Here’s an example of how a professional service provider can apply the do-it-yourself guide for creating value propositions in 3 steps.    It uses the same formula as the green value proposition example I posted last week (immediately below).   This time, I’ve used it to describe the value I offer my clients as a B2B strategic marketing consultant (below the value proposition formula).

The value proposition formula

We help [your most promising prospects] that [need help with the pressing concern you address] succeed by [providing the material improvement you will deliver].  Unlike [the alternative solution], [your solution] [describe the reason why your company is a better choice] as demonstrated by [evidence that you will deliver as promised].

A B2B strategic marketing consultant’s value proposition

BB Marketing Plus works with [B2B companies that have long sales cycles] to [increase sales productivity].  Unlike [companies that make cold calls for you or develop lead generation campaigns], we use [our Revenue Accelerator Methodology] to[ help you get the right message to the right person at the right time about the right solution--and motivate them to act] as is evident from our [our clients' testimonials].  [Start today with a free consultation to discuss your situation and the marketing strategies and marketing programs] [it will take to speed the sale].

In the last post, I promised to elaborate on one aspect of the value proposition with each new example.  In that post I focused on how to ensure that your value proposition captures attention.  In this post, I discuss the importance of adding a call to action.

Motivate prospects to act to receive the value you offer

The purpose of your value proposition it to elevate your organization, and its solution, above the competition.  Nevertheless, your ultimate goal is to get your best prospects to self-qualify by “raising their hands”.

Use a call to action to get qualified prospects to “raise their hands”

Without a call to action, your value proposition is just information.  Your call to action accomplishes two objectives.

One is that it tells prospects exactly what you’d like them to do–and how they’ll benefit.  Providing people with a specific request increases the likelihood that they will act.

In this example, the requested action is that prospects “start with a free consultation to discuss their specific situation”.  The promised benefit is that they’ll get ideas about marketing strategies and programs that will help them speed the sale, thereby improving sales productivity.

Use your call to action to test your value proposition

The other objective that a call to action accomplishes is that, if you set up a way to capture their responses, you can use your call to action to help you test the efficacy of your value proposition.  If prospects don’t take the desired action, your value proposition may not be effective.

On the other hand, the problem may be with your delivery or with your call to action, rather than with your value proposition.  In a future post, we’ll discuss how you can use digital marketing campaigns to quickly get to the heart of the matter.

What’s your company’s value proposition?

Every successful business delivers value.  Please feel free to use the comment area of this post to test your value proposition and call to action.  I’ll post any comments that use the formula to describe the value that one business offers to another in a professional manner.

Looking to improve your company’s sales productivity?  Download 5 actions you can take today to generate sales-ready leads.

Related posts:

1. How to create a compelling value proposition: Do it yourself in 3 steps
2. Green value proposition example
3. Capturing buyers’ attention: What makes a value proposition compelling?
4. Software value proposition for prospective health care customers

Businesses today are seeking products, services, and solutions that will directly or indirectly improve their competitive advantage.  As part of the sales process, buyers expect to hear how sellers’ products or services will materially contribute to the buying organization’s success–and why the seller is uniquely qualified to deliver that value.  This post outlines how to step into buyers’ minds, and create value propositions that compel them to buy.

What is a value proposition?

A value proposition is an offer from a seller to a buyer that promises to materially improve the buyer’s situation by offering a specific benefit or set of benefits.  A compelling value proposition induces the buyer to act on obtaining the promised value.

What makes a value proposition compelling?

The most compelling business-to-business value propositions are those that address high-priority concerns–and reduce the risk associated with the purchasing decision.  They are clear and concise, promise quantifiable outcomes, clearly distinguish the value the seller is offering from the value the buyer could obtain elsewhere, provide evidence that supports the sellers’ claims and/or a guarantee that makes the seller “whole”, and provide a reason or incentive for acting right away.

Here are three steps for success:

1. Answer the following questions

Below, you’ll find a list of questions that will help you develop a compelling value proposition–and a call to action that you can use to test it.

2. Fill in the blanks in the “Value Proposition Formula”^TM

We help [your most promising prospects] that [need help with the pressing concern you address] succeed by [providing the material improvement you will deliver].  Unlike [the alternative solution], [your solution] [describe the reason why your company is a better choice] as demonstrated by [evidence that you will deliver as promised].

3. Test your value proposition with a call to action

Test your value proposition on your website, in your marketing campaigns, or in your sales pitches to induce prospects.  Add a call to action in the format: [Perform this action] and [the advantage they'll reap or the consequence of inaction].

If prospects respond, you’ll know you’ve succeeded in developing a compelling value proposition.  If prospects fail to take the desired action, conduct interviews to determine why not.  Then, decide whether you need to refine your value proposition or start over.

Need a fresh perspective?

Sometimes a small shift in how you define and communicate the value that your solutions offer makes a huge difference–but it can often be hard to pinpoint that shift on your own.  Want to change your results dramatically, contact us.

Put your value proposition to work now

We’d appreciate your comments including the value propositions you create using the “Value Proposition Formula”^TM.  In the next few posts, we’ll provide examples of our own.

Related posts:

1. Capturing buyers’ attention: What makes a value proposition compelling?
2. Developing a compelling value proposition: What you need to know
3. Value proposition example for a professional service provider
4. Software value proposition for prospective health care customers

In recent posts, we’ve discussed the characteristics of a compelling value proposition, and the importance of concentrating your firepower on those companies that most value your capabilities. This week’s post discusses concrete steps you can take to identify, validate, and test your value propositions.

Begin by gaining deep insights into buyers’ needs and purchase preferences

As Steven Covey said, “Start with the end in mind”. To develop a compelling value proposition, you first need to validate what matters most to prospective buyers. Else, if you make inaccurate assumptions, you’ll miss the mark and potentially end up wasting lots of money on ineffective marketing programs.

This can be a lot harder than it seems because there are lots of important questions you need to answer first. Approach this assignment as journalists do when researching a breaking story. Start by inquiring about the 5 Ws and the H.

Who are your most promising prospects?

As we discussed in the past, the most promising prospects are those that value your solutions most and will therefore pay top dollar, buy more quickly, and/or motivate others to also buy. To find them, first list all the market segments that need your capabilities.

Then, eliminate less desirable segments. Examples include market segments that are too small to meet your revenue goals, are so competitive that they will drive up your cost of sales, and market segments that don’t especially value your organization’s unique strengths.

To rank the remaining segments, and identify your target market, interview key stakeholders in each. Key stakeholders include everyone that the decision maker involves in the buying decision–from external advisors to the internal personnel who will use and implement your solutions.

When will prospective buyers need your capabilities?

The need for many solutions is event-driven rather than ongoing. For example, companies are more likely to seek out insurers when they are contemplating taking on new risks, marketing agencies when they are launching new products, or a new accountant when they are dissatisfied with their current service provider.

Often knowing what events trigger demand for your solution can help you develop a more compelling value proposition. To find out ask about last time they purchased similar services: What caused you to purchase then—rather than six months sooner or six months later?

What do key stakeholders value most?

The only way to ascertain whether you solutions provide sufficient value to garner sales is to first find out what matters most to decision makers. Ask: What are their goals? How are they measured?

Then, ask the same questions of the remaining stakeholders. Although only one person can approve a purchase decision, others can block it if their needs are not met.

In fact, you may need multiple value propositions in order to win the company’s business. For example, the decision maker may be bent on achieving market share. Finance may require a certain return on investment. Supporting departments may care about the cost and ease of ongoing maintenance. Users may focus on ease of use and access.

Where do decision makers get their information?

Some decision makers learn of new solutions through trade journals or trade association meetings. Many expect those that work for them—and have subject matter expertise—to make them aware of the need for new solutions. Others turn to trusted advisors and colleagues for recommendations.

Where ever your decision makers turn for information, that’s where you need to place your marketing messages. Else, you run the risk that you will not even make the short list when it comes time to evaluate new solutions.

How do stakeholders decide whether or not to recommend your solutions?

Not only do different stakeholders have different goals, they often require different evidence to reassure them that your solutions will meet their goals. They seek this information to address their reservations and mitigate risk.

Some will require media coverage in marquee publications, others will require references and/or testimonials from industry leaders, and still others will require demos or tools that will help them calculate the return on investment they can anticipate. Again, whatever their preferences, you need to do it their way. Else, they may never access your value propositions—and you may lose the deal to the competition.

Developing a value proposition is an iterative process

Once you’ve identified a few value propositions, do some testing. Send out a direct mail piece and see how many people respond. Develop google ad word campaigns that offer a free demo. Offer a free webinar and see how many people attend.

If people show interest you’ve probably discovered something of value. If people invest time in learning more, you may have a compelling value proposition. If not, you need to go back to the drawing board.

Validating your value proposition helps you make the most of your marketing investments

Remember, it’s not what you think that’s important; it’s what matters most to your most promising prospects. That’s why industry leaders always invest in marketing research despite the fact that they have ongoing experience with existing customers.

With the marketing investments they’ve made in product development—and plan to make in promotion–large companies know they can’t afford to miss the mark. Chances are neither can you.

What surprising information has your organization learned when validating your value propositions?

Ready to try your hand at strengthening your value proposition?  Download our free do-it-yourself guide now.

Related posts:

1. Capturing buyers’ attention: What makes a value proposition compelling?
2. How to create a compelling value proposition: Do it yourself in 3 steps
3. Getting top dollar depends on first determining who values your solutions most
4. Value proposition example for a professional service provider

Today, more than ever, companies are seeking value from every purchase. Without telling buyers upfront how their organizations will prosper from your solutions, it’s difficult to capture their attention—let alone close the sale. So, having a compelling value proposition is more important than ever.

Today’s entry describes the elements of a compelling value proposition. We’ll follow up in subsequent posts by discussing steps you can take to create and validate your organization’s value proposition. Then, we’ll discuss how to leverage your value proposition in all your marketing initiatives.

Value propositions promise quantifiable outcomes

A value proposition is a description of how prospective buyers will materially benefit from using your products or services. Better value propositions address quantifiable outcomes that buyers can expect as a result of working with you.

Examples of “quantifiable outcomes” include: attract more clients, garner a price premium, increase customer satisfaction, improve quality, improve productivity, and decrease costs. That said it is not necessary to cite the degree of change prospective buyers can expect—since that may vary from account to account.

In today’s market, it’s not sufficient to craft a value proposition. Your value proposition must be compelling to elevate your message above the clutter.

Compelling value propositions address pressing concerns

Compelling value propositions speak to the audience’s most pressing concern—rather than a lesser need. They capture attention because the issues that they reference are already top of mind. To ensure your value propositions really resonate with your audiences it’s essential to first determine precisely which problems—and even what aspects of those problems–are most troubling to decision makers.

A compelling value proposition is specific. People’s needs are tied to particular circumstances at a particular point in time. Value propositions fail when they try to be all things to all people.

Compelling value propositions are never vague

Compelling value propositions focus on a single benefit—else the value that will compel buyers to act gets lost in the clutter. Too often, companies try to accomplish too many goals in a single communication and end up overwhelming the receiver.

Compelling value propositions are clear and concise

A compelling value proposition is clear and concise. Everyone’s busy. No one has time to deconstruct others’ communications. Beware of the technical jargon or excess prose that will blunt the impact of your communication.

Compelling value propositions motivate action

A compelling value proposition creates a sense of urgency that motivates buyers to purchase sooner rather than later. They do so by alluding to a fleeting opportunity or a negative consequence that will result from inaction. A “market window” is an example of a fleeting opportunity. Missing that window is a negative consequence that could result from inaction.

Compelling value propositions mitigate risk

A compelling value proposition mitigates risk and addresses reservations. Left unaddressed, reservations diminish the receiver’s perception of value.

Compelling value propositions accelerate sales

Compelling value propositions can have a dramatic impact on sales. Take Google for example…

Google AdWords offers one of the most compelling value propositions that I’ve seen: “Reach people actively looking for information about your products and services online.

It’s specific: advertisers will reach people who are actively looking for information about their products and services. It’s clear and concise. It focuses on a single benefit and promises a quantifiable outcome: better quality leads. Better quality leads are a pressing concern for almost any business.

Google follows this value proposition with a second value proposition that clarifies the first one: “Easily control costs–pay only when people click on your ad.”

While the first value proposition promises buyers results, the second addresses a major reservation. It assures advertisers that they won’t have to pay to reach prospects who aren’t looking for their solutions.

It takes perspective–the customers’ perspective–to develop compelling value propositions

Google AdWords has generated significant revenue for Google by delivering a service that prospective buyers find extremely valuable. It seems so simple. Yet, other search engine companies had the same opportunity and failed to capitalize on it.

Before AdWords, most search engine companies focused on selling banner ads. They were seeking products they could offer to generate revenue. Google, however, went back to customers’ needs—and came up with a truly compelling value proposition.

Ready to develop a compelling value proposition for your company?

Download our free do it yourself guide now–and create a compelling value proposition today.

Related posts:

1. How to create a compelling value proposition: Do it yourself in 3 steps
2. Developing a compelling value proposition: What you need to know
3. Value proposition example for a professional service provider
4. Will prospective buyers turn to you when they’re ready to move forward?