Shaping Business has the privilege of working with a variety of well-established firms, many of whom are renowned for innovation and outstanding service capabilities. Yet a problem we consistently encounter is that clients struggle to produce a compelling value proposition for their business.
The value proposition should clearly articulate the value that is delivered to your customers. It must encapsulate exactly why prospects should choose to specifically buy from you and not your competitors.
Without a strong and refined value proposition you are at major risk of deterring prospects and jeopardising your sales pipeline. Firms of all sizes and sectors struggle to develop compelling value propositions, with some of the most common challenges outlined below.
- 1. Too close to the solution
When producing a value proposition you need to step back and view your business from a customer perspective. Far too often, individuals are so consumed with how great they think their business offering is that they fail to acknowledge the real value for the end user. Those who are heavily involved in a company often struggle to detach themselves, which in turn prohibits them from recognising the true value of their product, service or solution for the customer.
- 2. Functional/feature driven focus
Concentrating solely on the service features but failing to highlight their worth and how they differentiate from competitors is a common problem. There are very few products that can be sold through brand and functions alone. Customers want to know exactly why they should select your business, how you differentiate from others in the market and most importantly, how you can resolve their organisations issues. The best value propositions both quantify and qualify why prospects should seek your services.
- 3. Lack of customer focus
It may seem obvious but the better you know your customers, the more you understand their pain points, fears and business goals. That knowledge of the customer doesn’t sit in one part of the business, it typically cuts across different business functions. Harnessing this knowledge of the customer and embedding the voice of the customer in the value proposition process is a critical success factor. Our clients that have embraced our value proposition model have discovered that the validation process with clients has strengthened their customer relationships.
In our experience, those businesses that address all of these issues significantly differ from competitors. They are able to develop a core value proposition for the whole business plus tailored value propositions for each target market, specific to every business opportunity.
Those with a sales responsibility found the model we use lends itself to building the unique value for each specific business opportunity that has helped to convert more sales.