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| Sales Optimization for Technology Companies |
Value Propositions: Show Me Yours and I'll Show You Mine
I learned a new word this week: spinosity. It means a word or idea that people think they know the meaning of, but when queried specifically, it turns out that everyone has a different idea as to exactly what it means. A very good example of spinosity for technology companies is the phrase "value proposition."
It turns out that there are as many different ideas about value propositions as there are people wrestling with them. So, under the hypothesis that every problem is an opportunity in disguise, here's my shot at clarifying just exactly what the meaning and context importance of a value proposition is, especially as it relates to my field of expertise, a technology business selling to another business.
Like so many of life's awakenings, it is actually quite simple once you know what it is. There are eight specific elements of importance, or questions to be answered in constructing and communicating a value proposition.
1. What is it that you do (manufacture, produce, sell?)
2. Who is your target customer?
3. How is what you do valuable to your target customer?
4. What business issues or problems does it solve for them?
5. How much is that problem costing them?
6. What is your solution and how is it implemented?
7. How much money do you save/make them with your solution?
8. How do you help make them more competitive by what you do?
To help illustrate, I have done a value proposition for my own company and offer it here as an example of clarity, precision and simplicity, (And shameless self-promotion.) Here it is for your use in constructing your own...
1. What is it that you do (manufacture, produce, sell?)
We recruit salespeople and help technology industry clients optimize their sales operations (people, knowledge, processes and strategy.)
2. Who is your target customer?
CEO's, COO,s, VP Sales, and venture capital investors with technology industry clients in a business to business marketplace (software, services, e-business, telecom.)
3. How and why is that valuable to your target customer?
It is valuable because our services lead to greater revenue generation and profitability at minimal incremental cost.
4. What business issues or problems do you solve for them?
* Inadequate (low productivity) sales personnel
* Weak to non-existent sales strategy
* Sales knowledge and skill voids
* Inconsistent or ad hoc sales story and process
* Unfocused value propositions
5. How much is that problem costing them?
Forrester Research estimates that technology sales organizations lose anywhere from 15 to 30% of their revenue generating capabilities through inadequate sales planning and execution of selling fundamentals.
6. What is your solution and how is it implemented?
Plan sales strategy
Recruit top of the pyramid sales executives
Define customer value propositions
Customer profiling, targeting and qualifying
Lead generation and appointment setting services
Strategic sales training
7. How much money do you save/make them with your solution?
Our work will provide anywhere from 15 to 30% increase in revenue generation with very small increases in cost. The improvement usually depends more on the will to succeed than resource allocation.
8. How do you help make them more competitive by what you do? Our entire program adds value and makes clients more competitive. The only services that we charge customers for is executive search.
Yes, yes. I know. This is all so basic. It's just common sense. But, I'm sure you also know that common sense is not common practice. Especially when it comes to value propositions and spinosity.
Try to stay sane in these difficult times. Until next time.
Jack Carroll
888-773-9712 X101
jcmentor@saleslinks.com