When you hear the term ‘value proposition’, you start to tune out the conversation because you feel like you just picked up on a managerial buzzword and you’re pretty sure where this discussion is heading. It’s just another way to talk about our elevator pitch. Clearly we could spend our time talking about something more important than a value proposition. Great quality, price, awesome customer service; that’s where this is all going to go. But what is a value proposition anyway? State simple, it is a concise statement that communicates the unique features of what you sell that actually matters to a customer. The two important words here are ‘unique’ and ‘matters’ and these are also the most difficult for salespeople to figure out and communicate.
I agree that the term ‘value proposition’ feels stale anymore, but it is sorely overlooked and dismissed by salespeople which means they are missing both the point and the opportunity. Salespeople naturally default to price, quality and service when they present their sale thinking those are really the only things the customers are concerned about. The only problem is that your competitors are touting those very same things and, in the end, it’s only going to come down to price if those are the only 3 things you discuss. In other words, it is not unique but rather a baseline expectation of your customer. The value proposition is your opportunity to set yourself apart from the customers options in a way that matters to them. Sure, you can sprinkle in hints of quality and service, but that usually won’t be memorable to a customer. The value proposition is your chance to connect with customers in a meaningful way that marginalizes your competitor to the point where they can and will become irrelevant. Here are the top 5 reasons why a value proposition is important to both you and the customer.
Distinguishing – What sets you apart from your competitors that (and here’s the trick) is something that few, if any of your competitors can claim? Your value proposition needs to set you apart from everyone else.
Memorable – If your value proposition matters to your customer, that it will be something they remember. It is not easy for salespeople to be remembered (at least for good reasons) but a good value proposition will do that for you.
Clarity – Customers should easily understand that what is unique about you is also beneficial to them. It lets them know that you are speaking the same language that they are and will have them more interested in what you offer.
Competitive advantage – If the value proposition is unique and it matters, that means you have a competitive advantage and you will have not only a better marketing position but also better profits.
Alignment – A strong value proposition can unify a sales team and they will go out into the market with a consistent message. This creates a powerful salesforce that attracts news customers and closes more deals efficiently.
