How to Create a Winning Value Proposition: 3 Principles to Implement

It's not enough to simply know your offer to make a sale.

You need to be able to have a convincing argument and reasoning behind why your product or service is so necessary and important to your prospective customers.

In other words, you need a winning value proposition.

In this article, we'll give you insight into how to create it based on three key principles.

Let's get started.

A value proposition is a key concept in business that refers to a concise summary of the unique benefits that a company's goods or services provide to customers. Virtually, it's a statement of purpose that helps define a business both within its internal operations and the marketplace.

A value proposition is your North Star description of your product or service. It should be what you base all of your outreach and marketing efforts on.

It should be a concise yet rich summary of the unique benefits you offer and serve to align and define your business internally and externally to potential buyers.

Originally defined in a 1988 research paper, this term has been adapted and used throughout various industries for their betterment. It helps to have a crystal clear idea of how your product or service can benefit potential customers.

Once you have it defined, your sales and marketing materials are created based on this basic premise. The rest of your company can follow suit to ensure the promise is completed.

You will not get as far as a business without a value proposition.

But how do you go about creating one?

Creating a winning value proposition is not easy, but fortunately, there are some guidelines you can follow to help you along. Your base for creating it is the three reasons why people buy in the first place, and you can then fill in the blanks accordingly.

Thus, your roadmap consists of three major points to consider:

You create this want or need by demonstrating how your offer will make a difference in their lives or business.

In sales, especially in outbound sales, it's all about knowing your audience and what they need. You must research and know how your product or service fits in in their industry and how it is helpful to them.

Focus your value proposition on explaining the in-depth benefits of your product or service to your target market, and make sure you are targeting correctly while you're at it as well. You have to resonate with them.

You will always have competition.

Your product or service might be one that already exists - but there is something about yours that is better.

It can be that it is built with newer technology, so it is likely to have more longevity. It might be that it is available in more languages or locations. It might be that part of its offer is wholly new in the space.

Whatever it is, you want to make sure you bring it to the forefront of your proposition so buyers can see it. It is what will help you stand out and differentiate yourself from the competition.

Finally, you need proof.

Social proof or data both work.

After all, no one is willing to buy something these days without some kind of data point or recommendation. It's the reason why you look up restaurants on Google Maps before going to them now or only trust certain professionals based on word-of-mouth from people you know.

Your buyers are the same.

Your value proposition should include data points, company names, or referrals that will help your prospect's trust in you grow. They can take this information and study it on their own time or show it to their team to make an informed, substantiated decision.

Without this addition, you are essentially selling smoke.

As we saw, buyers need to want or need your product or service. You can create this want or need by ensuring that they resonate with your offer.

You do this by researching the industry you are breaking into and the different buyers and decision makers you will encounter. Based on your research, you understand how your offer will benefit them, and thus lead them to understand why they should want or need your product or service.

If you do not do this, your prospect can simply say: "this is a great piece of software, but I do not need it."

Coming back from this objection is possible, but it does lengthen the sales process and creates more work.

It becomes a lot easier if you can ensure that they are resonating with their need or want for your product or service in the value proposition.

Next, you need to stand out.

Any aspect of your product or service that differentiates you from similar competitors needs to be easily identified and communicated to prospective buyers.

Otherwise, you will run into one of two issues:

First, they are happy with their current provider of that same product or service and will not change, as they do not understand what makes you different.

Second, they will know they have the upper hand when it comes to negotiating because they will believe you are easily replaced, leading them to ask you "what's your best price?"

If you cannot demonstrate what sets you apart from your competitors in your value proposition, it will be an uphill battle to justify your price point, and prospective customers will always walk away thinking your product or service is easily replaceable.

Differentiate yourself from the pack from the beginning of creating your value proposition to avoid running into this.

Finally, your prospective customers need to believe you can deliver.

This means demonstrating that you are capable of fulfilling your promises and inspiring belief. You can do this by preparing data points, customer reviews, referrals, case studies, and more.

Anything you have that can back up your claims of why they need or want you, and why you are the better option than your competitors.

If you are unable to substantiate your claims, you will your prospects saying, "this is all great, but I can't risk it without any backing data or evidence that it will work."

Some folks may be willing to give you a chance, but the vast majority of decision makers will not. Make sure you are preparing accordingly by having all of this ready as part of your value proposition, in the form of additional data and documentation.

If you are just starting, you might think that this particular principle is beyond your current capabilities. You've built something in your garage and while you believe that it will help make many folks life's easier, you don't have client proof of that yet.

It is not unattainable to still find ways to substantiate your value proposition.

You can:

• Rely on available data and research within the industry you are aiming for to paint a picture of the changes your product or service will make
• Offer free trial periods to collect data and make adjustments as you go, which will also help you create customer reviews and referrals.
• Write white papers, blog posts, articles, or make videos to further enhance your points
• If you're proactive, you can also start collecting all this information from the get-go to create various case studies later on.

All of the above can serve you to substantiate your product or service in the value proposition as well.

Your value proposition is the starting point and ending point of your offer.

Without spending time building it, you are unlikely to experience much success.

It is the driving force behind your business, and the way you ensure interest and deal closes.

Make sure to spend enough time creating it to make sure it is the best it can be by following the three key principles outlined in this article. As you saw, missing out on any of them will only result in trouble in the long run.

And once your value proposition is ready, feel free to reach out to us at SalesPipe to hire some top-quality outsourced SDRs that will improve your business growth.