Strengthen your value proposition to improve your competitiveness

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Most companies face the challenge of increasing competition and lack of differentiation in the market which often leads to increasing competition on price. Focus at this Commercial Excellence Forum event was, therefore, on how to differentiate yourself in the market by creating superior value to your customers.

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Strengthen your value proposition to improve your competitiveness

  1. 1. Strengthen your value proposition to improve competitiveness ComEx 2013 – Commercial Excellence Forum
  2. 2. 3 Agenda 09:00 Welcome and introduction 09:05 Strengthen your value proposition to improve your competitiveness 10:00 How do you ensure effective execution of a new value proposition? 10:15 Networking break 10:30 Exercise in groups: Differentiation and design of unique value propositions 09:20 Case: SVITZER – improving differentiation in the market 11:30 Networking and light lunch
  3. 3. 4 88% believe they have a unique value proposition – but less than 50% believe that their customers are aware of our solutions 8% 46% 23% 23% To almost no extent To a slight extent To a great extent To a very great extent In your opinion, to what extent is the average potential customer in your key markets aware of you and your solutions? 88% 12% Yes No Do you in general believe that your company has a unique value proposition? In your opinion, to what extent is the average potential customer in your key markets aware of you and your solutions?
  4. 4. 5 Around 50% have defined how they differentiate and how they create value 0% 0% 0% 4% 8% 12% 4% 8% 0% 0% 4% 0% 0% 4% 8% 8% 15% 15% 12% 15% 15% 8% 23% 4% 19% 23% 15% 23% 31% 31% 27% 15% 12% 8% 4% 15% 0% 0% 4% 8% We have a detailed understanding of the key challenges among our customers and how we can bring value We have clearly defined and described how we differentiate from our competitors We have clearly defined how we add superior value to our customers compared to our competitors We have a plan for how we shall differentiate in the future and a plan for developing the relevant product features, services, competencies etc 1 totally disagree 2 3 4 5 6 7 8 9 10 fully agree
  5. 5. 6 A majority find it difficult to communicate their value proposition in all touch points - and Sales ability to communicate the potential value creation differs 0% 8% 4% 4% 12% 4% 8% 4% 12% 12% 23% 12% 31% 12% 4% 15% 8% 15% 12% 23% 23% 12% 8% 12% 8% 0% 12% 0% 4% 4% We demonstrate the value we generate in all our all our marketing communication We have a clear overview of all our touch points with our customers and measure to which extend we are able to communicate and deliver our value proposition Our sales people are able to communicate and document our value creation to the customers during their sales meetings 1 totally disagree 2 3 4 5 6 7 8 9 10 fully agree
  6. 6. 7 Agenda 09:00 Welcome and introduction 09:05 Strengthen your value proposition to improve your competitiveness 10:00 How do you ensure effective execution of a new value proposition? 10:15 Networking break 10:30 Exercise in groups: Differentiation and design of unique value propositions 09:20 Case: SVITZER – improving differentiation in the market 11:30 Networking and light lunch
  7. 7. 8 The simple message of today’s seminar … A company’s differentiated value proposition is no stronger than the way it is actually being communicated, sold and delivered to the customers – meaning, the way it is implemented and executed by the front line
  8. 8. 9 What is a value proposition? The answer to the fundamental question: ”Why should I as a customer do business with you?”
  9. 9. 10 A winning value proposition has three core components Resonate “I want” “I need” “Solves my problem” Differentiate “No alternatives are as good” “Only you offer this” Substantiate “I trust” “I believe” “Real value to me” + + The components of a winning value proposition ... • Premium pricing • Lead generation success • Higher win rates • Customer loyalty • Sales growth • Market share growth Creates foundation for ...
  10. 10. 11 You need to get all three right … “I don’t need” “Not important enough” The customer will say ... “What is your best price?” “I can do without you” Weak resonance Difficult to substitute Able to substantiate Take one away ... Strong resonance Easy to substitute Able to substantiate Strong resonance Difficult to substitute Not able to substantiate “I’m sceptical” “I can’t risk it”
  11. 11. 12 If you do not get it right ... • Declining segment market share • Declining customer loyalty and re-buy • Increasing price pressure • Declining customer acquisition rate • Declining opportunity win rate • Product launches not meeting targets • Declining brand perception • Declining net promoter score Typical symptoms Declining growth rates or sales Forced price reductions Lower margins Higher marketing and sales costs to generate revenue growth Reduced ROI of sales and marketing Typical implications
  12. 12. 13 Building a value proposition requires understanding of features and differentiators • Frequency: Daily cut offs • Consistency: Fixed transportation time • Reliability: 95% reliability Features are the fact- based characteristics of a given product, service or solution Features Defendable differentiators are the features that are unique and customers perceive as valuable Differentiators A value proposition is a promise of value based on number of differentiators Value proposition
  13. 13. 14 Define your differentiators based on deep customer insights on what drives value for the customer Value to the customer Uniqueness Low High Low High Differentiators
  14. 14. 15 Canwechange thefinancial value? Canwechange howthe customeruses ouroffering? Canwe change thecus- tomer expe- rience?TYPE LEVER Canwechangeour offering? What if we could serve the needs, the customer didn’t perceive previously?Newness What if we developed new features or functionality?Performance What if we allowed for the tailoring of products and services to individual customers?Customisation What if we developed support and enhancements to surround our offering?Support and enhancements What if we could offer a similar value at a lower price?Price What if we helped the customer reduce their costs?Cost What if we reduced the customer’s risk?Risk What if we could make our offering to more/new customer groups?Accessibility What if we could make our products/services much easier to use?Convenience/usability What if we delivered our offering to the customers in a different way?Channels What if we designed our products to be more attractive/appealing?Design What if we represented/positioned and communicated our offering differently?Brand/status Canwe change howwe structure ourwork? What if we worked with others (partners) to create value?Network What if we developed superior/signature ways of working?Process Inspiration for differentiating elements in the value proposition
  15. 15. 16 Nespresso changed the game in the coffee industry by their game-changing unique value proposition Nespresso is the fastest growing business area of Nestlé (30% per year) 25+ B DKK in annual turnover
  16. 16. 17 Customer value proposition Assumed value proposition Segment value proposition(s) Sell your differentiated value propositions: From segment to customer value propositions A segment value proposition is a statement of the value we can deliver (segment specific) A customer value proposition is a proven and fact-based value which a specific customer will receive in return for the customer's associated payment An assumed value proposition is a hypothesis of value we expect to deliver based on previous experience
  17. 17. 18 Deliver your differentiated value propositions: “Live it” in all customer touch points Sales (converting prospects into customers through sales and distribution) Operations (deliver on expectations and build relationships) Marketing (engagement and creating expectations) Involvement Awareness Interest Communicate Value proposition Deliver Value proposition Use Defend and experience Satisfaction and intended returning sales Converting prospects lead customer customer  loyal customer loyal customer  ambassador unsatisfied  satisfied Monitor, analyse and report ZERO FIRST SECOND CONSUMER LIFE CYCLE
  18. 18. 25 Agenda 09:00 Welcome and introduction 09:05 Strengthen your value proposition to improve your competitiveness 10:00 How do you ensure effective execution of a new value proposition? 10:15 Networking break 10:30 Exercise in groups: Differentiation and design of unique value propositions 09:20 Case: SVITZER – improving differentiation in the market 11:30 Networking and light lunch
  19. 19. 26 We see three typical commercial barriers for truly living and executing a differentiated value proposition CUSTOMER Needs and value perception COMPANY Product/services ”Marketing-sales chain” “Sales” Articulate, substantiate and convey superior customer-specific value of company offering “Marketing” Translating company product/services to differentiated value propositions with value messages for target segments “Align and engage” Alignment of sales approach and practical sales execution tools – and create sales engagement in the commercial launch Only with a complete and integrated “marketing-sales chain” you will execute your value proposition Most common barriers “Marketing not able to formulate differentiated value propositions and value messages truly resonating with customer’s needs and value perception” 1 “Marketing/sales not able to align and engage with each other AND not able to design powerful sales tools fit for execution in sales situation” 2 “Sales not able to convey and articulate customer-specific value of company product/services – thereby not selling the differentiated value proposition” 3
  20. 20. 27 To fully execute your value proposition, additional capabilities are required – and the project approach should be different Marketing-sales chain “Sales”“Marketing” “Align and engage” • Launch strategy toolbox and practical launch planning tools • Marketing-sales alignment and engagement methodologies • Strong sales capability building expertise – effective training methodology and tools • Specific marketing and sales tools fit for value selling • Deep insights into customer buying and sales processes • Structured value selling methodology and practical sales execution toolbox • Sales management model to drive value selling execution • Structured customer need and pain mapping • Strategic differentiation, positioning and value proposition formulation • Key value messaging formulation and communication expertise Additional capabilities are required A different approach is required • Include the FULL marketing-sales chain in value proposition work, not only the ”marketing” function • Ensure effect and implementation across the chain, not just in ”marketing” • Approach value proposition implementation as a change process – and design the project accordingly • Acknowledge the differences between marketing and sales – and embrace the principle of co-creation • Ensure senior management commitment and buy-in – across C-level commercial functions • Verify practical execution through customer and rep testing/role plays
  21. 21. 28 Agenda 09:00 Welcome and introduction 09:05 Strengthen your value proposition to improve your competitiveness 10:00 How do you ensure effective execution of a new value proposition? 10:15 Networking break 10:30 Exercise in groups: Differentiation and design of unique value propositions 09:20 Case: SVITZER – improving differentiation in the market 11:30 Networking and light lunch
  22. 22. 31 Revisiting the simple message of today’s seminar … A company’s differentiated value proposition is no stronger than the way it is actually being communicated, sold and delivered to the customers – meaning, the way it is implemented and executed by the front line
  23. 23. 32 See you again the 20th of September 2013: “From Customer Insight to Business Growth” . How to create a unique value proposition and successful differentiation How do you differentiate yourself in the market by creating superior value to your focus customers? Get inspiration on how to identify your unique and value-creating differentiators and build a strong value proposition which sales and marketing can use to grow existing and new customers. . 24 MAY 2013 From customer insights to business growth Most companies have detailed information about their market and customers – but few companies use this information proactively. Get inspiration on how sales and marketing can use structured market and customer insight to challenge the 20 SEPTEMBER 2013 Customer Experience Management Many companies use a lot of resources on branding but are often not aware of how to use all customer interactions to improve brand perception and, thereby, their competitive strength. Get inspiration on how a structured focus on customer experience within all touch points can increase customer loyalty and improve the win rate significantly. 15 NOVEMBER 2013 Sales & marketing integration One of the key characteristics of companies which perform better than average in their industry is their ability to integrate sales and marketing activities. Get inspiration on how sales and marketing can work more closely together and how common targets and KPI structure can drive a more holistic market approach and ensure better return on sales and marketing investments. JANUARY/FEBRUARY 2014
  24. 24. Contacting Implement Consulting Group Learn more about Commercial Excellence Forum Go to Implement Consulting Group's main website

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