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Is Your Value Proposition Strong Enough? When I first launched this website several years ago, I sent out a newsletter announcing it to all my subscribers. The next day I received an email that said: "You did a good piece of selling in the email. I read all the way to the bottom, and I had NO intention of doing so when I glanced at it. You must know your stuff!"While I enjoyed the compliment, what really surprised me was that it was signed by a professor in the Pharmacy Sciences Department of Creighton University. What in the world was a PhD doing reading my newsletter on sales-related topics? It wasn’t logical. So being the curious (or nosy) person that I am, I emailed back and asked him why. Turns out that he and a colleague were starting a consulting practice. When they told me about it, I was floored. They have one of the best "value propositions" I’ve heard in a long time! But before I tell you what it is, let me define what that term means. A value proposition is a clear statement of the tangible results a customer gets from using your products or services. The more specific your value proposition is, the better. Most people and companies have lousy value propositions. They're weak – and I mean really weak. Often they're just regurgitated descriptions of their features, processes or capabilities. Or they're filled with self-aggrandizing puffery. Here are a few examples of weak value propositions: • We have the most technologically advanced and robust system on the market. • I improve employee communications and morale. • We offer training classes in a wide variety of areas. • Our product was rated the best-in-class by leading authorities. You're probably saying, "So what?" That’s exactly what most customers think when you share a weak value proposition. They've heard lines like that a zillion times before and don't believe you one little bit. Besides, you haven't shared what's in it for them – and that's all customers care about. With today's tight economy and overburdened decision makers, you need to have a strong value proposition to break through the clutter and get their attention. That means you need a financially oriented value proposition that speaks to critical issues they’re facing. And, by including specific numbers or percentages you get the decision maker’s attention even faster. Now back to the two professors. In researching various Pharmacy Benefit Managers (these are the companies behind your prescription drug card), they found that some firms are much better deals than others. One of their clients switched to a plan they recommended and saved $800,000 in the first 6 months without reducing services to their employees. Now that’s a really strong value proposition. I can't imagine any Chief Financial Officer turning down an appointment with these professors after hearing those figures. Let me give you another example. A while back I was having lunch with the president of a $1/2 billion division of a major corporation. She told me that if someone called her and said he could reduce waste by just 1%, she’d meet with him immediately. Now a 1% saving seemed miniscule to me, so I asked her why. She told me that she knew exactly how much her company spent on waste – and it was a big chunk of change. Every penny she saved went right to the bottom line as more profits. Strong value propositions deliver tangible results like: • Increased revenues • Faster time to market • Decreased costs • Improved operational efficiency • Increased market share • Decreased employee turnover • Higher customer retention levels Documented success stories are great for attracting prospective buyers too. That's why the professors have such a compelling value proposition. Here's one last example: I have a Mentoring Program that helps people and companies boost their sales. I could easily describe it as 'telephone consulting.' But it's far more effective to tell you about the regional engineering firm I helped land a huge contract (it grew to over $1 million in 6 months) even though they were the underdogs. This story significantly enhances my credibility and demonstrates I deliver results. 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 enough yet, don't despair. Most people and companies have a much stronger one than they use. They just get caught up describing “what” they make or “how” they do things. Here are several things you can do right now to enhance your value proposition: 1. Brainstorm with Your Colleagues Review your marketing material and what you say to customers to get their attention. If you’re not talking tangible results, keep asking each other, 'So what?' • So what if it's an efficient system? • So what if we have a replicable process? • So what if it's high quality? • So what if communication improves? By asking this question over and over again, you get much closer to the real value you bring to customers. 2. Go Talk to Your Customers Your existing customers are your best resource to find out what value you bring. Tell your customer you need help understanding the real value of your offering and you’d like a chance to learn their perspective. When you ask for feeback, you open yourself up to hearing the not-so-good things too. Make sure you don’t get defensive; if you do, your customer will shut down fast. Most people are scared to ask their customers about this. I know it took me awhile before I dared, but what I learned from the exercise was invaluable. Don't let another day go by with a weak value proposition. A strong one literally opens the doors for you, while a weak one keeps you on the outside - especially during tight economic times. Work on your value proposition today! ______ Jill Konrath, sales strategist and bestselling author of Selling to Big Companies and SNAP Selling, is a frequent speaker at annual sales meetings, kick-off events and professional conferences. For more articles like this, visit www.SellingtoBigCompanies.com. Sign up for the newsletter and get a BONUS Sales Call Planning Guide. |
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