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When thinking about your value proposition consider some of the following:

  • Value is determined by what is means to the customer not what marketing literature says it is. This means the customer will have a business case outlining the benefits minus costs elements of the proposed change. This we call the Why Buy.
  • Your understanding of the clients situation and how this relates to their business case is the true test of whether you understand their world or not. If you can demonstrate a clear grasp of their world it is possible to then be relevant in your offer. Take time to work through this with them to understand their situation and make your offer more relevant.
  • The business case must consider the relevant cost of change associated with the proposed new approach.
  • Does the offer provide mutual benefit for each party? If it does this is sustainable.
  • The fashionable Challenge Sale approach from Dixon and Adamson argues that value is also created in the sales¬†process, through insight and challenge of the client thinking. Work to educate the customer on the value proposition not just expect them to get it.
  • Consider where you are engaging in the buying cycle. The later in the process you engage the lower the opportunity to create value. If you are in early you have greater scope to educate, influence and sell value. This is very tough when forced through an RFP situation.

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