Stand out from the crowd with a compelling value proposition
In the challenging world of B2B tech sales, we need to make sure we stand out from the crowd. Well-crafted value propositions give companies the all-important edge. Compelling and differentiated values ensure you stand out from your competitors, as well as help secure that all-too-critical go-to-market success.
Are your buyers clear on what makes you different?
The path to nailing the perfect value proposition is not always straightforward. It is little wonder how some companies find it too difficult so may not bother at all, whilst others may not even be aware how much a memorable and differentiated value proposition can help support successful B2B sales growth. However, being able to articulate value is a core marketing principle for a very valid business reason and, if getting noticed in your market and winning new customers are what you are about, then a differentiated value proposition should form the foundation of your go-to-market strategy.
Before explaining why, and looking at how you can stand out, let’s first define what we mean by value proposition.
What is a value proposition?
Your value proposition is, in essence, the connection between what you want to sell and the needs of your customers. Your value proposition is not a tagline. Nor is it the how you position your brand in your market. However, your value proposition is the following:
an explanation of the key benefits your customers can expect from your product or service;
an unambiguous insight into who your ideal customer is;
a clear articulation how you solve core customer pain points;
the very essence of what differentiates you from your competitors.
When clear and differentiated, your proposition should help you win your customers over.
How to get started crafting your compelling value proposition
When crafting your value proposition, you need to start with the killer question: ‘what is our customer value?’ It may sound obvious, but it’s critical companies understand their customer’s perception of worth in relation to all other alternatives available in the market. Therefore, you need to capture that feeling your buyer will get from the benefits of your product or service over the price they’ve paid.
Just think about it from a personal standpoint for a moment. When did you last buy something, perhaps something you’ve wanted for a long time? How did it make you feel? What were the benefits to you? The process is the same in B2B, and desired benefits of a product or service usually include elements such as improved performance, a great product experience, as well as the level of trust associated with the product.
“You never really understand a person until you consider things from his point of view…. Until you climb inside of his skin and walk around in it.” Harper Lee, To Kill a Mockingbird
It is not possible to establish customer value if you do not know who your audience is, what they want, and where you can connect with them. Some companies skip this part or rush it. Perhaps because it feels hard, or too much effort. In other cases, some make assumptions. This is an equally risky approach as assumptions tend to be based on our personal perspective, or perhaps what our engineering or any other team thinks, or on out-dated information. We need to be very aware that markets are not static, competitors move quickly, and technology moves on faster still.
“You aren’t advertising to a standing army; you are advertising to a moving parade.” David Ogilvy, advertising Tycoon
How important is a differentiated value proposition?
As part of developing your value proposition, it’s important to start unpacking those characteristics and benefits that make you unique. The more you understand your clients’ pain points, the more you can focus on those items that really matter and will trigger buyer behaviour. These then need to be reinforced and contextualised with proof points - those quantifiable benefits, such as cost savings, increased efficiency, or revenue growth.
The connection between your value and hitting your sales number
All this may feel a lot of work, surely you can achieve great growth without a value proposition? Well, this is a risk you need to consider carefully. Without defining why your product or service is different you are making the decision to compete on price versus value, and thereby risk falling into a commodity trap. Likewise, if you craft values that are more transactional, that lots of other companies also claim, such as promising time savings or automating processes, they are likely not going to be unique enough to differentiate your product or service out in the market.
Ultimately, neither of these approaches support business strategies for growth. Instead they encourage a race to the bottom as the offering becomes commoditised and margins are eroded. At this point you need to review your business strategy and ask: ‘will our strategy get us to our sales number?’.
Conclusion
Your value proposition is the bridge between your product or service and the needs of your market. Crafting a differentiated value proposition will set you apart from your competitors, but first you need to establish what your market needs and be able to support what you say and do with proof points. For maximum resonance and impact, your value proposition needs to be consistently reflected across ALL your go-to-market messaging, right through to your sales narrative.
In the next of my third-part blog series on value propositions I look at how you can differentiate through value, exploring the differences between transactional and subjective values.
Need help in crafting your value proposition? Get in touch!
