A value proposition answers your prospect’s question: “What value will I realize if I do business with you?”
A vast majority of sales people and business owners answer this question by providing a rundown of their business qualifications.
- We serve over 150 customers just like you
- We’ve been in business for 15 years
- Our staff of 22 are all very bright and highly committed to serving our customers
As interesting as those pieces of information may be, they are from the perspective of the seller and put the buyer in the position of having to dig for information that might be relevant or of value to them. In every sense, a poorly executed value proposition relies on the prospect to figure out the value of doing business with you.
The world of business is fast paced and full of options. As a result, decision makers strive to get a high return from whatever or whomever they decide to spend their time with. If your goal is to become a part of their business conversation, then you need to be prepared to take advantage of the opportunity by being able to deliver a brief, direct, and to the point value proposition. And, you need to ensure that your approach emanates from the perspective of your prospect or customer.
There are 4 key elements to a compelling value proposition:
- State whether you will help them increase or decrease one of their key business drivers.
- Identify the actual business driver your product or service will focus on. For example, will you help increase “revenues”? Or perhaps you will you help them decrease “costs.”
- State the volume of the increase or decrease they can expect. In other words, “how much”?
- Lastly, give them a time frame of how long it will take.
Here is an example of one of my value propositions that I’ve found to be highly effective:
- “I help my clients increase the number of qualified opportunities in their pipeline by 50% in a 90 day period.”
Take the time to really analyze your value proposition. Follow this formula and tailor it to ensure it is relevant to your product or service and your buyer. Ask yourself if it provides a prospect with enough relevant information to get him or her interested in finding out more about the benefits of doing business with you and your company. When it does, they will be curious to learn more about how you plan to deliver on what you’ve told them.
A good value proposition can take the conversation to the next level. Make sure it’s relevant and all about them, and once again you will be sharpening your competitive edge.
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