A sales value proposition is a specific statement which states the sales benefits and differentiators of a product.
Definition: A sales value proposition is an articulation of the tangible and intangible benefits associated with using your product or service that will affect the buyer’s decision to purchase your offering over other alternatives (such as your competitor’s).
In this we will learn more about the sales value propositions. With these definitions and tips, you will be closer to creating your own unique sales value propositions.
Why do you need an SVP?
A sales value proposition is a critical component for a company because it shapes the way its offering is presented to customers, partners, and investors. Many companies focus their marketing efforts on telling people what they do, but few tell them what they believe or that their offering will make things happen as a result of using it. In short, SVPs help your company’s offering stand out from the competition.
When should you develop an SVP?
Your SVP is most effective when it surfaces naturally, which means you need to do your homework before assembling one. Here are some questions that can help spark its creation:
Why did you originally get into business? What kinds of problems does your product/service solve? Why does your product/service matter in the marketplace? What are three most common benefits you deliver to customers? What will change in people’s lives after they buy your product/service, and what specifically will it cause them to do or feel?
What makes a good SVP?
The best SVPs explain how your product/service actually helps to solve your customer’s problem or meet their needs. Just as important, the best SVPs show how your product/service differs from and better than what’s available in the market.
And because you only have a few seconds to grab someone’s attention, crafting an SVP that is both concise and clear is a must.
What to avoid?
SVPs that don’t show how your product/service will make a difference for the customer. This is critical because it’s what convinces prospects about why they should consider buying from you instead of one of your competitors.
Also, don’t forget to use specific numbers and data points to help your SVP resonate with prospects.
What are some good examples of sales value propositions?
How your product/service helps meet a key business objective or result in the company, eg. “Reduces attrition by 25%”.
How your product’s unique features solve a problem or offer significant benefits to customers, eg. “Can be used in XYZ industry”
How your product/service is differentiated from the competition, eg. “Fewer defects than competitors”.
What are some bad examples of sales value propositions?
Don’t use the company’s slogan or motto in an SVP. Nobody cares about it. The exception to this rule can be when a company has reached enough success that their tagline has become a part of the public vernacular (eg. Nike’s “Just Do It”). A better approach would be to state what you’re selling and not how it’s different, and then why customers should buy from you (and not your competition).
Don’t use your company’s mission statement in an SVP. Only customers don’t care about your mission statement. If anything, they think it’s a bunch of corporate-speak that doesn’t apply to them, and they’re probably right.
Don’t use management boilerplate in an SVP. This is the same as company slogans and mission statements: nobody cares! They want to know how you help them succeed. They want to know what makes your product or service different, and why they should buy it from you (and not your competitor).
You might do better by changing the way you frame the problem that’s being solved. Think about showing them how you outperform their current solution, rather than telling them why you’re better.
How can you create an effective SVP for your business?
One good way to start is to use the acronym P.E.A.K.
People – Who are the buyers of your product or service? What do they care about? How will your product benefit them?
Enablers – How does your company facilitate getting products to market faster, ensuring their quality, supporting growth in customer base, etc.?
Align – Does your company have a vision that meshes with that of your buyers?
Key results – What are the key metrics that you’ll track in order to guarantee improved business performance?
P.E.A.K. is an acronym that can help you create a sales value proposition, and it’s one of the best ways to ensure that your product or service will meet your buyers’ most important business needs and ensure successful implementation within their companies.
Final thoughts
A sales value proposition is a specific statement which states the sales benefits and differentiators of a product. It should distinguish your offering from competitors in the marketplace. It should be specific, actionable, and persuasive. The more you can get buyers to focus on the benefits of your offering rather than the features, the easier it will be for them to see how it’s going to solve their problems.
The best sales value propositions are really only one sentence long because they’re concise and easy to remember. They’re specific and answer important questions.
Hopefully, this article has been helpful. Thanks for reading!
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