I am fortunate to have one of our managing directors here at The Fahrenheit Group as my mentor. He is a well-respected CFO who has worked for many different companies throughout his career,...Read more »
Company Value Proposition – It’s Not About You
Just about every company has a value proposition, and most believe it’s compelling. Unfortunately, some companies discover that while the value prop makes perfect sense to those within the organization, it doesn’t seem to resonate with the market.
I find that many value propositions are inwardly focused, and that’s a problem. They tend to answer: What are we best at? What makes us unique? What are the key benefits and features of our products and services? The issue lies in the fact that while a company must deliver the service/product, value is first and foremost what the customer derives, not what the company provides.
A Great Value Prop Begins With Understanding Pain Points
A great value proposition starts with a fundamental knowledge of your customer’s pain points. What is keeping them up at night? What are the problems they are facing? What prevents them from achieving their objectives and goals?
There really are two ways to identify your customer’s pain points:
1. Ask your customers
2. Ask your sales and support team.
Remember: The best customer meetings are discussions. When you meet with them your goal is to get the customer to talk about their company by asking a series of open-ended questions. With the right amount of focused, follow-up probing, you’d be surprised how much a customer is willing to share with you. Getting it out is cathartic for them, and a great source of information for you.
Your sales and support teams are your front line to your customer. Day in, day out, they are hopefully listening and processing what your customer needs, what is bothering them. The key is to engage your associates in a conversation that’s not about what you are doing wrong as a company, but what you are or could be doing to make your customers’ lives better. Simply asking your team may be all you need to gain that powerful insight.
Now that you understand what is causing your customer pain, you know what problems you must solve. If you can solve those problems by delivering concrete results better than the competition, you will have truly defined a winning value proposition!
About the Author
Scott Wielar is a Managing Director at The Fahrenheit Group with extensive experience in driving profitable revenue growth. Scott has a strong record of success for delivering top-line growth in start-up, rapid growth, and Fortune 500 companies. An innovative strategist with a strong results orientation, Scott has expertise in both identifying/capitalizing on new growth opportunities and developing the requisite infrastructure for delivery. Contact Scott.