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10 Smart Things to Think About Value Propositions
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Ten smart things to think about value propositions
1. A value proposition should reflect real functional and/or emotional value to potential purchasers. Too many value propositions contain factual, functional information but forget that people tend to buy with their hearts first and their minds second.
2. A value proposition’s key statement (which is often, but not necessarily, expressed as a tagline) should almost always be supported by no more than three "pillars" – supporting arguments that add credibility to the key statement and which are unique to your company’s offering.
3. A good test of your value proposition is to imagine a salesperson delivering the message in under three minutes to a prospective client – does the opening message capture their attention and speak to their priorities; do the supporting messages make the value proposition even more compelling?
4. Most companies can express what they do and why their products are better. But the way it’s told is often dry, boring, forgettable. A good value proposition entertains people. It sells the sizzle first, not the sausage, capturing both the mind and the imagination. And it’s often a combination of facts and fiction
5. Get an expert to help with the process. You have to spend much more money to fix up the wrong value proposition idea than if you went with the right idea to start with. Remember: It’s more important to do the right thing than to do things right.
6. If you don’t start with a good value proposition that everyone of importance has bought into, then developing marketing elements can be a roller-coaster ride. It will be more expensive, more time-consuming, and will have less impact when you go out with your communication. But that doesn’t mean involving everyone in your company, of course. Stick to a small team, at least one of whom is a key decision-maker.
7. Think about your company’s offering in terms of:
a. What must-have or must-fix problem exists or can be invented that we can assist?
b. Can we make a nice-to-have into a must-have?
c. What is the best solution?
d. Why choose our version of the solution?
e. Don’t tell it, show it!
f. Why is this a no-risk, no-brainer?
g. Why will customers like us?
h. What do customers have to buy?
i. What do customers have to tangibly do?
8. There are many things for which you may want to be known: established, big, international, knowledge-based, leading in technology, one-stop shop, good at customer service, reliable, fast, a good citizen, trusted, open, etc. But if you tell it all at once, your messages will lose impact and memorability.
9. Typical success criteria for a value proposition include:
a. Does it add value to the organization?
b. Will it differentiate our offering from that of competitors?
c. Will it help get customers to pay a premium for a purchase?
d. Does it add stature to our offering?
e. Could it aid in the selling process?
f. Will it build customer loyalty?
g. Will it attract positive media interest?
h. Will it attract meaningful strategic alliances?
i. Will it attract and help to keep top talent?
j. Can we state what differentiates our brand from that of our competitors in fewer than ten words?
k. Does the proposition fit with our company values?
10. All too many company value propositions promise the earth but fail to deliver. The key to the success of your value proposition is the degree to which the company’s actual strategy is in line with the ambition level of the story. Doing this, of course, often means that top management has to commit to a higher level of ambition, investment and the acceptance of a degree of risk. Not doing it has been charted throughout recent history as absolutely the wrong way to go.