Value propositions need to be constantly refreshed as customer, competitor, and market dynamics change, which is all the time. Successful, energetic companies embrace this renewal and use it to sustain ongoing profitable growth. Let’s examine more closely why and how to adopt this approach.
Two years ago, I heard a “value nugget” that has influenced how I help organizations define their value proposition and distill it down to three words or less. It came from John Chambers, former Chairman of Cisco Systems, who grew Cisco’s annual revenue from $70 million to $47 billion.
I’ve heard it all when it comes to pricing strategies. Clients say they use a premium pricing strategy, or penetration pricing, or (pick your own) pricing strategy. But really... what is the one and only goal of pricing when you want to make a profit?
Engaging channel partners can be part of an effective strategy to grow your company, enter new markets and increase your sales volume. A good partner can help build your credibility with introductions and referrals to their customers, provide access to new prospects, and expedite and secure their entrance into your sales funnel.
One aspect of successful sales, B2B or otherwise, is anticipating your prospective buyer's alternatives so you can have strategies in place to rebut any objections and differentiate yourself. But how do you learn what questions are going through the minds of your buyers? By determining how they evaluate their alternatives.
If you’re trying to find new opportunities in a market, it doesn't necessarily mean you have to expand your product line. First, expand your perspective.
Why do I say this? To paraphrase Harvard marketing professor Theodore Levitt, people don’t want to buy a quarter-inch drill bit. They want a quarter-inch hole. In other words, look at the market from the perspective of the problem that you solve.
How well can you describe the value of your offering to different market segments? Correctly communicating value at the segment level is critical to any successful business strategy. Unfortunately, many B2B sales and marketing professionals communicate value in broad, generic terms, or fail to customize their language to appeal to different market segments.
Fundamentals, in most competitive endeavors, are what we must first learn and master in order to perform well. They provide us with confidence in setting basic direction and a stable foundation when the going gets rough. In marketing, sound fundamentals help set strategic direction, guide tactical plans and provide benchmarks for determining execution and performance.
When customers ask for new products or features, should you jump to fill the request? These situations can help you deepen your relationship with your customer. On the other hand, you could also end up wasting time and resources creating a new offering that they're not willing to pay more for and that no other customer needs.
When you make the decision to target market segments strategically, you can create significant profitable growth opportunities for your business. But what happens when the sales team fails to embrace those new segments?
It’s not that salespeople want to sabotage the efforts of marketers. But resisting change is part of human nature. When salespeople have spent months and years developing relationships with established customers, it can be difficult to make the switch to selling to a whole new set of customers.
