Cut through a stagnant market: value proposition rocket fuel. valuegenie
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1 Cut through a stagnant market: value proposition rocket fuel
2 Christmas 1968: Earthrise from Apollo 8
3 What is a Value Proposition? A set of customer experiences: a designed outcome of relevant, measurable value to a client or group of clients, that your business can deliver profitably
4 What is a Value Proposition? 1. Intended Client 2. What we want them to do 3. Next best alternatives 4. Intended Experiences: a. Superior b. Equal c. Inferior 5. Timing 6. Price
5 Value Genie versus 1. TRAD MANAGEMENT OR MARKETING CONSULTANCY 2. DO NOTHING SUPERIOR EXPERIENCE 1 Our Clients are able to re-orientate their businesses around what matters to their Clients (the only conversations that matter) leading to shortlist of one situations and assured on-going profitable business SUPERIOR EXPERIENCE 2 Our clients are able to create and deliver hard-to-copy experiences that their Clients (and those Clients Customers) will genuinely value SUPERIOR EXPERIENCE 3 Our Clients know that Value Genie provides usable insights, advice and tools for them at every step of a unique, well-structured, modular transition process SUPERIOR EXPERIENCE 4 Going forward, our Clients will enjoy the reliable support for smart, confident business decisions that the Client-value-led approach provides EQUAL EXPERIENCE 1 Our Clients will be able to identify business risks and gain confidence around addressing business issues INFERIOR EXPERIENCE 1 For a period of time, our Clients may feel uncomfortable because of the need for them to change their mindset about the focus of their business
6 Value Genie versus 1. TRAD MANAGEMENT OR MARKETING CONSULTANCY 2. DO NOTHING SUPERIOR EXPERIENCE 1 Our Clients are able to re-orientate their businesses around what matters to their Clients (the only conversations that matter) leading to shortlist of one situations and assured on-going profitable business SUPERIOR EXPERIENCE 2 Our clients are able to create and deliver hard-to-copy experiences that their Clients (and those Clients Customers) will genuinely value SUPERIOR EXPERIENCE 3 Our Clients know that Value Genie provides usable insights, advice and tools for them at every step of a unique, well-structured, modular transition process SUPERIOR EXPERIENCE 4 Going forward, our Clients will enjoy the reliable support for smart, confident business decisions that the Client-value-led approach provides EQUAL EXPERIENCE 1 Our Clients will be able to identify business risks and gain confidence around addressing business issues INFERIOR EXPERIENCE 1 For a period of time, our Clients may feel uncomfortable because of the need for them to change their mindset about the focus of their business
7 Value Genie versus 1. TRAD MANAGEMENT OR MARKETING CONSULTANCY 2. DO NOTHING SUPERIOR EXPERIENCE 1 Our Clients are able to re-orientate their businesses around what matters to their Clients (the only conversations that matter) leading to shortlist of one situations and assured on-going profitable business - Clients will rethink their businesses from a Client-value perspective - Clients will understand the value they currently provide, as perceived by their existing clients - Clients will be able to analyze and develop new, relevant, profitable client experiences - Clients will understand the Value to Price ration for existing and new Customer experiences - Clients will be able to collaboratively align Marketing and Sales - Clients will reduce waste in terms of time and money spent in pursuing leads (rifle shot rather scatter gun) and innovating and promoting products and services and enable the entire company to become aligned with the Customer-value led approach - Via all of the above, Clients will achieve real, hard-to-copy differentiation and move up the economic value chain, thius escaping the procurement mincer
8 Generic market sectors individual companies individuals within those companies
9 Is it worth it? Why bother?
10 YES because the world has changed Mass Production/Communications Old Business Logic Success (however measured) came from: Structure and position in an industry Control of resources Market share Ability to win against customers Success (however measured) comes from: Speed of innovation and response Coordination of systems Engagement of workforce and suppliers Ability to win with customers Personal Production/Communications New Business Logic
11 Market forces SUBSTITUTABLE UNIQUE Lots of competition competition Corporate strategies No
12 The New Business Logic MY BUSINES S MY CLIENT MY BUSINES S MY CLIENT
13 YES because Sales has changed Buyer motivation Extrinsic value buyers: I don t know the answer; help me analyse and solve the issue. Buyer behaviour Focus on how the product is used Interested in solutions and applications Values advice and help Needs the sales person Neil Rackham and John De Vincentis
14
15 VALUE = BENEFITS - CONSEQUENCES VALUE = something a Client is prepared to pay for
16 Drivers of Customer Loyalty Company & Brand Impact Product & Service Delivery Value to Price ra:o Sales Experience Source: The Challenger Sale, Matthew Dixon and Brent Adamson, Portfolio Penguin, 2011
17 Sales Experience (Client view) Offers unique, valuable perspectives on the market Helps me navigate alternatives Provides ongoing advice and consultation Helps me avoid potential land mines Educates me on new issues and outcomes Supplier is easy to buy from Supplier has widespread support across my organization Source: The Challenger Sale, Matthew Dixon and Brent Adamson, Portfolio Penguin, 2011
18 The Consultative Sale 1. RECOGNIZE NEED Problem Analysis Tools 2. EVALUATE OPTIONS Differentiating Tools 3. RESOLVE CONCERNS Risk Reduction Tools 4. DO THE DEAL Pricing Tools
19 Building Your Value Proposition
20 1 Nowscape 2 Intended Clients 3 Intended Experiences 4 Alternatives 5 Benefits & Consequences 6 Differentiation 7 Validation 8 Build VP
21 1 Nowscape 2 Intended Clients 3 Intended Experiences 4 Alternatives 5 Benefits & Consequences 6 Differentiation 7 Validation 8 Build VP > What value does your company currently deliver to your clients?
22 1 Nowscape 2 Intended Clients 3 Intended Experiences 4 Alternatives 5 Benefits & Consequences 6 Differentiation 7 Validation 8 Build VP > Who are your Intended Clients? > Who are the Intended Clients customers and influencers?
23 Official influencers e.g. regulatory, legal and other compliance-based bodies. Your supplier Your company Your client Your client s customer Other influencers e.g. industry bodies, watchers & analysts, media.
24 1 Nowscape 2 Intended Clients 3 Intended Experiences 4 Alternatives 5 Benefits & Consequences 6 Differentiation 7 Validation 8 Build VP
25 Reframe the customer experience
26 1 Nowscape 2 Intended Clients 3 Intended Experiences 4 Alternatives 5 Benefits & Consequences 6 Differentiation 7 Validation 8 Build VP > What Alternatives to your Intended Experiences are available to the Intended Clients? > What are the two next-best Alternatives?
27 1 Nowscape 2 Intended Clients 3 Intended Experiences 4 Alternatives 5 Benefits & Consequences 6 Differentiation 7 Validation 8 Build VP > What are the Benefits and Consequences of your Intended Experiences? > How, therefore, are your Company s Intended Experiences Differentiated from the next-best Alternatives?
28 Wow! Low Degree of difference High So what! Low High Value to Intended Client
29 1 Nowscape 2 Intended Clients 3 Intended Experiences 4 Alternatives 5 Benefits & Consequences 6 Differentiation 7 Validation 8 Build VP > How will you validate and prove your case?
30 Validation Thought leadership Surveys Case studies Testimonials Value Equations ROI and other economic calculators Process tools Value-creation focused Diagnostic Analytical Phased Two-way Prove your case
31 1 Nowscape 2 Intended Clients 3 Intended Experiences 4 Alternatives 5 Benefits & Consequences 6 Differentiation 7 Validation 8 Build VP > How will you validate and prove your case?
32 1. Intended Client 2. What we want them to do 3. Next best alternatives 4. Intended Experiences: a. Superior b. Equal c. Inferior 5. Timing 6. Price
33 Rational Matters of fact, content and detailing Political Organizational constraints and political issues Emotional Soft issues, instinct, interpersonal matters
34 What is a Value Proposition? A set of customer experiences: a designed outcome of relevant, measurable value to a client or group of clients, that your business can deliver profitably
35 Christmas 1968: Earthrise from Apollo 8
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