Think… could you sell a product or service if you can’t articulate its value?
Or think… would you buy a product or service if you didn’t know what the product did?
Creating a compelling value proposition can have immense benefits for your company:
- Increased revenues
- Faster time to market
- Decreased costs
- Improved operational efficiency
- Increased market share
- Decreased employee turnover
- Improved customer retention levels
Developing a strong value proposition not only makes it easier to connect with your target audience but it establishes a foundation upon which your company’s marketing and sales activities can be built upon.
A value proposition is not your slogan or tag line. It’s not a glowing description of your services and leading edge technology. It’s not information about your company, product or service.
It is….a clear statement about the outcome that an individual can expect from using your product or service.
Creating a compelling value proposition is probably one of the most important projects any company, regardless of industry, will ever undertake. Your value proposition communicates the benefits that your potential customer gets by using your product or service. It’s a short statement that is easily understood and more importantly, memorable to your target audience.
Delivering value requires understanding what your customer wants to accomplish, the challenges they face, what is important to them and then delivering the message in terms that your audience understands. It needs to focus closely on what your customers really want and value.
Essentially, it is a statement that accurately outlines the market you are in, the value of your product or services and the unique benefits your customers can expect.
At IMS our unique approach to creating a successful value proposition is based on our collective industry experience and know-how in your market.
When undertaking a value proposition project for a client we follow a proven strategy that ensures your objectives are met and the bridge between you and your customer firmly closed.
We will conduct a competitor benchmark and determine what makes your offering unique. We will analyse your values compared to that of your competitors across a number of spectrums.
Furthermore, working with you we will ascertain what benefits you deliver to your customers and why customers should choose you. Once armed with this information we can begin putting the story together.
Delivering value requires understanding what your customer wants to accomplish, the challenges they face, what is important to them and then delivering the message in terms that your audience understands.
Who are you targeting?
A good start is to properly define who your target market is. Even if you currently supply to one industry, you can segment your target audience by location, job positions etc.
What do you actually do?
While it sounds like a simple question, this is where many companies struggle. Identify all your products and services and evaluate in detail how they solve your customers’ problems. What are the practical and emotional benefits you deliver? Often you will find a list of areas you are particularly strong in to help you accurately define what you do.
Why have you won business in the past?
A good exercise is to take a number of customer projects you have worked on in the past and identify the reasons you won that business. The 80/20 pareto analysis rule commonly applies here, whereby 20% of your customers determine 80% of your sales. This exercise allows you to focus on where you deliver the most value and why, contributing to your overall value proposition statement.
Who is your competition?
Performing a SWOT analysis on your competition will help you identify areas you are particularly strong in and areas you need to improve. It’s especially important to distinguish your company from the competition. Regardless whether your competition are world leaders or have manufacturing sites throughout the world, you still have something unique to offer, something of value to your customers.
What do your customers think?
Your perception of your company may not be what your customers perceive. You need to talk to your target audience and evaluate what they think of you, what they value and what areas they would like you to develop further.
By teasing out these areas and analysing them, you have a strong basis for creating a unique value proposition.
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