The hardest problem for a new sales person? Understanding the value proposition. If it is broad or fuzzy (all too common), the salesperson must invent the logic for something more compelling. Why do we see this problem so often?

Inventing a B2B value proposition is hard work.

A value proposition starts with compelling customer benefits . This means understanding the customer’s value chain as well as he/she does. If our software streamlines customer service, we have several potential benefits. Reduced costs, improved customer satisfaction, improved employee productivity, and new servicing options. To translate these, we need to work with current customers.

–          Are costs reduced because we resolve problems faster? Why?

–          Can we relate improved customer satisfaction to stronger customer retention? Upsell opportunities? How?

–          Does improved productivity enable different work flow? Why?

Answering these questions is critical. But it takes time and hard work. For complex products, weeks of dedicated effort, with access to customer decision-makers and staff. And we can’t assign the work to junior staff. They probably won’t be able to go deep enough by themselves. Plus we need to interact with customer executives.

A good value proposition is invaluable.

Is all of this work worth it? Absolutely! Benefits stated in customer language and numbers translate directly to collateral and a lot more. We can arm sales people with exactly the right questions—tailored to each stakeholder. Plus a business case template, standard proposal formats, etc.

Some amplification on the stakeholder idea. The value proposition addresses each of them. Most complex sales require buy-in from:

–          The affected operational unit (customer service in the example above)

–          Finance

–          IT

–          Other impacted executives (marketing and sales if we have customer benefits as above)

Efficient sales prospecting

So where is the magic? In the leverage that flows from a clear value proposition. Marketing and sales messages that reinforce each other. Clear understanding internally about how to deliver value. One of the secrets is a more efficient sales process. A good prospect gets excited because we can help with a “front burner” problem. This prospect will pull us into the solution. What more magic could we want?

For some related ideas, check out Seth Godin , Brian Carroll , and Marketing Profs

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2007 is off to a roaring start: some people have already forgotten the holidays! Of course, our 2007 objectives are front and center. But I wonder, do we have the right targets—and metrics? Let's use new product (service) development as an example.

New Product Development Metrics

Do you have targets like: launch 1 new product and 2 enhancements in 1Q, 2 in 2Q, etc.? I can't count how many times I've had those targets (the objective usually says "launch new widget X and enhancements to Widgets A, B and C in 1Q," etc.). What's wrong with this picture?

Start with the basics: how did we do last year? How many new products were launched? What % were successful 6 months after launch? 12 months? 3 years? How many launched on time? on budget?

If we have this information, we can find better, more strategic metrics.

Product Roadmap--not

Product roadmaps-- timeline pictures showing products and features scheduled to launch each month--are great communications tools. They inform the sales force and customers what to expect and when. Those involved in product launches can use the roadmap as a planning tool.

But senior management needs more. The roadmap is a result, a tactic. It is not a strategy. If we know we launched 5 new services last year with 3 on time, 2 on budget and 4 meeting initial 6-month targets, we can do better. We want all 7 of the new services targeted for 2007 to launch on time and on budget, then meet their 6 and 12 month targets. But is this realistic, given our track record? Probably not.

Strategic Product Launch Objectives 

The solution? Start with strategic priorities: e.g. launch 70% of new products on time, on budget and meeting 6 month financial goals, with the remaining 30% no more than 15% over budget, 2 months late and/or 25% off financial targets. Is this realistic? Probably--if we give these goals to our team as they are creating the roadmap.

Of course, there are other strategic factors, like cycle time (product development from official start to launch), % of revenue from new products, etc. But those can wait if all we have is a product roadmap!