A value proposition is a brief statement that is created for your buyer personas and addresses the value that they can gain by purchasing your cloud service model. Your sales and marketing teams should work together to create this value proposition to deliver the services your customers demand. Speaking directly to your potential customers will shorten your sales cycle and help create qualified leads for your sales team.
1. What is a value proposition
A value proposition is a brief statement about why your customers should purchase a cloud service model, and more specifically, why they should purchase YOUR cloud service model. It should address cost versus benefit value, soft experience value and company values. Soft experience relates to any additional value your company can provide for your customer aside from the physical solution (such as education or help with sales training). Values relates to how ethical the company is compared to what they say their ethical values are. For some customers, especially those that claim that they are environmentally responsible, this can be a determining factor between two potential vendors. Cost versus benefit value is discussed in-depth later in this post.
2. Based on your target personas
We discussed in detail how to create target personas in a previous blog, How to Use Cloud: Preparing Your Marketing Plan. As in the third point of the Pitching your new Cloud Model blog post, your value proposition should be brief and to the point. It should answer the question, "what's in it for me?" for your potential customer and talk about the value that only your company can offer them. Your value proposition should be contingent on these target personas and their unique challenges. Identifying these individuals and their roles and writing messages for them is an easy way to shorten your sales cycle by getting to the heart of your customers' needs and overcoming their challenges.
3. Aligns your business objectives to customer needs
The value proposition you create will align your business objectives to your customers' needs. As business objectives become parallel to these needs you will not only be able to better serve them at present, but continue to give them products and services that they will require in the future. This keeps you as a top of your customers' choice vendors for future purchases.
4. Increases the quantity and quality of your leads
The number of leads and their position within the sales cycle will be enhanced after creating, scrutinizing and implementing a value proposition statement for your cloud service model. Using targeted messaging designed to speak directly to the decision makers within a potential customers' organization and addressing their true needs helps your sales team quickly assess any unique situation and prescribe the best solution available for them. Making educational materials available further enhances potential leads' understanding of your cloud service model and helps them communicate specific needs to your sales team.
5. Talk about the value, not the offer
Teams tend to overlook the benefits that their cloud service model offers by merely discussing its features over competitors'. Nonetheless, you need to keep in mind the value that you can offer your customers - lowering operating costs, generating revenue or the ability to attain more resources as needed - instead of the physical features of your offering puts into perspective the true benefit the customer will receive from the purchase of your cloud service model.
These five tips can help your marketing and sales team as they prepare a value proposition document for your cloud service model. Working together to create a cohesive message for your target audience is the most important step in this process. This allows the marketing team to bring leads that have been exposed to educational material to the sales team, which can then deliver a targeted value-based pitch.