What value does your company offer to prospects who are looking into buying your product? How is your company different from competitors in the marketplace? What features are the most appealing to buyers? If you can’t answer these questions clearly and succinctly, you may need to re-work your value proposition.
A great value proposition is truly priceless to your business. Your team of sales reps will use the value proposition in almost every conversation they have with prospects, so it better be good! It’s not just a slogan – this statement needs to simply encapsulate a common business problem, explain how your product solves the problem and often includes some of your company’s mission statement for good measure.
Here’s how you can integrate all of these ideas to create a strong value proposition for your company.
Who is Your Ideal Customer?
Before you begin to create a solid value proposition, you have to first identify your ideal customer and target market. Who are you trying to sell to specifically? If you’re trying to reach SMBs, your pitch will be very different than if you’re trying to sell to enterprise-level customers. You can get incredibly specific about your ideal customer – for example you may be trying to sell to a Software-as-a-Service, cutting-edge SMBs based in the US who are heavy users of innovative technology.
Using this information, you can consider what will be most appealing to that customer. Small businesses face different business challenges from large businesses, so you can use that information to your advantage. Play up specific features or capabilities of your product that help this customer save money, become more productive, or can help simplify a difficult process for their business.
Think Like the Customer
Great sales success is all about empathizing with your customer – you have to put yourself in your customer’s shoes and think like they do. If you were talking to a sales rep for the first time, you’d think “Why should I buy this product?” Your value proposition should clearly answer this question for customers, and begin to convince them of the value your company provides. It’s truly the first step in the sales process and thus, has to hook potential customers right away.
The toughest thing to do in this case is to truly think objectively about your company. You’re working inside the company every day, so it’s sometimes tough to imagine what it looks like from an outsider’s perspective. This is why it’s great to get a friend or trusted colleague to offer some outside perspective at this point. Share what you’ve come up with so far for your value proposition, and see how they respond.
The biggest downfall for most companies when crafting a value proposition is staying too safe and too vague. It may seem like if you make your value proposition too strongly-worded, you could be eliminating some potential customers. However, that shouldn’t be your concern. A more specific value proposition will pull in fewer, but much more qualified prospects, who will be more likely to convert to customers during the sales process.
You also have to call out your company’s unique differentiator – what makes you different from the competition – in very specific terms as well. This should convince prospects that your company is the only one that offers this capability, and therefore you’re the one to buy out of all available options. Only you can decide what this differentiator is, but don’t be afraid to experiment a little and change what feature you highlight to find what resonates and is the most effective.
An example of a BAD value prop:
- Offering a unique perspective on business.
Huh? What does this company do exactly? What exactly makes their perspective unique? These are questions that should not come up when someone reads your value proposition.
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All of these statements are very clear about what product the company sells, who can benefit, and why it’s better than the competition. These are all clear, concise and specific statements – exactly what a great value proposition should be. Just remember, A/B testing is your friend. Don’t be afraid to try something new and see how customers respond. But make sure to track your results and analyze what is successful, and what is not. Use these steps when you write your own value proposition, and you’ll be sure to capture more attention from prospects.