In a previous post, I provided a  do-it-yourself guide for creating compelling value propositions in 3 steps using the following 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 service provider’s “green” value proposition

I promised to provide examples in follow up posts. In each one, I’ll elaborate on one aspect of the value proposition.

First up, is a value proposition for  The Spill Center .  Here it is:

The Spill Center helps [companies that transport hazardous materials] [minimize clean up costs and avoid fines and penalties in the event of a spill].  Unlike [other companies that help transporters mitigate the consequences of an accidental release of hazardous materials], [with just one call to us, spill generators can find cleanup contractors, complete all required regulatory reports, and document incidents].

[For example, Spill Center saved one client more than $305,000 in cleanup costs for a single incident.  When one of its trucks spilled 4,000 gallons of methanol-based cleaning compound into a creek, we succeeded in getting regulators to agree to a more cost-effective way to clean up the spill and in negotiating costs downward after reviewing contractors' invoices].  [Become a client today] and [avoid fines and penalties by gaining access to Spill Center's legal expertise and extensive databases of regulations, reporting requirements, and clean-up resources].

Capture attention with specifics

The purpose of your value proposition is to distinguish your company and solution from the competition.  Nevertheless, step one is capturing attention.

Note the way that Spill Center describes its most promising prospects.  This description is so specific that there is no doubt as to who would benefit from their services.  In fact, if you know anyone that transports hazardous materials, I’ll bet you thought of them immediately.

So, when describing your prospects, test it by asking others who they think might benefit–and see how long it takes them to answer.  If they name three companies right away, your value proposition should do the trick.  It will capture the attention of qualified prospects–and those in a position to refer them to your business.

Who are your most promising prospects?  Can you describe them in a way that captures their attention?

If not, this article entitled “Know your customer, grow your business” may help.

Related posts:

1. How to create a compelling value proposition: Do it yourself in 3 steps
2. Value proposition example for a professional service provider

The higher the risk, the longer the sales cycle…

For low risk, inexpensive purchases like a candy bar, buyers whip through all nine steps in a matter of seconds. When it comes to major purchases, the buying process often takes months and sometimes years. For example, think back to the time it took your own business to decide to put up—or even redo—your website…

Let’s walk through the buying process to begin to understand some of the circumstances that cause sales cycles to stretch out, beginning with the first row of the chart (although in practice the second or third row may happen first).

Only those that have a need will purchase

The first box is labeled HAVE NEED. That’s because no one will buy from you unless they need what you have to offer. Nevertheless, most businesses waste resources promoting solutions to unqualified prospects–those that don’t need what they have to offer and therefore will never buy. For example, my small business sometimes gets sales calls from companies that sell products and services that only make sense for much larger companies.

But first they must recognize that the need exists

The next box is labeled RECOGNIZE NEED. How many of you know of companies that would be much better off if they purchased from you—but they’re continuing to do business in the same way they’ve always done? Chances are if they stopped to consider the real costs of inertia, they’d behave differently–but in the meantime sales cycles stretch out.

Take for example, some of the taxpayers that use the post office to submit their taxes. Many are aware that they qualify for free filing and have computers—but they continue to post their returns via US mail.

Although some subset of these individuals has well thought out concerns about filing over the Internet, most have just never stopped to really examine the pros and cons. In fact, they probably would have filed their returns electronically if they had only learned of the option when they were less busy—or realized in advance just how long they would have to wait in line on April 15 to obtain proof that they had mailed their documents in on time. Nevertheless, they didn’t; so the IRS will have to wait at least another year to consummate the sale.

Then, it generally takes a sense of urgency to generate demand

The third box is labeled READY TO BUY. Many buyers not only need a particular solution; they are aware that they should take action. Nevertheless, they delay buying because the urgent takes precedence over the important. In fact, it’s not uncommon for other initiatives to continue to take priority until the need becomes truly pressing.

To sum up, getting the sale depends on finding prospective buyer that need what you have to offer.  Nevertheless, need is a necessary but not sufficient condition.  Prospective buyers must realize what they’re missing by delaying a purchase and develop a sense of urgency about filling the gap.

Next week, we’ll proceed to row two of the buying process chart and discuss three more factors that can cause sales cycles to stretch out.

Related posts:

1. Maximizing Sales Productivity Depends on Meeting Marketing Requirements
2. Shortening the sales cycle starts with getting into buyers’ minds