3 Steps to Creating a Value Proposition

September 2, 2014 Alex Traynor

3 steps to creating a value propositionWhen your sales reps clearly understand what benefit you provide for whom and how you do it uniquely well, and when they can articulate this value proposition to their sales prospects, they are much more likely to close sales and establish long-term, win-win business relationships. 

A solid value proposition describes your target customer, the specific problem you solve, and why you're a better option than your competitors. But how do you create a value proposition for your company that has the power to persuade prospects and help sales reps to be successful? Follow these three steps.

Understand Your Target Customer

Without a firm understanding of your target customer, your sales reps will waste time and resources trying to sell your products and services to people who don't need them. To understand your target customer, think about your best and most loyal current customers. What makes them loyal to you? What is it that you provide them that they can't get anywhere else?

Read through testimonials and positive reviews from former and current customers. What do these people have in common with each other? Narrow down your target customer so your sales reps can find the most appropriate prospects to work with.

Understand the Problem You Solve

First of all, change your mindset. You're not selling products; you're solving problems. Instead of describing your products and services, your sales reps should be helping customers to overcome their challenges. In order to do this, sales reps need to have a good understanding of what problems they can solve.

It may be helpful to talk to your support department to learn more about specific problems your company has solved for specific clients. Your value goes up exponentially when you're viewed as problem solvers and not just sales people. 

Describe Why You're Uniquely Suited to Solve Customers' Problems

If your sales reps can articulate why your company is uniquely suited to solve customers' problems, they'll have a much easier time closing sales

Do your sales reps have more education, skills, or certifications than your competitors? Has your company been in business longer than other companies in your area, thus giving you more experience and knowledge? Do you offer unique products that your competitors don't yet offer? The answers to these questions can help you to define why customers should choose your products and services over those offered by your competitors.

Putting It All Together

Once you have gathered this information, you can put your value proposition together into a neat, concise statement that your sales reps can use as a North Star and a guide in their interactions with prospects, customers, and industry contacts. Review your new value proposition as an organization, and talk about how it can be worded better to make it easy to remember. If your value proposition is worded as your customers would say it, they'll be more likely to think of you when they're in a bind and need someone to help them with their problems.

Your value proposition is an invaluable tool to your organization and can be the difference between confusion and purposeful direction among your sales reps and customers.

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