Creating your Value Proposition
In business regardless of our products or services we all have competition which is healthy; competition drives innovation and service levels to new heights. Even start-ups with Disruptive Technologies that no other company yet has, have to compete with the status quo, and because of this competition we need to be able to differentiate ourselves from the competition. This differentiator is called our Value Proposition and creating a winning Value Proposition is critical for the success of any company. The Value Proposition is not your great service, your reputation, your pricing, the length of time you have been trading or anything similar. These are “me too” statements that buyers hear all the time from sales people, and things they frankly take for granted – great service is not a differentiator, it is a basic requirement of being in business.
Our Value Proposition must first serve as a compelling reason to change from the status quo, and then be a compelling reason to choose us. These compelling reasons, must provide a Value to the buyer after they have purchased our products or services and are experiencing the benefits there of. This would typically be either:
- an Impact on their business
- a Financial Impact on their business and or them personally
- and or a Personal Emotional Impact
We can uncover the Value Proposition using a simple GAP analysis tool which we teach in Consultative Selling Skills. The gap is the difference between where the buyer is right now and their desired state in the future. The GAP is your Value Proposition pure and simple.
Remember your Proposition is a series of assumptions form which you need to go out to your target market and validate those assumptions. This is an areas where most people struggle as they are so absorbed by their idea they fail to take on board any feedback from the market.
It is possible to sell with a weak Value Proposition, however this usually creates pressure on pricing, which can often be identified by discounting to win new business. Without a clear and strong Value Proposition buyers view all the competing sales people as the same and when the buyer sees no differentiator, they choose price as the differentiator.
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