Home Improvement Case Study: What’s the Value Proposition of Service Providers and Why Does It Matter to My Business?
This blog is focused on business issues and not retail services such as home repair/upgrade. However, in recent months this writer has been in numerous discussions regarding the development and presentation to customers of a Value Proposition.
This is an ongoing issue for each organization, product, service and other processes whereby an organization seeks to influence a market segment. Usually the goal is to generate revenue but that is not always the case, i.e., charitable giving to any number of causes.
The fundamental question marketers must address. Why would a customer buy from us versus one of our many competitors?
One of the challenges every firm face is the differentiation of their offering in a crowded space. Buzzwords abound and are often used by all economic players. Examples include, IT, Safety, Cloud, Virtual Reality, Online and the list goes on.
Recent television advertisements include several firms that offer home improvement services to individuals. Not B2B, but possibly instructive for those in the industrial segments.
While this is a crowded fragmented space, three companies are routinely pitching their solutions. These companies appear to this observer to be direct competitors.
Angie’s List has been around for a long time (Internet years), while HomeAdvisor and TAKL appear to be newer entrants. Ads for Angie’s List feature the founder, HomeAdvisor uses an actress, and TAKL has a catchy tune song by a celebrity spokesperson (and apparent investor). All appear to be selling the same services.
Exercise—Assessing Value to Me
As mentioned, most of us struggle developing and articulating a believable, defendable and demonstrable value proposition. Our focus is often inward. Let’s look elsewhere.
Assume you’re a home owner. You have three projects. You need a handyman for about six hours doing various tasks. You also want to replace three old ceiling fans with ones that can be remotely controlled. Finally, your roof needs replacing.
Which of these three firms will you retain for these jobs and why? What is your due diligence process and decision criteria?
We invite readers to answer these questions. The point being, why are you buying from any of these firms?
In the answer lies the rationale—why do your customers buy from you? If you can answer the home improvement question, hopefully that decision making process will provide insight into your selling process.
Why Do Customers Buy From Your Company?
For more information on Economic Value Propositions.
Critical Mass: Value from the RBC Framework
Nuclear physicists define the term, “critical mass” as the amount of fissile material whereby a nuclear reaction is self-sustaining. From that original definition, the construct is further developed along societal and political terms as a function of the environment and number of adopters and their interdependencies that create enough of a consensus for individual actions that sustains an undertaking.
In 1996, the author published the first of several case studies on a societal interaction model based on the Relationships, Behavior and Conditions (RBC) construct among economic actors. Previously the model was only in the domain of academia.
This blog addresses contemporary issues from the RBC perspective and whether in the present state they are sustainable or not. Many readers may be familiar with the “Innovation Adoption Curve.” RBC seeks to enlighten the causality of behaviors that cause movement towards the critical mass that generates movement along this diffusion curve.
- Lessons from the Seventies noviembre 12, 2019
- Want – Like – Need octubre 24, 2019
- It’s the Economics Stupid! octubre 18, 2019
- In Defense of Humans—Machines Are Not Ready Yet octubre 1, 2019
- Culture Matters A Lot! Cultural Interactions Matter MORE!! septiembre 22, 2019
Other Blogs Dr. Shemwell Authors
Dr. Shemwell is an author for the following 3rd party blogs.
Governing Energy Blog
BTOES Insights is the content portal for Business Transformation & Operational Excellence opinions, reports & news. Dr. Shemwell is a contributor.
Consult 2050 connects organizations with a wide range of consultants all around the world. The firm operates an online marketplace for consultancy services.
About the Author
Dr. Scott M. Shemwell has over 30 years technical and executive management experience primarily in the energy sector. He is the author of six books and has written extensively about the field of operations. Shemwell is the Managing Director of The Rapid Response Institute, a firm that focuses on providing its customers with solutions enabling Operational Excellence and regulatory compliance management. He has studied cultural interactions for more than 30 years—his dissertation; Cross Cultural Negotiations Between Japanese and American Businessmen: A Systems Analysis (Exploratory Study) is an early peer reviewed manuscript addressing the systemic structure of societal relationships.