Winning Value Propositions

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Buyers know they want it, enterprises know what they're doing!! A Value Proposition is what we need.

One of the most efficient business drivers is a good value proposition. Not having one is like not knowing which problem is being solved, even though huge effort and investment goes into the solution!

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  • SCAMPER: Scamper is an acronym for a set of techniques that help you see things different. S ubstitute - Replace all or part of your product, service, or process with something else. Change out the people, place, time or situation with something else. C ombine - Put parts together. Mix and integrate typically disconnected parts. Bring together other ideas and situations. What ideas can be combined? What about a blend? What about an ensemble? What materials could you combine? What else can be merged with this. A dapt - How can you alter, change, or use part of another element? Can you change it to meet your purpose? Is there something you could copy? What style could you emulate? What could you make it look like? What idea can you incorporate? M odify - What if this were somewhat changed? How can this be altered for the better? How about a new twist? What change can we make in the process? What about changing its shape? P ut To Other Use - What are other ways you can put your challenge to use? E liminate - What can be taken away? What isn't truly necessary? What isn't required for functionality? What if it were smaller? R earrange - What if the order were changed? Where should this part be placed in relation to that? What other layout might be better? What about timing? Or a change of pace?
  • Winning Value Propositions

    1. 1. Winning Value Propositions July 2012 Jedii
    2. 2. Why Value Propositions• Creating a value proposition is a part of business strategy. Kaplan and Norton say"Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation."
    3. 3. What is a Value Proposition?• A value proposition is the collection of reasons why a person or company benefits from buying something.• A value proposition is the solution to your customer’s problem. It goes hand in hand with the problem you are solving. I am a customer, I walk in with a problem, I walk out with a solution. The solution then is not your product or service, but the solution your product or service provides. i.e.: the end result, the value given to the customer.
    4. 4. From InvestopediaWhat Does ’Value Proposition’ Mean?•A business or marketing statement thatsummarizes why a consumer should buy aproduct or use a service.•This statement should convince a potentialconsumer that one particular product or servicewill add more value or better solve a problemthan other similar offerings.
    5. 5. Investopedia explains Value Proposition• Companies use this statement to target customers who will benefit most from using the company’s products, and this helps maintain an economic moat.• The ideal value proposition is concise and appeals to the customer’s strongest decision-making drivers.• Companies pay a high price when customers lose sight of the company’s value proposition.
    6. 6. Reasons why people buy - Winning Value Propositions• Potential buyers have to need what you’re proposing. It has to resonate with them.• Potential buyers have to see why you stand out from the other available options. You have to differentiate.• Potential buyers have to believe that you can deliver on your promises. You have to substantiate.
    7. 7. Resonating Value Propositions• Deep knowledge and understanding of challenges of the target segment(s) of users/buyers, and what they mean to them.• Belief about the most important benefits of solutions, provided to the target segment based on experience, data, proof.• Price, schemes, and variations considering the challenges and the benefits (above).
    8. 8. Differentiating Value Props• Better, Faster, Cheaper• First, Different, Great• Stability, Flexibility• The idea is to identify critical attributes of competitors’ offerings, and identify the attributes that are the most discouraging for potential buyers – and then to identify opportunities to conver those into our Differentiators.
    9. 9. Substantiating Value Props• Value props could be substantiated based on identical or similar value props’ Track Record, Endorsements, Recommendations, Analysis Reports, Demos, Trials, Expression of Conviction, etc.
    10. 10. The Three Legs of Winning Value Propositions
    11. 11. Creating the Value Props – Think…• Target Segment – The people who will buy• Problem(s) – The problems they struggle with• Scope – The scope that our value prop will address• Solution – The offering that is our value prop• Benefit(s) – The benefits people can expect Contextual thinking of the above aspects leads to concise statements of…• Value Proposition(s)
    12. 12. The Value Proposition Formula• We help [your most promising prospects] that [need help with their pressing concerns you address] succeed by [providing the material improvement(s) you will deliver]. Unlike [the alternative solution], [your solution] [describe the reason why your company is a better choice] as demonstrated by [evidence that you will deliver as promised].
    13. 13. To add value to Thinking• Try if doing this thinking/discussion in workshop mode works better for you. Usually it does, with the right people involved.• Do the contextual thinking and drafting of Value Prop statements in the same session.• Force the Value Prop Statement(s) to be concise and crisp, must be clear and coherent.• Generate divergent thinking before converging – SCAMPER
    14. 14. Sample Value Props• Look at some sample statements of Value Propositions and identify how they Resonate, Differentiate, or Substantiate.• Also, rate each Value Proposition on a scale of 1 to 10, 1 being poor in effectiveness and 10 being outstanding in effectiveness as a value proposition.
    15. 15. Summary• Value Propositions are the most important first step in communicating why your offering should be bought.• VPs need to Resonate, Differentiate, Substantiate.• VPs must address (5) Target, Problem, Scope, Solution, and Benefits.
    16. 16. Thank you!

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