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The Value Proposition

The Value Proposition . Karl Sooder. The Value Proposition. Your Prospect. The Value Proposition. Tailored Features & Benefits. The Value Proposition. Proof. Tailored Features & Benefits. The Value Proposition. You (as the solutions provider). Proof. Tailored Features

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The Value Proposition

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  1. The Value Proposition Karl Sooder

  2. The Value Proposition Your Prospect

  3. The Value Proposition Tailored Features & Benefits

  4. The Value Proposition Proof Tailored Features & Benefits

  5. The Value Proposition You (as the solutions provider) Proof Tailored Features & Benefits

  6. A Model for Effective Selling and Sales Management – Value Creation • Value is the bundle of benefits the customer derives from a purchase • “Give-get ratio” • Value creation--adding value for a customer beyond just an isolated transaction

  7. A Model for Effective Selling and Sales Management – Value Creation • Security • Power/Control • Approval/Affection

  8. A Model for Effective Selling and Sales Management – Value Creation • A value proposition in business and marketing is the emotional & rational statement set summarizing the customer segment and the core differentiation of one's product/service from the offerings of competitors.

  9. A Model for Effective Selling and Sales Management – Value Creation • Like--The “30 Second Commercial” • Name • Education • General Work History • Future Goal

  10. A Model for Effective Selling and Sales Management – Value Creation • Like--“The Elevator Presentation”—A one minute summary of your business concept focused on investors/venture capital sources

  11. “Made to Stick” • “Made to Stick: Why Some Ideas Survive and Others Die” by Chip & Dan Heath • Simple-find the “core” • Unexpected-get attention/surprise • Concrete-understand & remember • Credible-help people believe • Emotional-make people care • Story-containing-get people to act

  12. A Model for Effective Selling and Sales Management – Value Creation • THE VALUE BUNDLE-contained in a solid value proposition: • Product/Service Feature(s)- Independently Proven • The Benefits (financial & emotional) • Your Company As Partner • You as Personal Problem-Solver

  13. A Model for Effective Selling and Sales Management – Value Creation • Value Proposition is a brief, comprehensive description of “the total package.” • FABM [Features/Advantages/Benefits/Motives] is used for very specific details of the overall package • FABM comes after the Value Proposition

  14. A Model for Effective Selling and Sales Management – Value Creation • Why proofis absolutely essential to your value proposition??

  15. What is an argument? Argument: a series of logically related statements What matters most is the conclusion and the evidence for it For the prospect to take your conclusion seriously, you need to show them whythey should do so

  16. What is an argument? What? (Conclusion) The president is right to default on the nation’s foreign debt

  17. What is an argument? What? (Conclusion) The president is right to default on the nation’s foreign debt Why? (Evidence) Full payment of the debt will destabilize the country

  18. What is an argument?

  19. A Model for Effective Selling and Sales Management – Value Creation • Simply having a “superior” product or delivering on your promises is no longer sufficient in this 21st Century • It’s how you make your customers feel while using your products that distinguishes you. • The experience is what bonds your customers to you.

  20. A Model for Effective Selling and Sales Management – Value Creation • Why emotion is absolutely essential to your value proposition

  21. Fundamental Principles • People need a reason to change • The product is in the mind of the buyer • People make emotional buying decisions for logical reasons • The correct use of power is key • You can’t sell to someone who can’t buy People Buy From People !!

  22. “Two Factor” Model of Business Buyer Needs 37% Level of Influence On Buyers’ Satisfaction Functional Attributes “Must-Haves” Buyers’ Level of Satisfaction Psychological Attributes 63% Level of Influence On Buyers’ Satisfaction “Delighters”

  23. Definition of a Business Issue (“BI”) • What an individual needs to address/resolve to contribute to company objectives • Four very common BI’s include: • Increase revenue or market share • Cost management • Quality/reliability • Increase efficiencies/productivity • Often also a very important metric for individual’s success • And, there needs to be a struggle associated with it!

  24. Opportunities for Differentiation • Capabilities • Unique services (speed, flexibility, etc.) • Problem solving • Image • You! • Risk reduction • Convenience • Terms & conditions • Price – to be used when you can’t differentiate any other way.

  25. Key Question Types • Open • Surface the buyer’s view/feelings of the situation • Probe • Raises conditions or issues that didn’t surface on their own • Used to differentiate and create need for uniqueness • Used to grow buyer’s perception of the value they will receive through the solution • Confirm • Verifies a shared understanding and confirms that the buyer’s needs are being met (customer delight)

  26. A Model for Effective Selling and Sales Management – Value Creation • Emotions are the basic plan of action • Modern views observe that emotions are brain states that quickly assign value to outcomes and provide a simple plan of action. Thus, emotion can be viewed as a type of computation, a rapid, automatic summary that initiates appropriate actions. • Example: an out-of-control 18-wheeler is heading directly toward you. The instant fear directs your brain to do the right things (determining an escape route) instead of all the other things it could be doing (thinking about Saturday night).

  27. A Model for Effective Selling and Sales Management – Value Creation • One of the most influential classification approaches in the study of emotion is Robert Pluchick’s classification into eight [8] primary emotions. Those emotions that are considered as primary are: • anger • fear • sadness • joy • disgust • curiosity/interest • surprise • acceptance

  28. A Model for Effective Selling and Sales Management – Value Creation • Answering: “What’s In It For Your Prospect/Customer”

  29. A Model for Effective Selling and Sales Management – Value Creation • Sales Managers

  30. A Model for Effective Selling and Sales Management – Value Creation • Some might call it heresy: the customer comes second! • If you are devoted to your team and can promise them much more than just a paycheck, providing something they can believe in, you will get the best service for your customers which, in the long run, will provide the best return to the total enterprise

  31. A Model for Effective Selling and Sales Management – Value Creation • The “55%/45% Rule” • You can more easily teach technical skills than you can develop employee emotional intelligence [E.I.] • When selecting employees, seek candidates whose strengths are divided 55%-45% between emotional skills and technical excellence

  32. A Model for Effective Selling and Sales Management – Value Creation • Build a team of sales people who are naturally kind, empathetic and curious along with having a strong work ethic • They will get “fed & rewarded” by providing exceptional customer service.

  33. A Model for Effective Selling and Sales Management – Value Creation • Examples of When You Would Develop Value Propositions….

  34. A Model for Effective Selling and Sales Management – Value Creation • Kick-off new product/service meeting • Abundance of features & benefits • R&D and Production people play a key role • Target introductory sales goals are announced • Account people sent home to “make it happen”

  35. Value Propositions-BAD! • We help people dress better. • Terra Corporation: recycling plastics and paper. Then, producing environmental friendly products.

  36. Value Proposition-Weak • Classy Body Care is a 100% natural body care products company.  We sell handmade soap, lip balm, hand balm, belly balm (for pregnant moms) and spa gift baskets.  We can personalize our soap labels for baby and bridal showers, etc.

  37. Value Proposition-Stronger • Zazo Creative produces user-friendly websites that customers use to select options for customization of magazines. Our back-end content management system allows magazine publishers to add editorial content, control advertising database, filter user profiles, etc.

  38. A Model for Effective Selling and Sales Management – Value Creation • Example: New Homeland Security Product

  39. A Model for Effective Selling and Sales Management – Value Creation • In this era of heightened airport security concerns, you are an award winning district sales manager for Advanced Engineering, a leading manufacturer of state-of-the-art explosives detection devices. The complete “Senso-37 Detection System” for major airports requires a $200,000 investment, fully installed. Your superior speed system has been shown to lower human security guard costs by an average of 1.5%, annually, for the typical industry customer. Your analysis expects that your current key prospect, Orlando International Airport [OIA/MCO] will decrease their general security guard expenses at the major passenger screening area by $80,000/year for the next four [4] years (expected life of your safety monitoring system).

  40. A Model for Effective Selling and Sales Management – Value Creation • In a maximum of four [4] sentences, create a model value proposition for your sales team to use based on the following information about your company [please number your sentences]:

  41. A Model for Effective Selling and Sales Management – Value Creation THE VALUE BUNDLE-contained in a solid value proposition: Product/Service Feature(s)-Proven The Benefits (emotional & financial) Your Company As Long-Term Partner You as Personal Problem-Solver

  42. A Model for Effective Selling and Sales Management – Value Creation • 1. The Senso-37 Explosive Detection System features the fastest processing time and is top-rated by J.D. Power & Associates. • 2. The investment in the system pays for itself in just 2.5 years while giving you and your passengers peace of mind that EVERYONE is being screened with state of the art technology and QUICKLY! • 3. You and your security team will be expertly trained and then fully supported as just as soon as Senso begins its long-term partnership with Orlando International Airport. • 4. When you invest in this system you also get many added advantages including my personal commitment and supervision, as one of the top sales managers in the country, that your system will be expertly installed and maintained at OIA/MCO. • Sincerely, • Richard Martinez & Anita Bell, District Sales Managers

  43. A Model for Effective Selling and Sales Management – Value Creation

  44. A Model for Effective Selling and Sales Management – Value Creation • “Personal Selling: Helping Customers Solve Problems” (15:00)

  45. A Model for Effective Selling and Sales Management – Value Creation • “The Power Close” (16:00)

  46. A Model for Effective Selling and Sales Management – Value Creation • Benefit with Benefits • Zero In • Demonstrate & Don’t State • Ask For It • Keep It Sold

  47. The Value Proposition Karl Sooder

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