Customer Value Propositions in Business Markets - article by J. Anderson, J. Narsus, and W. Van Rossum - blog by Karl Janowski
How to show your customers the value of your product in your sales pitch
3 Types of Propositions:
- All benefits - you give the customers the list of all your benefits of your product, the more the better, answers the question, "Why should you buy our product?" little knowledge of their true needs is needed
- Favorable points of difference - compare yourself against the best competition, show all the favorable points of difference between you and your competitor, answers the question "Why should you buy our product over our compeititor's product?
- Resonating focus - one or two points of difference that delivers highest value to customer, you need to know your customer's main needs and main compeititor's value, answers the question "Why buy their product when ours has your most important needs in mind?"
Points of parity - you are equal to your competitors
Points of difference - you are different than your competitors
Substantiate Customer Value Propositions - use word equations to show your value
Value Case Histories - show proof of value through documented studies
Document customer value - to use for next customer, create "value calculator"
Use value proposition as a business strategy
This article was published in Havard Business Review.