HubSpot revealed that 96% of buyers think meetings are worth their time if you focus on the value you deliver to them.
When it comes to sales, perhaps the most important thing to get right is your unique value proposition.
But, why is nailing this so fundamental for sales success?
Well, if buyers think a meeting with you is worth their time then you’ve got the ideal introduction for your pitch. To truly understand value you need to understand your clients’ pain points and difficulties - not just generalized industry complaints.
So firstly, how do we define value?
Value, in a business sense, relates to monetary worth to your client. So, for the cost of your product or service, what do they receive in terms of technical or economic service or social benefit?
In Demand Gens 2018 B2B survey, more than half (64%) of respondents noted that one of the most important variables when evaluating solution providers was a sales team that demonstrated knowledge of their company and had insights into their problems.
Uber is one example of a company who has absolutely nailed its unique value proposition.
How does Uber sell its value so well?
Paying for a lift is certainly not a new concept, but when Uber announced its new cashless taxi system they were an instant hit. They based the app on innovative AI technology to completely take away the stress inducing elements of travelling via taxi for the user such as carrying cash, reliability and frequency. Uber's full-year revenue for 2018 was $11.3 billion, up 43% from 2017 and they continue to expand and grow their services each year.
But, it’s not just the technology that sets Uber so firmly apart. With other cashless systems coming to the fore with competitors like Lyft, and even traditional taxi ranks creating their own cash-free apps, Uber remains in the lead. Why? They have an unrivalled value proposition.
They sell their customers one of the most valuable entities: time. Saying in their marketing, “Your day belongs to you. Uber is the smartest way to get around. One tap and a car comes directly to you. Your driver knows exactly where to go. And payment is completely cashless”.
Fast, reliable and hassle-free is their motto and they put the customer firmly at the centre.
Uber also make bold promises in their value proposition. Promises inspire confidence and theirs is: “Always On, Always Available.” Uber can deliver on this because they can give their customers advanced information such as exactly how far away their drivers are and their vehicle number and name.
Uber’s value proposition is more clearly positioned, and certainly more persuasive than that of their competitors – an important distinction if you’re operating in a crowded market with several similar competitors.
Takeaways from Uber’s Value Proposition.
92% of buyers find a meeting valuable if you can provide industry insights and if you can give them a new perspective (HubSpot).
Like Uber, you need to know your clients pain points so that you can give them a solution that will really add value to them. Field value assessments are very good for accuracy as it allows you to build a much more convincing case to present to your client; just like Uber fully understood the value they were offering to their customer – time.
Imagine this scenario in a B2B sales setting:
You are a manufacturing specialist furniture and are in the market to find a new supplier for your fabrics.
One supplier says: “With us, we guarantee that you’ll have a higher-quality product and we will promise to lower your current costs. We can also operate a tight turn around making your process quicker.”
The next says: “We can offer a fabric 2 x the quality of the grade than you currently use with your existing supplier. We can also lower the cost of your current production by $1.62 per meter. Our turnaround time means we can increase your current daily output by over 100 units per day.”
Which is the more persuasive?
Putting the research in to show your clients a clear value proposition will help to set your company above competitors and ultimately close the deal on a sale. So, how do you create your own unique value proposition in a crowded market?
7 Steps to Creating a Compelling B2B Value Proposition
In today's world, business decisions are made fast. To be able to hold the attention of the decision maker you need to be able to explain your value proposition in a clear, convincing and efficient way. We've put down our top 7 steps for building a compelling and unique value proposition for your business.
Know your audience
Today’s audience have increasingly short attention spans, so piquing their interest quickly is vital if you are going to get them to listen to what you have to say. You need to get to the heart of the problems or frustrations they are facing and then provide them with your solution simultaneously.
Define your USP
Start by asking yourself ‘why?’ Why is it that we are offering our product or service? Why are we doing this? Why will it add value to people? Uber’s ‘why’ is that their taxi service is ‘the smartest way to get around’ so figure out your why and you will define your USP in your value proposition.
Your proposition must be rooted in what your customers actually need both rationally and emotionally. Do your research and understand what it is that makes them tick to inspire them to want to convert into being your customer.
Be clear and simple
Clarity and simplicity are both key to a compelling value proposition. Your potential customers don’t have the time to do the work to figure out what you actually do. It should be immediately obvious what you are offering and simple to understand. As well as this, it needs to be specific. So, clearly define how they are going to benefit from using your product or service.
You need to find a way to differentiate your product or service. It doesn’t matter if there are others operating in a similar sphere, what it is that sets you apart? Is it the aftercare you provide, the service? Work out what makes you unique and clearly explain it.
When it comes to value proposition, you need to strike a chord with your audience. They need to feel as though your proposition is believable and real – avoid being too corporate and fact dense as you will end up switching your prospect off rather than exciting them about what you have to offer.
Your unique value proposition must be supported by tangible proof points. Without real examples of how you are living up to your promises your buyer will see through this as empty talk.
Rebecca Lieb, industry analyst and author said:
“Demonstrating a knowledge of their pain points and sharing thought leadership is critical, particularly in the early stages of the consideration and evaluation phases […] these skills aren't nice to have, they're must-haves.”
If your team are suffering from declining sales figures or market erosion due to a poor value proposition then Pareto can help. Our graduates come ready to sell the true value of your business with the skills to confidently talk to the decision-makers.
Call us on 917-397-4059