In an earlier post, I shared a note from Jill Konrath on value propositions. Since this is such an important topic, let’s discuss it in more detail.

Lots of companies create:

• Unique selling proposition
• Elevator pitches
• Corporate powerpoints, etc.

Here is an actual example of a unique selling proposition. (I looked up a software company that I know, but changed the name slightly to protect their identity.)

“Why AAL Software? SOA is the new approach to enterprise IT architecture, typically relying upon Web services as a key enabling technology. Composite applications are the integrated business solutions assembled from the services in your SOA–and how you ultimately derive business value from your Web service and SOA investments. The AAL Composite Application Platform transforms existing application assets into rapidly assembled, high-impact business solutions.”

But these don’t work. Why not? To put it simply, your prospective customers could not care less about your company and product or service. They are looking for the business results your product or service can help them deliver. So your statement to them should reflect what they seek. This is a Value Proposition. Weak value propositions torpedo sales efforts.

To use Jill’s excellent definition: A Value Proposition is a clear statement of the tangible results a customer gets from using your products or services. It is focused on the outcomes and stresses the business value of your offering.

Here is an example:

“We help companies reduce the cost of managing travel expenses. With the growing complexity of expense reporting in global companies today, this is a critical issue. One of our recent clients saved over $700,000 in the first six months while at the same time speeding expense reimbursement for employees. Other large companies have experienced similar results.”

Make sure you focus on business results, like cost reduction, revenue enhancement, market share growth, productivity increase, etc. Also, the more measurable, objective results you have, the better.

To start, write down your best effort, then look it over. If I was an executive customer, would I get it? Does it sound like a salesperson? Are there real results here? Look it over with a critical eye and revise it. Go visit and interview a client. Ask them about their results. Once you have it down, test it. Bounce it off existing customers. Keep refining it till it is perfect!

This will become the foundation of all your sales and demand generation activities. Next time, let’s talk about how one uses a value proposition. Happy selling!