Building Block 2 Value Proposition


Building Block 2: Value Proposition


Once a provider has built a portfolio strategy and determined which apps are most relevant to its prospects and customers, the next step is to develop a compelling value proposition.

At its core, these are the reasons why a buyer buys and why they should make the purchase from you. Without a clearly defined value proposition, providers won’t be able to drive sales.

Compelling Value Proposition

Strategy Tip

Creating a value proposition may sound daunting, but the reasons why people buy usually fall into three major buckets. These form the three legs of a winning value proposition.

  • 1. Resonate

    Your offerings must resonate with buyers. They have to want and need what you're selling.

  • 2. Differentiate

    You have to differentiate your offerings. Buyers have to understand why you stand out from other available options.

  • 3. Substantiate

    You have to substantiate your promises. Buyers have to believe that you can deliver on what you say.

When you take the time to create a rationale for all three legs, it will create a foundation for premium pricing, better close rates, and increased in customer loyalty.

  1. To resonate, look at common pain points that SMB buyers are facing and map solutions directly to them.

  2. To differentiate, develop your own service, such as creating a new app or service that only customers can access. Or, sign an exclusive distribution agreement with an ISV.

  3. To substantiate, become a trusted brand. You don’t have to be the biggest or most well-known, but building your reputation with customers should be a top priority.

Other ways to make good on your claims are to offer case studies and testimonials, objective ratings and reviews, and trial periods or a money-back guarantees.

Creating a Value Proposition

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