How to Create a Strong B2B Value Proposition
Attention spans around the world are shrinking due to the sheer amount of information we have to process every day.
This means that people like you and I working in sales and marketing in the B2B industry usually have about three seconds to grab a prospect's attention.
Yes, you heard right. You have three seconds to make a good first impression on potential customers to then encourage them to try your product or solution.
The good news is that your competitors are also operating within this three-second limit.
Now, you might wonder if it's even possible to grab a potential customer's attention in such a limited amount of time.
It is possible. There are great professionals who make it very easy. And no, they are not endowed with any mystical abilities to influence their audience. They are as ordinary or special as each of us.
Their secret weapon is a great value proposition – that's what I'll discuss below.
4 Value Proposition Tools to Communicate to the Customer
A value proposition is something that automatically puts your customer's attention into focus and allows you to offer a solution to their problem from their point of view.
In this article, we'll introduce four powerful tools to help you create a strong value proposition. After discussing these four tools, we'll explain what a value proposition consists of and how you can create one.
What a value proposition is NOT
Let's dispel some myths and misconceptions.
This is not a slogan
Yes, that's not what L'Oréal says: "Because we deserve it." Or what MasterCard says: "There are things that money can't buy. For everything else, there's MasterCard."
Some people even equate it with an elevator speech, which is a very general statement in a couple of lines expressing your target market and how you help them.
This is not a brilliant description
A value proposition is not an opportunity to brag. This is not a description of your unique services, commitment to excellence, or cutting-edge technology.
The statement "We have the best pizza in the world" means nothing to your customers. It may sound good, but it's not a value proposition because it doesn't tell you what value the customer will get. This is simple boasting. And you may have noticed that companies that aren't global leaders usually like to claim that they're the best.
It's not about the information
"We sell medical equipment." So what?
A value proposition isn't a bunch of propositions that describe your company's legacy or the products and services you offer.
What is a value proposition?
For many companies, the question "What is a value proposition?" can be a million-dollar question because it has the power to bring your business into the league of unicorns.
Here's how a value proposition is defined:
A value proposition is a clear statement of the results that a person or organization can get from using your product, service, or solution.
The key word here is results. Because that's what your customers are interested in.
A value proposition is a promise of value that must be delivered, communicated, and recognized. It is also the customer's belief in how the value (benefit) will be delivered, tested and acquired.
As you can see, the definition in Wikipedia is slightly different. But that's not what I want you to pay attention to.
Note that in both definitions, the focus is on the customer. It's not about you or your company. It's about your customer and the value you can provide to them.
Here is an example. Compare the following two statements.
Claim 1: We supply air conditioners.
"So what," the client will say? There are dozens of companies to choose from."
Claim 2: An air conditioner that purifies the air and improves the indoor environment.
"Mmmm.... Say. Tell me more," your client is likely to say.
The way the second statement is worded grabs your prospect's attention and makes them want to know more. And all this in less than three seconds.
Sounds simple, right? But the fact is, creating value propositions isn't easy if you don't have the right tools. Here are four tools to help you create powerful value propositions.
Build powerful value propositions with these four tools
Tool No1: Strategyzer Value Proposition Template
The value proposition canvas created by Strategyzer is my absolute favorite. I've used it 100,500 times, in every company I've worked for, on paper, electronically, on Miro, and everywhere else. In any strategy, this is a slide that must be mandatory.
I find it valuable because it allows you to focus on what really, really customers need, helping you design solutions that they're willing to buy. Here's what Strategyzer's "value proposition canvas" helps to do:
Customer profiles: You can create one unique canvas for each customer profile. Let's say you supply equipment to a medical institution. Then you can create a customer profile for administrators, doctors, nurses, and so on.
Easy to collaborate: The canvas is used in a collaborative workshop where representatives from all functions such as support, sales, and marketing are present. In this workshop, everyone should agree on what the customer profile should look like.
Visualization: I love that this diagram allows us to clearly visualize the work the client wants to do, the benefits they want to get, and the pains they experience.
Product-market fit: It allows you to adjust your value proposition based on research and insights so that you can work on improving product-market fit.
The value proposition canvas consists of two parts – the customer profile and your offer. The customer profile displays the customer's jobs (tasks), the benefits they are looking for, and the pain points. Your offer reflects the products and services you offer to the customer and how you offer them pain relief and value creation.
When these two parts are in sync, you have product-market fit.
This tool is inspired by theories created by Clayton M. Christensen, an HBS professor and expert on disruptive innovation who is one of the most influential business theorists in the world. Below you can read his explanation of the JTBD methodology.
Clayton's article, "Know Your Customers' JTBD." It provides additional information to help you better understand this concept and bring you closer to finding the work you need to do for your clients.
How to Use the Value Proposition Canvas
This tool will help you get a complete picture of how a particular customer segment relates to the value proposition and hence help you make better decisions.
Questions you need to ask
Once you have downloaded all the tools, you need to create a customer profile by asking questions to yourself, your colleagues, and your customers.
The questions are divided into three sections: Customer Performance, Acquisitions, and Pains. I suggest that you print out the "Value Proposition Canvas", take pens and a lot of notes and invite your colleagues to participate in this exercise.
Start writing down on pieces of paper what you consider to be the client's work, pain, and benefit. Make sure that each note has only ONE written on it. You'll likely create 30-50 different notes once you get started. Place sticky notes on each section to neatly separate work, pain, and benefit.
When you're done, take all the "customer service" notes and sort them in order of importance. Do the same with "benefits" and "pains".
To get you started, here's a description of each below.
Tasks for clients
Describe what a particular customer segment is trying to do. These could be tasks they are trying to accomplish, problems they are trying to solve, or needs they are trying to fulfill. You may be asking yourself:
What functional tasks do you help your client solve? (e.g., complete or complete a specific task, solve a specific problem...)
What social tasks do you help your client solve? (for example, the desire to look good, gain power or status...)
What emotional tasks do you help your client solve? (e.g. aesthetics, pleasant feelings, safety...)
What basic needs do you help your customer meet? (e.g. socializing, eating...)
Customer benefits
Describe the benefits that your customer expects, wants, or will be pleasantly surprised. This includes functional utility, social benefits, positive vibes, and cost savings. You may be very tempted to start adding all the features that your product or service may have. But make sure you don't withdraw into yourself. Try to be honest. Don't write about the benefits you don't support yet, but be sure to list the benefits you do.
Client's pain
Describe the negative emotions, unwanted costs and situations, and risks your client is experiencing or likely to experience before, during, and after completing the work.
You're done when...
When you sort through all your notes, you will have a customer profile. Create a document in word format and list the client's work in order of importance with comments. Do the same with pains and achievements.
A customer profile can now be used by the marketing team to create strong messages, the sales team to create better value propositions, and the product management team to better understand who your customers are.
Tool No2: Comparing Your Value Proposition to Your Competitors
It's good to know what your value proposition is. And it's especially good to know how it compares to the value proposition of your top competitors. This template will help you evaluate your value proposition against your competitors' value proposition.
When you have a better understanding of your competitors, you can write clearer and better value propositions for your presentations, website, and so on.
In the first line of this tool, include the name of your competitors. In the first column, enter each of the value propositions. Now rate them on a four-point scale, where four = high level and one = minimum. A value of 0 means that the value proposition is missing from the competitor's proposition. You can also use a four-quarter pie chart, as shown in the image above.
Once you're done, you'll have a great tool to provide to your sales and marketing teams.
Tool No3: Futurecurve Value Proposition Builder
So, how does this tool work?
It's basically a six-step iterative process. The word "iterative" is really important because the value proposition needs to change according to the needs and demands of your audience. What you offer now may not be relevant to your target audience in five or ten years.
The first step is to determine the market segment you're targeting. It is these people or ONLY these customers that you will provide value.
Identify the value experience your target audience will receive from your organization. Divide them into good, bad, and ugly and try to find the result that will make your audience say "Wow!".
Identify a set of offerings that will meet the needs of your target market.
Now, evaluate the benefits of your offers. Most people make the mistake of equating features with benefits. Once you know the benefits, you can eliminate the cost component and get the true value.
Value = Benefits – Cost
Identify how value provides differentiation and alternatives for your organization.
Now back it all up with testing and measurable evidence.
Tool No4: The Story of the Promise of Value from Content Bridge
An effective B2B value promise gradually shifts from discussing customer needs to how your solution or service meets those needs.
Part 1: Hook
DriversWhat internal or external factors influence or influence your customers' primary goals?
GoalWhat are your clients' goals in light of these internal or external factors?
TroubleWhat obstacles prevent them from achieving their goals?
ValueWhat tangible or intangible benefits will they see if you help them remove these obstacles?
ProofWho did you help solve a similar problem? What specific benefits/ROI did they see?
Part 2: How to
HowMore specifically, how will your design help solve this problem and provide these benefits?
USPWhat is unique about how you address this problem and deliver these benefits?
CompetitionWhy is your competitors' approach different from yours?
ObjectionsWhat questions or objections do your customers have about your claims?
AnswerWhat is your response to these questions or objections?
This structure is a 10-step process divided into two parts: "Hook" and "How". The special thing about this tool is that it helps you create a message flow based on your value proposition. That is, how can you go from understanding a customer's needs to meeting those needs with your products or services.
What does the value proposition consist of?
Now that you've learned about the four tools for creating a value proposition, we'll move on to creating one just for fun.
The process described below can be used to create a website, presentations, etc.
1. Super Header
David Ogilvy, who is considered the father of advertising, once said, "Write great headlines and you'll have successfully invested 80% of your money."
This includes your value proposition headlines. It should be one short sentence. The purpose of a headline is to grab the attention of your readers. It should get your client to say, "Hey! You have attracted my attention. Please tell me more!" This "please" is very important.
How to Create a Brilliant Headline
The secret to writing a brilliant headline is to write a lot of headlines. Imagine that we need to write a headline for a company selling shoes. Start by creating a list, as I did below. Then, create a variety of headlines. After you've made five to ten different ones, go through your list and choose the best one. Or combine the two elements to make a great headline.
H1: High Quality Shoes
H2: You will feel free in these shoes
H3: Worn all day and smells great
H4: ……..
2. Subtitle
A subtitle is similar to a supertitle in that its purpose is to make the reader want to read the next few lines. Your subtitle may be longer, but it should still be concise. A subtitle is a good way to add value to what you have to say.
3. Text
Depending on whether you're creating a presentation or a website, you can add text to explain your value proposition in more detail.
4. Bullets
Bullets are a good way to list the values, benefits, and/or features of your products or services. The best practice is to always focus on value and benefits rather than features.
5. Visual Aids
They say that a picture is worth a thousand words. That's why visuals are just as important as the headline, subheading, and text. Visuals convey information to the viewer faster and, with the right planning, can convey complex messages in a very simple way.
You can show your product, a shot with a hero, or even an image that reinforces the overall idea of the value proposition. You can also use infographics that will make it easier for people to read the text.
Examples of great value propositions
Here are a few examples from some of the companies that have mastered the art of writing excellent value propositions.
1. Figma
Cloud-based design tool Figma has brilliantly showcased its value proposition on its website.
Figma allows multiple graphic designers to work on a single document at the same time to quickly create UI, UX, and design elements.
Her website speaks for itself. When you open the site, you see several graphic elements that four different people are working on at the same time. This is exactly the value proposition that Figma promises and delivers.
2. Mindset
There is an old webpage of Mindset, a Swedish executive training company. She started by posing a problem and translated it into a story based on an uncomfortable truth about business. It presents a good solution and backs it up with good arguments. Visuals also play a big role in the entire value proposition. I like this example because it is very different from the others.
3. Campaign Monitor
The strength of Campaign Monitor's value proposition lies in its simplicity and clarity. It clearly states what it is and what value the customer receives.
4. Intercom
Intercom offers a live chat service for websites that you've most likely already used. It's the little blue box on the right in the picture above.
For their Intercom website, it would be easy to write a value proposition that it is the world's best live chat solution. I'm glad that the company pushed itself to really think about the value offered and the work that needs to be done. The reason we're introducing a chat service is to communicate with our customers, and that's what Intercom reveals so brilliantly in its value proposition.
5. Evernote
It's an old example, but it's still good, so Evernote can still be used. "Remember everything" is one of the values they offer in their solution, and they have some interesting images. The subtitle, in my opinion, could be better.
How to Write Value Propositions for Websites and Presentations
Websites
If you need to completely rewrite the content of your website's homepage, how should you do it?
My advice is to follow the process above, as well as think about how you can tell the story of your value proposition using blocks.
A website is made up of blocks that present value propositions in a specific order. A block usually consists of a super heading, a subtitle, text, and an image. You need to decide how to organize the blocks on your site in such a way that they tell a story that will inspire your site visitors to take certain actions. This action can be signing up for a demo, signing up for a trial, or simply contacting you for more information. Your web page needs to have a range of value propositions to convince the visitor to take any of these actions.
Conclusion
Once again, we want to warn you against the most common mistake: NEVER forget that the value proposition should be focused on the customer, not on you. Very often I get whole pages for review, written about "how good, beautiful, smart we are, etc." A great value proposition is all about what kind of outcome or value your customer can get.
It takes time and a lot of testing to create a really good value proposition. Hopefully, this article has given you the confidence to develop your own brilliant value proposition.
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