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What makes a great B2B value proposition?

What constitutes a great B2B value proposition?

This question goes to the heart of what allows businesses to establish themselves and stand out in a competitive field. Of course, B2B companies compete on many levels—price, service, responsiveness, and so forth—but what makes a potential customer choose one company over another when all these factors seem pretty much equal? Or what makes a potential customer choose two companies when one is their “go-to” for one type of work and the other for something that’s similar but not quite the same? In this case, the “value” in “value proposition” isn’t just an abstract notion of worth but instead is tightly bound up with the terms of the proposition and a potential customer’s reasons for accepting it.

What constitutes a superior B2B value proposition?

To tackle this question, we can divide it into several crucial components that, taken together, make up a compelling reason for a business to engage with another business.

A value proposition is what a company offers and what makes it stand apart from the competition. The first step is to communicate the big picture very concisely and very clearly, without jargon, and to stay focused on what has been defined as the “clear language” over which audience members can easily glide. Besides a clear message, the next layer down is beneficence; this is where the company needs to talk and illustrate with easy-to-follow examples how what they are offering really is beneficial to the audience they have in mind. The next layer down is the audience and what I really consider to be the “target richness.” Companies need to know their audience very well. They also need to tailor their language and examples to the richness of the audience’s target. Finally, there is uniqueness with respect to what makes the company and what the company offers stand out.

To explore further into the factors that contribute to a compelling B2B value proposition, contemplate the ensuing strategies:

A Customer-Centric Value Proposition Focus: Identify the customer challenges you aim to address when creating your value proposition. We recommend a co-creation process with your customers that focuses on challenging problems and leads to intelligent design solutions.
A Value Proposition That Attracts and Hooks Potential Customers: Understanding who your customers are and what you stand for as a company is essential. Connecting with your customers on a rational level is a baseline; getting them to connect with you on an emotional level can lead to greater customer loyalty and attachment. Integrating a customer feedback loop is an intelligent and effective way to refine what you are proposing as “valued” to your potential customers.

Looking at successful companies can reveal what constitutes an admirable B2B value proposition. A prime example is Salesforce. Its value proposition hinges on integration and modification—i.e., it targets the vendors who are looking for something other than an off-the-shelf CRM solution. Then we have HubSpot. HubSpot has an admirable clarity of message. Its value proposition is that it provides inbound marketing solutions. I.e., it is targeting companies that want to do something other than traditional marketing in order to attract customers. Finally, both companies illustrate how strong branding is important vis-à-vis your value proposition. Both employ consistent messaging that reinforces their respective positions in the marketplace.

Testing the effectiveness of your value proposition is vital after you’ve created it. Use different versions to see which one potential clients prefer and respond to more favorably. Conduct surveys to gain a better understanding of what your customers believe. Also, keep an eye on click rates, conversion rates, and other metrics that will give you real-time feedback on how well your proposition is doing. If you notice lagging performance or that a particular version is not leading to the kind of results you want, don’t be afraid to pull the proposition and change it up. A value proposition should change as the market does.

To sum up, grasping the essentials of a superb B2B value proposition is crucial for achieving business success. A discovered value proposition is the foundation of the marketing mandate and serves as the common denominator across the marketing mix. It is the basis for developing messages that resonate with the prospect and customer. After all, the value proposition is about them, not us. Understanding why the prospect should prefer us over another option, whether that be an outside vendor or another inside group, is why marketing exists.