What's your value proposition? Did you know a value proposition is made of two parts. The first is a promise of the value your business will deliver to your customers. The second part is the customer ́s perception about how that value will be received.
For many B2B marketers, defining exactly what their “value” is can be a daunting task. This is why we recommend referencing “The B2B Elements of Value” chart. The chart was created by Bain & Company in 2018 and is based on a study carried out by the firm into what matters most to B2B buyers.
This chart breaks down the different elements that can play a part in an organisation’s value proposition. To make it more digestible, the elements have been broken down into 5 categories, each with their own subcategories.
To help you get the most out of the model, we’ve created a short list of questions you can answer to get a clearer understanding of your organisation’s value.
Inspirational Value
Vision - What is your company’s vision for its customers and the world?
Hope - How does your company inspire hope for a brighter future?
Individual Value
1. Career -
Network expansion - How does your business help someone expand their professional network?
Marketability - How does your business help someone become a more attractive candidate in the job market?
Reputational assurance - How does your business boost and safeguard the reputation of a client or customer?
2. Personal -
Design & aesthetics - How does your product or service’s design add value to a client or customer?
Growth & development - How does your business aid a client or customer in their career growth and development?
Reduced anxiety - How does your business alleviate worries and fears for clients and customers?
Ease of Doing Business Value
1. Productivity -
Time savings - How does your offering save clients time?
Reduced effort - How does your offering enable your clients to use fewer resources to complete a task?
Decreased hassles - How does your offering reduce common customer pain points?
Organisation - How does your offering empower your clients to become more organised?
Connection - How does your offering improve the connection between departments in a client’s organisation?
Integration - How easy is it to integrate your offering into established business practices?
2. Access -
Variety - Do you have one offering or many? What are the benefits of your chosen approach?
Configurability - Is your offering customisable or not?
3. Relationship -
Responsiveness - How quickly can your team respond to queries?
Expertise - How knowledgeable is your team regarding the industry and offering?
Commitment - How dedicated is your team in helping clients achieve their desired outcomes?
Stability - How stable is your business within the marketplace and current economic climate?
Risk reduction - Does your offering reduce risks for your clients?
Reach - Does your offering allow your clients to improve their reach?
Flexibility - Is your offering a flexible solution?
Component quality - Are the various elements of your offerings enhancing your client’s own offerings?
Functional Value
1. Economic -
Improved top-line - How does your offering improve a client’s business growth?
Cost reduction - How does your offering allow your clients to cut costs or save money?
2. Performance -
Product quality - Is your offering exceeding the expected quality standards within the marketplace?
Scalability - How easy is it to scale or roll out your solution within larger, global organisations or different departments within smaller organisations?
Innovation - How is your offering ahead of the curve in comparison to others that are available?
Table Stakes
Meeting specifications - Does your offering meet the specifications your target clients have in mind?
Acceptable price - Is the price of your offering acceptable within the marketplace and reasonable for the value demonstrated?
Ethical standards - Does your organisation demonstrate ethical standards that are in line with those of your target clients?
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Would your organisation like to refine its value proposition to make a bigger impact?
Get in touch with Philip Martin to discover how DMA Partners can help you use the elements mentioned in this article to strengthen your position in your industry: philip.martin@dma-partners.com.