Harnessing your Customer Truth - From Value Propositions to Sales Propositions - Part 2

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Here we focus on the difference between the Total Value Proposition and Sales Propositions.

The difference between companies that are thriving and those struggling to survive is how well they harness and align their value to customers. There is a widening gap between what companies offer and sell and what customers actually value and are willing to pay for.
You can start to close this gap by truly understanding what your customers value, looking at your products or services and how you interact with customers – this determines your single ‘customer truth’.

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  • Harnessing Your Customer Truth From Value Propositions to Sales Propositions By Futurecurve Leading experts in uncovering what customers, and all key stakeholders, really value and from this designing product, service and company-wide innovation and communication to drive better business for all. In Part 2 we focus on the difference between the total Value Proposition and Sales Propositions
  • Definition of a total value proposition The total value proposition is the sum of the offerings and experiences delivered to your customers, during all their interactions with your organisation
  • Definition of a total value proposition The total value proposition is the sum of the offerings and experiences delivered to your customers, during all their interactions with your organisation Offerings = All products, services and solutions and their functionality Experiences = How your customers experience your products, services and your company Interactions = Your customer’s experience through all touch points with your company such as marketing, sales, delivery, customer service, after sales service, invoicing, legal/contracting
  • Are your sales people creating sales propositions in a vacuum? The issue for many companies is they don't have a total value proposition. Why is this a problem? Because whether you know it or not, your salespeople will be using a pitch, a series of insights and benefits and return-on- investment models all woven together into a story when they meet prospects. They’ll be delivering a sales proposition.
  • Are your sales people creating sales propositions in a vacuum? Without this sales proposition being joined up to and driven from the company-wide, total value proposition, it will be off-target and lose its power and impact
  • Losing you money This will cost you money in many ways, including: Ineffective marketing campaigns Chasing the wrong sales opportunities Attracting bad opportunities Wasting time through reinventing everything each time Lack of focus = Waste of money What can you do?
  • Value proposition to sales propositions Create your company value proposition first and refine to create tailored sales propositions from it
  • Feedback is vital It ’s not a one-way street. Feedback from sales teams on customers and markets is vital to keep the total value proposition relevant and well positioned.
  • How people understand value Value = Benefits – Costs2 Value = Benefits : all the good points that customers perceive – the positive functionality of the product, its attributes, the behaviours of your people interacting with customers and the values and greater purpose that your organisation stands for and the contribution it makes Minus Costs : all the bad points that customers perceive – the negatives of the product functionality, attributes, behaviours and weak or non-existent values and greater purpose, as well as the cost and risk to your customer
  • Value = Benefits – Costs 2 Why the power of 2 against Cost? Because humans are hardwired to avoid loss, meaning that the negative factors in the Cost ‘bucket’ weigh far more heavily with us than the positive factors in the Benefits ‘bucket’. This means you need to create benefits that outweigh the costs by at least twice. You wake in the night from fear and not from a happy memory. Our equation may understate the importance of loss aversion. For some customers, subtracting Costs⁵ may be more appropriate.
  • Value is not all about you Many companies create their value proposition in their own image but your value proposition isn’t all about you. You must bring your customer into the creation of your value proposition.
  • Don’t make it up If you don’t bring your customers into value proposition creation, you’re just making a guess and hoping it’s right about what your customers truly value. Good research is essential to uncover what customers really value. We cover this in part 3.
  • Contact us: Please say hello @futurecurve And visit our website: www.futurecurve.com e. [email_address] t. +44 (0)1628 487 708 This is Part Two of an extract from the Futurecurve White Paper, ‘Harnessing Your Customer Truth: From Value Propositions to Sales Propositions’
  • Harnessing your Customer Truth - From Value Propositions to Sales Propositions - Part 2

    1. 1. From Value Propositions to Sales Propositionsthe second of four extracts from a white paper of the same nameHarnessing Your Customer TruthPart 2
    2. 2. www.futurecurve.comThe total value proposition is the sum ofthe offerings and experiencesdelivered to your customers, during alltheir interactions with your organisationDefinition of a total value propositionTo recap from Part 1
    3. 3. www.futurecurve.comThe total value proposition is the sum ofthe offerings and experiencesdelivered to your customers, during alltheir interactions with your organisationAll products, services andsolutions and their functionalityHow your customers experienceyour products, services and yourcompanyYour customer’s experience through all touchpoints with your company such as marketing,sales, delivery, customer service, after salesservice, invoicing, legal/contractingDefinition of a total value proposition
    4. 4. www.futurecurve.comAre your sales people creating sales propositions in a vacuum?The issue for many companies is theydont have a total value proposition.Why is this a problem?Because whether you know it or not, yoursalespeople will be using a pitch, aseries of insights and benefits andreturn-on- investment models allwoven together into a story when theymeet prospects.They’ll be delivering a sales proposition.
    5. 5. www.futurecurve.comAre your sales people creating sales propositions in a vacuum?Without this sales proposition beingjoined up to and driven from thecompany-wide, total valueproposition, it will be off-target andlose its power and impact
    6. 6. www.futurecurve.comThis will cost you money in many ways, including: Ineffective marketing campaigns Chasing the wrong sales opportunities Attracting bad opportunities Wasting time through reinventing everything each time Lack of focus = Waste of moneyWhat can you do?Losing you money
    7. 7. www.futurecurve.comCreate yourcompany valuepropositionfirst and refineto createtailored salespropositionsfrom itValue proposition to sales propositions
    8. 8. www.futurecurve.comIt’s not a one-waystreet.Feedback from salesteams on customersand markets is vitalto keep the totalvalue propositionrelevant and wellpositioned.Feedback is vitalValuePropositionSalesProposition
    9. 9. www.futurecurve.comValue =Benefits: all the good points that customers perceive –the positive functionality of the product, its attributes, thebehaviours of your people interacting with customers andthe values and greater purpose that your organisationstands for and the contribution it makesMinusCosts: all the bad points that customers perceive –the negatives of the product functionality, attributes,behaviours and weak or non-existent values and greaterpurpose, as well as the cost and risk to your customerValue = Benefits – Costs2Let’s look at how people understand value
    10. 10. www.futurecurve.com.Why the power of 2against Cost?Because humans are hardwired to avoid loss,meaning that the negative factors in the Cost‘bucket’ weigh far more heavily with us thanthe positive factors in the Benefits ‘bucket’.This means you need to create benefits thatoutweigh the costs by at least twice.You wake in the night from fear and not froma happy memory.Our equation may understate the importanceof loss aversion. For some customers,subtracting Costs⁵ may be more appropriate.Value = Benefits – Costs2
    11. 11. www.futurecurve.comMany companies create their valueproposition in their own image but yourvalue proposition isn’t all about you.You must bring your customer into thecreation of your value proposition.Value is not all about you
    12. 12. www.futurecurve.comIf you don’t bring your customersinto value proposition creation,you’re just making a guess aboutwhat your customers truly value.This is about much more than justasking them what they want.Don’t make it uphttp://www.linuxkungfu.org/images/fun/geek/project.jpgGood research is essential to uncover what customers really value when they’veexperienced working with you, not just listening to what they said in the sales meeting.We cover this in part 3.
    13. 13. Contact usPlease say hello @futurecurveAnd visit our website: www.futurecurve.come. cindybarnes@futurecurve.comt. +44 (0)1628 487 708This is Part Two of an extract from the FuturecurveWhite Paper, ‘Harnessing Your Customer Truth: FromValue Propositions to Sales Propositions’Click this link to download the whole white paper

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