It's very difficult to stand out in B2B tech markets, where products or services are very similar. Key to this is developing a value proposition that resonates. It's therefore surprising that many companies don't have a formal process to evolve their propositons.
Value propositions are vital because they demonstrate what makes your solutions unique, and why customers should commit significant investment with you to save money, drive growth or reduce risk. Being able to articulate this consistently through your marketing, sales and delivery efforts can make a real difference to the success of your business.
The process: what makes a strong value proposition?
A good value proposition isn’t just about the end-result of how compelling it is to the customer - it’s also about the validity of the process of developing it. It’s for that reason that we always recommend that a value proposition process brings the following four pillars together:
Customer insight and knowledge
Using customer research and insights to understand their needs and priorities, and then to shape messaging around this, is critical. Only then can you properly dig into the core problems that your solutions are trying to solve, and to focus on the one or two points that will resonate the best. Even if you think you have a strong handle on what these are already, it’s still worth going through the process in case it turns out that what customers really want differs from your assumptions.
Competitor insight
The same principle applies to what your competitors are doing. Analysing who they are, what they’re offering and how they position themselves in the marketplace is essential to finding a gap that you can fill and be noticed in. In particular, look for their strengths, weaknesses and pricing strategies to get the fullest picture.
Design methodology
Putting value propositions together can be a messy process without having a clear structure in place. That’s where design methodology tooling comes in, so that the process is clear, fast and built to help you create something of real value at the end. One tool that we really like for this is the Strategyser Value Proposition Canvas, as it delivers a clear and comprehensive process across customer interviews, testing, prototyping and design thinking.
Involving the right people
Creating a compelling value proposition ideally needs a cross-functional team comprising product marketers, sales representatives, customer support, product developers, data analysts, and customer feedback specialists. Generally speaking, it’s best to use external specialist support for these roles wherever possible, as internal staff are often too close to the products and brand in question to make objective decisions. With regular meetings and feedback loops, a collaborative environment based on shared insights and knowledge can be fostered, putting the value proposition on the right track.
Crafting a value proposition statement
In an ideal world, you’ll end up with a value proposition which is not only compelling, but also simple and easy to understand - perhaps even boiled down to a single sentence or two. This makes it as straightforward as possible for customers to understand your offering, what makes you unique, and why they should do business with you.
In many ways, a value proposition is similar to an elevator pitch, but there are some subtle yet important differences between the two. Value propositions are designed to articulate the unique value of a product or service over all kinds of marketing and communications media. Elevator pitches, on the other hand, are designed for personal interactions that appeal to the audience specifically.
While the context, length and focus of value propositions and elevator pitches vary, there are some common principles that are worth bearing in mind when you put your value proposition together:
- Quantifiable benefits: a value proposition should articulate genuine, measurable benefits for the customer reading it. If you can focus this benefit on a customer’s bottom line, and how they can directly gain financially, even better.
- Resonating focus: drill down to a small number of benefits or points of difference that align most with what companies need. This is far more effective than listing all your benefits, because this ultimately dilutes the strength of your message. It also demonstrates to purchasing decision-makers that you have a firm grasp on the biggest challenges they’re facing, and can pull in the same direction to help them solve them.
-
Proof points: provide reliable, verifiable evidence to back up all of the claims made within your value proposition. These provide credibility of your capabilities as a business, and help build trust and confidence in customers. These can be customer testimonials and feedback; performance metrics and statistics; certifications and awards; professional endorsements and partnerships; compliance with industry standards; or free trials, guarantees, and customer support commitments.
- Competitor differentiation: ideally you’ll want to position yourself in a way that is different to the claims of your competitors - but in such a saturated market as B2B tech, this probably isn’t realistic. Instead, you should try to narrow down as far as possible; for example, targeting specific niche markets or segments with tailored solutions can help get you closer. These markets will also have unique needs that you can address.
In summary
Research has found that 94% of B2B value propositions aren’t differentiated from competitors. This means that if you can stand yours out from the crowd in any way, you’ll be grabbing a major competitive advantage.
The best way to do this is to cut through the noise with an outward-facing, customer-focused approach that works out what customers want and where they aren’t being served by existing offerings, and telling them with confidence how you can help.
Creating a distinctive and meaningful message for consumers can be the difference between being noticed or being lost in the periphery of customer attention. So if the value proposition is right, customers will come to you.
Related insights
