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How To Develop a Value Proposition That SELLS
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How To Develop a Value Proposition That SELLS

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Everyone "knows" that B2B customers buy products when you show them the economic advantages of buying your offering. Often, you can develop a strong economic argument without collecting massive …

Everyone "knows" that B2B customers buy products when you show them the economic advantages of buying your offering. Often, you can develop a strong economic argument without collecting massive amounts of data, installing enterprise software systems or spending a ton of money. In this webinar, Jim Geisman of Software Pricing Partners shares his extensive experience working with companies to sharpen their value propositions.

Jim Geisman provides practical advice and tips that have helped B2B marketing and sales professionals in companies ranging in size from global companies to start-ups.

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  • 1. Welcome!Monthly Webinar Series September 21, 2011 Sponsored by:
  • 2. Our Topic and Presenter Today  How to Develop a Value Proposition That Sells Jim Geisman Founder 508-647-0330 jimg@softwarepricing.comWebinar-May-June 2011 Copyright © 2011 LeveragePoint
  • 3. Value Proposition ExamplesThrough its strategic alliance with Microsoft and oursolution competencies …Key Differentiators:Breakthrough Results: We stay on time and onbudget.Accelerated ROI: Our Agile improves ROI … fasterTime-To-Market.Flexible Engagement Models: We can ramp up andramp down.© Software Pricing Partners, IncAll Rights Reserved -2-
  • 4. Value Proposition Examples Gartner estimates that “remote infrastructure management services [RIMS] can reduce labor costs by 10% to 50%, depending on the delivery location, resulting in a 3% to 30% overall net savings, excludingThrough its strategic alliance with Microsoft and oursolution competencies … one-time transition charges.”Key Differentiators: Oracle RIMS brochureBreakthrough Results: We stay on time and onbudget.Accelerated ROI: Our Agile improves ROI … fasterTime-To-Market. An automated datacenter using VMware lets you respond to market dynamics faster and more efficientlyFlexible Engagement Models: We can ramp up and than ever before. VMware customers typically save 50-ramp down. 70% on overall IT costs by consolidating their resource pools … Quantifiable VMWare economic benefit© Software Pricing Partners, IncAll Rights Reserved -3-
  • 5. Quantifiable Economic Benefit Real Estate CRM Example  Typical office  3 – 5 Agents (inc. Broker)  500 – 1000 active listings  1000 – 2000 contact pool • 100 active / agent / month 50% improvement  4-6 mos from inquiry to sale 2 week improvement  5% close rate 10% improvement  $100K Gross / agent / year • 20-25 transactions / year 3 – 5 more deals / year  Brokerage owner makes decision  Overall 15 – 20% improvement per agent  $15 – 20 K / agent / year  $45 – 100 K / brokerage / year© Software Pricing Partners, IncAll Rights Reserved -4-
  • 6. Developing a Value Prop  Target market  Segments  Economic drivers of customer’s business  Manufacturing vs. Services  Your product/service economic impact  Unique economic value add  Estimate the economic value  Third party research  Industry insiders  Personal experience  SWAG’s© Software Pricing Partners, IncAll Rights Reserved -5-
  • 7. Polling Question Where do you get your numbers for assessing economic impact of your product or service?  Third party research  Industry insiders  Personal experience  SWAG’s  We don’t often use numbers© Software Pricing Partners, IncAll Rights Reserved -6-
  • 8. Assessing Economic Impact Revenue Benefit Cost Benefit  Increase  Decrease  Accelerate  Defer  Sustain  Avoid Risk Timing Associated Costs • Predictabilty • Occurrence • Out of Pocket • Likelihood • Duration • Opportunity© Software Pricing Partners, IncAll Rights Reserved -7-
  • 9. Assessing Economic Impact Focus on Revenue Impact  Accounting package  Save time Or… Collect money 10-15 days faster  Insurance application  Fewer errors Or… Write 5% more policies  Customer service center  Lower cost per call Or… Retain customers 5-10% longer  Industrial coating  Better coverage Or… Produce 15% more over product lifetime© Software Pricing Partners, IncAll Rights Reserved -8-
  • 10. Value Prop Presentation  Audience  Advocate President  Evaluate  Approve  Purpose  “Call to action” CxO  Detail  Spreadsheet  Presentation Director  … Other© Software Pricing Partners, IncAll Rights Reserved -9-
  • 11. Whatever Audience Needs Application Hosted Svc Development New Complex Fulfillment Higher Completion Total Rate Economic Value Simple Automation More Calls Than Existing Automation Existing Software© Software Pricing Partners, IncAll Rights Reserved - 10 -
  • 12. Persuasive Value Prop Create Context Instill Confidence  Delivery  Credibility  Web site  Promise  Collaterals  Proof  Sales channel  Commitment  Content  Risk  Audience  Predictability  Logic  Containment  Message  Mitigation© Software Pricing Partners, IncAll Rights Reserved - 11 -
  • 13. Economic Value Propositions  Align value with revenues  OK to change cost structure  Sooner is better than later  Perception of value is reality  Don’t ignore risks or costs  Make simple, understandable case  Customer should own the numbers  Intangibles count … … But don’t count on them© Software Pricing Partners, IncAll Rights Reserved - 12 -
  • 14. See you in Vegas! www.leveragepoint.com jmanson@leveragepoint.com Jay Manson (781) 727 – 5977Webinar-May-June 2011 Copyright © 2011 LeveragePoint