How to Create a Compelling Value Proposition
A value proposition answers your prospect’s question: “What value will I realize if I do business with you and what makes you and your company unique?”
The vast majority of salespeople answer this question by providing a rundown of the “features” of their product or service and their company. Things like:
We serve over 150 customers just like you
We’ve been in business for 15 years
Our staff of 22 are all very bright and highly committed to serving our customers
As interesting as those pieces of information may be, they are from the perspective of the seller and put the buyer in the position of having to dig for information that might be relevant or of value to them. As a result of buyers today having very little patience it’s unlikely they will do the work.
The world of business is fast paced and full of options. As a result, decision makers strive to get a high return from whatever or whomever they decide to spend their time with.
If your goal is to become a part of their business conversation, then you need to be prepared to take advantage of the opportunity by being able to deliver a brief, direct, and to the point value proposition. And, you need to ensure that your approach emanates from the perspective of the value your prospect or customer will receive. (And by the way, that value needs to be relevant to the business they are in and aligned with some of the typical objectives a business in their vertical market might have.)
There are 4 key elements to a compelling value proposition:
State whether you will help them increase or decrease one of their key business drivers.
Identify the actual business driver your product or service will focus on. For example, will you help increase “revenues”? Or perhaps you will help them decrease “costs.”
State the volume of the increase or decrease they can expect. In other words, “how much”?
Lastly, give them a time frame of how long it will take.
Here is an example of a value proposition that I use to capture the attention of a president or owner of a small to medium sized company:
· “I help my clients increase the number of qualified opportunities in their pipeline by 50% in a 90 day period.”
Take the time to analyze your value proposition. Follow this formula and tailor it to ensure it is relevant to your product or service and your buyer.
Ask yourself if it provides your prospect with enough relevant value to pique their interest and motivate them to want to know more about the benefits of doing business with you and your company.
A good value proposition can take the conversation to the next level. Make sure it’s relevant and all about them, and you will be sharpening your competitive edge.