Jeff Garrison

Your Sales Value Proposition Must Have F.O.R.M. (Part 2 of 4)

Crafting your sales value proposition or "elevator statement" well is perhaps the most crucial element in a systematic business development program.  If done well, it becomes the foundation for all of your branding, networking, and other marketing efforts. 

It actually changes the direction that your conversations go with prospects and clients!

If done well, it has F.O.R.M.

It is Focused.  You Own It.  It is Relevant.  And it is Magnetic.

Owning Your Value Proposition

If your brand as described in your value proposition is true and accurate when you substitute the name of a competing business owner or sales person, then you don’t “own it.” 

This is probably not as hard as you think.

You must discover the value that you provide that is unique from others.  Often times your difference is not your actual goods, services, or price.  What you may own is how you can help prospects realize greater value from you or your company’s expertise, even with products and services that are not necessarily unique.

For example, in working with a financial services representative in another city, we were able to uncover something pretty unique regarding her position in a market in which it is hard to stand out.  We discovered that some of her best clients are employees of a large university.  She told me, "I know their [university] benefits better than anyone."

That single statement has turned into a sales value proposition specifically targeted at that market.  There are several hundred prospects that she can approach by letting them know her unique ability to quickly identify gaps in their benefit and retirement plans due to her expertise.  (There is a very powerful way to ask for referrals in this situation.  Look for a future post or email me if you want to know now.)

To increase her target market, she will expand her expertise beyond the one university to professional educators meeting a certain profile.

In addition to being unique, your value proposition must be something about which you can be passionate.  It will hard to maintain your competitive edge described in your value proposition if it does not excite you. 

Finally, to own it, what you say must be honest.  If your claim to provide a certain value is not true, you will get crucified in today's Word of Mouth society.  You definitely don't want to be talked about on twitter, facebook, blogs, or Linked In for the wrong reasons.

As you may have gathered, perhaps the most difficult part of "owning" your value proposition is having the courage to narrow you focus.  You must believe that it is more profitable to capture significant market in a narrow market than insignificant market share in a broad market.

Your Sales Value Proposition Must Have F.O.R.M. (Part 1 of 4)

Crafting your sales value proposition or "elevator statement" well is perhaps the most crucial element in a systematic business development program.  If done well, it becomes the foundation for all of your branding, networking, and other marketing efforts. 

It actually changes the direction that your conversations go with prospects and clients!

If done well, it has F.O.R.M.

It is Focused.  You Own It.  It is Relevant.  And it is Magnetic.

A Focused Value Proposition
In the world of small business or b2b sales, your value proposition needs to be focused on a narrow market rather than a broad market.  Without narrow focus, you can’t Own It, be Relevant, or Magnetic.

Al Ries, one of the world’s best known marketing strategists, put it this way in his 1996 book, Focus: The Future of Your Company Depends on It.

The sun is a powerful source of energy.  Every hour the sun washes the earth with billions of kilowatts of energy.  Yet with a hat and some sunscreen you can bathe in the light of the sun for hours at a time with few ill effects.

A laser is a weak source of energy.  A laser takes a few watts of energy and focuses them in a coherent stream of light.  But with a laser you can drill a hole in a diamond or wipe out a cancer.

When you focus a company, you create the same effect.  You create a powerful, laser like ability to dominate a market.  That’s what focusing is all about.

 

Consider this simple example.

You can sell pet food in your market for dogs, cats, rabbits, fish, and various rodents.  Dog food sales make up 50% of your gross sales.  Your customers think of your store as a clean, conveniently located pet food store with friendly people and competitive prices.  However, if your prices go up, if they find an alternative closer to home, or if they can buy the brands of food you sell where they buy their groceries, you will likely lose them as customers.

On the other hand, you can FOCUS on just the dog food market.  Everything about your store, especially your marketing and branding, is all about dogs and supporting dog lovers and the nutritional needs of their pets.  Your customers won't think of you as a pet food store, but rather a dog food store for people who really love their dogs.  Your customers will think of your store as a place where they can identify with other dog lovers who are experts in the nutritional requirements of dogs in the various stages of life.  It is a place where they can come and talk about their dog with people who know and love dogs.  These people will drive further and pay more for that experience.  (Incidentally, you can also quietly stock pet food for other animals at the back of the store for the convenience of those who must suffer the ownership of lesser pets.)

So, the question is, if you narrowed the focus of your pet food store to just dogs resulting in dog food sales being 95% or more of your sales, would your overall sales increase?

Also, would you get a higher ROI on your marketing because your efforts are more narrowly targeted thus decreasing customer acquisition cost and branding cost?

Think about it.  Metaphorically speaking, are you spending the same amount of money, time, and effort trying to acquire customers who buy "a $7 bag of gerbil food" as you are for customers who buy "a $40 bag of dog food?"

Can you narrow your focus?