THOUGHT LEADERSHIP
The essentials of a compelling value pros value proposition : why should I buy from you ?
his is a question that every business leader , business owner , and
Tentrepreneur must ask every day across their entire customer lifecycle : starting with customer acquisition , through maximization , and finally retention .
Why ? Because in a fiercely competitive world , your competition is trying to poach your customers ; competitors that you could know well , new entrants appearing from nowhere , and old rivals who suddenly seem to have got their act together and are on the offensive . It is ultracompetitive , and complacency is not an option .
Having a good product or service won ’ t cut it .
You ’ ve got to have a great product and service . Educating your potential , new , and existing customers about your products and services must be an integral part of your Compelling Value Proposition ( CVP ), making you stand out from the crowd and contributing to your distinct competitive advantage .
So . . . how compelling is your compelling value proposition ?
Whether you ’ re a business leader , business owner , entrepreneur , in sales , customer service , or management , you ’ re probably passionate about what you do .
You ’ re enthusiastic about your products and services , you believe they ’ re better than your competitors ’ and understandably want to tell as many people as possible about them ; how your food is tastier , how your clothes are more fashionable , or how your software has more and better functions .
The challenge when communicating in this style is that the features or advantages of the product are most prominent .
The core message is centred on your view
56 www . businessfirstonline . co . uk of your products , which may not always reflect your customer ’ s view or motivations .
When communicating your products and services in this tone , your customers often hear : ‘ This is what I sell , and this is a list of reasons why I think you should buy it .’
What your customers want to hear is a clear statement that demonstrates that you understand their situation and their needs .
They want to know that you recognize the challenge they wish to solve , or the outcome they wish to achieve , and they want to hear how you are going to help them address that situation .
Ideally , your CVP will not only explain how owning your product or using your service will help them achieve a desired outcome ; it will also explain why your business is uniquely positioned to create that outcome .
Customers not only want to know ‘ Why should I buy from you ?’ but also ‘ What ’ s in it for me ?’.
One of most important guiding principles for creating a compelling , customerfocused value proposition is that it focuses on your customer ’ s needs , not on the features of the product or service .
Do not explain the product or service that you are selling , or embellish its features . Instead , detail the benefits to the customer of owning your product or using your service .
This is one of the biggest mistakes that organizations make . Not only do business leaders , business owners , entrepreneurs , and individuals throughout the organization fall into the trap of building their product and service offerings inside out , as opposed to outside in – build based on the perceptions the organization holds , as opposed to researched customer wants and needs – they also fall into the trap of explaining it in the style of the internal audience .
It happens all the time , and it completely defeats the primary object of communicating with the customer .
If your customers don ’ t understand immediately what you ’ re saying , they start to check out and all you ’ re faced with is another opportunity missed .
If you were a fly on the wall in the sales leader ’ s office after a salesperson had failed to connect with a customer because they had been communicating in the internal language , you can be sure it wouldn ’ t be the salesperson ’ s fault .
The customer was stupid . They just didn ’ t get it . It wasn ’ t what they were looking for . Wrong , wrong , and wrong .
This sales call failed because you were not speaking to the customer in their world about how your product or service could benefit them .
So how does your compelling value proposition shape up ?
Can you describe what you do in terms of customer benefits ? Do you have documented success stories ? Do you need to do some work to enhance it ?
If it ’ s not strong and compelling , you probably only need to look a little deeper to find the CVP . Most organizations have one , they just aren ’ t drilling deep enough , and have got themselves caught up in describing what they make or how they do things .
Don ’ t let another day go by with a weak value proposition . A compelling one can literally open the door to potential customers , while a weak one will keep the door closed .
Royston Guest is a global authority on growing businesses and unlocking people potential . He is CEO of PtiWorldwide , author of # 1 bestselling business growth book , Built to Grow and founder of livingyourfuture™ . Follow him on Facebook or Instagram . Connect with him on LinkedIn or check out his weekly blog at www . roystonguest . com