Sometimes it’s hard to focus on the basics. Technology changes on a daily basis, new competitors arise and the market is constant turmoil. It’s important, however, to slow down and take the pulse of your company. Are the fundamentals in place for a healthy balance sheet? A good place to start is making sure that you have a clear value proposition in place.
“A value proposition is a clear statement of the benefits a customer will receive from purchasing your products or services,” says Steve Carter, president and CEO of ii2P. “Essentially, it is your brand’s promise. A strong and differentiated value proposition can help your business capture your target market.”
Smart Business spoke with Carter about value propositions, the importance of focusing on current customers and how to keep your business in shape.
Why is it important for a company to have a value proposition?
Having a strong value proposition can sharpen your company’s focus and allow you to hone in on your greatest strengths. I call this principle ‘sticking to your knitting.’ You can’t be all things to everyone. You can be the very best at what you do, however. It’s important to know thyself. Understanding who you are allows you to refine your value proposition so you separate yourself from your competitors rather than trying to keep up with them. You will never succeed if you simply try to keep pace with your competitors. They will always stay one step ahead.
Make sure that your value proposition is concrete. If you get up every morning and try to convince yourself that you have a solid value proposition, then you probably don’t. A lot of companies make their value propositions complex. This is a big mistake. There is a misnomer that a proposition requires complexity in order for it to be valuable. The simple, easy-to-embrace proposition is much more effective. Rehearse the value proposition, understand those elements of your business, and market what you excel at. Your value proposition should serve as your anchor.
What are the benefits of focusing on current customers?
Being successful doesn’t mean going after every available customer; at some point, you won’t be able to service your clientele properly. It’s important to cherish each customer that you do have. The reputation you achieve from making your customers feel truly valued is how you grow your business.
Your current customers are your most important ones because they have laid the foundation for the success of your business. Building a reputation on the back of excellent service creates a solid platform for growth. Don’t grow your client base any further unless you are able to treat your new clients as intimately as the ones you first established.
What are the dangers of taking customers for granted?
Customers need to feel like you’re taking them to a higher level through the use of your products or services. Your job isn’t just to deliver your product and walk away; it’s about making sure that your product has value to them. Ultimately, this strengthens your relationships and allows you to grow your own business.
Customers in today’s environment are looking for leadership. They want you to maximize the benefits of your products and services into their core business. Too often, they are treated as ‘revenue inventory’ rather than ‘loyal assets.’ While it seems simple, you need to demonstrate to your customers that you are willing to fight for them, not against them. Your entire business and support model should be structured to demonstrate that you value your core customers.
It’s crucial that you listen to them and value their feedback. Otherwise, they’ll take their business somewhere else.
How can a business prosper by ‘staying in shape'?
You need to make certain that the investments you plug into your business are the kind that keep you lean and strong. In order to make wise decisions, you must listen to the market as it is changing. The demographics for end users are changing, and they are much different than they were five to 10 years ago. Their requirements have changed considerably. Support is a key element in retaining and growing your business.
Creating effective intimacy programs, backed by a market-driven support model, will keep your costs lower and your customer loyalty higher. If your support model is still equipped from a legacy standpoint, it’s imperative that you update it. Today’s consumers want and expect self-servicing support strategies.
No matter how good your product is, if you have a legacy support system behind it, you’re not serving as a leader. Institute a self-support model that is easy to navigate and provides value. Once such a system is in place, you need to pay attention to the feedback left by the end user. Staying in shape is not a one-time thing. You need to be disciplined and continually improve your processes. If you have that discipline within your business, your clients will see that you are always meeting or exceeding their needs.
How should businesses balance the need for convenience versus security?
In today’s society, people generally prefer convenience over security. There’s a tradeoff, however. The most effective strategy is to use a balanced approach that guards your intellectual property while enabling users access to the information they need.
Implementing the most up-to-date technologies, such as password management protection, protects the end user. Securing your information today is no more important than it was a decade ago, but it is more difficult.
Make sure you are implementing practices and solutions to keep data and identity access secure. It cannot be overstated: Your intellectual property and your competitive advantage are perfect targets for your competitors.
Steve Carter is president and CEO of ii2P. Reach him at (817) 442-9292 or firstname.lastname@example.org.
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