Sales Masters Guild Mentor, Olivier Carion, asks a simple question to his Mastermind Peer Groups, “How strong is your value proposition”.
Assuming you are interested in having more customers, more business and more income, let me ask the following questions:
“How clear and unique is your value proposition? Is it compelling and does it draw customers to you like a magnet?”
I so enjoy addressing these important questions in my workshops, my mastermind groups and my one-to-one meetings with customers. It’s just that discussing them typically ends up with stronger and more robust value propositions, whatever the business sector.
An effective value proposition is one that fits your product or service to meet what customers truly care about in terms of their work, their pains and their gains. Making sure that what your business offers fits with what customers want is the essential key to a successful and effective value proposition.
However, articulating your true value proposition can be an overwhelming task. If you think you are lacking the tools to do so, if you are unsure about the next steps to follow, if you find it difficult to uncover what customers really want, chances are your value proposition is still centred on your product/service and its features. In other words, there may still be a fair way to go before getting to a deep understanding of what makes a value proposition compelling.
Here are a few questions to help you assess the strength of your value proposition:
- How does your value proposition fit with your business model? In simple terms, your value proposition fits with your business model when more revenues can be generated from your value proposition than the costs incurred to create and deliver it. Ideally, your value proposition has to provide a good fit with both the profitability and scalability of your business model.
- Does your value proposition focus on relieving the most significant pains experienced by your customers? Think in terms of saving time, money and efforts. Or fixing performance issues, by introducing new features, improved results and quality. Can you make things easier for your customers by getting rid of obstacles? Can you address their most significant issues and reduce their worry and stress?
- Does your value proposition focus on creating gains for your customers? These have to do specifically with outcomes that your customers expect or would be surprised by. Think in terms of functionality, cost savings and, yes, positive emotional response.
- Does your value proposition fit with the way customers define success? There is much to gain in understanding what motivates customers. Finding out their dominant buying motive is like discovering the holy grail. What makes them tick? What are they really after? The better you are able to gain clarity on this point, the more your chances of success.
- Does your value proposition make you stand out from your competitors, both in reality and in the eyes of the customers? Does it make you different in significant ways? It is a good idea to remember that your competitors are looking at your market and perhaps also at your customers. If your value proposition is difficult to copy, it will help strengthen your lead. However, wisdom dictates that this should never be taken for granted.
So, if you want to create a robust value proposition or strengthen your existing one, where do you start? Perhaps the best way to gain clarity is to organise information about the expectations of customers in a simple way, in order to start seeing the canvas of value creation emerge. This will help you design/improve your value proposition and target your customers’ most pressing needs, addressing their pains as well as their gains.
The next step involves bringing your team together for creative strategic discussions, getting alignment and producing actionable outcomes beyond products and features toward customer-centric value, which in turn means value for your business. Use a shared language to facilitate collaboration at this stage.
Thirdly, minimize the risk of failure by seriously testing the rationale behind the business ideas. This sifting out process will allow you to pursue the more impactful ideas. The process used to form new ideas will both be fitting and work in line with the existing processes which help drive your business.
Naturally, there is much more to cover about value proposition. If you want to know more or if your find it challenging to articulate your value proposition, why not get in touch? Let’s have a conversation, perhaps I can help you.
Olivier’s Mastermind Peer Groups run regularly and are open to entrepreneurs and business owners looking to grow. If you’d like to find out more about the groups before booking, please contact Olivier directly though his Mentor profile page.
Oliver Carion is a Sales Masters Guild Personal Business Mentor.
With a real passion for the psychology of communication and the architecture that underpins accelerated growth, you’ll quickly realise why Olivier is the man who will help accelerate your business to a whole new level.