Is Your Unique Value Proposition Hurting Sales?
Unless you have managed to invent a real hoverboard or have patented a youth serum, chances are that competition in your line of business is fierce. It’s a natural fact of doing business, but it is still one that we must try to master. In order to remain competitive, small and medium sized businesses must have an understanding of their unique value proposition, or UVP. A value proposition is a statement that summarizes why a consumer should purchase your product or service, but a unique value proposition is your competitive advantage in the marketplace. It is what sets you apart from the competition. So how could that hurt your sales?
Like anything, too much of a good thing can have negative consequences, and that holds particularly true for both your value propositions and UVPs. While we always recommend that your UVP is integrated prominently into the Sales process, it’s very important that it is done in such a way that it doesn’t dilute the power of your sales pitch.
So how can you ensure that your UVPs are working for you and not against you? By focusing on the Customer and not (your) Company. The best salespeople are the ones that talk less and listen more, thereby allowing them to fully understand customer pain points so that they can be targeted in the pitch. The same approach can be used when incorporating value propositions into your sales process.
Instead of hammering away at the customer with all your company-focused value propositions, the best approach is to use Customer Driven Value Propositions - CDVPs. These are a subset within your UVPs that are targeted towards each customer. Remember that while there may be similarities between your purchasers, ultimately each customer is unique and the solutions you provide to them should be as well. This means that while you may have six core UVPs based on the unique values of your company, after fully evaluating the customer’s needs you may realize that only two of the UVPs are actually relevant to them. If you spend your pitch talking up all six points, instead of increasing sales you are instead showing the customer that you are not cognizant of their particular needs. By using all six you actually dilute the message of the two UVPs that really matter.
Two Core Tenets of CDVPs:
Draw Relevancy – which of your UVPs speak to customer pain points?
Pitch Only What Matters – don’t pitch the UVPs that don’t apply
Most companies are aware that they need to emphasize what sets them apart from the competition in order to increase sales, but they don’t always remember that this must be framed within the customer’s needs and pain points. By ignoring this fact your UVPs, which are a strength, can turn into a weakness. Instead, the use of CDVPs in your sales pitch is not only focused on what is unique about your company, it is focused on the unique needs of that customer as well. It might not be a youth serum, but it still does pretty well closing the sale.
Do you need help adding CDVP awareness into your sales process? Is your Sales team company-focused and not customer-focused? If so drop us a line, it might be time to get Change Connect in to help. It's time to make the Change Connect call.