I work with many business owners and selling professionals.
When I ask them what they do they immediately rush into
their title. Each states, "I am the President of a Bank",
"I am a Consultant", "and I am a Professional Speaker". If
I were a client and heard this I immediately state, "So
What"? Professionals today refrain from their titles and
occupations in the service business and speak with the
reply to "So What"? The method for doing so is known as a
Value Proposition.
What is a Value Proposition? Simply put, a value
proposition is a pithy statement that promotes the business
to clients using outcome and results. This brief statement
denotes the benefit(s) that a client receives from working
with you. It is outcome based and focuses all attention on
client outcomes not process, method or anything further.
Most companies lack a useful value proposition. Research
illustrates that many firms (93%) focus on process and not
client outcomes. Exemplars include:
- We provide sales training.
- Our assessments assist with personality profiling.
- We analyze your issues with a needs assessment.
- Our model incorporates organizational redesign and
leadership development.
These are not value propositions. While they indicate
factual information about the organization; they do nothing
else but focus on the organization. The entire purpose of a
value proposition is to focus on sole benefit to the client.
Why have a value proposition? The proliferation of both the
Internet and small business has created a conundrum of
noise and activity around clients. That said it is vital
for your services to be heard. Organizations today require
focus on two complicated issues productivity and
profitability- your mission is to create a succinct message
that addresses these concerns to the decision maker.
Be mindful, this is not an elevator speech. The value
proposition succinctly addresses the concern. Dependent the
offered results the statement might also help with brand! A
perfect example is FedEx- absolutely guaranteed to be there
overnight. Not only is this one of the most powerful value
propositions in the world but one of the best brands.
There are other reasons for writing a value proposition:
- Distinguishes you from the competition.
- Distinguishes you and the organization in distinctive
markets.
- Provides a better source of lead generation.
- Accomplishes quicker time to market.
- Enables selling professionals to expediently get in front
of decision makers.
What methods can I use to develop one? This tool contains
no more than 10 to 15 words featuring as many adjectives as
possible. Value propositions have these characteristics:
• Focus on what the buyer gets, it is outcome based
• Results focused that uses colorful words to gain the
attention
• General in that the statement can appeal to any industry
dependent on need
Here is an example to develop a value proposition:
1. A poor value proposition: - We help create a fit
individual
2. A good value proposition - We have a 7-Step program for
better abdominals
3. A great value proposition - We dramatically accelerate
results that match your individual fitness desires
How can an organization or individual develop a value
proposition? The concept for developing a statement is not
difficult to achieve yet takes patience. It is vital to
look at the organization from a customer or competitive
view. Questions to answer are:
1. "What does your organization do that from a benefit and
results perspective stands head and shoulders above any
competitive pressure"?
2. What results to clients achieve with you?
3. What is the organization extremely passionate for in
meeting client's needs?
4. What are your core values that provide results to
clients?
5. What an individual or organizational values, stated
and/or implied provide value to clients?
6. How does the organization minimize client risk and
provide a return on investment?
These are only a few of the many questions that can be
asked to begin crafting a message. Do not expect to obtain
a statement overnight yet do not belabor it either. Too
many organization spend countless hours on mission, vision
and values yet the organizational culture does not
exemplify the creed or shamefully do not understand it.
However, if you desire better results for your sales and
marketing efforts it is best to begin with asking questions
focused on client value and return on investment- to the
client. If you cannot gain the answers the best source,
your clients! Testimonials and case studies are great
examples of value. Take their statements and simply develop
them into benefit-based sentences.
It is imperative to understand that no magic formula exists
for the creation of a value proposition. Further, it is an
often overlooked and underutilized tool. And, organizations
typically confuse mission and vision statements with this
benefit based phrases. However, when researched, reviewed
and required, these thought provoking statements might
assist your organization to break away from the pack. The
drafting of an articulate message might be split second
differentiator between a cursory review of your
competitor's brochure or phone call and yours. Craft a new
message, speak of value and results and watch the gap widen.
----------------------------------------------------
Drew Stevens PhD is known as the Sales Strategist. Drew
assists organizations to dramatically accelerate business
growth. He is the author of seven books including Split
Second Selling and Split Second Customer Service and Little
Book of Hope and is frequently called on the media for his
expertise. Drew was recently nominated as one of 50 Top
Sales Experts. Download a FREE copy of Drew's White Paper
on "Selling Effectiveness" or "Business Building" e-book at
http://www.gettingtothefinishline.com .
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