In the last instalment of my series, I delved into the 40 factors your B2B buyers value the most. If you’ve missed it, you can revisit it here. (Part 2) I wrapped up discussing how vital a strong value proposition is for a company’s competitive edge.
Astonishingly, Hubspot, a recognised leader in marketing, reports that only 64% of businesses have established value propositions. A well-crafted value proposition can provide your company with a monumental competitive edge. However, it’s crucial to note that a poorly conceived value proposition can do more harm than good. So, it’s truly worth investing the time and effort to perfect it.
Even more surprising, recent data suggests that a mere 2.2% of companies boast effective value propositions (Link to the research here). It’s crucial to understand that value transcends mere pricing. What truly counts is what customers receive in exchange for their money – aspects like service, quality, performance, and heritage.
So, What Exactly is a Value Proposition?
It’s all about communicating the unique benefits a customer will gain by choosing your products or services. Essentially, it’s tuning into what customers really want and need, rather than merely broadcasting the features of your offerings.
And What It’s Not…
Value propositions are often muddled up with taglines, slogans, and mission statements. While these can highlight the benefits of your solutions, they aren’t a stand-in for a genuine value proposition.
Offers like free trials and discounts might draw in new clients, but they won’t keep your current ones loyal once the novelty wears off. Blurring the lines between your value proposition and other offerings can hurt your conversion rates and customer loyalty. Keeping your focus on a true value proposition is a game-changer!
An effective Value Proposition should:
1.
Provide the foundation for your offering. A compelling Value Proposition will form the basis of and underpin your sales, marketing efforts.
2.
Create a strong differentiation between you and your competitors. If you are able to succinctly convey exactly what your product does, how it is right for that customer and why they should buy it (could mean supported by trusted service) in a way that your competitors aren’t – you’re immediately ahead of the game.
3.
Increase not only the quantity but also the quality of prospective leads. Being transparent and candid about the product or service that you provide will mean that your customers are able to qualify their requirements with your offering immediately, saving time in their decision-making process.
4.
Help your organisation internally. It enhances your understanding of the competitive landscape – in order to put an effective Value proposition in place, you must first research your competitors and their offerings in order to differentiate yourself. It also rallies your teams to focus on working together towards a common goal.
In Part 4 of “What Do B2B Customers Really Value?” where I’ll be sharing tips on sharpening your Value Proposition.
1: https://marketingexperiments.com/value-proposition/in-search-of-a-value-proposition-2
