What is a value proposition? What makes you unique and differentiates you from everyone else? What do you do naturally with ease and effectiveness? Do your clients perceive your products or services as commodity or value-added, or are you seen as preferred supplier or strategic partner? Understanding your position and leveraging it or repositioning yourself can be a game changer. Your value proposition clearly defines what your clients can and should expect to receive when dealing with you and your firm. There is no right or wrong position, the key is to be intentional and create a service experience that relates to the selected position. Everything from company values, product quality, variety of products/services, service standards to environmental and sustainability practices can be included in the value proposition.
Your value proposition is not what you believe it is, it’s what your customer perceives it to be.
Creating the Point of Value
Investments of resources such as knowledge, money, emotion, trust, and time, must be made in order or the value proposition to be realized. In simple terms a two stage process is required to begin this process.
Issues Impacting Value Creation:
- Value is often more subjective than objective.
- Style and substance must be present to sell value.
- Style – a unique tangible or intangible component of your proposition, often more of a personal or relational issue.
- Being people and relationship oriented versus things and task oriented.
The Benefits of Being Value-Based:
What value-based relationship selling means to you and your company:
- Higher company profile
- Increased word of mouth advertising and referrals
- Increased client share, retention and loyalty
- Being viewed as a partner and resource versus a supplier or vendor
- Improved communication, understanding and trust with clients
Strategies to Become a Value-Based Resource to Your Clients:
- Know the types of clients for you and your company. Don’t try to be all things to all people because you can’t.
- Make it a practice to thoroughly understand the client’s business, and their requirements.
- Stay on top of issues broadly affecting the client, i.e.: technology, commodity prices, mergers and acquisitions, market forces, new management, etc.
- Be fully conversant with all aspects of your company’s products, services and internal talent in order to provide a customized solution.
- Proactively concentrate on the value and benefits of your company’s products and services versus concentrating on price only.
- Be prepared to walk away from non-value based client requests
“Companies will have to realize that you don’t sell only what you make. You sell who you are.”
– Faith Popcorn, The Popcorn Report