The Value for a Value Proposition
Drew Stevens PhD
I work with many business owners and selling professionals.When I ask them what they do they immediately rush into their title. Eachstates, "I am the President of a Bank", "I am a Consultant", "and I am aProfessional Speaker". If I were a client and heard this I immediately state,"So What"? Professionals today refrain from their titles and occupations in theservice business and speak with the reply to "So What"? The method for doing sois known as a Value Proposition.
What is a Value Proposition? Simply put, a value proposition is a pithy statement that promotes thebusiness to clients using outcome and results. This brief statement denotes thebenefit(s) that a client receives from working with you. It is outcome basedand focuses all attention on client outcomes not process, method or anythingfurther.
Most companies lack a useful value proposition. Research illustrates that many firms (93%) focuson 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 andleadership development.
These are not value propositions. While they indicatefactual information about the organization; they do nothing else but focus onthe organization. The entire purpose of a value proposition is to focus on solebenefit to the client.
Why have a value proposition? The proliferation of both the Internet and small business has createda conundrum of noise and activity around clients. That said it is vital foryour services to be heard. Organizations today require focus on two complicatedissues productivity and profitability- your mission is to create a succinctmessage that addresses these concerns to the decision maker.
Be mindful, this is not an elevator speech. The valueproposition succinctly addresses the concern. Dependent the offered results thestatement might also help with brand! A perfect example is FedEx- absolutelyguaranteed to be there overnight. Not only is this one of the most powerfulvalue 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 distinctivemarkets.
- Provides a better source of lead generation.
- Accomplishes quicker time to market.
- Enables selling professionals to expediently get infront of decision makers.
What methods can I use to develop one? This tool contains no more than 10 to 15 wordsfeaturing as many adjectives as possible. Valuepropositions have these characteristics:
•Focus on what the buyer gets, it is outcome based
•Results focused that uses colorful words to gain the attention
• Generalin that the statement can appeal to any industry dependent on need
Here is an example to develop a value proposition:
1. A poor valueproposition:
- We help create a fitindividual
2. A good valueproposition
- We have a 7-Stepprogram for better abdominals
3. A great valueproposition
- We dramaticallyaccelerate results that match your individual fitness desires
How can an organizationor individual develop a value proposition? The concept fordeveloping a statement is not difficult to achieve yet takes patience. It isvital 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 andresults 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 inmeeting client's needs?
4. What are your core values that provide results to clients?
5. What an individual or organizational values, stated and/orimplied provide value to clients?
6. How does the organization minimize client risk and provide areturn on investment?
These are only a few of the many questions that can be askedto begin crafting a message. Do not expect to obtain a statement overnight yetdo not belabor it either. Too many organization spend countless hours onmission, vision and values yet the organizational culture does not exemplifythe creed or shamefully do not understand it. However, if you desire betterresults for your sales and marketing efforts it is best to begin with askingquestions focused on client value and return on investment- to the client. Ifyou cannot gain the answers the best source, your clients! Testimonials andcase studies are great examples of value. Take their statements and simplydevelop them into benefit-based sentences.
It is imperative to understand that no magic formula existsfor the creation of a value proposition. Further, it is an often overlooked andunderutilized tool. And, organizations typically confuse mission and visionstatements with this benefit based phrases. However, when researched, reviewedand required, these thought provoking statements might assist your organizationto break away from the pack. The drafting of an articulate message might besplit second differentiator between a cursory review of your competitor'sbrochure or phone call and yours. Craft a new message, speak of value andresults and watch the gap widen.
About Drew Stevens PhD
Drew Stevens PhD is known as the Sales Strategist. Drewassists organizations to dramatically accelerate business growth. He is theauthor of seven books including Split Second Selling and Split Second CustomerService and Little Book of Hope and is frequently called on the media for hisexpertise. Drew was recently nominated as one of 50 Top Sales Experts. Downloada FREE copy of Drew's White Paper on "Selling Effectiveness" or "BusinessBuilding" e-book at www.gettingtothefinishline.com.