I was reading an article in Forbes Global just before Christmas entitled ‘The Undeaded’. The article considered
great number of software companies who have been losing millions of $ and eating into their cash mountains built up by raising equity funding in
late 90’s. The software industry is of great interest to me and this made me think about
strength of their Sales Propositions. Are
companies and their products searching for problems to solve? Are their propositions delivering real business advantage for their clients? The issue of preparing and developing strong and robust propositions which deliver advantages to
customer, is a common problem for companies and professional firms throughout
land - and one not always well addressed.
The absence of a strong, coherent proposition which benefits customers is often one of
weak links in building a successful and profitable sale and hence a viable business. A great deal of money is invested in
employment of salespeople,
introduction of marketing programmes, networking and other ‘set piece’ events to generate interest in a product or service but
return on investment is dramatically reduced because
proposition presented to
customer is weak, misunderstood and lacks ‘beef’ and ‘sizzle’!
It’s like providing a mountaineer with eight days rations for a ten-day journey. He will run out of energy before he climbs
peak. This equally applies to
businessperson who is unable to efficiently articulate his / her sales proposition with sufficient knowledge, empathy and understanding and consequently loses
sale.
The sales proposition must always be framed to meet
needs and wants of
customer. [A quick working definition of these terms: ‘needs’ are logically-based requirements; wants are deeper, emotionally-based desires]. This is achieved first by asking in depth ‘open’ questions to discover
needs and wants of
customer. It is a great (but very common) mistake to launch into telling your potential customers your proposition before understanding
relationship between their needs and wants and your proposition.
What do I mean by proposition?
The proposition is built in detail by assembling
features of
product or service, together with
advantages these features deliver for
customer. The appropriate business advantages are listed alongside together with relevant proofs to support
claim. The stronger
proofs are in supporting
advantages,
stronger
proposition and
better
impression made on
potential customer. With a thorough understanding of
features, advantages and proofs associated with
proposition,
easier it will be to ask
right questions and discover whether your proposition matches
needs of
customer. There is a strong correlation between a successful sales result and a well constructed sales proposition, professionally delivered after (and only after)
customer’s needs have been comprehensively understood and summarised.
Why not try this as a practical example?
Go to your local car showroom and show interest in buying a car and make a checklist to see if you are asked some of
following questions. These questions should be asked by
salesperson before he provides you with any information or explanation as to his sales proposition.
·What do you use your car for? ·How many passengers do you usually carry in
car? ·How many miles do you expect to travel in
car per year? ·What’s your average journey mileage? ·What kind of things do you need to carry in
car? ·What performance are you looking for from your car? ·How important is fuel consumption to you? ·How important is luxury and comfort relating to your purchase? ·Who will be
main driver of
car? ·How important is reliability of service for you? ·Are there any other things I should know about regarding your planned purchase?
There are many other questions, which could be asked to find out
needs and wants but I do not intend to cover them all in this brief article.
If
needs of
customer are to use
car for pleasure, to travel 6000 miles per year with an average journey of 10 miles and to carry one passenger occasionally, then speed may not be so important but low fuel consumption and low cost insurance might be. With good questions he might ascertain that
main user will be my wife. Comfort and good quality stereo together with a good security system might therefore be important. Can you see how by asking
questions you are building a profile of
needs and wants of
customer?
You are now able to ensure that when you ultimately present your proposition to highlight
features, advantages and proofs which match
needs of your customer,
proposition will become so much more meaningful and powerful in his eyes. Equally, in a worst case sense, if your product or service does not meet
requirements of
customer you will at least gain credibility by recommending another company or product.