Right now the Queensland Government is just opened up Round 4 of its Small Business Digital Grant...
Building a Better Online Business
Creating and managing your online business requires you to follow the same basic principals of any business - relying on sound Business Strategies. There are however, a few practices that differ or that just are unique to an online business. Here we share our views and experience with you to help you develop a more effective and profitable online business.
Success in business does not lie in the technical prowess of your products, it is not attributed to innovation or even customers service. Most importantly, it is not about price. Clearly each of these, along with many other aspects of your business are all important. The secret however lies very much in the perceived value of your product or service to your customer.
You see it’s not about you, your product or anything else relating to what you do, how you do it or why. What is most important to your customer is the value they attribute to what you have to offer and your success comes from how well you communicate that to you market.
Before you can learn how to communicate value, you need to understand what value, itself, is.
- Value: The perceived monetary worth of something to your customer
- Value Propositions: A compilation of reasons your customers buy from you
- Positioning – Your Value Proposition Statement: A compelling, tangible statement of how a company or individual will benefit from buying something specific or buying from you in general
Most people, however, only pay attention to the last point overlooking the first 2 altogether.
What Does Value Proposition Mean?
“A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.” (quoted from Investopedia”
We quite often hear of the “Elevator speeches” – the 30 second sale pitch you make in an elevator between floors telling a stranger what your business is about in a way that arouses their interest.
The problem with these is quite simple the fact that not many purchases are made in elevators, and people don’t buy because of a few key points made in a brief statement. People buy for their own reasons. Buying patterns are largely personal and often different from one buyer to the next. They do however all follow simple basic sets of rules.
Your ability to be able to draw on a few key points about your business or products / services when first meeting someone is very handy and we certainty suggest you should be so prepared. We deliver on this however by way of a value proposition positioning statement. Understand this however - if you only do this, you’ll limit your possibilities for building the maximum case for your value with clients during the selling process.
Think of your value propositions not as statements, but being about why people buy something, then you’ve got a lot more to work with. Working from the context of WHY— the compilation of reasons why people would want to buy from you—that you can more effectively communicate the different components of your value to your customers in different ways for different situations.
The collection of reasons why people buy typically fall into three major buckets that, in sum, form the three rules of winning value propositions:
- Prospects have to want and need what you’re selling usually in the form that it provides a solution to a known problem they have. You have to resonate .
- Prospects have to see why you stand out from alternate options either you or your competitors have to offer. You have to differentiate yourself from the alternative choices available.
- Your credibility and integrity have to be prominent enabling your prospects to believe that you can deliver on your promises. You have to substantiate .
The 3 Pillars of Your Value Proposition
What happens if you don't follow all three of the value proposition rules?
What happens when a pillar of the value proposition is missing?
As you can see from the graphic above - ”Three Pillars of the Value Proposition”, take any one of these away and it makes it much more difficult to sell.
- Failure to resonate with your market means people just won’t buy what you’re selling.
- Without differentiation you are just the same as everyone else and customers enter into a price war.
- Without credibility and failure to to substantiate your claims leads to a simple case of clients may want what you sell (you resonate), and may perceive you to be the only people on the planet that do what you do (you differentiate), however they won’t believe you, they won’t risk buying from you.
Your ability to clearly define the 3 pillars of your value proposition is essential to the creation of your website. The underlying objective of any website for commercial businesses is to drive increased sales back to the business. Your website is one of the most critical tools you have for marketing your business, its services and products. Everything in your website should underpin your value propositions.
How often have you visited a website and stared at it for 30 seconds still unsure of what they are selling, why you would want to buy form them, whether you are indeed a suitable customer? How often have you hesitated to explore the site further or to take up an offer they put to you?
Invariably this has come about simply because the business has failed to clarify and clearly communicate their value propositions.
If you want to resonate, differentiate, and substantiate you need to do much more than write a short sentence…or a long sentence, or a paragraph,
or a page. While you can sum it up, the summary itself doesn’t carry much weight. It just stands to do a little positioning for you.
Your value proposition will be different from one buyer to the next. It will also vary from one area of your business to another or it could vary as a combination of the two factors.
What you will need to learn is how to frame your value propositions in terms of each buyer’s own situation. Through your conversations you learn what they want, they need, their buying processes, and their criteria. You will also need to understand their fears – those things that hold them back from committing to you.
Then and only then will you be able to craft the most compelling solution for them.
If you do, the buyer’s perception of your value will be as strong as possible when it counts: when it’s time to buy.
The Rubik's Cube solver runs in your web browser and it finds easily the solution for your puzzle.
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