Share this
Finding Your Differentiated Value Proposition and Why It Matters
by Chris Peer on Tue, Jul 11, 2017 @ 11:08
Cost, quality, customer service and timing:
The four pillars of your value proposition, right? Perhaps not. These are the four things that great industrial companies get right. The problem is that customers expect you to get these things right, each time, all the time. Your customers and your customer’s customers are very demanding. So, what happens when the cost of goods goes up or your delivery is off schedule? Your customers start looking for a new supplier unless you offer something more, something that they can’t get anywhere else. This “something” is called a differentiated value proposition.
So what is a differentiated value proposition?
It’s an articulated and intentionally designed ethos of your organization that transcends your competition. It’s something you do better than anyone else. Your differentiated value proposition may be as simple as you having the best customer service (think Zappos) or the fastest delivery (think Amazon), or it could be that you provide a niche product or service, or specialize in a niche market better than anyone else.
More often than not, a differentiated value proposition is a combination of many things your company does well. And when combined, they provide a value to your customers that they can’t get anywhere else. An example of this is: “We’re confident that customers will consistently buy from us because our company solves <insert customer problem> better than any alternative, due to our extensive geographic footprint, specialization in <insert specific market> and the patented technology we possess. It all ensures we deliver materials faster than anyone else. ”
In the example above we show four unique attributes of the company that, when stated independently, aren’t unique or differentiated. Competitors may have an “extensive geographic footprint” or a similar “market specialization.” However, when you combine these elements with patented technology the combination of attributes provides the company with a unique and differentiated value proposition: fastest delivery.
Proof. Simply stating that you’re the fastest or best, or whatever your differentiated value proposition says, is not enough. You need proof. You must demonstrate that you have the data to support your claims, otherwise your value proposition may fall short.
So, what if you don’t have the attributes or the proof to define a differentiated value proposition?
Get it. It may take months or years to truly differentiate your business, but it’s well worth it. To start defining a differentiated value proposition, take a look at your customers.
Step 1: What do your customers really care about?
Everyone says price when asked this question. However, every company I have ever really pressed with this question always says that they’ve won business in situations where they weren’t the cheapest option. So, there’s more to it than just price. Ask your customers why they chose you and why they continue to do business with you. You’ll find some interesting data. Make a list of why customers choose you and what your customers care about.
Step 2: Where is your market headed?
Think about what your customers will need in three to five years. Can you service this need? What barriers will you face? Which competitors are better positioned and why?
Step 3: Define attributes
Define three to five attributes that your company must have in order to be the best. Processes, technology, geography and expertise are good starting points. Get specific.
Step 4: Identify a market differentiator statement
Using the three steps above, draft a statement that, if achieved, will position your company ahead of any competitor.
Step 5: Proof is in the pudding.
Define proof statements that support your statement. What data do you need to make such claims? If you don’t have the data or the proof, determine how you’ll attain this data in the future.
An example result:
“We are confident that customers will buy from us because our company solves <insert customer problem> better than any alternative because...”- Proof 1:
- Proof 2:
- Proof 3:
By clearly communicating your new value proposition online, you turn more site visitors into leads that are ready for your sales team.
Share this
- Inbound Marketing (126)
- Manufacturing (82)
- Lead Generation (70)
- Website Design & Development (58)
- Social Media (46)
- Online Brand Strategy (38)
- eCommerce (33)
- B2B Marketing (30)
- Digital Marketing (28)
- Expert Knowledge (28)
- Company Culture (22)
- Content Marketing (16)
- Customer Experience (15)
- Metrics & ROI (15)
- Search Engine Optimization (15)
- Marketing and Sales Alignment (12)
- Transportation and Logistics (10)
- Content Marketing Strategy (9)
- Email Marketing (9)
- SyncShow (9)
- Digital Sales (8)
- Lead Nurturing (8)
- Digital Content Marketing (7)
- General (7)
- Mobile (7)
- Brand Awareness (6)
- Digital Marketing Data (4)
- Video Marketing (4)
- LinkedIn (3)
- Professional Services (3)
- Transportation Insights (3)
- Demand Generation (2)
- High Performing Teams (2)
- News (2)
- PPC (2)
- SEO (2)
- SSI Delivers (2)
- Synchronized Inbound (2)
- Value Proposition (2)
- Account-Based Marketing (1)
- Facebook (1)
- In-House Vs. Outsourced Marketing (1)
- Instagram (1)
- KPI (1)
- Marketing Automation (1)
- Networking (1)
- Paid Media (1)
- Retargeting (1)
- StoryBrand (1)
- Storytelling (1)
- November 2024 (4)
- October 2024 (4)
- September 2024 (4)
- August 2024 (4)
- July 2024 (1)
- June 2024 (1)
- May 2024 (4)
- April 2024 (1)
- March 2024 (3)
- January 2024 (2)
- December 2023 (4)
- November 2023 (3)
- October 2023 (1)
- September 2023 (4)
- August 2023 (3)
- July 2023 (2)
- June 2023 (2)
- August 2022 (2)
- July 2022 (2)
- June 2022 (1)
- March 2022 (2)
- February 2022 (1)
- January 2022 (2)
- October 2021 (1)
- June 2021 (1)
- May 2021 (1)
- March 2021 (1)
- December 2020 (1)
- October 2020 (2)
- September 2020 (1)
- August 2020 (3)
- July 2020 (3)
- June 2020 (4)
- May 2020 (2)
- April 2020 (3)
- March 2020 (9)
- February 2020 (5)
- January 2020 (6)
- December 2019 (5)
- November 2019 (7)
- October 2019 (6)
- September 2019 (8)
- August 2019 (5)
- July 2019 (5)
- June 2019 (3)
- May 2019 (2)
- April 2019 (1)
- March 2019 (2)
- February 2019 (1)
- January 2019 (2)
- November 2018 (1)
- October 2018 (1)
- September 2018 (1)
- August 2018 (1)
- May 2018 (2)
- March 2018 (1)
- November 2017 (1)
- October 2017 (1)
- September 2017 (1)
- August 2017 (2)
- July 2017 (2)
- May 2017 (1)
- April 2017 (1)
- February 2017 (1)
- January 2017 (1)
- December 2016 (1)
- November 2016 (8)
- October 2016 (7)
- September 2016 (2)
- August 2016 (2)
- July 2016 (6)
- June 2016 (3)
- May 2016 (4)
- April 2016 (6)
- March 2016 (6)
- February 2016 (7)
- January 2016 (7)
- December 2015 (6)
- November 2015 (2)
- October 2015 (3)
- September 2015 (2)
- August 2015 (4)
- July 2015 (9)
- June 2015 (9)
- May 2015 (8)
- April 2015 (8)
- March 2015 (9)
- February 2015 (7)
- January 2015 (8)
- December 2014 (7)
- November 2014 (7)
- October 2014 (5)
- September 2014 (4)
- August 2014 (4)
- July 2014 (5)
- June 2014 (4)
- May 2014 (5)
- April 2014 (4)
- March 2014 (7)
- February 2014 (9)
- January 2014 (7)
- August 2013 (2)
- July 2013 (4)
- June 2013 (6)
- May 2013 (7)
- April 2013 (7)
- March 2013 (8)
- February 2013 (5)
- January 2013 (7)
- December 2012 (4)
- November 2012 (4)
- October 2012 (2)
- September 2012 (1)
- July 2012 (1)
- April 2012 (4)
- March 2012 (5)
- February 2012 (2)
- January 2012 (3)
- November 2011 (1)
- May 2011 (3)
- April 2011 (1)
- March 2011 (1)
- February 2011 (1)
- December 2010 (2)
- November 2010 (3)
- August 2010 (1)
- July 2010 (1)
- May 2010 (2)
- April 2010 (1)
- January 2010 (1)