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Understanding how to value a 'value proposition'
Strikes me that articulating a value proposition in the B2B space is a deeply subjective affair and the critical thing I am learning is that the subjective opinion that counts is that of your clients and not your own.
Your perception of whether something has value or not is quite secondary to the opinion of your client and their interpretation of the value your proposition carries.
On the assumption this is true, and returning to your role in a second, then this presents a clear process on how to develop a value proposition around your offering. Take it to clients and show them what it is and ask them to articulate the value they see.... Only this is where it all goes wrong. Your clients don’t want to be plagued by your deferral of responsibility and to do your thinking for you. Yet at the same time, if you deem something to be valuable or valueless, then how are you to weight that relative opinion to align to their value perception, thereby making that perfect commercial match.
So back to you. Back to the traditional approach. You sit down and work out why your proposition has value and to the best of your knowledge align it to the needs of your clients as you understand them. The danger in the early stage of this process is that you over weight and therefore over play the value or visa versa. Either way the markets reaction to your offering and its propensity to buy, will tell you over time whether you have got it right or wrong. However it can be a painful, costly and slow process. The magic comes when your relationships have form with a number of "key" clients and then you can ask the most important question of all "so why do you value my xxxx". Whatever the answer, whether you agree or not, then this is your value proposition articulated by a company with certain specific criteria. Now it all becomes a little easier. Take your client articulated value proposition to every organisation that shares the same personality as your current favourite clients who can express your value proposition so clearly. Remember a great sales person does not sell, they just know how to add value.
Written by Edward Charvet. http://www.trovus.co.uk/contact
