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Building Your Value Proposition;Your Strategy, Your Brand, Your Business.

Presented By: Chris Scafario

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How Are you Unique? You can not have an effective business strategy if you are not able to successfully answer this question.

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We Have Good PeopleWe Have Good QualityWe Are Always Near or On-time With DeliveryWe are Not the Cheapest-But Not the Most Expensive

That’s What He Said

Did your answer start with any of the following?

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If you were in the market for a product or service from any of the previous companies the odds are you would:

- take quality and on time delivery as a given

- understand the relative value of your purchase

- be less inclined to care about the “likeability” of their workforce

And they would not expect anything different……

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Getting to the Value Equation:

Perceived Value = Benefits - Cost (Risk)

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Defining a Value Proposition:

A value proposition can apply can apply to an entire an entire organizationorganization, or parts thereof, including: individual individual customer accounts, products and/or servicescustomer accounts, products and/or services. 

A value proposition is a promise of value to be value to be delivered delivered and a belief from the customer of value that value that will be experienced. will be experienced.  

Creating a value proposition is a fundamental part of business strategy and every good strategy is based every good strategy is based on a differentiated customer value propositionon a differentiated customer value proposition.

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1. Your value proposition must be a statement of what you actually statement of what you actually are are – not just something you aspire to become.

2. Your value proposition must exist in the interface between a company’s ability to deliver a product or service and the perceived company’s ability to deliver a product or service and the perceived needs and desires of a targeted market segment.needs and desires of a targeted market segment.

3. Your value proposition must be rooted in a deep, certain rooted in a deep, certain knowledge of [your] targeted customers and a realistic knowledge of [your] targeted customers and a realistic

appraisal of [your] own capabilities.appraisal of [your] own capabilities.

Just The Facts please…..Just the facts.

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PLEASE AVOID: PLANNING, WRITING, OR PROMISING ANYTHING THAT YOU WON’T BE ABLE TO EXECUTE AND DELIVER FLAWLESSLY.

Warning!

IT CATCHES UP TO YOU

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.

Nothing catches customer attention more than telling what YOU will do for THEM!

And, It’s not boasting when you deliver….

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What do you give customers in exchange for their time, money and effort?

Today’s customers demand a good reason to spend their cash.

“AutoZoners pledge to always put customers first!

We know our parts and products.Our stores look great!

We've got the best merchandise at the right price. "

vs.

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Your Promise to Customers Requires an External Focus.

Its not just about the resources you have; it is how you sell them.

“AutoZoners always put customers first!

We know our parts and products.Our stores look great!

We've got the best merchandise at the right price. " 

Positions “Zoners” as Experts and conveys to the customerwhat they will receive in exchange for their time, money and trouble.

Closes with a focus on quality and value.

This Customer Promise is also a useful tool in communicating corporate expectations across an employeebase that spans thousands of people. It is simple and it is selfless.

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Switching Gears…

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The collection of data by means of the senses

The analysis and synthesis of data to form one's current mental perspective

The determination of a course of action based on one's current mental perspective

The physical playing-out of decisions

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Competitive Landscape

Market Reconnaissance

Customer Intelligence

Opportunity Mapping

Competitive Analysis

Critical Asset v. Liability Assessment

Competency /Opportunity Matching

Observe Orient

Decide ActStrategic Maneuvers Outreach Management

Marketing Support

Lead Generation

Situational Awareness

Growth Planning Charting Hi-Impact Actions

Prioritizing Objectives

Sharpening the Value Equation

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Strengths(internal)

Weaknesses(internal)

Opportunities(external)

Threats (external)

Your SWOT’s Role in The Value Equation….

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Strengths Think of your internal Attributes…Can you Identify: • advantages of your unique proposition? • demand for existing capabilities? • distinct competitive advantages? • USPs (unique selling points)? • a breadth of resources, assets and/or people? • excellence in experience, knowledge, data? • plentiful financial reserves, likely returns? • successful marketing - reach, distribution, awareness? • innovative aspects in your business? • location and geographical advantages? • price, value, quality advantages? • accreditations, qualifications, certifications? • processes, systems, IT, communications? • cultural, attitudinal, behavioral advantages? • a well-rounded management team?

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Opportunities Think of potential external market advantages…Can you Identify: • areas for market development? • competitors' vulnerabilities? • up-and-coming industry or lifestyle trends? • next generation technologies or innovations? • new markets: vertical, horizontal? • niche target markets? • global markets to export to or import from? • new USPs (unique selling points)?• business and product development? • partnerships, agencies, distribution? • production efficiencies / economies of scale? • seasonal influences in purchasing behavior?

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While Auditing Your Strengths and Opportunities, Give Some Consideration To:

Product (what are we selling?)

Process (how are we selling it?)

Customer (to whom are we selling it?)

Distribution (how does it reach them?)

Finance (what are the prices, costs and investments?)

Administration (and how do we manage all this?)

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Playing Up Your Strengths Will Enable You to Outperform your Resources & Outpace Your Threats!

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Will Help You Simplify & Articulate Your Value Proposition.They are extremely useful because:

Confusing Your Customers About Your Products or Service is Never a Good Thing!

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The Rules are Simple:

1. Be clear in stating the Overt Benefits of your products or service.

2. Give your market a Reason to Believe their money is well spent with you.

3. Present a Dramatic Difference between you and your rivals.

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Rule # 1

Be clear in stating the Overt Benefits of the product or service that you are selling!

Be specific, obvious and direct in telling a customer what Be specific, obvious and direct in telling a customer what they will receive in exchange for their time, money and they will receive in exchange for their time, money and trouble.trouble.

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Rule # 2

Give your market a Reason to Believe why their money is best spent on your product or service.

Identify how you will deliver on the promises made in the Identify how you will deliver on the promises made in the Overt Benefits. Tell the prospect why they should Overt Benefits. Tell the prospect why they should believe you!believe you!

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Rule # 3

Set your product or service apart by presenting a Dramatic Difference between you and your rivals!

Tell your market how revolutionary or new to the world your Tell your market how revolutionary or new to the world your Overt Benefit and Reason to Believe statements are. Overt Benefit and Reason to Believe statements are.

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Your Overt Benefit Should…DEMAND

the Real Reason to Believe! or to make things simple:

Overt Benefit + Reason to Believe= Dramatic Difference

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Faster than a speeding bullet.More powerful than a locomotive.Able to leap tall buildings in a single bound.

Look! Up in the sky!It's a bird. It's a plane. It's Superman!

Yes, it's Superman - strange visitor fromanother planet who came to Earth with powers and abilities far beyond those of mortal men.

Superman - who can change the courseof mighty rivers, bend steel with his barehands, and who, disguised as Clark Kent, mild mannered reporter for a greatmetropolitan newspaper, fights the never endingbattle for Truth, Justice and the American Way.

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So What's Your Super Power?

These 3 Steps Can Help You Figure Things Out.

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Survey Your Customers.

Develop a series of questions to learn about why your market prefers you to all of the other potential solutions.

Interview Your Best, Middle of the Road and Former Customers.

Define the Good, The Bad and The Ugly so that your value proposition can be foraged from facts.

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Talk With Your Teams.

Develop a series of similar questions to learn about why your people and your supply chain partners think that the market prefers you to all of the other potential solutions.

Capture their perspectives the Good, The Bad and The Ugly so that your value proposition can be foraged from facts.

Compare internal and external perspectives and build the parallels intoYour value equation.

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Use www.wordel.net as your looking glass

If you are not seeing fundamentals of your Value Proposition on yourWebsite or in your presentations….You should probably get to work.

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