A Step-by-Step Guide on Tailoring Your Value Proposition to Each Prospect Before Follow Up

by Apr 11, 2017B2B Lead Generation, Sales

A Step-by-Step Guide on Tailoring Your Value Proposition to Each Prospect Before Follow Up

A value proposition defines the value your company will bring to each client. Since this value is specific to each client, a generic value proposition will not give you the edge over your competitors. One must create a value proposition that is tailored to each client. This is called the “Customer Value Proposition” by some experts.

There are four components of a strong value proposition:
1. Reinforce the client’s problem. Ultimately, you’re presenting your value proposition because you want to solve a problem, therefore, it’s important to begin your value proposition by reminding the client of their primary need.
2. Highlight your solution. Summarise how your company can solve the client’s problem. Make sure you don’t go off on a tangent by explaining every single feature or benefit, but rather highlight the most important benefit e.g. “Our product can save you x amount of money per year.”
3. Differentiate yourself from the competition. Once you’ve laid out the solution, the first thing your client/prospect will wonder is if they can get the same solution somewhere else at a better price. Consequently, the next step is for you to differentiate your solution from the competition. In doing so, make sure you’re not ‘bashing’ your competitors, but rather emphasising how your products stand out. E.g. Our product was featured in Forbes magazine as the number one leading product in its niche.”
4. Provide evidence. You can bet yourself that your client will not take your word for it, so it’s important to substantiate your previous claims. If you’ve got case studies, testimonials, newspaper article or any other piece of evidence that can corroborate your claims, it will strengthen your value proposition.

Steps to tailor your value proposition

These four elements are what makes a strong value proposition, but there is much more to a value proposition than the above four elements. Here is a step by step guide on how you can tailor your value proposition.

Step 1: Understand the market and clients

It’s easier to tailor a value proposition when you already have an ideal customer profile. Understand your market and clients by:

  • Conducting primary and secondary research
  • Segmenting your clients by personas. You can include demographics, psychographics, technology usage, brand relationships and goals.

Step 2: Determine your key differentiators

As mentioned above, clients will wonder whether they can get the same benefits or even better somewhere else, so you’ve got to make sure that you’ve clearly identified what differentiates you from your competitors. The tough part is when you have a product or service that is not unique. How you do differentiate among the sea of similar products?

Here are ideas:

  • Have a look at the success of your business. Where are you seeing the most traction and why? What is driving your sales? Answering these questions can help you to find what makes you unique.
  • Analyse your competitors. Where are they succeeding and where do they come short? What are their key differentiators and how do they tailor their value propositions?
  • Develop a SWOT (strengths, weaknesses, opportunities and threats) analysis for your own company and for your competitors as well.
  • Ask clients why they purchase from you. This will give you some angles to use for your key differentiator.

Step 3: Communicate your unique value in a first-draft template

Complete the below questionnaire to develop your first value proposition draft.

Here’s your value proposition statement:

  1. For (target audience) our (offering name) (primary functions/benefits). By selecting our (offering name), you will experience (description of experience). This offering will (quantify the solution). Unlike most of our competitors, we (key differentiators).
  2. Describe your target audience
  3. What are their core needs and what problems do they face?
  4. How does your product/service solve that problem?
  5. What are your key differentiators?
  6. Can you quantify how your solution will affect your clients? E.g. Increase in sales by x amount

Step 4: Obtain feedback and revise

Now, once you’ve developed your value proposition, it’s important to obtain feedback from key stakeholders.

The following people should have a say:

  •  Executives
  •  Sales department
  •  Marketing department
  •  Your best clients

Revise if you must and make sure you’re happy with the final result. You should also communicate your value proposition to the sales and marketing teams through training and tools that guide the selling process.

Key takeaways:
 Value propositions are built from the outside in. Start with your target audience, not your product/service.
 Value propositions must express how your products or services are different from your competition.
 Using a template will ensure that your value proposition contains all the required elements to make it stand out.
 Value propositions are most compelling when benefits are quantified.
 Have your value proposition assessed by your best customers and sales staff.
 Marketing and sales must collaborate to develop tailored value propositions for each client/prospect.

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