In today’s highly commoditised global market, if a company doesn’t have a sales value proposition then it is unlikely they will be successful and achieve growth.
But even if you do have a value proposition – it doesn’t necessarily mean it is effective, as there are certainly both good and very bad ones out there.
Here’s a small exercise you can do with your sales team. Ask them the following questions;
Did anyone struggle? Was everyone’s response quite different? If there was any difficulty answering those questions then it is advisable that you spend some time working out your business’s value proposition, otherwise how can you expect to explain why people should buy your product/service? If your team can’t succinctly understand what it is you do well, what benefits there are for the end user, and why no one else offers what you do, then it is quite probable that your business won’t be able to maximise your potential success.
The reality? Most companies don’t have a powerful unique value proposition, which means they find it difficult to prospect effectively and uphold margins. It is not good enough to say ‘we offer quality’ – because that is what every other business does too (or so they say).
Value propositions need to be succinct, and self-explanatory – you don’t want prospects have to guess what value your service or product will offer them. So work out what your main differentiator is, and then back it up with how.
Selling value is the one thing that all salespeople, operating without benefit of the lowest price, must be able to do well in order to consistently earn business.
In every market only one company will be able to sell product/a service by offering the lowest price – which may or may not result in substantial profits - but everyone else will have to sell on value. Your sales team has to be able to effectively convince people that buying their more expensive product/service is better because of “enter your value proposition here”. And if your value proposition isn’t convincing enough, then you won’t be able to sell based on value. End of story.
More on effective value propositions: Scania Mining's successful journey from supplier to trusted advisor.
The CEO of SalesStar, New Zealand's leading sales development company. Are you looking for Paul? You'll find him at the battle front. He loves getting out to see new prospects learn about their sales challenges and helping them fix their problems and win new business. He works with helping CEO's who are frustrated with their sales results. Who know they can be doing better, but just don't know how!
Find out more about Paul O'Donohue on LinkedIn
From north to south, east to west, Membrain has thousands of happy clients all over the world.