Why You Need To Rethink Your PropositionSales Pro Source
February 18, 2013 — 915 views
The downward price spiral can be seen in the trend of buying things based on prices and not on value. The customers initiated this trend while the businesses caved in to the demands of the former. The businesses didn’t want to lose customers, so they relented. On the other hand, the customers continued to push for lower prices again and again because it worked once. The harsh economic circumstances made the businesses give in to the customers’ demand. For instance, the translation companies have lowered their prices to keep orders coming. It is unlikely for some businesses to sustain for long this way.
Value of a Strong Proposition
The downward price spiral can be combated by becoming more valuable to customers. In other words, the businesses that want to sustain need to develop a value-added proposition. However, it takes time to build a strong proposition. It also requires a different sales approach. The strong value proposition, according to Jill Konrath, is not just the service you provide, but the business outcomes resulting out of your services, so your customer has a compelling reason to purchase your products and services. So, you must be aware of the customer’s needs and objectives, as well as help them achieve their goals.
Effective Communication to Highlight Value
Once you identify a strong value-added proposition, you need to refine and sharpen it and eventually communicate the value in your proposition to clients. The value proposition should reflect in marketing materials and employee focus. Your communications with clients and the audience should be permeated with your unique value proposition. If you can communicate it effectively, your prospective clients will remember you and differentiate you from your competitors. The marketing materials that you develop should not just list your services and quality but be focused to educating customers on your value proposition using case studies that show results you can give your clients.
Sell Value, Not Price
It requires a higher level of selling skills to lead a sale with value-added proposition. Your sales team can play a critical role here if they understand the customers and the business. They need to develop right skills to discuss values rather than price. They need to be trained to communicate value to the customers at the right time, place, and context. Sales people can be your key differentiator provided they are able to successfully articulate value proposition. Since the clients will pay if your service can be valuable to them, you need to make your service personalized and tailored to their needs.
A compelling value-added proposition makes a great business sense. In other words, it is good for your business to leave out the price buyers. Price buying means cutting corners which can be good neither for the service providers nor for the clients. Additionally, it can have far-reaching consequences for the business, which may eventually face the issue of sustainability. On the other hand, building a compelling proposition not only sustains your company but also differentiates your business from your competitors. However, in order to leverage on a strong proposition, you need to effectively communicate with your potential clients.