Here we focus on approach and steps needed to create your Total Value Proposition
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’.
Ten Organizational Design Models to align structure and operations to busines...
Harnessing your customer truth from value propositions to sales propositions - part 3
1. From Value Propositions to Sales Propositions
the third of four extracts from a white paper of the same name
Harnessing Your Customer Truth
Part 3
2. www.futurecurve.com
The total value proposition is the sum of
the offerings and experiences
delivered to your customers, during all
their interactions with your organisation
Recap from Part 1: Definition of a total value proposition
3. www.futurecurve.com
The total value proposition is the sum of
the offerings and experiences
delivered to your customers, during all
their interactions with your organisation
All products, services and
solutions and their functionality
How your customers experience
your products, services and your
company
Your customers’ experiences through all touch
points with your company such as marketing,
sales, delivery, customer service, after sales
service, invoicing, legal/contracting
Recap from Part 1: Definition of a total value proposition
4. www.futurecurve.com
Recap from Parts 1 & 2
In Part 1 we covered:
Why your customers don’t value what
you offer and what constitutes value
In Part 2 we covered:
The difference between a value
proposition and a sales proposition
5. www.futurecurve.com
Have you got what it takes?
To develop a value proposition at the
company, market or division level
requires leadership. You need:
Senior sponsorship
Clear objectives
Business case
Proven approach
“The first responsibility of a leader is to define reality.”
- Max DePree
6. www.futurecurve.com
This model has six elements that
lead directly to the creation of a
total value proposition. Through
the use of the methods, tools and
techniques involved in this
iterative process, there are clear
outputs at each stage of the
process, ultimately generating
focused actions to align your
organisation to a customer focus.
Proven approach: The Value Proposition Builder™
7. www.futurecurve.com
What to do:
Analyse your markets in detail
starting at the highest, strategic level
and working down to specific
customers and types of buyers:
– Sectors and segments
– Regions
– Products and services
– Distributors
– Customers
– Buyers
– Influencers
The Value Proposition Builder™ phases: Market
8. www.futurecurve.com
You are looking for:
Market shape and structure
Market dynamics and changes
happening both now and future
Political nuances of your markets
Cultural and behavioural nuances of
your markets
The perceived risks associated with
buying from you
The Value Proposition Builder™ phases: Market
9. www.futurecurve.com
What to do:
Business and psychology-based
qualitative research across all
stakeholders including interviews
and observation
The Value Proposition Builder™ phases: Value Experience
10. www.futurecurve.com
You are looking for:
Rational, emotional and political
understanding of where your value
lies today in the eyes of your
stakeholders
Rational, emotional and political
understanding of where your future
value may lie in the eyes of your
stakeholders
The Value Proposition Builder™ phases: Value Experience
11. www.futurecurve.com
The Value Proposition Builder™ phases: Offerings
What to do:
Using the Value Pyramid, create multiple
maps of your product and service offerings
against the value they deliver to customers
13. www.futurecurve.com
You are looking for current and future offerings mapped by:
Different types of buyers
Different pricing structures
Competitive and alternative offerings
A Transactional go-to-market approach and/or a
Relational/Consultative approach
Underserved areas that can lead to innovation at low cost through
re-bundling or re-positioning
The Value Proposition Builder™ phases: Offerings
OFFERINGS
15. www.futurecurve.com
What to do:
Map and prioritise your benefits based on the
outputs of the Market, Value Experience and
Offerings stages
Decide what are:
– Expected benefits and Augmented benefits
Keep drilling down on each Augmented benefit
and asking the question ‘So what does this mean
for my customer?’
Map Augmented benefits on matrix of Value To
Customer against Degree of Difference
The Value Proposition Builder™ phases: Benefits
16. www.futurecurve.com
You are looking for:
Real, augmented customer benefits
The Value Proposition Builder™ phases: Benefits
Before drilling down After drilling down
18. www.futurecurve.com
What to do:
Compare your value against your
competitors’ value
DO NOT compare your products,
services, features or benefits against
your competitors’
Include the customer alternatives of
‘Do nothing’ or ‘We’ll do it ourselves
in house’
The Value Proposition Builder™ phases : Alternatives & Differentiation
19. www.futurecurve.com
You are looking for:
A competitive positioning map of
your value to customers against
your competitors’ value to your
customers
The Value Proposition Builder™ phases : Alternatives & Differentiation
Note: BG is our Market Research client and A, C, D, E & F are
BG’s key competitors
20. www.futurecurve.com
The Value Proposition Builder™: High-Level Value Proposition Framework
Example of a high-level framework for a telecoms company
What to do:
•Pull together the
outputs from all of the
previous stages to
create a Value
Proposition
Framework
21. www.futurecurve.com
What to do:
From the Value Proposition
Framework, create the messaging to
be used externally by marketing and
sales and internally for employee
communication
The Value Proposition Builder™ phases: Messaging & Building Evidence
22. www.futurecurve.com
You are looking for:
High level, key marketing messaging that
can be used to brief marketing
communication agencies to develop new
positioning material
Key insights to develop sales propositions
Messaging and insights that will cover the
rational, emotional and political elements
of customer value
Development of evidence including case
studies and Return on Investment tools
The Value Proposition Builder™ phases: Messaging & Building Evidence
23. www.futurecurve.com
Recommendations & Summary
Leadership is vital for success
Plan for this process and be methodical
Invest in qualitative research that covers business drivers and psychological drivers of all the
stakeholders concerned
Create or develop your total value proposition BEFORE developing your sales propositions
In Slideshare Part 1 we covered:
Why your customers don’t value what you offer and what constitutes value
In Slideshare Part 2 we covered:
The difference between a value proposition and a sales proposition
In this Slideshare Part 3 we covered:
The approach and steps needed to create your Total Value Proposition
24. Contact us
Please say hello@futurecurve
And visit our website: www.futurecurve.com
e. cindybarnes@futurecurve.com
t. +44 (0)1628 487 708
This is Part Three of an extract from the Futurecurve
White Paper, ‘Harnessing Your Customer Truth: From
Value Propositions to Sales Propositions’
Click this link to download the whole white paper
Editor's Notes
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 3 we focus on approach and steps needed to create your Total Value Proposition
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 customers’ experiences through all touch points with your company such as marketing, sales, delivery, customer service, after sales service, invoicing, legal/contracting
Recap from Parts 1 & 2 In Part 1 we covered: Why your customers don’t value what you offer and what constitutes value In Part 2 we covered: The difference between a value proposition and a sales proposition
Have you got what it takes? To develop a value proposition at the company, market or division level requires leadership. You need: Senior sponsorship Clear objectives Business case Proven approach
Proven approach : The Value Proposition Builder ™ This model has six elements that lead directly to the creation of a total value proposition. Through the use of the methods, tools and techniques involved in this iterative process, there are clear outputs at each stage of the process, ultimately generating focused actions to align your organisation to a customer focus.
The Value Proposition Builder™ phases: Market What to do: Analyse your markets in detail starting at the highest, strategic level and working down to specific customers and types of buyers: Sectors and segments Regions Products and services Distributors Customers Buyers Influencers
The Value Proposition Builder™ phases: Market You are looking for: Market shape and structure Market dynamics and changes happening both now and future Political nuances of your markets Cultural and behavioural nuances of your markets The perceived risks associated with buying from you
The Value Proposition Builder™ phases: Value Experience What to do: Business and psychology-based qualitative research across all stakeholders including interviews and observation
The Value Proposition Builder™ phases: Value Experience You are looking for: Rational, emotional and political understanding of where your value lies today in the eyes of your stakeholders Rational, emotional and political understanding of where your future value may lie in the eyes of your stakeholders
The Value Proposition Builder™ phases: Offerings What to do: Using the Value Pyramid, create multiple maps of your product and service offerings against the value they deliver to customers
The Value Proposition Builder™ phases: Offerings The Value Pyramid of Offerings
The Value Proposition Builder™ phases: Offerings You are looking for current and future offerings mapped by: Different types of buyers Different pricing structures Competitive and alternative offerings A Transactional go-to-market approach and/or a Relational/Consultative approach Underserved areas that can lead to innovation at low cost through re-bundling or re-positioning
The Value Proposition Builder™ phases: Offerings Future map of offerings by buyer type for a division of a technology company
The Value Proposition Builder™ phases: Benefits What to do: Map and prioritise your benefits based on the outputs of the Market, Value Experience and Offerings stages Decide what are: Expected benefits and Augmented benefits Keep drilling down on each Augmented benefit and asking the question ‘So what does this mean for my customer?’ Map Augmented benefits on matrix of Value To Customer against Degree of Difference
The Value Proposition Builder™ phases: Benefits You are looking for: Real, augmented customer benefits Benefits maps: Before drilling down After drilling down
The Value Proposition Builder™ phases: Benefits You are looking for: Real, augmented and prioritised customer benefits
The Value Proposition Builder™ phases : Alternatives & Differentiation What to do: Compare your value against your competitors’ value DO NOT compare your products, services, features or benefits against your competitors’ Include the customer alternatives of ‘Do nothing’ or ‘We’ll do it ourselves in house’
The Value Proposition Builder™ phases : Alternatives & Differentiation You are looking for: A competitive positioning map of your value to customers against your competitors’ value to your customers
The Value Proposition Builder™: High-Level Value Proposition Framework What to do: Pull together the outputs from all of the previous stages to create a Value Proposition Framework Example of a high-level framework for a telecoms company
The Value Proposition Builder™ phases: Messaging & Building Evidence What to do: From the Value Proposition Framework, create the messaging to be used externally by marketing and sales and internally for employee communication
The Value Proposition Builder ™ phases : Messaging & Building Evidence You are looking for: High level, key marketing messaging that can be used to brief marketing communication agencies to develop new positioning material Key insights to develop sales propositions Messaging and insights that will cover the rational, emotional and political elements of customer value Development of evidence including case studies and Return on Investment tools
Recommendations & Summary Leadership is vital for success Plan for this process and be methodical Invest in qualitative research that covers business drivers and psychological drivers of all the stakeholders concerned Create or develop your total value proposition BEFORE developing your sales propositions In Slideshare Part 1 we covered: Why your customers don’t value what you offer and what constitutes value In Slideshare Part 2 we covered: The difference between a value proposition and a sales proposition In this Slideshare Part 3 we covered: The approach and steps needed to create your Total Value Proposition
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 Three of an extract from the Futurecurve White Paper, ‘Harnessing Your Customer Truth: From Value Propositions to Sales Propositions’