Exactly What Are Value Propositions? A Brief History
Monday, January 25th, 2010
There is an avalanche of misunderstanding and disagreement when it comes to value propositions.
Since there is no absolute definition of value propositions, let me give you a brief history. I’ll let you come to your own conclusions as to what they really are and how you might use them in your selling efforts.
In The Beginning…Phase 1
It all started with salespeople doing nothing more than selling the features of their products. This kind of selling started before the industrial revolution and sounded something like, “Ivory soap is 99.44% pure.” Nothing more than a simple feature.
Things Evolve…Phase 2
Around the 1930’s, the advertising and selling world realized that prospects needed more than a feature. They needed a reason to buy. The benefit was born. Tell the prospect about a feature and then tell them why it helps them.
Significantly driven by automotive advertising, we saw feature-benefit statements like, “General Motors’ new Hydra-Matic transmission completely removes the work of shifting and operating a clutch.”
Circa 1970’s…Phase 3
The first hint of sophistication in features and benefits enters here. The marketing types realized (as we know today) that prospects couldn’t care less about the feature; they were interested in the advantage to them (i.e. the benefit).
The marketers fixed this by simply reversing the feature-benefit statement to a benefit-feature statement. Tell them the benefit first and then tell them how it is achieved.
“Give your children more of your time by using Duncan Hines’ 1-2-3 easy cake mix.”
The Birth Of Value Propositions…Phase 4
Transport yourself to the 1980’s.
It is arguable who actually “invented” value propositions. There is also little agreement as to what ingredients should be in a value proposition and in what order they should appear.
However, most value propositions include the following four basic components and normally in this order (but not always): need, feature, benefit, uniqueness/differentiation.
“Busy executives need to be able to work in comfort when traveling. American Airlines’ business class provides you the ability to conduct business in a luxurious environment. No other airline offers as many business class seats as American.”
One More…Phase 5
Sales and marketing is currently operating, for the most part, under phase 4. But there is a new wind blowing. Primarily driven by the Gen Y’ers.
This wind is called the New Authenticity. It throws out all of the above and simply asks the sales professional to be revealing, honest and direct with the prospect. No formulas. No games. No marketing (at least not overt).
Kind of refreshing sounding isn’t it?
Sales Tips Wrap Up
You’ve been through all of your company’s sales training and you’ve heard the marketers at your company tell you their story. Your sales manager uses “value proposition” or “value added selling” in every third sentence.
However, the most successful sales professionals have used the new authenticity approach for their entire sales career. They just didn’t know what to call it.
This new authenticity thing has legs.
Further sales tips reading:
Selling In A Recession, The New Authenticity
For A Change, Try Being Honest With Your Customers
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