How to Develop a Value Proposition Advantage
In order to be successful in the business of insurance and risk management, your value proposition advantage must be different and superior to all others.
Your value proposition is the reason for your professional existence. It describes how you create value for others. It makes you stand out in a crowded marketplace. Without a compelling value proposition you are ordinary and disposable — a commodity. With a distinguished value proposition you are unique and indispensable.
A value proposition statement summarizes the reason why a potential customer should buy your particular product or service, how it exceeds that of your competition and why it is worthy of the price they must pay. The ideal value proposition is concise and appeals to the customer’s strongest decision making drivers. It is an irresistible offer, an invitation that is so compelling and attractive that the customer would be out of his or her mind to refuse your offer. The million dollar question is how to make your value proposition seductive.
Research indicates that most professionals do not have a value proposition in the form of a clear and concise statement that explains the tangible results their customers will receive, the unique benefits they bring to bear that others cannot. A differentiated value proposition goes beyond functional product or service descriptions to express the results a consumer can expect to achieve. Most people attempt to sell a product or service without focusing on customer benefits or outcomes.
5 ways to discover your Value Proposition Advantage:
- Value cannot be created unless the customer has a business problem or issue to solve.
- Value is in the eyes of the beholder. Each customer has a different set of needs and business issues. Your value proposition must be customized to the specific needs of each customer.
- A value proposition based solely on product features, functions, performance and pricing is not sustainable. You may win in the short term, but you will lose when your competition introduces better capabilities.
- Your true value lies outside the product or service you are selling. You can create tremendous value through the intangibles brought to bear in a relationship.
- To consistently win you must be able to articulate your value at the time the decision is being made.
Let us know in the comments below, how you create value for your own organization!