Value Proposition
Summary
A Value proposition describes the bundle of products and services that create value for a specific customer segment. It is why customers turn to one company over another.
It solves a customer problem or satisfies a customer need. A Value proposition is an aggregation or bundle, of benefits that a company offers customers
What value does it offer the customer. It may be quantitative (e.g. price, cost reduction, risk reduction) or qualitative (e.g. design, customer experience, convenience).
It may be developed totally in house or it may be a combination of in house and external products and services. It may require completely new development or may be need the configuration and assembly of existing units.
It is a complex undertaking and often requires a combination of skills and inputs with constant customer communication and feedback.
A Product manager often is designated to create a plan and execute using project management techniques. But in cases where a bespoke solution is being created for a customer this may well be lead by an Account Director or manager with project management assistance.
A Value Proposition is created by addressing customer needs. Understanding these needs is a cornerstone to creating a Value Proposition. The clear communication of the value to be derived in a way that is understood and agreed by the customer with reference to his needs is important to an effective and efficient sale.
Value Proposition
Addressing Customer Needs
The construction of the Value Proposition will lean heavily on the information gleaned in constructing the customer profile
Relevant Customer needsa nd current methods of addressing should be available
Value Proposition
Communicating Value Throughout Sale
A deep understanding of value, the customer needs and the value proposition can turn Sales People into Business Consultants
A well crafted Value Proposition is a key Sales Tool that can deliver significant increases in sales efficiency and effectiveness.
Good sales tools and training can turn ordinary sales people into business consultants as it will give them the knowledge & confidence to work at higher levels in the customer organisation, to ask the right questions to Qualify thoroughly, to understand organizations offering in detail and then give them the ability to control and manage the sale.
The Value proposition is the foundation but other sales tools include Value Analysis document - normally a spreadsheet that demonstrates value by showing a return on the required customer investment
Value Proposition
Structure
Value is referenced throughout the sale. It may well start with a straw-man, built using data from a previously successful customer or reference and extrapolated to address this particular customer. It will be developed as the sale proceeds as more detail on the solution is developed and information on the assumptions is discovered. In some cases, some pilots may need to be implemented to test some key assumptions in the value equation.
The best relationships in business have the delivery of value as their foundation. A sales person that is perceived to consistently deliver value (advice, information, solutions) will be better placed to form better relationships.
We believe that Company A should be able to
Through the ability to
As a result of
For an investment of
Based on the following Assumptions