Strengthen your value proposition to improve competitiveness

ComEx

2013 – Commercial Excellence Forum

3

Agenda

09:00 Welcome and introduction

09:05 Strengthen your value proposition to improve

your competitiveness

10:00 How do you ensure effective execution of a

new value proposition?

10:15 Networking break

10:30 Exercise in groups: Differentiation and design

of unique value propositions

09:20 Case: SVITZER – improving differentiation in

the market

11:30 Networking and light lunch

4

88% believe they have a unique value proposition – but less than

50% believe that their customers are aware of our solutions

8%

46%

23%

23%

To almost no extent

To a slight extent

To a great extent

To a very great extent

In your opinion, to what extent is the average potential customer in your key markets aware of you and your solutions?

88%

12%

Yes

No

Do you in general believe that your company has

a unique value proposition?

In your opinion, to what extent is the average

potential customer in your key markets aware of you

and your solutions?

5

Around 50% have defined how they differentiate and how they

create value

0%

0%

0%

4%

8%

12%

4%

8%

0%

0%

4%

0%

0%

4%

8%

8%

15%

15%

12%

15%

15%

8%

23%

4%

19%

23%

15%

23%

31%

31%

27%

15%

12%

8%

4%

15%

0%

0%

4%

8%

We have a detailedunderstanding of the key

challenges among ourcustomers and how we can

bring value

We have clearly defined anddescribed how we

differentiate from ourcompetitors

We have clearly defined howwe add superior value to ourcustomers compared to our

competitors

We have a plan for how weshall differentiate in the futureand a plan for developing the

relevant product features,services, competencies etc

1 totally disagree 2 3 4 5 6 7 8 9 10 fully agree

6

A majority find it difficult to communicate their value proposition in all

touch points - and Sales ability to communicate the potential value

creation differs

0%

8%

4%

4%

12%

4%

8%

4%

12%

12%

23%

12%

31%

12%

4%

15%

8%

15%

12%

23%

23%

12%

8%

12%

8%

0%

12%

0%

4%

4%

We demonstrate the value wegenerate in all our all our

marketing communication

We have a clear overview ofall our touch points with ourcustomers and measure to

which extend we are able tocommunicate and deliver our

value proposition

Our sales people are able tocommunicate and document

our value creation to thecustomers during their sales

meetings

1 totally disagree 2 3 4 5 6 7 8 9 10 fully agree

7

Agenda

09:00 Welcome and introduction

09:05 Strengthen your value proposition to improve

your competitiveness

10:00 How do you ensure effective execution of a

new value proposition?

10:15 Networking break

10:30 Exercise in groups: Differentiation and design

of unique value propositions

09:20 Case: SVITZER – improving differentiation in

the market

11:30 Networking and light lunch

8

The simple message of today’s seminar …

A company’s differentiated value proposition is

no stronger than the way it is actually being

communicated, sold and delivered to the customers

– meaning, the way it is implemented and

executed by the front line

9

What is a value proposition?

The answer to the fundamental

question:

”Why should I as

a customer do

business with

you?”

10

A winning value proposition has three core components

Resonate

“I want”

“I need”

“Solves my

problem”

Differentiate

“No alternatives

are as good”

“Only you offer

this”

Substantiate

“I trust”

“I believe”

“Real value to me”

+ +

The components of a winning value proposition ...

• Premium pricing

• Lead generation success

• Higher win rates

• Customer loyalty

• Sales growth

• Market share growth

Creates foundation for ...

11

You need to get all three right …

“I don’t need”

“Not important enough”

The customer will say ...

“What is your best

price?”

“I can do without you”

Weak

resonance

Difficult to

substitute

Able to

substantiate

Take one away ...

Strong

resonance

Easy to

substitute

Able to

substantiate

Strong

resonance

Difficult to

substitute

Not able to

substantiate

“I’m sceptical”

“I can’t risk it”

12

If you do not get it right ...

• Declining segment market share

• Declining customer loyalty and re-buy

• Increasing price pressure

• Declining customer acquisition rate

• Declining opportunity win rate

• Product launches not meeting targets

• Declining brand perception

• Declining net promoter score

Typical symptoms

Declining growth rates or sales

Forced price reductions

Lower margins

Higher marketing and sales costs to

generate revenue growth

Reduced ROI of sales and marketing

Typical implications

13

Building a value proposition requires understanding of features

and differentiators

• Frequency: Daily cut offs

• Consistency:

Fixed transportation time

• Reliability: 95% reliability

Features are the fact-

based characteristics of a

given product, service or

solution

Features

Defendable differentiators

are the features that are

unique and customers

perceive as valuable

Differentiators

A value proposition is a

promise of value based on

number of differentiators

Value proposition

14

Define your differentiators based on deep customer insights on

what drives value for the customer

Value to the customer

Uniqueness

Low High

Low

High

Differentiators

15

Can

we

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the

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va

lue

?

Can

we

ch

an

ge

ho

w t

he

cu

sto

me

r u

se

s

ou

r o

ffe

rin

g?

Can

we

ch

an

ge

the

cu

s-

tom

er

ex

pe

-

rie

nc

e?

TYPE LEVER

Can

we

ch

an

ge

ou

r

off

eri

ng

?

What if we could serve the needs, the customer didn’t perceive previously? Newness

What if we developed new features or functionality? Performance

What if we allowed for the tailoring of products and services to individual customers? Customisation

What if we developed support and enhancements to surround our offering? Support and enhancements

What if we could offer a similar value at a lower price? Price

What if we helped the customer reduce their costs? Cost

What if we reduced the customer’s risk? Risk

What if we could make our offering to more/new customer groups? Accessibility

What if we could make our products/services much easier to use? Convenience/usability

What if we delivered our offering to the customers in a different way? Channels

What if we designed our products to be more attractive/appealing? Design

What if we represented/positioned and communicated our offering differently? Brand/status

Can

we

ch

an

ge

ho

w w

e

str

uc

ture

ou

r w

ork

?

What if we worked with others (partners) to create value? Network

What if we developed superior/signature ways of working? Process

Inspiration for differentiating elements in the value proposition

16

Nespresso changed the game in the coffee industry by their

game-changing unique value proposition

Nespresso is the

fastest growing

business area of

Nestlé (30% per year)

25+ B DKK in annual

turnover

17

Customer value

proposition

Assumed value proposition

Segment value proposition(s)

Sell your differentiated value propositions:

From segment to customer value propositions

A segment value proposition is

a statement of the value we can

deliver (segment specific)

A customer value proposition

is a proven and fact-based value

which a specific customer will

receive in return for the

customer's associated payment

An assumed value

proposition is a hypothesis of

value we expect to deliver

based on previous experience

18

Deliver your differentiated value propositions:

“Live it” in all customer touch points

Sales (converting prospects into

customers through sales and

distribution)

Operations (deliver on expectations

and build relationships)

Marketing (engagement and

creating expectations)

Involvement

Awareness

Interest Communicate

Value

proposition

Deliver

Value

proposition

Use

Defend and

experience

Satisfaction

and intended

returning sales

Converting prospects

lead customer

customer loyal customer

loyal customer ambassador

unsatisfied satisfied

Monitor, analyse and report

ZERO FIRST SECOND

CONSUMER LIFE CYCLE

25

Agenda

09:00 Welcome and introduction

09:05 Strengthen your value proposition to improve

your competitiveness

10:00 How do you ensure effective execution of a

new value proposition?

10:15 Networking break

10:30 Exercise in groups: Differentiation and design

of unique value propositions

09:20 Case: SVITZER – improving differentiation in

the market

11:30 Networking and light lunch

26

We see three typical commercial barriers for truly living and

executing a differentiated value proposition

CUSTOMER

Needs and value

perception

COMPANY

Product/services

”Marketing-sales chain”

“Sales” Articulate,

substantiate and

convey superior

customer-specific

value of company

offering

“Marketing” Translating

company

product/services to

differentiated value

propositions with

value messages for

target segments

“Align and engage” Alignment of sales

approach and practical

sales execution tools

– and create sales

engagement in the

commercial launch

Only with a complete and integrated

“marketing-sales chain” you will

execute your value proposition

Most common

barriers

“Marketing not able

to formulate

differentiated value

propositions and

value messages truly

resonating with

customer’s needs

and value

perception”

1 “Marketing/sales not

able to align and

engage with each

other AND not able to

design powerful sales

tools fit for execution

in sales situation”

2 “Sales not able to

convey and articulate

customer-specific

value of company

product/services

– thereby not selling

the differentiated

value proposition”

3

27

To fully execute your value proposition, additional capabilities

are required – and the project approach should be different

Marketing-sales chain

“Sales” “Marketing” “Align and engage”

• Launch strategy toolbox and

practical launch planning tools

• Marketing-sales alignment and

engagement methodologies

• Strong sales capability building

expertise – effective training

methodology and tools

• Specific marketing and sales tools

fit for value selling

• Deep insights into customer

buying and sales processes

• Structured value selling

methodology and practical

sales execution toolbox

• Sales management model to

drive value selling execution

• Structured customer need and

pain mapping

• Strategic differentiation,

positioning and value proposition

formulation

• Key value messaging

formulation and communication

expertise

Additional

capabilities

are required

A different

approach is

required

• Include the FULL marketing-sales chain in value proposition work, not only the ”marketing” function

• Ensure effect and implementation across the chain, not just in ”marketing”

• Approach value proposition implementation as a change process – and design the project accordingly

• Acknowledge the differences between marketing and sales – and embrace the principle of co-creation

• Ensure senior management commitment and buy-in – across C-level commercial functions

• Verify practical execution through customer and rep testing/role plays

28

Agenda

09:00 Welcome and introduction

09:05 Strengthen your value proposition to improve

your competitiveness

10:00 How do you ensure effective execution of a

new value proposition?

10:15 Networking break

10:30 Exercise in groups: Differentiation and design

of unique value propositions

09:20 Case: SVITZER – improving differentiation in

the market

11:30 Networking and light lunch

31

Revisiting the simple message of today’s seminar …

A company’s differentiated value proposition is

no stronger than the way it is actually being

communicated, sold and delivered to the customers

– meaning, the way it is implemented and

executed by the front line

32

See you again the 20th of September 2013:

“From Customer Insight to Business Growth”

.

How to create a unique value proposition and

successful differentiation

How do you differentiate yourself in the market by

creating superior value to your focus customers?

Get inspiration on how to identify your unique and

value-creating differentiators and build a strong

value proposition which sales and marketing can use

to grow existing and new customers.

.

24 MAY 2013

From customer insights to business growth

Most companies have detailed information about

their market and customers – but few companies

use this information proactively.

Get inspiration on how sales and marketing can use

structured market and customer insight to challenge

the

20 SEPTEMBER 2013

Customer Experience Management

Many companies use a lot of resources on branding

but are often not aware of how to use all customer

interactions to improve brand perception and,

thereby, their competitive strength.

Get inspiration on how a structured focus on

customer experience within all touch points can

increase customer loyalty and improve the win rate

significantly.

15 NOVEMBER 2013

Sales & marketing integration

One of the key characteristics of companies which

perform better than average in their industry is their

ability to integrate sales and marketing activities.

Get inspiration on how sales and marketing can

work more closely together and how common

targets and KPI structure can drive a more holistic

market approach and ensure better return on sales

and marketing investments.

JANUARY/FEBRUARY 2014

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