How does your value proposition look? Can you describe what you do in terms of tangible business results? Do you have documented success stories? Or do you need to enhance your value proposition? If it’s not strong enough yet, don’t despair. Most companies have much stronger value propositions than they realize.
Here are three ways to unlock the impact your product or service has on your customers’ business objectives:
1. Define your tangible value. Tangible value is directly related to your offering and is highly measurable. It’s typically expressed in numbers or percentages. Examples are:
- Cutting cycle time from three days to one
- Reducing labor costs by 25 percent
- Saving $100,000 in energy costs
- Increasing market share by 5 percent
- Improving productivity by 17 percent
Typically, tangible gains are accompanied by related intangible gains that aren’t as obvious but can help strengthen an already strong value proposition. For example, improving productivity means fewer workers. With a smaller workforce, a company saves a significant amount in the benefits area. Less money is spent in recruiting and hiring. These savings can also be included in your value proposition.
2. Convert intangible value into tangible value. Sometimes the value of your offering is not quite so measurable, for example, lowered risk, increased teamwork, improved marketplace image or better morale. Intangible value doesn’t sell well in today’s economy. Most decision-makers consider it a nice added benefit but won’t spend money for a solution that provides only soft value. To increase your sales success, take intangibles and make them tangible. Find ways to quantify their value.
3. Outline opportunity costs. Opportunity costs can also strengthen your value proposition. An opportunity cost is something your customers can’t do now because of their current methods of operation. For example, it’s what they could be doing with the $500,000 savings they’d get from your product or service. It’s the business strategy and associated profits they can’t aggressively pursue until they make a change.
Give yourself the best chance at a sale by illuminating the many ways your products or services benefit customers.
Sign up for The Lead and get a new tip in your inbox every day! More tips:
- What a value proposition is (and is not)
- How do you define value?
- Communicating the value of disability financial planning
Jill Konrath is the author of SNAP Selling and Selling to Big Companies. If you’re struggling to set up meetings, click here to get a free Prospecting Tool Kit.