I was having lunch with the new president of a large manufacturing company. She was very familiar with the work I had done with their sales organization. So when I asked her what her biggest challenge was, I assumed we were talking about sales. Instead, she said, “Waste.”
It was so unexpected that I started laughing.
“Waste,” she repeated. “I mean it.” She then gave me a detailed breakdown of the problem. Finally, she said that if a salesperson approached her and said he could reduce waste by just one percent, she would meet him in a nanosecond. Why? Because every penny she saved would go directly to the bottom line, helping her achieve her goals.
That’s what a powerful value proposition does. It opens doors quickly. So instead of making more calls or sending more emails, a better strategy is to analyze what you can change, starting with the value proposition.
What is a powerful value proposition?
A value proposition is a clear representation of the tangible results a customer will achieve by using your products or services. It addresses the critical problems your target buyer faces, as well as the results they will realize by switching from the status quo.
In short, your product or service is just a tool. Buyers only care about the results it delivers. A strong value proposition communicates that message. It lets people know you make a difference and can help them achieve their goals.
Clearly defined value propositions can be used to develop highly effective phone or email messages that highlight your potential buyers’ key problems/challenges and address the key business outcomes of your product, service or solution. They can also be used to create buyer-focused presentations, customized proposals and targeted marketing initiatives.
Let me be clear though. There is no single value proposition that serves the entire spectrum. You need multiple ones, depending on:
- Who you are meeting with.
People in different jobs can care about completely different things, even if you are talking about the same product or service. - The organization you do business with
Different industries, varying financial situations, emerging trends and recent events change what is important. - What You Sell
The different products/services you sell may have completely different value propositions… so knowing your focus is imperative.
When you find the right words, people respond to you differently. Tailoring your value proposition makes it even more attractive.
Based on my experience, the biggest benefit you get from understanding your value proposition is… (drum roll) … a better story to present your offering.
When you really understand the problems you solve for your customer and the value you provide, it’s easier to gain access to new customers. You’re less likely to get discouraged by rejection. You’re not wondering if there’s a market for what you’re selling. When you know it makes a difference, you end up selling a lot more!
