We meet a lot of technology and professional services firms with really impressive capabilities that have problems converting business opportunities. Many claim that they have lost opportunities because of the price of their product or services. This is usually because they are so focused on their product/service and not on their customer and their requirements. As a result, they struggle to be clear about the value they deliver to the customer.

We find that many businesses tend to focus on their products or services functional features and benefits, but rarely consider the value they will deliver to the customer and their solution. As a result, their value proposition and marketing messages are all functional and feature driven.

It is frequently the case that when a business thinks it has lost on price, the customer has not understood the true value of the product or service to them. If you peel through the layers, you realise that in reality, this is not a sales or a pricing problem, in fact, this is a marketing value and communication challenge. We live in a world of informed business-to-business (B2B) buyers who are roughly 75% through the buying cycle before they even contact you about your product or service. They are typically buyers of value. Your ability to communicate the value of your product/ service in solving your buyer’s problem or fulfilling their need is what is going to get you over the line from a sales perspective. Simply stating the features and functions will only get you to the shortlist, it won’t win you the deal.

To win the deal you need to do the following:

  • Really demonstrate the understanding of your customer
  • Understand your customer’s role and what they’re trying to achieve in their role
  • How you can help your customers overcome the challenges, obstacles or risks that exist in their business.

It’s also critical to understand that your customers don’t just buy rationally or on price. Research proves that personal gains and emotions play a huge role in the overall buying decisions.

A strong value proposition focuses on the functional, emotional, social and supporting customer needs. Your ability to be clear and compelling will differentiate you from your competitors.

At Shaping Business, we use a structured framework that helps you develop a compelling value proposition that aligns with what is truly important and valuable to your customer. If you need help with value proposition development to be able to communicate the value, not just features and functions of your products or services, get in touch today. You can watch the video below to learn more about this topic.

Alternatively, you can watch our video to identify the underlying signals which tell you that you may have a problem with your value proposition and what you need to do about it.

 

 

Editor’s Note: This post was originally published on the 30th June 2017 – Updated on the 14th June 2019