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The Value Proposition

December 9, 2010

 

Your teams (corporate and field) must know where the value is found in your company; they must know the elements of value; they must know the features and benefits of each of those value elements; and they must have the skills to apply their knowledge to real life. In this way, they can convey value.

At the heart of conveying value is a value proposition that offers field reps and customers truly superior value in relation to competitive offerings. Your company will likely have multiple value propositions that comprise your core value proposition.

The value proposition is the key to conveying a business presentation, product offering or service opportunity more effectively. Whether the value proposition is used in recruiting business builders, selling products, or discussing a customer’s request to cancel their membership, the value proposition injects confidence and understanding. The net outcome will be increased retention.

 

Creating a Simple Value Proposition

A good value proposition is made up of answers to two key questions:

  • What is my prospect / customer / field rep really buying from me?
  • Why are they buying it from me, and not from someone else?

 

The following steps will help you develop value proposition statements and then convey valuemore effectively:

1. Identify the elements of your business that are unique and valuable.

(Examples should include specific products, members of the management team, special spokespersons for your company, unique compensation and incentive programs, the experience and lifestyle of being associated with your company, and other elements of your enterprise that make your company unique.)

2. For each element, list the features and benefits of that element.

[Steps 1 and 2can be used to write a simple value proposition for your company and for any ofyour specific products and services.]

3. Make sure your value proposition statements are readily available to those who have direct interaction with your field reps.

4. Train employees to look for opportunities to tie discussions and requests back to the features and benefits (examples will include recruiting presentations, home demonstrations, handling objections, up-selling at the contact center, averting an account cancellation, etc.)

5. Become a “product of the products” by using the products and services that your company offers.

6. Include value propositions in every touch with the field. (Newsletter articles, conference calls, company events, e-mails, customer service calls, product shipments, startup kits, website, etc.)

(The content of this article is extracted fromServiceQuest® RetentionSmartsTM Modules.)

 

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