Dynamics of the vlaue proposition along the customer\'s buying cycle.

1. Productivity
through
effectiveness
The Ultimate Sales Executive Resource
The Dynamic Value Proposition
October 13, 2009
Christian Maurer
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

2. Agenda
• Purpose of a Value Proposition
• Structure of a Value Proposition
• Pitfalls
• Dynamics to the rescue
• Q&A
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

3. Purpose of theof the Value Proposition
Purpose Value Proposition
Buy?
yes no
Value
Proposition
Perceived Future In Use Value > Cash Value
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

4. What?
How much?
Unique?
Proof?
Source: Back Cover of a Fortune Magazine Europe Edition
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

5. What?
How much?
Unique?
Proof?
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

6. Poll 2 Poll 2
Q: For whom does this proposition work best?
CEO
CFO
CIO
Works for all the above
Works for none of the above
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

7. The Opinion from afrom a workshop
The opinion Workshop
Does not work for CEO, nor CFO, nor CIO
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

8. Litmus Test Test
Litmus
What?
How much?
So What?
Unique?
Proof?
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

9. The Buying Cycle Cycle Activities
The Buying Activities
Define Status Quo
Develop Vision
Put to use
Invite Hedge Price/Risk Buy
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

10. Buying Cycle Decisions
The Buying Cycle Decisions
Status Quo
Develop Vision
Install
Hedge Price/Risk
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

11. Dissatisfaction
Dissatisfaction
Value
Hypothesis
Ouch!
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

12. Psychology of Change MatrixMatrix
Psychology of Change
Positive
Sustain Attain
Negative
Change Avoid
Present Future
Source Jeff Thull: “Exceptional Selling” p.64
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

13. The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

14. Psychology of Change MatrixMatrix
Psychology of Change
Positive
Sustain Attain
Negative
Change Avoid
Present Future
Source Jeff Thull: “Exceptional Selling” p.64
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

15. Value Value Hypothesis
Hypothesis
Positive
1
Sustain Attain
3b
Negative
Change Avoid
2 3a
Present Future
Source Jeff Thull: “Exceptional Selling” p.64
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

16. Continue?
VisionVision
yes no
Status Quo Vision
+ (+)
Value
Proposition
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

17. Value Value Proposition
Proposition
Customer’s
Cost of Solution
Cost of operating in Status Quo
+
> +
(Switching Cost)
Cost of Problem
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

18. Buying Decision
Buying Decision
You Competitor
Unique
Value
Proposition
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

19. Differentiators
Differentiators
Suppliers
Criteria
A B
On time delivery
Long term availability
Terms and Conditions
Financing facilities
Time to put to use
Service coverage
Price
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

20. Take Away
• Buying complex offerings is a Change
Management Process
• Seller adds value by providing decision support
• The Value Proposition must fit to the decision to
be made within the buying cycle
– Value Hypothesis: Generic but in customer problem context
– Value Proposition: Customer specific related to cost of
problem
– Unique Value Proposition: Positive differentiation against
competition in customer’s view
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved

21. Productivity
through
effectiveness
The Ultimate Sales Executive Resource
c_a_maurer@ceoexpress.com
The Ultimate Sales Executive Resource
© 2009 Christian Maurer All rights reserved