When we kicked off this series in April we looked at the value (no pun intended) of a value proposition.
We have since fielded a few calls from business owners asking how they can put a value proposition into action, which is a very sensible questions. These marketing concepts sound all well and good on paper – but what can they actually do in terms of creating more leads?
Your value proposition is not something you splash verbatim on your website or send to clients: its designed to help you focus on what you do for your client, in a way that’s different from your competition and it solves a problem for your client(s). That’s the theory – so how do you make sure you use it effectively?
1. Let it guide your marketing messaging
A recent study from Pershing found that 60 per cent of investors found it hard to distinguish between advisers because they made similar promises. We call this a “me too” approach to marketing. When you’re creating content, for example, whether it’s for your website, a brochure, or a Facebook campaign, keep referring back to your value proposition and ask yourself:
- Is my value proposition accurately represented within the materials or collateral?
- Is the communications activity focused on the client problem? Does it talk about ‘me’ rather than the client?
- Am I showing clients how I can deliver something unique and/or better than other advisers they might be talking to? Will they understand the outcome I can deliver on their behalf?
2. Focus your business planning on your value proposition
Working up a value proposition will make the business planning process more focused and a hell of a lot easier overall. The hardest part of planning can be deciding what ‘not’ to do and your value proposition can help you stay focused on your core business.
Likewise, operating your business without determining the value a client derives from the products and services offered by an SMB is a common mistake. To avoid this pitfall, use your value proposition to influence the way you take your advice services to market. For example, if you’re developing a new financial advice offering ask yourself: will this match the value proposition we are aiming to show to our clients? If it doesn’t, the chances are your client will look elsewhere.
3. Use it to drive your sales efforts
Your value proposition should influence the way you manage your sales process. It’s a smart prop for your sales pitches. Like your marketing messaging, your unique selling points should be derived from your value proposition. For example, the Pershing study I mentioned earlier, highlights that you need different messages for different types of clients.
A great example is Millennials (people born after 1980). They respond better to messages that focus on helping them through life’s major events such as buying car or a first home, and how to manage the financial hurdles these events throw at them. If Millennials are your target market, address these issues when developing your value proposition.
Ultimately, understanding your value to a customer is critical to winning their business. Without a strong value proposition, you run the risk that your marketing and sales efforts will be lost in a sea of competition, because a boring “me too” message won’t bring the results you want.
