Time to Get Real - Redefine Your Value Proposition

Many value propositions have grown irrelevant with the passing of each day in the uncertainty of this economy. The assumptions, market conditions and industry conditions many unique value propositions were created to capitalize on just aren't applicable anymore. Yet you can find many examples of companies using their marketing departments to shout these unique value propositions even louder, as if raising the volume will make them more relevant. It's not time to spend more on blaring out the same old message to prospects; it's time to re-think the fundamental value any given product or solution delivers in this economy.

Frugality Is the New Black

It's time to get real about the value delivered to customers who are now seeing the world as a fundamentally different place and will continue to for years to come. Frugality is the new black. Coupons, once seen as inconvenient, have increased in use from 67% to 83% depending on which ICOM Information and Communications study you review. The value propositions created when conspicuous consumption was the norm are quickly becoming irrelevant in this economy for the majority of consumers.

Selling to businesses is even more complex, as the status quo on which many unique value propositions were based aren't relevant anymore either. Today the majority of businesses have the top priority of retaining customers first, trimming costs and staying viable. There's been a complete re-ordering of priorities. The trouble is unique value propositions of companies selling into these companies still don't reflect what's really going on with their prospects and customers.

From Businesses, the Need for Brutally Simple Value Propositions Is Emerging

No one wants to hear about adjective-laded claims that can't be backed up either with case studies or measurable results. What they do want are solutions to the big problems of retaining customers, managing suppliers more profitably and turning overlooked areas of their companies, like aftermarket parts and services, into a bigger profit center quickly.

For the small high-tech distributor, when demand precipitously dropped off in mid 2008, all that matters today is gaining training and insight into how to bundle products and create new solutions fast to sell more. For manufacturers, it's about getting quotes out right the first time, or getting a handle on how to turn aftermarket-products sales into a profit center. For an enterprise software company, it's about selling to the five dominant roles they have found that make or break their sales cycles.

Putting the Value Back into Value Propositions Needs to Happen Now

Let's face it, entire industries are being reordered by this economic downturn. All that is really going to matter is what tangible, pragmatic value you can bring to prospects and customers to reduce uncertainty and increase their ability to compete.

It's time to quickly move toward defining new unique value propositions that address what really matters to your customers and prospects, despite how engrained your existing value propositions are in your company. Consider the following steps to get the value you deliver better aligned with what your customers really need right now:

• Get to the heart of what matters most to your customers now by tackling their biggest problems for them—even if there is no immediate revenue opportunity. Get out and take the pulse of your customers, go visit them, and if you sell to other businesses, go and get customer retention programs started immediately. If your company is going through a slow time, invest your extra time finding out where the difficult, tough-to-solve problems are for accounts and tackle them head-on. It may not lead to immediate revenue, but it does lead to two great things: trust in your company's expertise and lessons learned on how to redefine what makes your company unique today.
• Decide on the one niche or segment to dominate then accelerate product development, engineering, service and support all in this area. Nearly every company I've spoken with has gone through some level of chaos over the last six months, some less than others. The same holds true for your competitors. In that chaos, there is a lack of focus. It's time to choose the one segment, even market niche, your company wants to dominate coming out of this downturn and gain a product generation or two on competitors, strengthen support and services, and go after reference accounts now using retention programs. GE is a master of this, as their CEO Jeffrey Immelt often discusses this strategy at conferences and webinars.
• Rewriting unique value propositions is never a one-and-done exercise. This isn't only about marketing; it's about working to get your company better aligned with what your customers need now. Staying in step with their unmet needs is all that really matters.

Bottom line: The last six months have brought more change than the previous six years to many of your customers; it's time to re-think value propositions to make sure they still matter.

Courtesy – Louis Columbus, Expert Access