B2B Value Proposition – How Effective IT Vendors Work
Information overload is one of the top reasons why global attention span becomes significantly shorter. Thus, an effective and attention-grabbing B2B value proposition is king for IT vendors in the MSP arena. Working in Sales and Marketing particularly in the B2B industry is a daunting task.
The three-seconds rule should be in your marketing plan and strategy. It means you need to catch your prospect’s attention in about three seconds. You have this much time to make a lasting good impression with your potential customers. It should be good enough for them to take a shot at your product or solution.
The Significance of B2B Value Proposition Tools
What is value proposition in business? A value proposition refers to what immediately lets your customer focus on you. It gives you a platform where you can propose solutions to their issues or problems. Most importantly, you do this effectively by making them see it from their own perspective.
The importance of value proposition in businesses is a no-brainer. This article will show you four of the most powerful tools to create a superior value proposition. You will also discover the composition of a strong value proposition and how to create one.
Before going further, here are some fundamentals on B2B value propositions that you should know.
What are NOT Value Propositions
Having a clear and accurate knowledge about value propositions require you to know the myths and misconceptions.
NOT a Slogan
Business slogans are no doubt effective in name recall and giving your brand a unique value. When you hear the slogan “Because you’re worth it,” you immediately think of L’Oreal. For some, slogans are synonymous with an elevator speech or general statements. These lines express who your target market is and how you can help solve their problems.
NOT a Catchy Description
You should know that a B2B value proposition is not a platform where you can brag about your products or solutions. It is not a catchy or glittery description of what your brand is. You cannot include your unique services, goals and passion to excel or the innovative technology you use.
There are lines that may sound good but are entirely useless to your customers. Why? They do not have any value on what the customer will get. In short, plain bragging. What’s interesting is that there are those that are not even industry leaders. However, would declare that they are the best.
NOT about Information
A value proposition does not inform potential clients and customers. You cannot merely say that you are selling something. It should not include loads of empty words that describe your company’s legacy. There are no sentences that should inform customers of your offered products and services as well.
What Exactly is a Value Proposition?
Numerous IT businesses should consider this a million-dollar question. The answer can be your golden ticket to millions of dollars’ worth of sales and revenue, after all. Here is a definition of what it is:
A value proposition refers to a clear statement that individuals or organizations would realize as outcomes of using your IT products, services, or solutions.
Outcomes should be your highlighted term because the results are what customers are most interested in.
According to Wikipedia, a value proposition is:
A value proposition promises that value will be communicated, acknowledged, or delivered. Moreover, the customer believes in how this value or benefit will be experienced, delivered, or acquired.
Although there are slight differences between the two definitions, the focus of both is the customer. For instance, it is about your customer as well as the value that you can offer and deliver to them. It is not about you or your business at all.
Check out these two statements:
1. NOT Value Proposition: We provide IT solutions for MSPs.
2. Value Proposition: IT solutions that offer innovative platforms to upgrade your MSP services.
The second statement clearly grabs the prospect’s attention, persuading them to know more. Most importantly, you made that happen in just under three seconds like one of these B2B value proposition examples.
This may sound simplistic and easy but the truth is, making value propositions is not a piece of cake. Unless you have the right tools, creating one can be a tricky and tedious job.
Thus, here are the four effective tools in creating powerful value propositions:
Tool #1 – The CANVAS
Strategyzer is the creator of the tool called The Value Proposition Canvas, which allows you to focus on the highest preferences of your customers. It helps you design solutions that customers will not think twice to purchase.
This tool includes the customer profile and what you offer. The former maps different elements such as customer jobs, pain points, and what customers aim to gain. Your offering shows the services and products that you have along with your gain creators and pain relievers.
Features of The Value Proposition Canvas:
You can create individual customer profiles using a unique canvas. For instance, if you’re an IT vendor, you can create individual customer profiles of your MSP partners.
The collaborative workshop where the canvas is used includes different functions such as sales and marketing. Different representatives that are present should have an agreement in creating a customer profile.
The canvas helps you adjust your value proposition by using insights and researches. Your purpose is to improve it for a much better product-market fit.
This impressive tool allows you to have a clear view of the jobs that the customer wants to achieve. You can also visualize their pains and the gains they want.
Tool #2 – Comparison with Competitors
What’s better than knowing your value proposition is determining how you compare to that of your top competitors. You can find a value proposition template that enables you to evaluate your value proposition vis-a-vis your competitors’.
Writing a creating sharper and more superior value propositions happen when you have a better understanding of your competition.
When you look at this tool, it has several rows and columns where you input important data. The name of your competitor is entered in the first row while the value proposition should be in the first column. Use the rating scale, with one as minimal and four as sophisticated. If the value proposition is missing the offering of your competitor, you use the value 0.
Completing this gives you an effective tool that your sales and marketing team can use.
Tool #3 – Futurecurve’s Value Proposition Builder™
Futurecurve came up with a trademark tool as a product of comprehensive data analysis and research. You can buy this tool at Amazon and there’s a published book with instructions in using its framework. Futurecurve released “Creating and Delivering Your Value Proposition: Managing Customer Experience for Profit.”
Users can follow six iterative processes in creating an effective value proposition with the help of this tool:
- Determine the market segment. Identify your target market segment. You should focus on ONLY these clients or people whom you will deliver value.
- Define value experience. Describe what your target audience can reap from trying out your products, solutions, or organization. Classify their value experience into good, bad, and ugly. Moreover, you should determine the experiential results that will impress your audience.
- Identify a mix of offerings. These combinations of offerings from your IT solutions should satisfy your target market’s needs.
- Evaluate your offerings’ benefits. Take note that features are not equal to benefits. Assess the benefits by getting rid of the cost component so that you can get the accurate value. This is the right equation: Value = Benefits – Cost.
- Know differentiation and alternatives. Learn how to work out your value proposition by providing differentiation and alternatives.
- Testing and proofs. The efficiency of your Value Proposition is certified true with the help of testing as well as measurable proofs.
Tool #4 – The Value Promise Story (Content Bridge)
The framework of this tool to create a B2B value proposition consists of 10 steps and is divided into two parts. The first part is “The Hook” and the second is “The How.” The unique feature of this tool allows you to make a message flow using your value proposition as a basis. Users learn how to understand the needs of their customers. Furthermore, you determine how your products or services can fulfill those needs.
What A Value Proposition Contains
The four tools initially give you the steps and processes to create a superior B2B value proposition. Now the next question is, what is a value proposition example? What is it consist of?
1. Super Headline
Brilliant headlines can translate success to your business and so is with your value proposition. This single short sentence aims to grab readers’ attention in a short span of time. Create a list of many headlines, go through the list, and pick the best one.
Just as the super headline, sub-headlines aim to capture the reader’s attention. Moreover, it entices the readers to proceed to read the next few lines. This can be much longer than super headlines but concise overall.
Visuals or images are effective ways to convey your message to the view way faster. That’s why visuals are as salient as the other elements in creating a B2B value proposition. The overall idea of your value proposition can be demonstrated through a reinforcing image or infographic.
4. Bullet Points
You can list the features, values, and benefits of your products with bullet points. However, always remember to highlight the benefits and value rather than its features.
Use text in more vividly explaining your value proposition. However, it would depend on whether you are making a website or presentation.
The Bottom Line
The B2B value proposition is a powerful tool for IT vendors especially in navigating the MSP ecosystem. One important piece of advice in creating a powerful value proposition is to make it customer-centric. It should not at all focus on you. An effective value proposition highlights the value or outcome that your customer can get from your IT product or solution.
You need to allocate a significant amount of time as well as lots of testing in creating a remarkable B2B value proposition. Try designing a brilliant one using the valuable tips you get from this article. Make sure to join the ForzaDash community to test the effectiveness of your value proposition in the largest MSP environment today!