Does your sales team know what they are selling? Are all your sales reps articulating your product or service’s value in a similar manner? Is the value shared important to your customer base? And perhaps most importantly, do your prospects understand what solutions your company offers (and why those solutions should matter to them)? If you answered “no” to any of these questions, you probably need to fine-tune your Value Proposition. Here’s what a Value Proposition is, why such a crystal-clear statement of value matters, and how to create a value proposition that can help you gain a competitive advantage and customer engagement:
What a Value Proposition Is, What it Isn’t, and Why It Matters
A Value Proposition, often called a Unique Value Proposition, or UVP, is a clear statement about the beneficial results you provide and the business value you deliver to customers. It is a focused and concise statement of how you solve a customer’s problem or how you cure “their pain.” The word “value” is important, of course. The UVP focuses on quantifiable value as a differentiator from your competitors. It makes it easy for customers to recognize how they benefit from your solution. Which, ultimately leads to a competitive advantage and higher conversion rate.
Be sure to recognize, however, that a Unique Value Proposition is not the same as a Unique Selling Proposition, or USP. Here’s the distinction. Your USP emphasizes specific points of product or service differentiation. For example, it might highlight characteristics, features, or traits that your competitor’s products or services lack. Lowest cost might be such a feature. Environmental safety might be another. You get the idea.
A UVP, on the other hand, tells customers how they benefit from choosing your solution. It directly answers the question, “What’s in it for me?” Whereas a USP focuses on features, the Value Proposition focuses on benefits. If your product is manufactured to tougher construction standards, for example, it will be sturdier and last longer. The selling point in this example, is that customers won’t have to bear the expense and frustration of frequent replacements. Convenience is also a selling point, and therefore, a value-added, competitive advantage. So is reliability. So is ergonomic usability, and so on.
Again, a USP emphasizes features; a UVP emphasizes benefits.
Why is creating a Value Proposition so important? Because if you can’t articulate your value in a clear and compelling manner, your prospects will tune you out in a heartbeat. Remember, it’s not the value you believe your prospects/customers will receive, it is the value they will receive from their viewpoint. That’s why a strong value proposition matters not only to your buyers, but also to your sellers (your sales reps).
A Strong Value Proposition Is A Simple and Concise Overview of What You Do
While a company’s final Value Proposition might seem obvious, intuitive, and simple, the fact is that creating an effective value proposition can be complex – part art and part science. Many companies enlist the services of a Sales Leadership Consultant to help. Why? A Sales Leadership Consultant can bring the experience and perspective necessary to help them craft a Value Proposition that tells the right story, sets the right tone, and puts their company on the path to sales success.
Here are some Strong Value Proposition examples:
- Walmart helps local customers save money on a broad range of goods that are always in stock in convenient locations.
- General Motors North America helps American drivers find a quality vehicle to meet their needs by offering outstanding warranty coverage, roadside assistance, and courtesy transportation to keep you on the road.
- BMW helps performance-driven car owners get the Ultimate Driving Experience™ through technology enabled luxury cars with “No Cost Maintenance” for the first 4 years/50,000 miles.
You’ll notice that the word “helps” is common in a Value Proposition. Or you could say, “Our company makes it easier to…” A UVP often focuses on how the solution makes life simpler or better for the buyer.
Beyond this, an on-target Value Proposition helps you differentiate your solutions from your competitors. And because a clear and concise UVP makes it easier for customers to buy (because it states a compelling case based on value), it also makes it easier for your sales team to sell! Talk about a competitive advantage!
The Bottom Line:
Busy prospects don’t care about what you’re selling. They only care about what your solution does for them. A strong Value Proposition is a brand promise of sorts, conveying the essential tacit agreement between your company (the seller) and your customer (the buyer). As such, it makes clear the results and benefits you provide, and the business value you deliver, ultimately leading to higher conversion rates.
Want to learn more about how to create and use a Value Proposition to clearly connect with prospects and boost sales? Click here to schedule a free consultation with one of our Sales Leadership Consultants today or contact us at (844) 874-7253.
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