Creating Your Value Proposition
One of the most fundamental and important questions a sales person needs to answer is: “Why should my prospect choose me over my competitors?”
You need to know the answer(s) to this because it is guaranteed to be a question on the mind of every potential buyer you encounter. To find the answer to that question – you need to answer this first: “What value do I provide that will differentiate me, or set me apart from, my competitors?”
Of course, there should be several answers to this question and deciding which to focus on is a matter of understanding the needs, priorities and values of your prospect. The more of your target market you deal with, the better you will be at guessing which of your Value Propositions is likely to appeal to each person you speak with.
Incidentally the definition of a Proposition is: an idea, offer, or plan put forward for consideration or discussion. That means once you define your value, you need to put it forward to your prospect for consideration, discussion, and ultimately for confirmation that they agree it is of value and interest to them.
A Value Proposition answers the question “What’s in it for me?” from the prospect's point-of-view. It should also convey why you are different and better than your competition. To be the most effective the Value Proposition should ideally be substantiated with facts, or proofs of some form, so that it is not simply an empty claim or marketing rhetoric.
The Value Proposition is most powerful when expressed from a “You” vs. “I” perspective. In other words, talk about why it is important to your prospect, rather than about yourself. For example:
- “We provide next day delivery--guaranteed.” This is focused on you, the seller.
- “You will receive your order the next day--guaranteed.” Is focused on the client. (Incidentally – the “guaranteed” is the implied proof behind the claim).
To determine whether this feature is of value to your prospect or client – you would follow up with a question such as: “Is next day delivery important to you—and why?”
The why is important because it tells you what motivates that buyer. For example, Buyer A could need fast turnaround or their shop floor will grind to a halt costing them dearly in production which impacts their profitability. Buyer B may need fast delivery because they then have to ship the order to their regional offices which delays getting it in the hands of the end user.
Finding out the why behind the value they have confirmed allows you to tailor your offering to meet their needs. In scenario A you may want to let the buyer know that you will keep an inventory of their most frequently ordered items so that they never experience down time. For scenario B you may have the option of sending the items directly to the various offices, saving them time and additional work. Without understanding the why behind the “Yes, next day delivery is important to me,” you cannot address the underlying need. This allows you to customize a solution that can help you differentiate your from your competitors.
Here are some more questions that will help you determine what your key Value Propositions are. Keep in mind you still need to confirm (by asking them) that the aspects of your offering that you think are unique and of value to your prospects are actually something that they consider important.
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What do we do / offer / provide that is unique or different from our competitors that is quantifiable?
Note: "My people, service, and quality" do not count as part of the Value Proposition. This is what your competition is telling their clients as well. - Could our competitors make the same (or very similar) claims?
- Do our competitors make the same claims? (Go look in the yellow pages or on their web site if you are not sure). If so, and it’s important that we be able to make this claim too, how can we present ours differently? (Get creative—many mattresses claimed to be stable no matter how much someone tossed or turned. One mattress showed someone dropping a bowling ball on the bed beside a glass of red wine that didn’t spill. That demonstration allowed them to own the market on that point of differentiation, even though other products had the same feature.)
- How can we prove that our claims are true? (i.e. Do we have letters of endorsement or testimonials from satisfied clients? Do we have a satisfaction guarantee? Have we received an award or external validation of our uniqueness? Do we have testing results? Can we do a demonstration that proves the point? Can the customer try the product or service out? Etc.)
- Why is that uniqueness important to our prospective customer? (What’s in it for them?)
- How can I reassure my prospect that their decision to use me / our company, is the right decision?
- What are some good questions for checking to see if my Value Propositions are important to my prospect?
- How can I introduce my Value Proposition in my initial contacts with a prospective customer?
Once you are crystal clear on the value you provide you will be able to communicate that to your prospects immediately and compellingly. You will answer the question “Why buy from me?” before it ever becomes a point of concern or contention for your buyer.
This proactive behavior will eliminate the competition from the equation. It also demonstrates that you are aligned with your prospect and are concerned about ensuring they receive value from dealing with you. This helps build trust and rapport. All of these benefits will help you be more successful in your sales efforts!
The Power of “Expertise”
There is a saving grace in the tough world of creating your differentiation in the mind of your prospects and clients. If you are positioned properly; and you ‘own’ the hard things, people will grant you with a wider scope. Your customer or prospect's thinking is this: “If they can do something this hard, then they can probably do this other thing for me.”
It’s why people ask their lawyers for investment advice. It is not logical—most lawyers know very little about finance or investments. In fact many of them are abysmal at managing their money. But clients know they are smart, have achieved a certain level of accomplishment, therefore they attribute them with abilities beyond what that person (or company) actually says they sell or provide.
In your business, what’s the hardest task? What’s the thing you do better than anyone else?
Position yourself as the expert at this one task or area, and you will find yourself being asked to provide many other solutions.
