Ton Dobbe's Blog

When you run a software company, you know its ins and outs; you also know how the products and services you offer can benefit the lives of your customers. However, just because you and your team are intimately in tune with these benefits doesn’t mean your prospects or even customers will understand them. Failing here makes marketing highly costly, lengthens sales cycles, and negatively impacts your win rates. The pandemic has just made things worse in that respect.

Luckily, there are a few tools you can use to help convince people to buy what you offer – and one of the most useful is known as a value proposition.

If you own, run, or work in a business software company, there’s a good chance you’ve heard of a value proposition and agree that your company should have one. But do you truly have an understanding of what a value proposition is?

The essence of a compelling value proposition

In essence, a value proposition is a summary of the value your service or product will deliver to customers once they choose to buy from you. Your value proposition should provide

1) a crystal clear summary of the most valuable problem you solve for your buyer,

2) how it will help them make a difference in ways your competitors/alternative offerings can’t, and

3) what benefits this drives for your buyers as a consequence.

In short: How will your promise help your buyer transform into something they aspire to.

Once you get a better understanding of what a value proposition is, you may feel like you’re ready to craft one for your organization. However, to create a value proposition that works, you should do your own market research and review examples of successful value propositions from real-world companies in and outside your market segment. By looking at examples of value propositions that helped companies grow, you can determine what you should (and shouldn’t) include in yours, and how you can use your statement to generate and convert more leads. More on that later in this article. But first, let’s dig into why this matters.

What’s the role of your Value Proposition?

As mentioned above, a value proposition lays out the value of buying from your company. If you run a business software company, it makes clear why they should choose your software solutions or services and not those of another company. When your potential customers read your company’s value proposition, they should understand instantly why it’s worthwhile to spend their money on what you’re selling:

how you help them achieve their ambitions, competitive advantage and create a remarkable impacthow you’ll help them overcome the problems that are most valuable and critical to solve,how you’ll add to their liveshow they will experience something that no other business software company or product can give them.

On your company’s homepage, your value proposition should be the first thing that your visitors, i.e. your ideal target customer see. Your value proposition can also feature as the central message (or messages) of your marketing material since it lays out why people should be attracted to your product or service. You can also use your value proposition in sales pitches and correspondence with potential clients. A value proposition is a good jumping-off point to explain the reasons why clients should consider creating a long-term professional connection with your organization.

Ultimately, every single company should have a value proposition. Regardless of whether there are any companies that do what you do, your value proposition isn’t actually about your company. Your value proposition explains what your customers need and want, and it is an important psychological device not only for getting leads to pick you over competitors/ alternative offerings but also for inspiring and convincing them to actually spend their money, i.e., create desire.

The Importance of a Value Proposition

So, we know that every company needs a value proposition. But why are these statements so important?

Value propositions help companies increase sales. In fact, a study showed that value propositions can increase conversions up to 90 percent. That’s a huge increase in revenue for companies, and it can help make the difference between financial success and failure.

In addition to increasing conversions, value propositions help differentiate you from the alternatives your customers have i.e. your ‘competitors’. This can help you build a niche for your particular business software company brand and strengthen your reputation.

Finally, you don’t just create value propositions to benefit potential customers. You also use them as the ‘selling point’ to help align another target audience: your own organization. Value propositions are clear, easy-to-understand and easy-to-reference statements that your employees can look at to familiarize themselves with your company’s mission and unique offerings. This can help shape a strong organizational culture at a business software company, make everyone feel like they’re working together toward a common goal, and grow the resilience and resourcefulness of your business.

The Elements of a Great Value Proposition

I hope I’ve convinced you that you need to craft a unique value proposition. That’s a good first step. But how do you go about doing it? First, familiarize yourself with all the key components of value propositions so you can customize your company’s version.

It has a powerful headline. Grab people’s attention right away. A powerful headline can capture someone’s interest and get them to look further into what you’re offering.It is written in the language of the customer. Your customer should be able to read and understand your value proposition immediately, without too much thought. This means it should be written in their language. It should describe your value and benefits the way your customer would describe them, not the way you would (so no technical or industry jargon).It is short. This one’s straightforward. Don’t write an essay that explains the benefits of what you’re selling. Create clarity by summarizing it into a sentence or two, or even a tagline, so people can take it all in with just one bite.It explains the difference you make (for them). Don’t just explain your benefits and features in your value proposition. Instead, give a clear insight into how it helps them make a remarkable difference. This can be the tipping point that persuades a customer to buy.Hit the right nerve – i.e. address the emotions of your ideal customer. That is, their hopes, aspirations, frustrations or anxieties.The Downfalls of Failing Value Propositions

Let’s face it: just because you’ve written a value proposition doesn’t mean that your value prop will work. There are many ways companies craft value propositions that fail, and some of the following elements can cause a value proposition to backfire.

It tries to be impressive. Don’t try to be impressive with your value proposition. Limit jargon and big words. You don’t need to show off and make potential customers think you’re an expert. You need to get across–concretely–why they should consider giving you their money.It reads very generic. You should be straightforward and concrete in your value proposition–but don’t be generic. This means you should not look at a value proposition of your competitors or similar offerings and then try to copy it. Your value proposition should use unique (yet simple) language and get at why YOU are worth buying from, not someone who does something similar to you.It uses superlatives. When you write a value proposition, you’re not being salesy. You’re simply selling by explaining why you’re remarkable and unique. Don’t use superlatives to try to convince people. They come across disingenuous and make you seem like you have to try for customers–rather than simply be worth purchasing from because you exist.How do you write a remarkable Value Proposition? The 5-steps

Now that you know what a strong value proposition has and doesn’t have, you can start the process of crafting your own. Here’s a simple step-by-step process that can help you get at the language to describe why what you offer is so unique.

1. Get clear about why you do what you do; then work outward

Business expert, consultant and writer Simon Sinek holds to the fact that companies can create the best value propositions when they start with understanding why their company does what it does. Start by taking an ‘outside-in’ approach by:

formulating ‘what’s broken’ in the world of your customer / your ideal customer segmentwhy it’s key to resolve this once and forever (creating a sense of urgency),and what the ideal world would look like if it was resolved.

Then talk about “how” you plan to do those things–from tangible strategies and concepts, to larger business objectives that are uniquely designed to solve your customers’ specific pain points, increase their impact, improve their lives, and shape unique experiences.

Finally, identify the “what” of your business and the nuts and bolts that help you reach your “why.”

2. Hone in on the most important and most interesting parts of your why, how and what

Look at the most interesting things you touched on in your previous discussion. Try to summarize these things in a two- to three-sentence paragraph that explains what you do. By paring down your ideas into a summary of the most important ones, you can end up with a brief outline of why people should value what you do. Remember: Less is more.

3. Consider your uniqueness

Once you’ve written your value out on a piece of paper, focus on the factors that make you unique. What I mean here is how your approach or capabilities help your customers make a meaningful difference in a way alternative offerings or competitors can’t (in the eyes of your customers). If you haven’t already done so, make sure you incorporate language that calls out your unique features and capabilities.

4. Make sure it is sticky

Every value proposition for a business software company needs its central idea to be “sticky.” Ideas that are “sticky” are simple to digest and comprehend, and they linger in people’s minds. If a value proposition contains a sticky idea, people will see the idea and remember it. To ensure an idea is sticky, it should meet the six criteria of the SUCCESs Model: it should be simple, unexpected, concrete, credible, emotional, and able to tell a story. If your central idea doesn’t meet four or more of the SUCCES criteria, go back and pare down or tweak.

5. Finesse

The ideas you’ve gotten at are the meat of your value proposition. Now finesse the language until your idea becomes clear and sticky and ends up in the language of your customer. At the end of this process, you’ll have yourself a value proposition!

Evaluating Your Value Proposition

Once you’ve finished your value proposition, make sure you evaluate it. To evaluate your value proposition, ask yourself the following:

Does your value proposition address your customer’s most valuable pain points?Does your value proposition point out how you will exceed their expectations in ways alternatives can’t?Does your value proposition create a vivid picture how your product/service will improve customers’ lives?Does your value proposition spark emotions when your customers read it?Does your value proposition read clearly and succinctlyDoes your value proposition read as if a customer was talking about your company?Does it communicate your big idea in a sticky way? Is it memorable and sharable?

Look at your value proposition and ensure it meets these SUCCES criteria.

Once you answer yes to all those questions, you have a value proposition that will work. Your final value proposition is now ready to incorporate into your branding, marketing strategy and sales materials. It should be the positioning statement that’s front and center on your company’s homepage since your website is like an online storefront for your business. It should show people–from the very start–why they should buy from you. Also, include it in landing pages, social media profiles, email marketing correspondence and even print marketing materials. Finally, gather social proof and incorporate it as the center of your sales pitch. You can and should leverage its power to drive engagement, conversations and increase conversion rates.

Successful Value Proposition examples

Looking at successful value propositions from the real world can help give you ideas for your own value proposition. Here are some case studies of business software companies that nailed their value propositions and used them as tools to grow and thrive.

Uber

There’s no doubt that Uber has been one of the most successful and disruptive companies of all time. Their model has not only be embraced by customers, but also by businesses around the globe who want to “Be the Uber of [insert name of industry here].” One way that Uber got people to pay attention in the first place was with their value proposition. It reads:

“Uber is the smartest way to get around. One tap and a car comes directly to you. Your driver knows exactly where to go. And payment is completely cashless.”

Uber’s simple, short value proposition is written in customer language, and it points out its differences from competitors (taxi cabs that require cash inside). It also explains what pain points it solves–giving drivers directions, handling payments and having to search to find vehicles to ride in.

Drift

Drift is a web-based live chat tool that is used by salespeople and marketers. They have made a huge impact on the business world and become a sought-after communication tool because its leaders have nailed the narrative behind the company and why it’s a solution that organizations should rely on.

To pitch their company, Drift’s execs and salespeople tell a story in popular narrative form: there’s an enemy that must be overcome and their platform is the sole solution that can help them defeat the enemy.

Drift’s value proposition is simple and succinct:

“Conversations. Not Forms. With Drift on your website, any conversation can be a conversion. Instead of traditional marketing and sales platforms that rely on forms and follow ups, Drift connects your business with the best leads in real-time.”

In a similar manner to the sales pitch, the value proposition declares that there’s a problem that needs to be solved for B2B, and that Drift is the solution. It is sticky, easy to understand, and even tells a story, all within the short 3 sentence paragraph.

Gusto

Gusto is a company that has created a B2B software solution that lets companies manage all their HR tasks in one place, online. Gusto succeeded when they created their value proposition in that it both make the company’s uniqueness plain, and it states their value in a way that is simple, credible, and emotional.

Their value proposition reads:

“It’s time to tame the chaos of payroll, benefits, and HR. Get it all done with Gusto.”

Not only does it directly address the customer (in familiar language) and talk about troubling problems the platform could solve, it also clearly summarizes what benefits the services affords users and tells the story of how it can lead an organization from chaotic to manageable.

If you want to succeed at bringing in customers, creating desire, communicating an idea that sticks, and convincing potential customers to buy, you need a value proposition. Spend time crafting one that highlights the unique benefits and gains your company offers, the pain points you solve and how you’re different from businesses that do things like you do. Then, use this statement in your marketing materials, web presence and sales pitch; you can rely on it as a tool to help generate and convert leads.

As a business leader, have you come across value propositions that inspired you or influenced your own statements? Are there companies that have absolutely nailed their value proposition? Let me know in the comments below.

If you got value from this blog, you will for sure find 100x more value from my new book ‘The Remarkable Effect’. Get your copy here.

The post The Ultimate Guide to Creating a Value Proposition that Works appeared first on Value Inspiration.

In the past year, the realities and challenges of your customers have dramatically changed. And many of us have felt the impact of this on our business. What used to sell like hotcakes, suddenly didn’t sell anymore. And often that had nothing to do with the product – but far more with the problem. Once you get that – turning adversity around becomes a lot easier.

It all has to do with having a clear understanding of the business we are really in. How often do we get the question: “What do you do?” Irrespective of the situation, think about what you answer. All too often we respond with the ‘what,’ not the ‘why.’  We’re answering in autopilot. It’s how we are programmed. This tiny difference in response reveals an enormous opportunity for both marketing and sales, not only in pandemic crisis situations but far beyond that. The answer lies in having a simple but compelling value proposition.

A simple answer can make a significant impact

So, let’s explore the question: What do you do? Here are two possible responses: “I am working for a company that delivers ERP software for services companies” vs. “I am working for a company that solves the problem of delivering projects on time.” See the difference?  With one answer the conversation stops, with the other the conversation starts – and the immediate response is “really, tell me more about that!”. Isn’t that what we want? Now think about if you had a project-led organization, trying to not only survive the pandemic but aiming to come out stronger from it…. This would instantly hit the right nerve and resonate. The difference: A simple shift from the product you have to the problem you solve.

The challenge: you

The question is why do we respond this way? From what I see you can’t blame your colleagues for reacting like this. It’s what we teach them. Just look at your tagline, your website, your collateral… 9 out of 10 this starts with the what, not the why. We love to talk about ourselves – how big we are, the products we offer, the number of clients we have, the growth we are enjoying – it’s all about us. So when we or any of our colleagues get asked the question: What do you do? We answer the way we do – and the conversation is dead.

The solution: Start with the ‘beginning’ or the ‘end’

It’s simple: We’re not in the business of selling a product – we’re in the business of solving a problem and selling a feeling, a desired state, an outcome. That’s where the power of ‘emotion’ kicks in – this drives action.

So, to arrive at this, you have two options:

start with the beginning – the problem orstart with the end – the outcome.

If you start this way you create a hook – you get people to pay attention and to think ‘is this for me or not.’ It qualifies them in our out. That’s what you want in marketing and sales. The sooner, the better. The sooner your prospect decides ‘not for me,’ the less time you both waste on something that wasn’t mean to be in the first place. The opposite is very true as well: The sooner he/she decides ‘That’s what I need!’, the higher you’ll rank on their ‘want’ list.

What can you do next:Step 1: It all starts with this simple exercise: Decide what business are you really ‘in.’ Be concrete. Keep digging till you find the essence of the problem(s) that’s most valuable and critical to solve for your ideal customer (Think about what could get them fired or what keeps them up at night (given the realities they are in today)Step 2: Shorten this list to the points where can you leverage your product best to exceed their expectations and help them make the biggest difference.Step 3: Now, based on this list, think about the one thing your customers would recommend you for to their peers? What’s the single word you want to make stick in the minds of your prospects?
Be concrete.Step 4: Now review your website or your most recent sales pitch – How clear does that communicate this single wordStep 5: Decide on your next actions: What needs to changeNeed some inspiration?

Get some fresh ideas how to create a value proposition that resonates

Improve your business by defining its purpose

The Remarkable effect – why some software company’s stand out, and others don’t

Three conclusions from analyzing the messaging of leading Blockchain vendors

or join the Be Remarkable tribe for business software professionals and get answers to your specific value proposition challenges.

The post What business are you in, no, what business are you really in? appeared first on Value Inspiration.

It drives me nuts how high potential business software companies purposely limit their potential and don’t even realize it.

In the past 2 week’s I’ve spotted five ‘habits’ that kill momentum

Pleasing all Ranks – Having to please everybody in the hierarchy to have their say – and with that turning potentially strong messaging, positioning and segmentation into something meaningless, mediocre, and ‘me-too’.Chasing size of the TAM (rather than the size of the ‘problem’)– The believe you need to go after the biggest Total Addressable Market “cause if you’d win just 1%….”Consistently mistaking features for benefitsShameless Self-love: Believing you’re ‘the leader’ – and that your customers care about that. Being obsessed with competition (not your customer) – and let that drive your priorities.

What strikes me most is that so many companies have developed a complacency for this behavior. Telling themselves a story they’re doing fantastic, and with that, find all kinds of arguments why their growth is what it is. Such a dangerous place to get stuck in….

Imagine you’d break with this…

Breaking this starts with the right person to stand up. That could very well be you.

So, what do you believe is stopping you?

The post It’s astonishing how we get blind for the ‘habits’ that prevent success appeared first on Value Inspiration.

One company that I’ve come to respect for the latter is Qualtrics

Qualtrics masters the art of hitting the right nerve of their ideal customers. And that’s where they score. 

They don’t throw features at you and use vague promises like their competitors.

Instead, they are very articulate in their wording – wording that makes you feel something.

The System of Action that turns your 

…products into obsessions

…employees into ambassadors

…customers into fans

…Brands into icons

Yes, they take a strong position here. They deliberately use strong words – because that’s what their ideal customers care about. That’s what they want. These are the outcomes they desire – and that drives action. 

In contrast, their competitors tone things down. 

They talk about creating “loyal customers” and that you can “grow in a changing world.” Promises we have been making for decades. Things that don’t resonate anymore.

They talk about their features, not the experience you get from these features. 

Qualtrics plays with our senses in many ways. Just look at their product pages

Take actions that make an impact

Hear every single customer’s voice

Know exactly how to retain customers

Fix every broken experience

It inspires action. It makes you feel something – and long for the moment, you get to use it. 

I hear you saying: “it’s just words.” And yes, words are cheap – but they make all the difference. 

As said – not everything that is countable counts, and not everything that counts is countable. What Qualtrics communicates is a perfect example of the latter.

What examples inspire you?

The post Not everything that’s countable counts and not everything that counts is countable appeared first on Value Inspiration.

A common challenge I see many B2B SaaS companies struggle with is this:

The “problems” we think we address in marketing and sales are far from the actual problem.

There are 100s of examples

‘You’re not in control.’‘You’re not efficient enough.’‘You haven’t got enough insights’‘You’re too busy with administrative tasks’‘You don’t have access to real-time data.’‘You’re not able to be pro-active.’And so on….

The actual problem here is that we’re touching the surface. 

We’re possibly hitting the cause of a problem – but not the problem itself

The real problem only reveals when you dig deeper: The outcomes that a company/person will miss due to this.

Increased cost levels or unnecessary waste

A significant drop in profitability

Fines for non-compliance

Reputational damage

An increased loss of business or missed sales targets

It’s all about making it super specific – or concrete.

The benefit of doing this is plentiful:

We’ll instantly hit the right nerve with our essential buyerWe’ll build trust because we ‘get them.’We’ll close more business – at higher deal-values.

One trick I have used for years to prevent staying vague is this: Start with the simple words “The inability to … [then name the obligation towards/ expectation from the business that needs to be met]. 

As you will see, the first examples will not fit no matter how hard you try. 

Question – what vendors inspire you who get this like no one else? 

The post The problem is not the problem appeared first on Value Inspiration.

Let’s look at Airbnb – a company that operates in an industry that’s severely hit by the pandemic. 

But what everyone might think would happen didn’t. Airbnb came out stronger. It adjusted its course but is still very much the company we know and love (maybe even more now), and even announced its IPO recently. That speaks volumes of confidence. 

The essence of this resilience is behind their focus on the wants, not just its ideal customers’ needs.

As Brian Cesky, Airbnb’s CEO, recently said: “People will want options that are closer to home, safer, and more affordable. But people will also yearn for something that feels like it’s been taken away from them—human connection.”

The essence here is in the ‘wants.’ 

We continue to ‘want’ to experience, connect, and belong – possibly even more than ever.

That’s what drives us – and sparks the creativity in us. 

This is what Airbnb gets. This is what makes them resilient.

We want to stay in different places; we just don’t want to be in crowded hotel lobbies.

We want to travel – but who says we have to go abroad? So international travel has become travel closer to home.

We want to deliver our best work, but no one says we have to work from home – so Work-from-home became work-from-any-home on Airbnb.

We want to have great experiences with ‘the locals’, but no one says great local experiences are dead without traveling (abroad). So Airbnb’s local experiences became ‘local online experiences.’ 

What drives the resilience of the software business you own, run, or work for? Or do you know any other remarkable examples? 

The post Focusing on the wants, not just the needs, boosts resilience appeared first on Value Inspiration.

If we think about the industry most hit by the pandemic the past eight months, it’s Travel – hands down.

So what if your name is AirBnB and your entire business is dependent on the fact people love traveling. Panic? Sure, what else if you see your gross bookings drop 39% (YTD).

But AirBnB’s has a secret to resilience. And that’s what we can learn a lot from.

Many tech businesses would have been stuck, dead in the water, simply because they strictly look at ”what they do”. Not Airbnb.

Why not? Because they are building their business around their vision i.e. their big idea (”Belong Anywhere”), not the product. 

Their vision didn’t change as the pandemic hit; to the contrary – it made them stronger.

Think about it: Just because COVID made traveling challenging to doesn’t mean it eliminated our basic need for belonging and connection.

What did change was how AirBnB would achieve its vision, i.e., a sharpened mission statement: ”To create a world where people can belong through healthy travel that is local, authentic, diverse, inclusive and sustainable”. 

Airbnb is going places and COVID won’t stop them. 

It’s resilient because it had and has a clear north star. 

This helps them to stay focused on what matters most to their clients and with that continue to create remarkable experiences. That’s key to survive a crisis – any crisis.

Do you know of other remarkable examples?

#Businesssoftware #Resilience

The post Sometimes your purpose can be the answer to surviving a crisis appeared first on Value Inspiration.

I’m going to guess: Probably not.

That’s a missed opportunity. 

As the saying goes: Ideas that are repeated change the world.

The big question: How?

It’s true, big ideas catch you, but that’s not enough. The best ones are sticky and sharable.

And that’s precisely where many software companies struggle. It showed during my CEO Mastermind last week where we focused on exactly this challenge.

50% of the ‘big ideas’ shared were about ‘democratizing’: Democratizing research, Democratizing ERP, Democratizing Agrifood, etc.

Although that might seem big, and simple – it’s not sticky or sharable.

The issue is: the formulation is ‘inside out.’ It represents what you do, not why your customers should care.

The question to ask is, “What will your customer achieve/become as a consequence of your solution?

The next thing: Simplify. Take out jargon and buzzwords so that a 6-year old will understand.

Lastly: Make it intriguing. Intrigue arouses curiosity and interest – it will make people ask: ‘Tell me more!’

You’re much closer now to having a strong conversation starter, something that will make you instantly referable.

So, what makes your software business instantly referable?

The post Wake your employees and clients up at 3 AM. Can they repeat your brand message? appeared first on Value Inspiration.

It’s true, big ideas catch you, but it’s not enough. The best ones are sticky, memorable, and repeatable – This makes them get shared without asking.

And that’s precisely where I see many business software companies struggle. It showed again during the CEO Mastermind I ran last week for my tribe. The challenge: ‘Making your big idea sticky, memorable and sharable.’

50% of the ‘big ideas’ shared during our session were about ‘democratizing’: Democratizing research, democratizing ERP, Democratizing Agrifood, and so on. 

And although that might seem big, and simple, and even the essence of the idea behind your company – it’s not the formula to make it memorable and sharable.

The issue here is that we are formulating the big idea from the ‘inside out.’ It represents what you do, not why your customers should care. 

So the first critical ingredient to your big idea about ‘them’ – your ideal customer.

An excellent question to ask here is,” What’s the essence of the change that happens? i.e., What will your ideal customer achieve or become as a consequence of your solution?

Make sure you leave the technology/your solution out – just focus on the transformative effect.

Once you’ve summarized this, simplify it and package it, so nothing gets lost in translation. Take out all the jargon and buzzwords so that even a 6-year old will understand.

Last – think about how you can make the essence of your transformative idea intriguing rather than just factual. Intrigue arouses curiosity and interest. That’s critical to communicate your big idea. 

You’ll now be much closer to something that’s not only simple to communicate but also sticky, memorable, and shareable. 

You now have something that’s the conversation starter for everyone in your company

You’ll see people will start to ask, ‘tell me more!’

And you’ll become instantly referable. 

So what’s your big idea? 

The post Ideas that are repeated change the world – but how? appeared first on Value Inspiration.

It’s hard. And cracking the code is not a one-off endeavor either.

The main reason you get stuck is that you’re too close to the problem.

The day to day rat-races easily blinds you for what truly matters and before you know it, complacency kicks-in.

And then there’s this thing “It’s lonely at the top.” A very real challenge, because you need answers – answers your subordinates will unlikely give you – only peers.

Sure, you can solve this through board advisors, contract a mentor, or bring in external perspectives by means of consultants. And yes, you can read 100s of books or participate in various online communities

Fact is, all these options have been available for years, I kept hearing about the void. Too much bias, too unstructured, too generic, too different from the problems you face, too…

To help break this virtuous circle I established the Tech-Entrepreneur-on-a-Mission Tribe – a perfect mix of like-minded peers, 1 to 1 mentoring, and a secure environment to connect the right dots, magnify your true strengths, and remove your blindspots.

The post Founding your software company is one thing, creating and accelerating its momentum is something else. appeared first on Value Inspiration.