Great Value Proposition – Key to a winning sales presentation
Value propositions play a key role to make a winning sales presentation. A great value proposition communicates the key reasons for increased customer engagement and demonstrates the solutions offered to solve a problem. A great value proposition helps the presenter to present the key message as a single statement that reflects the value addition.
Steps in Top-down value proposition process
- Identify the target market
- Analyze the competition
- Define the value proposition
- Develop the messaging
- Test and refine
- Launch and monitor
- Continuously improve
Steps in Bottom-up value proposition process
- Choose your solution and write each argument
- Incorporate products or services that counterbalance the shortcomings of rival companies
- Play around until you find groups that seem to work logically
- Name of each cluster becomes part of your value proposition
- Take out the arguments that are not provable, or self-defeating
For many businesses, “What is a value proposition?” can be a million-dollar question because it has the potential to propel your business into the million-dollar league. It brings the key benefit into a single statement, that is easier to remember for the audience.
What a value proposition is?
A value proposition is a clear statement about the outcomes that an individual or an organization can realize from using your product, service, or solution. It is a business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one product or service will add more value or better solve a problem than other similar offerings.
Value Proposition Positioning Statement
Your value proposition must be the first thing visitors see on your homepage, but it should also be visible at all major entry points to the site.
Value: The monetary worth of something – How much someone will pay for something.
Value Proposition: A compelling, tangible statement of how a company or individual will benefit from buying something specific or buying from you in general.
The ideal value proposition is concise and appeals to the customer’s strongest decision-making drivers. Companies pay a high price when customers lose sight of the company’s value proposition.
Qualities of a compelling value proposition
A value proposition needs to resonate instantly with a prospect, connecting the benefits of your solution to your prospect’s unique goals.
The following are the key qualities to look for in a value proposition:
Relevancy: Explain how your product solves customers’ problems or improves their situation.
Quantified value: Deliver specific benefits.
Differentiation: Tell the ideal customer why they should buy from you and not from the competition.
Specificity: Your value proposition should include a specific claim to get your prospect to listen and notice your offering.
Uniqueness: Your value proposition needs to point out why you are superior to your competition in areas that are important to your prospect.
Believability: A strong value statement provides proof. You need evidence in support of your claim, which can come in several forms.
Testimonials: Independent third parties, customer stories, or business case results can all help substantiate your claims.
Proof of concept: The ability to test-drive your product or service in the prospect’s own environment can be the best way to prove value for skeptical prospects.
Tangible results: External or internal research showing actual data or ranking around the area of value can give a positive best impression.
What to avoid as a value proposition statement?
Slogan: A general statement of a couple of lines expressing your target market and how you help them.
Description: It is not just a description of your unique services, passion for excellence or cutting-edge technology.
Loads of sentences: Describing the legacy of your company or the products and services you offer.
How to write a value proposition?
There are essentially two ways to write a value proposition for a sales presentation. The first is the top-down value proposition process, and the second is the bottom-up value proposition process.
Top-down value proposition process
Use the top-down value process for arriving at the value proposition statement for a large group.
- Brainstorm a list of possible answers to the question you need to answer for your prospect – why us? or why change with us? or why change?
- Brainstorm by thinking about your competitors’ weaknesses. Turn these items into positives for your list.
- Group items if they overlap significantly.
- Remove, or sub-divide, any items that ‘swallow’ all others up because they cover a wider range of ideas. e.g., impact or delivery.
- For each item remaining on the list, go for a rating system with 10 being most significant to customer needs and 1 being least significant to customer needs.
- Complete the ranking for the entire set of answers.
- Take the top 3-5 items, and that forms the core for writing your ‘value proposition statement’.
Bottom-up value proposition process
Use the bottom-up value process for arriving at the value proposition statement for a smaller group.
- Write each argument for choosing your solution or type of solution onto a Post-It note.
- Here, we are looking for features that others do not have, statistics, reviews, awards – the sort of items that might warrant a slide in a sales presentation.
- Add items that are the converse of the competitor’s weaknesses.
- Group the Post-It notes together thematically.
- Play around until you find groups that seem to work logically.
- These clusters of arguments form the basis for your value proposition.
- Not every Post-It note has to fit in a cluster – they can be placed into the introduction, or next steps, or excluded altogether.
- Remove those ideas that are not provable or self-defeating.
- Name each cluster – the name becomes part of your value proposition, so make sure that they are persuasive.
- Now, this forms the core for writing your ‘value proposition statement’.
Using a value proposition in a sales presentation
Once you finalized the value proposition, you need to sort the information into the right order. Present your material using the value proposition in an orderly manner that makes your content directly relevant to the expectation of prospects. Substantiate your claim in terms of the benefits to be offered to prospects.
Structure your sales presentation into sections. Each value proposition point will act as a section for your presentation, and all the slides within that section should be proof points that justify your claim.
The flow of your sales presentation
Opening – Show the value proposition
A high-level view of your value proposition should appear early in your presentation. Within the first 60 to 90 seconds, kindle the interest of your audience and give them a compelling reason to stay tuned.
Agenda – Prove how you can deliver each part in turn
Each value proposition point will act as a section for your presentation, and all the slides within that section should be proof points that justify your claim.
Closing – Recapping the value proposition and asking for a commitment
Restate your value proposition as a statement of fact for your audience, quantifying what outcome they can expect to see from your solution.
Key areas to tailor your value proposition
The prospect’s goal or objective: If your prospect has several goals, rank them according to their importance for your prospect and your ability to impact them.
An action verb: This is what effect you have on the prospect’s goal: Increase, reduce, drive, eliminate.
Outcome: For your value proposition include the outcome of the area(s) that can have the most impact helping the client reach his objective(s). e.g., Employee retention, Sales revenue.
Figures or statistics: Show Key Performance Indicator (KPI) such as revenue, year-over-year growth, cost-per-unit, and so forth. Be sure to speak in the same terms that your prospectuses.
Competitive advantage: State your key competitive differentiator, answering the question “Why should I buy from you?” for the prospect to understand your offering.
Value Proposition Canvas – Validation Tool
It was initially developed by Dr. Alexander Osterwalder as a framework to ensure that there is a fit between the product and market. It gives a detailed look at the relationship between customer segments and value propositions. It helps to ensure that a product or service is positioned around what the customer values and needs. It can be used when there is a need to refine an existing product or service offering or where a new offering is being developed from scratch.
Test your value proposition
There are 2 main ways to test your value proposition:
- A/B testing
The best way to test your value proposition is to craft two candidates (or more, if you have huge traffic) and split test them. Ideally, you would measure sales conversions, for the most accurate results. If that’s not possible, lead counts or even click-throughs will do.
- Pay-per-click advertising
A fast and cheap way to go about it is to use Google Ads or Facebook Ads.
Split test ads with different value propositions that target the same customer. The ad with a higher click-through rate is obviously a better attention grabber and interest generator, although it does not necessarily mean higher sales conversions. Send the traffic to a corresponding landing page and test conversions, too.
You need a value proposition and you need to communicate it clearly on all the main entry pages – homepage, product pages, category pages, etc. If you do not state why users should buy from you, you will lose most of them. To craft a great value proposition, focus on clarity above all else.
It is equally important to design your slides professionally that grabs the audience’s attention during the presentation meeting. Great presentations are supported by well-designed slides. Pay attention to visual hierarchy, slide layout, typography, color scheme, and subtle details that go a long way in designing a visually pleasing presentation.
If you are looking to use ready-made presentation designs to shorten the process, reach us and our team of designers take up your assignment to create customized layout designs for you.
- How do you write a value proposition presentation?
To write a strong value proposition presentation, start by identifying your target audience and their needs. Then, clearly articulate the unique benefits and solutions your product or service offers. Use data and examples to support your claims, and make sure your presentation is visually appealing and easy to understand. Finally, practice delivering your presentation with confidence and enthusiasm.
2. What is a value proposition example in sales?
One example of a value proposition in sales is “Our product saves you time and money by streamlining your workflow and automating repetitive tasks.” Another example is “Our service provides personalized solutions tailored to your specific needs, ensuring maximum satisfaction and results.”
3. What is your unique value proposition?
Your unique value proposition (UVP) is what sets your business apart from the competition and makes it attractive to your target audience. To create a UVP, you need to identify what makes your product or service unique, what benefits it offers to customers, and how it solves their problems or meets their needs in a way that competitors cannot.
4. What is the best value proposition?
The best value proposition is one that clearly communicates the unique benefits and value that a product or service offers to its target audience. It should be concise, memorable, and differentiate the offering from competitors in a way that resonates with customers’ needs and desires. Ultimately, the best value proposition is one that drives sales and customer loyalty.
5. What are the 3 elements of value proposition?
The three elements of a strong value proposition are:
- The benefits that your product or service provides
- How it is unique or different from competitors
- Why customers should choose your product or service over others.