Compelling Value Proposition

Here’s the crux of the issue, a compelling value proposition needs to focus on how your customer perceives value. So, when my cycling buddy rang to see if I wanted a ride over the weekend, he was surprised when I answered no!! I never turn down the opportunity for a cycle, so why did I?

The simple answer it was too cold, and the log fire was beckoning. But it is one of those things that companies and salespeople frequently struggle with; articulating with clarity exactly what their compelling value proposition is.

The focus of a compelling value proposition

Put simply, a value proposition is a statement of why a customer should select your product or service. It focuses on how your customers perceive value. Or perhaps put another way, it demonstrates how you can solve a business problem where you have special attributes that very few others have.

Three questions to answer

There are many frameworks that can be used to create a value proposition, most having their roots in Michael Porter’s Value Chain Maps. The Harvard Business School suggest that there are three questions that need to be answered;

Which customers are you going to serve?
What needs are you going to meet?
What relative price will provide your customer with acceptable value and profitability?

I have taken the Harvard Business School thinking and created a framework which has been used many times to help clients think through what their value proposition should be.

Value proposition template

The JA Consulting Value Proposition Template expands on Harvard’s three questions and adds some other additional topics to consider.

The template encourages you to approach the challenge from a customer’s perspective. And the one question that always gets our clients thinking is, “What are your customers not going to be able to continue doing as a result of using your service?” It really does focus the client into understanding what the customer needs and, if embraced, the end result is a compelling proposition.

Take into consideration customer pain points

Check that the proposition is compelling

Becoming a better listener will help you demonstrate that you care about your client or customer and their issues. Next time you are on the phone or in a meeting, ask yourself ‘Am I REALLY listening?’

Chris Smith
Director and Sales Excellence Lead

LinkedIn: www.linkedin.com/in/chrissmithperborough

And a final thought

At JA Consulting we help businesses and individuals take the theory of selling and put it into practice. We’re here to help you learn how to spot and grow business opportunities, how to develop strong and transferable selling skills and how to generate robust account management. To find out more, talk to us, our team is waiting and ready to help.