I was eating lunch with the new president of a large manufacturing company. She was well aware of the work I’d done with their sales organization. So when I asked about her biggest challenge, I assumed we’d be talking sales. Instead, she answered, “Waste.”
It was so unexpected, I started laughing.
“Waste,” she repeated. “I’m serious.” Then she proceeded to give me a detailed overview of the problem. Finally, she concluded by saying that if a seller approached her and said he could reduce waste by just one percent, she’d meet with him in a nanosecond. Why? Because every penny saved would go right to the bottom line, enabling her to make her goals.
Why You Need to Focus on Results in Your Value Proposition
That’s what a powerful value proposition does. It opens doors quickly. So rather than making more calls or sending out more emails, a better strategy is to analyze what you can change—starting with your value proposition.
What is a Value Proposition?
A value proposition is a clear statement of the tangible results a customer gets from using your products or services. It speaks to the critical issues your targeted buyer faces as well as the outcomes they’ll realize if they switch from the status quo.
In short, your product or service is simply a tool. Buyers only care about the results it delivers. A strong value proposition conveys that message. It lets people know that you make a difference and can help them achieve their objectives.
Strong value propositions are built around tangible, measurable business outcomes.
Clearly articulated value propositions can be used to develop highly effective phone or email messages that highlight your buyers’ primary issues/challenges and the key business results your product, service or solution addresses. They can also be used to create buyer-centric presentations, customized proposals and spot-on marketing initiatives.
Let me be clear though. There is not one single value proposition that rules them all. You’ll have multiple ones, depending on:
- Who you’re meeting with.
People in different jobs can care about radically different things—even when you’re talking about the same product or service.
- The organization you’re pursuing business with
Different industries, varying financial situations, emerging trends and recent trigger events (View Hidden Gems eBook) alter what’s important.
- What you’re selling
The various products/services you sell can have totally different value propositions … so it’s imperative to know your focus.
When you find the right words, people respond to you differently. Customizing your value proposition takes it to an even higher level of attraction.
Based on what I’ve seen, the biggest benefit you get from understanding your value proposition is … (drum roll) … a strengthened belief in your own offering.
When you truly understand the issues you’re solving and the business value you bring to customers, you work harder to get into accounts. You're less discouraged by rejection. You don’t question if there’s a market for what you sell. Ultimately when you know it makes a difference, you sell a lot more!
CHALLENGE: Look at your current value proposition. How effective is it? How can you improve it?