It can be common for us to try to stop to think about the value proposition definition. We will try to simplify how we look at value propositions.
Not the Value Proposition Definition
Before we move forward, let’s first focus on what is not a value proposition. This is important as there is a trap that we all fall into and that is talking primarily about our products and services and all the great things that they do.
This is not a value proposition and what your products are and what they do is not value. This is important but we sometimes need to refrain from talking too much about this.
What is Value?
Now let’s move on to focus on what exactly value is. Value is the transfer of something that has a positive net worth from one person to another, or from one business to another.
One challenging thing about value is that it is usually something that is intangible. While you might be able to see the product or service that is being delivered, you actually cannot see the value, even though it is there.
To simplify all of that, value is not your product or service. It is what your product or service helps your clients to do or to achieve.
Three Levels of Value
To take one step closer to the value proposition definition, you can actually break the concept of value down to three different levels – technical, business, and personal.
Technical value: Technical value is the value that is delivered at the lowest most basic level. This is where a product or service helps to create improvements in the areas of systems, processes, or people.
An example of this might be a piece of software that helps to automate an existing manual process.
Business value: When you deliver technical value, that can work its way up and create improvements at the business level. These are typically seen in the areas of revenue, costs, or delivery of services.
Continuing with the same example, if you automate a manual process, there will be a decrease in costs as there will be a decrease in the need for labor.
Personal value: When technical and business value are achieved, you will typically see value delivered at the personal level. These are personal benefits that the prospect and their employees will see. These can be improve work environment, improved compensation, or improved career path.
If you help a business to automate and decrease costs, this can lead to a better work-life-balance for the prospect that buys from you as they might have to work less on the weekends.
Bringing it all Together
Now that we have broken the concept of value down, you can easily see that the value proposition definition is a statement or sentence that clearly explains how you help your prospects and clients. And if you break the value you offer down into the three levels of technical, business, and personal, you can have three versions of you value proposition, one for each level.
Launch Pad Solutions provides a value proposition tool that helps sales pros with the value proposition definition.