Value Proposition

What is it and why is it important?

What it is
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The phrase value proposition is scattered around business language today yet its meaning has been watered-down into vague sales and marketing ideas. Generally we find that’s mostly used as another way of saying ‘benefits statement’ or a way of describing the offering.

From a technical perspective, a value proposition is ‘a clear, compelling and credible expression of the experience that a customer will receive from your value-creating offering’.  On the following pages, we’ll look at what this means in detail.

Why it’s important

A strong value proposition will:

• Generate faster, more profitable sales

• Help you decide who to do business with – in other words, when and why to say no

• Uncover the hidden and non-obvious strategic insights of clients and prospects

• Give you clarity as to what your organisation is actually going to do for clients

• Qualify opportunities fast giving huge cost savings on cost of sale and quickly qualifying out non-compliant organisations and opportunities

For example, EDS says its average cost of pursuing sales opportunities is $480,000. Applying a value proposition can reap huge benefits.

• Enables supplier alignment – helping purchasers to weed out suppliers who don’t align with them strategically

We can help you create your value proposition