HARDISON’S TIPS – MARCH 30, 2021 – If You Don’t Have a Value Proposition Your Sales Can Suffer
Does your sales team know what they are selling? Are all your sales reps articulating your product or service’s value in a similar manner? Is the value shared important to your customer base? And perhaps most importantly, do your prospects understand what solutions your company offers (and why those solutions should matter to them)? If you answered “no” to any of these questions, you probably need to fine-tune your Value Proposition. Here’s what a Value Proposition is, why such a crystal-clear statement of value matters, and how to build a value-based positioning statement that can help boost sales and customer engagement:
What a Value Proposition Is, What it Isn’t, and Why It Matters
A Value Proposition, often called a Unique Value Proposition, or UVP, is a clear statement about the beneficial results you provide and the business value you deliver to customers. It is a focused and concise statement of how you solve a customer’s problem or how you cure “their pain.” The word “value” is important, of course. The UVP focuses on quantifiable value as a differentiator from your competitors. It makes it easy for customers to recognize how they benefit from your solution.
Be sure to recognize, however, that a Unique Value Proposition is not the same as a Unique Selling Proposition, or USP. Here’s the distinction. Your USP emphasizes specific points of product or service differentiation. For example, it might highlight characteristics, features, or traits that your competitor’s products or services lack. Lowest cost might be such a feature. Environmental safety might be another. You get the idea.
A UVP, on the other hand, tells customers how they benefit from choosing your solution. It directly answers the question, “What’s in it for me?” Whereas a USP focuses on features, the Value Proposition focuses on benefits. If your product is manufactured to tougher construction standards, for example, it will be sturdier and last longer. The benefit is that customers won’t have to bear the expense and frustration of frequent replacements. Convenience is also a benefit, and therefore, a value-added, sellable trait. So is reliability. So is ergonomic usability, and so on.
Again, a USP emphasizes features; a UVP emphasizes benefits.
Why is a Value Proposition so important? Because if you can’t articulate your value in a clear and compelling manner, your prospects will tune you out in a heartbeat.