Situation: A company offers a service that can potentially boost clients’ revenues by 50% or more. However, the CEO has found it difficult to communicate this value proposition to potential clients. While some clients understand and have bought the company’s service, too many others have not. How do you communicate your value proposition?
Advice from the CEOs:
- Not everybody will buy any service, no matter what advantages it offers. Here are steps to take:
- Make a list of clients that you have closed, and those that you have not.
- Identify whether there is a difference in the profile of the clients that you’ve closed and those that you didn’t.
- From the commonalities among those clients that have accepted your value proposition, create an ideal customer profile.
- Use this profile to pre-qualify potential new clients and assure that they meet this profile before investing in sales efforts.
By focusing sales efforts on those clients that you are most likely to close, you will improve your close rate and also reduce your sales cost to revenue ratio.
- As you cultivate a new prospect, identify those individuals within the client company who can block your sale. Make these individuals heroes for supporting your offering. Offer them appealing learning retreats. Offer augmentations that appeal to the unique needs of the client. Raise your prices to fund these augmentations, but more than cover these costs with boosted revenues to the client.
- Focus on the key WIIFM – “What’s in it for me” – that will appeal to key purchase influencers. Enlist these people as your evangelists within the client.
- Emphasize not just financial benefits, but quality of life benefits that will accrue to clients through your service. Back this with a guarantee that you feel comfortable making.