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Differentiate and capture more value

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How do you design and implement winning value propositions that enable you to win in the market and capture a price premium?

Most companies face strong competition in an often increasingly commoditised and global marketplace. The winners are those who know how to create superior value for their key customer segments and differentiate the offering to match what the customers want and are willing to pay for.

On Friday 12 June Implement Consulting Group invited the members of the Commercial Excellence Forum to an event of inspiration and discussion with peers.

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Differentiate and capture more value

  1. 1. Differentiate to outperform competition and capture more value Commercial Excellence Forum 12th of June 2015
  2. 2. Agenda 09:00 Welcome and introduction 09:05 Introduction to differentiation and value proposition 10:10 Short break and networking 10:20 How to work with differentiation and value proposition design 10:40 Exercise: Work with you own value proposition Key barriers in development and implementation of value propositions 09:30 Case: TDC working with multiple value propositions 11:45 Networking and light lunch
  3. 3. Agenda 09:00 Welcome and introduction 09:05 Introduction to differentiation and value proposition 10:10 Short break and networking 10:20 How to work with differentiation and value proposition design 10:40 Exercise: Work with you own value proposition Key barriers in development and implementation of value propositions 09:30 Case: TDC working with multiple value propositions 11:45 Networking and light lunch
  4. 4. 4 Growth ambition Fight commoditisation+ Why differentiation now?
  5. 5. 5 Most companies have something unique and valuable to offer their customers… However only a minority are able to truly define and convey the value to their customers
  6. 6. 6 3 out of 4 are not able to communicate the value proposition clearly to customers
  7. 7. 7 90% fail to communicate the financial impact
  8. 8. 8 50% of all value propositions are NOT based on what truly drives value for customers
  9. 9. 9 Lets hear some perspectives on working with Value Propositions….
  10. 10. 10 Top 3-mentioned barriers Being able to identify true differentiated value propositions 1 Being able to apply an outside-in perspective 2 Getting internal alignment and making the change happen 3
  11. 11. 11 … choice of business model Value Proposition is … … our product features … our service strategy … our marketing material … our marketing campaign … framing the issue … sales collateral … go-to-market strategy … our purpose … vision and mission … customer satisfaction … customer segmentation … R&D and innovation
  12. 12. 12 What is a value proposition? The answer to the fundamental question: ”Why should I as a customer buy your product or services?”
  13. 13. 14 A winning value proposition has three core components The components of a winning value proposition... 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”
  14. 14. 15 Building a value proposition requires understanding of features and differentiators Features Differentiators Value proposition Features are the fact- based characteristics of a given product, service or solution Defendable differentiators are the features that are unique and customers perceive as valuable A value proposition is a promise of value based on number of differentiators Understanding needs and drivers of target group Influencing decision making and behaviour of target group
  15. 15. 16 Define your differentiators based on deep customer insights on what drives perceived value for the customer Differentiators HighLow Perceived value to the customer High Low Perceived uniqueness
  16. 16. 17 Sources of differentiation can come from a number of sources – ranging from the core product to services to brand position Brand and wider context of company Distribution, channels, customer service, go-to- market offering, etc. Services related to product Product experience , other attributes Additional product functionality Core product functionality A Value Proposition is a compelling story that engages (emotionally) and provides convincing reason of why a customer should choose you over competitors
  17. 17. 18 A VP should be qualified to prove the potential value creation for a given segment or a specific customer Features Fact based characteristics of a given offering Generic value proposition Promise to market about the delivered value Segment Value proposition Promise of value delivered to customers in a given segment Value Differentiators Unique features that customers perceive as valuable Perceived value to the customer Perceived uniqueness Low High Low High 1 b 1 c 2 a 3 b 4 a 4 b 5 b 6 7 1 a 2 b 3 a 8 5 c 5 a 3 c (Value Differentiators) (Differentiators) (Qualifiers) A personalized promise of value delivered on an individual basis or for an individual customer Customer Value proposition Internal company perspective Market perspective Customer perspective
  18. 18. Agenda 09:00 Welcome and introduction 09:05 Introduction to differentiation and value proposition 10:10 Short break and networking 10:20 How to work with differentiation and value proposition design 10:40 Exercise: Work with you own value proposition Key barriers in development and implementation of value propositions 11:45 Networking and light lunch Case: TDC working with multiple value propositions09:30
  19. 19. Agenda 09:00 Welcome and introduction 09:05 Introduction to differentiation and value proposition 10:10 Short break and networking 10:20 How to work with differentiation and value proposition design 10:40 Exercise: Work with you own value proposition Key barriers in development and implementation of value propositions 11:45 Networking and light lunch Case: TDC working with multiple value propositions09:30
  20. 20. 25 Value Proposition Canvas Products & Services Gain Creators Pain Relievers Gains Pains Customer Job(s)
  21. 21. 27 What is the Value Proposition of a Tesla?
  22. 22. 28 Pain relievers Gain creators Products and Services    Pains Gains Customer job(s) What is the Value Proposition of a Tesla? Tesla Value Proposition Customer segment: Upper Middle Class Male, $100K+ income Model S 60-85 kWh 8 year battery warranty Options Charging: 45- 90 km/hour 5+2 seats Performance 0-100 km/h 4,4s-6,2s Fokus på design og stil High-tech feel: 17’’ touch screen Highest safety ever by NHTSA Range of 350km to 450km Convey an image of succes Commute to work In sync with personal values Be different from others Personal mobility Occasional long dist. trip High safety ratings Compliments from friends High-end Battery Tech Perform like a sportscar DesignBrand recognition Range of 250km to 350km Laughed at Accident and harm Fear of dead battery Frequent charging Aircon draining battery Lack of space
  23. 23. Agenda 09:00 Welcome and introduction 09:05 Introduction to differentiation and value proposition 10:10 Short break and networking 10:20 How to work with differentiation and value proposition design 10:40 Exercise: Work with you own value proposition 11:45 Networking and light lunch Case: TDC working with multiple value propositions09:30
  24. 24. 32 Lets try to work with the framework… Products & Services Gain Creators Pain Relievers Gains Pains Customer Job(s)
  25. 25. Agenda 09:00 Welcome and introduction 09:05 Introduction to differentiation and value proposition 10:10 Short break and networking 10:20 How to work with differentiation and value proposition design 10:40 Exercise: Key barriers in development and implementation of value propositions 11:45 Networking and light lunch Case: TDC working with multiple value propositions09:30
  26. 26. 35 Top 3-mentioned barriers Being able to identify true differentiated value propositions 1 Being able to apply an outside-in perspective 2 Getting internal alignment and making the change happen 3
  27. 27. 39 We see three typical commercial barriers for truly living and executing a differentiated value proposition Company Value Proposition Customer Value perception Marketing Translating company product/services to differentiated value propositions with value messages for target segments Align & Engage Alignment of sales approach and practical sales execution tools – and create sales engagement in the communication Sales/Retail/Channel Articulate, substantiate and convey superior customer-specific value of company offering MARKETING-SALES CHAIN Marketing not able to formulate differentiated value propositions and value messages truly resonating with customer’s needs and value perception” 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” Sales/Retail/Channel not able to convey and articulate customer- specific value of company product/services – thereby not selling the “differentiated value proposition” Most common barriers You need a complete and integrated “marketing-sales chain” to define, communicate and execute your value proposition
  28. 28. WHAT? • Share experiences on how to design and implement winning value propositions HOW? Please discuss at the table : 1. What are the typical key barriers for 1. Designing winning value propositions 2. Implementing winning value propositions Please write the issues on red card boards (one issue on each card) 1. Based on your experiences – what can you do to mitigate the identified challenges Please write the ideas on green card boards (one issue on each card) 30min EXERCISE DESCRIPTION Exercise: Discuss typical key barriers in designing and implementing winning value propositions
  29. 29. Next event:
  30. 30. Change with Impact.

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