposition, so show it in the form of a simple graphic.
4. Base your value proposition on your uniqueness factors.
What differentiates you from your competition? And how do those differentiators add value for the customer? Those are very important questions that you must be able to answer if you're going to create a value proposition that doesn't set up your competition. A value proposition based on general characteristics of your solution--characteristics that all vendors have in common--doesn't give the customer a compelling reason to buy from you.
Ask yourself: What separates us from our competitors? Name them and brainstorm the differences. Then ask how those differences add value. Second, ask yourself what you do in the customer life cycle that nobody else does, or what you do in a way that's significantly different from the way others in the industry do it. These are the two ways to find differentiation.
A final note: Don't confuse product features with differentiators. Features are usually a short-term advantage. You're better off looking for differences in the areas of systems or methods.
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