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What's Your Value Proposition?
| Guest post by: Tibor Shanto |
Article Overview: It is one thing to propose value to a client, and perhaps they may buy from you, a vendor. But to become a partner you have to become a source of vale, to do that you have to mutually build it with your client.
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Free Download - Question Testing By Tibor Shanto |
What's Your Value Proposition?
Frankly who cares?
Your prospects sure don't!
Some of your customers maybe; your competitors, when it serves their needs.
OK, yes, the marketing team that "developed" does, but didn't you say the other day that they have never been on a client call?
What
really counts in the real world (you know where sales are made), is the
prospects' and clients' perception and definition of value.
Sadly
too many sales people leave the office everyday (some days) armed with
nothing more than their brochures, clearly highlighting the Value
Proposition, ready to regale unsuspecting prospects who thought they
were going to sit down with someone who said they can help them in one
way or another.
Almost all executives we have spoken with tell us
that the worst sales meetings they have had to endure have been where a
sales rep comes in asks a limited number of irrelevant (vis-à-vis the
prospect's real objectives) questions, and then proceeds to "deliver"
their Value Proposition.
This is not to say that having a value
proposition is bad, but it has to be one that resonates with the
prospect, not one that resonates with a marketing intern or contract
writer. The challenge for many is to get past their view and focus the
discussion on the prospects' view in order to build value in the buyer's
mind.
Buyers come in many shapes and sizes, with an equal number
of objectives, agendas and motivations. To believe that a single "Value
Proposition" will address any or all effectively, not only insults the
prospect, but diminishes the rep, the product and the company in the
prospects mind.
But it's not all bad, there is a way to meet the
prospect on their terms and still utilize your precious proposition. You
just need to step back, and take the time to explore, understand and
shape the prospects definition of value, based on their realities not on
yours. Done right, rest assured you'll have a chance to unsheathe your
proposition.
First challenge is to understand who you are working
with. "C" level executives evaluate and define value in a different way
than those in the middle ranks, say managers or directors. Because they
have different objectives and views, you must communicate your value in
different terms. A Vice President is much more likely to perceive and
define value in terms of revenue and expenses. For instance a VP of
Sales is going to look for things that can increase sales and reduce the
cost of sale, or put another way, increasing sales and margins. While a
regional Sales Manager will look for features and functions that will
help them succeed, and be much more price conscious. The Manager is more
likely be limited by a defined budget, while the VP, will look at price
based on value relative to results, i.e. more sales, less cost per
sale. We have all gone into situations where we were told "there is no
budget", yet the VP came up with budget because they saw the ROI,
understood that they could increase sales now, make their numbers for
the year and even with the cost of your service was able to improve
margins. Their perception of value was greater than their initial view
on budget.
Another key point is to work with the prospect,
especially executives, to mutually develop the case for the purchase. By
focusing on the client, getting them to articulate their goals and
challenges in attaining them, you can get them to associate value with
you, your product and the benefit to both them personally and to their
company. Unfortunately this takes work in the form of asking questions
and more questions, and together developing the answers that build value
for you product.
Unfortunately you left the office with a
brochure, your marketing team's value proposition and all the answers to
your questions, but none for the prospect. Selling is a sport that
requires two participants, and at least one has to be a buyer.
It
is important to remember that buyers start out with a concept of what
they feel deliver value to them based on their current and future
objectives. If you don't engage with them in a way that will help them
associate value, as they define it, or better yet, as you mutually
develop it through a series of meaningful interactions, your value
proposition will fail to deliver value for you and your company due to
lack of sales.
If your sales are going to be based on your
objectives exclusively, at the exclusion of the prospect's objective,
you will run the risk of the prospect the client will see no value,
perceived or real in your proposition.
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Article Tags: communicating value, execution, renbor, Sales, sell better, value
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About the Author: Tibor Shanto RSS for Tibor's articles - Visit Tibor's website Click here to visit Tibor's website   Sales & Consequences |
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