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.