[Define] Your Business Value Proposition - (4 min read)

In my last two blogs we talked about Why You’re Really in Business, and How to Identify Your Ideal Customer.

In this blog we’re going to take it to the third critical question:

Why should they buy from you?

Businesses everywhere, and in every industry, are constantly trying to figure out how to differentiate themselves from their competitors.

Ask yourself these two questions:

- Why would a customer want to purchase your good or service over that of a competitor?

- How do you differentiate your good or service from the competition?

The answer to this is knowing what is called your:

Unique Value Proposition

I’ve said this in my last two blogs and I’m going to say it again:

 “You’re selling your product or service because you’re solving a problem, or problems, for your customers”.

But likely, other businesses are trying to solve their problem(s) too.

Your differentiation, or unique value proposition, is your secret ingredient. It's something that's distinctive to your business that offers a definitive, tangible benefit to your customer.

Your Unique Value Proposition is something that only you can provide, or no one else can do it as well, or they can’t do it at your price.

Some differentiators are easy to figure out while others are harder to come by.

Maybe you're the only dentist with a kid’s play area on the premises. All other things being equal, that’s a differentiator.

But maybe you’re a business that doesn’t have such an easily defined advantage. So how can you create a differentiator for your business?

Let’s look at a few ways, but there are many others:

- Look at your competition. What do they do that you can’t? What can you do that they can’t do, or do as well? Maybe your location is more convenient to customers – use whatever differentiator you can establish.

- Read your competitors’ social media reviews. Skip the 5-Star reviews and focus on the 3 and 4-Star reviews. When you see a comment that goes something like, “I would have given them a higher ranking if”, everything after the word “if” is your golden nugget. Deliver on that and you will be doing something your competition isn’t.

- Offer something to address common customer concerns and frustrations. For example, guarantee that your service delivery technician will show up within 15 minutes of the scheduled time or you’ll provide the first hour of work free.

- Never make a claim you can't deliver on. Be sure you can do what you promise or your differentiator will be useless, your reputation will suffer, as will your business. Trust is important!

- Build great customer relationships. The #1 way to differentiate yourself is to build great customer relationships. Move from a transactional mindset to a relationship mindset.

Why????

The simple truth is that….

Buyers and sellers with the best relationships will do the most business together.

Here are some questions you need to answer to help you Define Your Unique Business Value Proposition:

- Product/Service Description and problem you’re solving:

- What are you not going to do?

- What will be unique about your offering?

- Where is the proof you can deliver on the promise?

- What is your pricing strategy?

Once you've established your differentiator(s), reduce it or them into a few words – this is your elevator pitch!

Communicate it at every opportunity.

Use it in your ads, letterhead, marketing collateral, your website, signage, sales calls, and everywhere.

Your differentiators should roll right off of your tongue.

If you don’t know why customers should buy from you, they won’t either!

And make sure you deliver on it!

Ultimately, you need to help your customers answer the following question:

Why my product or service?

We can help you with this!

For more information about how The Cobalt Group can help you define your unique business value proposition, or any business or leadership challenges you are facing, Contact us.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2019 The Cobalt Group LLC. All rights reserved.

Why You’re Really In Business

If you don’t have a clear answer to the following question, you may struggle to market your business, or even get it off the ground:

What problem are you solving?

You’re selling your product or service because you’re solving a problem, or problems, for your customers.

Read that last sentence again!

This is a fundamental mindset shift that must occur. And before you hang your shingle over your door and start trying to bring customers through the door,

Know the problem you’re solving!

You may make the greatest widget in the world but if your widget doesn’t solve a problem for someone, then you’ve made a great widget with no market to sell it.

Make sure you understand exactly what their problem is, or what issue they’re trying to resolve.

Not only do you have to know what the problem is, but you must understand how it impacts your customer.

You’re going to invest a lot of time and money getting the word out about your good or service, so your marketing plan needs to be specific.

Knowing the problem you’re solving is the first step. From there you can narrow down your efforts to those people whose problem(s) you’re actually able to solve?

And it doesn’t really matter what you sell, your target isn’t ‘everyone’.

So, don’t forget Why You’re Really in Business.

For more information about how The Cobalt Group can help you with any business or leadership challenges you are facing, Contact us.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2019 The Cobalt Group LLC. All rights reserved.

10 Ways to Differentiate Your Business

Why would a customer want to purchase your good or service over that of a competitor? How do you set yourself apart from the competition?

Businesses everywhere are trying to figure out how to differentiate themselves from their competitors. 

This is sometimes called your Unique Value Proposition (UVP). But for our purposes in this discussion I will use the term Differentiation.

Product or service differentiation is a marketing process that showcases the differences between offerings by various businesses. 

Differentiation is making a product or service more attractive by contrasting their unique qualities with the competition.

This is done all of the time by some of the most successful businesses in the world. They have made their name by articulating their unique capabilities, and delivering on them. 

Perhaps in your industry, when others are scaling back their products/services you might see a benefit in expanding yours. 

There are plenty of examples of successful companies and how they differentiated their offering to stand out from the crowd. After all, you want to lure prospective customers in your door and away from competitors. 

As I’ve said before, you want your unfair share of the market.

Another reason for differentiating yourself is to help you avoid competing on price alone. 

Think of your differentiation as your secret ingredient. It's something that's unique to your business. And it offers a definitive, tangible benefit to your customer.

Some differentiators are easy to figure out, while others are harder to come by. Ultimately, the question becomes – Why me?

Let’s take a look at some ideas for helping you answer that question.

1. Know the problem you’re solving. You are really in business selling your product or service because you are solving a problem for your customers. 

Make sure that the problem you’re trying to solve is real. Make sure you understand exactly what that problem is. 

List the main issues your potential customers have and create a differentiator to address them.

2. Know your ideal buyer persona. Having a great offering is a good thing. But if you’re not marketing it to the people that need your product you’re wasting marketing dollars. You want to market to the right people with the right message at the right time.

3. Take a look at your competition. What do they offer that you don’t? Is that offering significant? What do you offer that they don’t? Is their location and advantage for them, or is yours? What is bringing customers to them?

4. Define your unique value proposition. Maybe you're the only dentist with a kid’s play area on the premises. Or maybe you’re a business consultant has experience working with and for Fortune 100 companies. 

What is it that you do that others cannot do, or cannot do as well as you? These are examples of differentiators that might set you apart.

5. Your differentiator(s) may change. Another competitor may match one of your differentiators, or may exceed your capability. You may develop a new one. Don't be afraid to change the message as your business evolves. 

Your customers evolve, you need to be agile as well.

6. Offer a guarantee. Offer something to address common customer frustrations. For example, guarantee that your service delivery technician will show up within 15 minutes of the scheduled time or provide the first hour of work free. 

What you’re trying to do is build trust with your customers and give them a no-risk opportunity to do business with you.

7. Be specific. Be as clear as you can on what it is that you offer that others don’t. Put it out there in big, bold colors and use it as a differentiator.

8. Never make a claim you can't deliver on.  Be sure you can deliver what you promise or your differentiator(s) will be useless. Then, your reputation will suffer, as will your business.

9. Make sure your employees know and deliver on your differentiator(s). It does no good to advertise a unique good or service if your employees can’t follow through for you. Make sure they understand your differentiator(s) and deliver on them consistently.

10. Build great customer relationships. Every step in the buyer/seller process is a chance to build and strengthen a great customer relationship. Work on it all the time and make sure your employees do the same. 

Remember, buyers and sellers with the best relationships will do the most business together.

So, then what? Once you've established your differentiator(s), reduce it into a few words and then communicate it at every touch point. This is your elevator pitch! 

Use it in your ads, letterhead, marketing collateral, your website, signage, sales calls, and beyond. Your differentiators should roll right off of your tongue.

Think of it this way: what makes you choose one grocery store, dentist or moving company over another? Chances are it's their success in defining their differentiator and getting that message to the right marketplace. That’s what you want to do, too.

This should be a good start to get you thinking about how to make your company stand out from the competition. Above all, when defining your differentiators, be brutally honest in your evaluation. I guarantee that your customers will – either directly to you or by taking their business elsewhere.

For more information about creating your Unique Value Proposition, or to see how The Cobalt Group can help you with any other business or leadership challenges you are facing, Contact us.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2019 The Cobalt Group LLC. All rights reserved.

5 Benefits of Clearly Defined Coaching Goals

If you don’t know where you’re going, how are you going to know when you get there?

In the coaching side of my practice I sometimes run across clients that have been previously told to ‘improve their performance’, but not what part(s) of their performance actually need improvement. When coaching a client/employee it is important for both the coach and the client/employee to have specific goals and timelines.

Goals have to be established in order to give direction and purpose to the coaching session whether it is a client or an employee. Ambiguous goals are usually never achieved and may cause frustration, at a minimum.

Defining Specific, Measurable, Attainable, Realistic, and Time  driven (SMART) goals will plot a marker in the horizon. It’ll act as your beacon. Without that beacon you are navigating blindly.

Having no clearly defined goal causes frustration for both you and your client/employee because there never seems to be any improvement or progress. It creates a constant cycle of failing to meet some objective – a cycle that will keep repeating without a clearly defined goal.

Setting a clearly defined goal gives you and your client/employee direction and purpose. Imagine being handed a bunch of tools and materials and told to build something without a clear vision or goal of what is to be built. 

The same holds true for developmental goals. It is not good enough to tell your employee they must improve in sales or build widgets faster. These types of goals create more confusion because they do not know where to start because they don't know where they're specifically going.

Here are 5 benefits to establishing clearly defined goals upfront for your client/employee:

• Both you and your client/employee have a better chance of starting in the right direction together

• Coaching time is more efficient once goals are discussed upfront

• You are able to plan ahead of the session and prepare targeted questions

• Coaching session are direct and avoid meandering

• You, as the coach, will come across more clear, instilling confidence in your client/employee

Going back to the building analogy, you may end up building a stool when what was really needed was as birdhouse. Clearly defined goals are the cornerstone of effective and successful coaching. 

By establishing clearly defined goals you help to set your client/employee up for success.

For more information about coaching and mentoring, or to see how The Cobalt Group can help you with this or any other business or leadership challenges you are facing, Contact us.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2019 The Cobalt Group LLC. All rights reserved.

Your Value To Your Customer

Most companies have a value proposition. They have some product(s) or service(s) that they believe will benefit their customers. While this value proposition is a great thing to be able to articulate, it isn’t what your real value to your customer is or should be. The customer, on the other hand, wants to believe that they will see value from those products or services. But is that what they really want? My experience is that the value that they see comes more from how you do business with them rather than the actual product or service you’re providing.

The key is to go beyond a value proposition statement and do what you can to help the customer solve their problems. So how do you do that? To begin with, your value begins by getting to know your customer. Get to know them deeply. Know what they do, why they do it, and how they do it. Know what their strategic plan is; learn what their problems are. Many of the problems you can help solve are based in them getting from where they are to achieving their goals. Knowing those goals and why they are important is key here, and will differentiate you from the competition that doesn’t try to understand them.

To do this you have be in there talking with them. Find out what they are trying to do and why. Be an Excellent Listener. Try to get to know their problems before they become a business opportunity. Help shape the way they want the solution to look. For this to happen it will require an investment of your time so that you can understand what they are trying to solve.

The truth is that what customers really want are partners that can help them solve problems. They have plenty of vendors trying to sell them something. So what this really means is that you must move beyond the transactional sale of a product or service and become a business partner and a trusted agent. If you are able to do that then you will increase Your Value To Your Customer.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2015 The Cobalt Group, LLC. All rights reserved.

Roadblocks to Results

What keeps you or your business from being successful? What keeps you from achieving the results you set out to achieve? This is a topic that books have been written about but I will try to address at a high level view in this post. My list here will not be all inclusive. There are too many independent variables in each situation we face to list them all here. The ones I will discuss below are ones that seem to be more prevalent in my experience and observations. So what are some of the Roadblocks to Results?

·         Having no goal. If we don’t start with the end in mind then it is more likely that we will not get there. As simple as that seems it is not too uncommon that I run across situations where there is no real goal.

·         No long range planning. Too often we worry about the near term requirements to the neglect of the long term goal(s). We then make decisions based on what are more immediate needs vice the longer term needs we have. That doesn’t mean that near term needs aren’t important. But don’t make all of your decisions based on the more immediate issues to the neglect or impact on your long term goals.

·         Lack of adaptability. Another roadblock is being unable to adapt to changes in the business environment. Things change and unless we either predict the change or adapt quickly we run the risk of getting left behind.

·         Getting sidetracked. Seems obvious but letting other distractions interfere can keep you from achieving your goals. If you pursuing a certain goal and another shiny object appears it takes good business discipline to stay focused. There may be times when you want to change direction and go for the new opportunity but it needs to be weighed heavily and it needs to align with the long term goals.

·         Relying on technology to solve problems. We all love technology and the way it is supposed to make our lives ‘simpler’. But there are problems out there that technology doesn’t solve. A look at your goals and the objectives you laid out to reach them should indicate whether your problem is a technological problem or business problem. One example is…will that new CRM database help you achieve your goals? Or will it create unintended consequences across the company? Often, it’s the basic blocking and tackling that leads to victory.

·         Looking for other examples to emulate vice solutions for you. Don’t look to the example of others to simply cut and paste a solution into your environment. They may have had a very similar problem but the cause of the problem may be different. Make sure it is an exact fit before just copying a solution used elsewhere.

As I said, this topic has had many books devoted to it. My aim is not to write a book about it but to get you to take a hard look at what Roadblocks to Results are keeping you from achieving your goals.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2014 The Cobalt Group, LLC. All rights reserved.

Clichéd Phrases Don’t Motivate

Every profession has them. A lot of people in leadership roles use them. They are Cliched Phrases and they Don’t Motivate. Some of them are downright catchy but regardless of how well-intentioned the phrase may have seemed, they don’t give the employees what they really need – the support, tools, and means to do their jobs. This is especially true when used by someone in a leadership role that offers little more than a clichéd phrase vice real help.

But in every phase of my career I have heard them. And, I am sorry to report, I have even used them a couple of times. Some of them are cute, even funny. Witty, maybe. But none of them ever helped me do my job better. In truth, everyone I have talked to about this is turned off by cheap clichés.

So here is a question. How many of you have ever been motivated to do better by one of these clichéd sound bites? I really don’t know who they inspire other than perhaps the person quoting them. They don’t provide anything to make anyone successful. And to the persons using these quotes – do you really think you’re motivating anyone with them? Are you making sure your employees are equipped properly to do their jobs?

While I have seen them everywhere in my various career paths, the ones that stand out the most are the ones I have heard in my sales/BD career. Here are a few of the types of phrases about which I am speaking:

Are you In It to Win It?

Because everyone likes losing.

The difference between try and triumph is umph!

Only with bad spelling.

This quarter is our most important quarter!

Every quarter is the most important.

We gotta make the number.

Oh, I thought you were kidding about that.

I piss excellence.

That must hurt.

Do you have the juice?

Yeah, which flavor do you want.

Seriously, are goals achieved through catchy phrases? I’d love to know one that is (other than a goal of creating catchy phrases). These clichés are NOT a strategy. Don’t get me wrong, there are some great motivational phrases out there but a motivational phrase without the means to accomplish the goal are useless.

This is equally true when dealing with customers. I did not seek out a career in sales. It found me. I was on a colleague’s sales call with him at the very beginning of my sales career and in the meeting he says, “So, Mr. Customer…what keeps you awake at night.” I almost burst out laughing. I’m pretty sure I cast a sideways look at him. I can’t tell you how many times I have heard people say that you need to ask them what keeps them awake at night. I know what the intent there is but I would never use that phraseology. So I made a vow to try NEVER to sound like a clichéd sales rep. I think I have done pretty well with that vow. Customers don’t want clichéd phrases either. They want help and they want results.

So, what clichéd phrases top your list? And “at the end of the day” did they motivate you?

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2014 The Cobalt Group, LLC. All rights reserved.

When They Say “NO”

It doesn’t matter what you do for a living, there will come a time (many, actually) when a customer will say NO. It could be that what you are offering doesn’t meet their needs, they have gone with a competitor, or decided that they don’t want, or aren’t prepared, to make a decision at the moment. As disappointing as it can be, it’s not the end of the world and there are ways to turn it into a positive.

Years ago when I was selling software I was trying to get on a couple of teams for a major government outsourcing procurement. I was trying to get on two of the teams in particular. I only ended up on one of them. Nothing unusual there. So over the next 12 months or so of the source selection process I stayed in touch with the other team and actually worked with them on another program. When the contract was awarded our team was not selected, but the other team I tried to get on was. I called and congratulated them and moved on to closing other business. A few months later they called me. The software provider they had originally chosen was not able to be used in that environment and they were now in search of a replacement. It would now be a competitive runoff between us and two other vendors. Back in the game!

The point here is that a NO is not always the end of the story. There are ways to handle a NO that may keep the relationship alive. So what should you do when you hear NO?

Ask for feedback. Why were your products or services not selected? Did your company lack something the customer wanted? What could you do better the next time? No one wants to hear criticism but if it helps win future business it is worth hearing.

Thank them for their consideration. No one will win everything they attempt. But if you at least got to be considered, be thankful. And let the customer know that you appreciate their time too.

Stay in touch. Maintain contact with them, especially if you think there is potential to do business down the road. Remember a recent blog of mine where I discussed building long term relationships. Customers don’t want to feel like the only reason you’re there is to sell them something. Sometimes a loss may lead to another opportunity to help that customer in a different and/or even bigger way. So stay in touch. Send them pertinent information as needed. Keep trying to learn their business. But don’t be a stalker. Make your interactions with them relevant.

Also remember, getting told NO may be a blessing in disguise. Not every deal is a good deal. You will have to determine how to react to a NO. My experience has shown me that staying professional and in contact after a NO built a longer term relationship that in some cases reaped bigger rewards.

Oh, the shootout with the other two vendors…we won and it was the biggest software sale of my career, and the biggest in that company for the year. I am still in touch with some of those teammates even 12+ years later.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2014 The Cobalt Group, LLC. All rights reserved.

Looking Within to Look Without

In a recent post I discussed building long term client relationships. I started thinking about the people I really liked working with and what their qualities were. I’m a social person. Not everyone else is so I have learned to adapt to the social styles of colleagues and clients alike. The one thing we all have in common is that we are human. And all humans have needs. Often, I will try to put myself in my customer’s shoes and ask myself what are the characteristics of the person(s) with whom I prefer doing business. It boiled down to a few basic traits.

Is there chemistry? Some people we just like and don’t know why. We just sort of click with them. Others, not so easy. I can work with people I don't click with but it's easier there is a good chemistry.

Are they professional? I want them to behave like a business person. I also want them to treat me like a professional too.

Do they seem to care about my needs and concerns? When someone at least acts like they care I am more willing to do business with them. I know they are trying to make a sale but I don’t want to feel like all I am is their next sale. That will sour me instantly.

Are they reliable? The people I do business with must earn my trust. I want know I can count on them to be there if I need them. I also want a good deal for whatever I buy but I am willing to pay a little more if I believe the customer service from one person will be better than another.

It’s kind of like looking in a mirror and seeing what is reflected. Am I being to others what I want them to be to me? Am I giving them a reason, beyond the product or service I’m offering, to want to do business with me?

Ask yourself that question. And be honest with your answer.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2014 The Cobalt Group, LLC. All rights reserved.

Ask Excellent Questions

Following up on last week’s post on how to Be an Excellent Listener, I thought I might address how to Ask Excellent Questions. 

Time is valuable for both you and your customers  . So when you are able to get in front of them make sure you don’t waste it. 

Being an Excellent Listener works best when you Ask Excellent Questions. 

All questions are not created equal. 

If you want to get more useful information from your customer, you have to ask the right questions.

Here are some ideas on how to elicit that information so that you and your customer get the most out of your valuable meeting time.

Ask Excellent Questions that:

• Show that you've done you homework. Before your call, make sure you do some research. Most people appreciate it when they believe you have an interest in them.
• Are asked one at a time. Don’t ask a barrage of questions in one breathe. Ask them individually. It’s easier for a customer to respond to a single question than it is to a set of sequential questions.
• Are to the point. Avoid the long preambles. Get to the question so that your customer doesn’t have to try to discern what you’re really trying to ask.
• Are customer-focused. Ask your questions in a way the makes them feel you are not there for your own benefit, but to help them. Questions that start with “I” are probably not customer-focused.
• Are not leading. Ask overhead question when able. Try to get them to talk openly. Avoid leading question to get a desired response.
• Elicit useful information. You want to probe for the information that helps identify their issues and needs. You also want to understand the issues and needs behind them.

In the sales training courses I have taken we are taught that every answer should lead to another question. 

It’s not true for every question but the real point is to follow up answers with additional questions to seek clarification or to probe deeper into that issue. 

And when you aren't sure you have a complete answer to your question, keep probing.

Now go Ask Excellent Questions.

For more information about how The Cobalt Group can help you with any business or leadership challenges you are facing, Contact us.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2014 The Cobalt Group, LLC. All rights reserved.