Now that you have one – Use it

We have talked about how to create a strong customer value proposition for your business before and many experts agree that it’s essential to have one.  But why?  How will it help your business?  How can you use it in your marketing efforts?

While there is a lot of value in going through the process of creating a positioning statement or value proposition it is most valuable when you actually use it.  There are many ways that your value proposition can be used to help you grow and manage your business and we’ll briefly touch on few here.

• Marketing strategy foundation – your value proposition clearly defines who your customer is, the problems they might have and what benefits you provide for them which then allows you to focus on the best ways to market to them
• Clarify value for your team  – an open discussion and examination of your value proposition with your whole team is a great way to make sure everyone is on the same page and has a clear understanding of how they provide value to your customers
• Building ad messages – while some may feel compelled to use their entire positioning statement in a single ad, most businesses find that they can create multiple messages and ads
• Rethink and re-package your product/service – periodically it’s good to simply walk through the benefits you claim to provide your customers with your team and see if you are truly addressing the most important issues your customers have, it can help you to keep your offering on target and relevant to your customer

Once you get started, you might be surprised how this one statement can help keep you more focused on your customer and how you can best serve them.  No matter how you chose to use your value proposition you will quickly realize that its real value to your business is in using it.  So… use it.

Until next time… here’s to you making better marketing and sales decisions.

Build A Solid Foundation

Last time we talked about the importance of having a solid value proposition as the foundation to build all of your marketing on.  But, just what is a value proposition and what makes it a good one?  This is probably worthy of some of our time.  So, let’s take a look…

Most experts define the value proposition (or positioning statement) as a clear statement of the tangible benefits a customer receives when they use your product or service.  That seems fairly straight forward.  You should be able to succinctly list the benefits your customers will receive when they do business with you.  Now, the real question is… is your value proposition any good?

Here’s a simple example and format you can use to help make sure your value proposition is solid.

“For busy adults (target customer) who want relief from all the tension of their busy week (their need/want), Serenity Spa (your company) with our deep relax, 25-minute massage (your product/service) quickly erases the pain and pressure of their week and provides soothing comfort that lasts for days (does what or provides what benefit)”

Now, you try it.

Ok, once you have a value proposition.  You can now evaluate the quality of your statement against these four basic requirements of a strong value proposition – want, value, different, sustainable.  Here are some suggested questions to ask about your value proposition that will quickly help you determine if yours stacks up.

• Is this a benefit that my target customer really wants? – It’s not enough that they might need what you are offering.  They must want it.
• Is it a real benefit? – No smoke and mirrors.  There has to be a genuine value.
• Does it stand out from competitors? – It should be truly different.
• Is it difficult to replicate? – If it is hard for someone else to copy, then you might just have a sustainable competitive advantage.

Finally, take the “so what” test.  If you (and hopefully some of your colleagues) read your statement and find yourself saying ‘so what’, then your statement is not strong enough.  Make sure you focus on the real tangible benefits to have an impactful value proposition, that doesn’t stink. 

We’ll talk later about how you can use your value proposition in your business.

Until next time… here’s to you making better marketing and sales decisions.

Beyond the Hype – It’s Still a Pig!

This post is not intended to be a political statement – just a marketing case to consider.

Last week I was watching NBC’s Today show and Matt Lauer was interviewing Michael Moore (film maker, author and liberal politcal commentator) and Dylan Ratigan (finanical reporter, MSNBC anchor).  Both were pontificating about issues with financial institutions and the use of federal bailout money.  And both used a very similar technique to “market’ their views.  Does it work?  Let’s take a look.

Here’s how part of the interview went… Michael Moore was outraged that Bank of America is going to pay out $30 Billion in bonuses insinuating that only the top managers are the ones getting bonuses.  Pretty good shock factor – I was almost outraged too.  Until, I started to look beyond the initial statement (or hype).  You see, what he did not mention was that there are more than 300,000 Bank of America employees, most of them in the middle-class who plan on these “bonuses” as part of their regular compensation.   So, now as I get to the substance beyond the hype I realize there may not be as much there as I thought.  I am even a little disappointed.  Perhaps next time I hear Michael Moore (a “marketer” of ideas) I will value his products (which are his statements, claims and ideas) less. 

The same goes for your business.  Once you get beyond the literature, displays, advertisements, logos and slogans, it’s about the value you provide to your customer.  Your value proposition is the foundation for all the other marketing stuff.  Yet, many times businesses spend more thought, effort and money on the peripheral things and not enough time on the quality of their product/service or their real value proposition.

I will borrow a Midwestern saying to finish this point… You can’t put enough lipstick on a pig to change the fact that it’s still a pig.  Oh, it may cause you to stop and look twice but, once you get a closer look you realize it stinks.  Does your value proposition stink?  If it does, fix it first before you spend any money on the lipstick.

Until next time… here’s to you making better marketing and sales decisions.