Only 5% of businesses use a quantified value proposition (Mc Kinsey) as they find it hard to develop and use them profitably. Discover a marketing game-changer to win more, bigger B2B deals and reduce time to close.
We all agree the concept of value proposition is not new, yet a good value proposition enables corporate procurement managers to do their job properly: comparing and evaluating offers from suppliers, in monetary terms.
There are 3 ways in which monetary value can be created:
- By delivering "value" such as revenue gain, productivity increase, faster speed of operations or of delivery
- Reducing or avoiding cost
- Reducing or avoiding risk materialising.
Companies still tend to struggle to create and exploit value proposition to the fullest.
To overcome this challenge, the Cranfield Best Practice Research Club has been monitoring how the customer buys for the past 20 years: their procurement methods, “must-have” vendor selection criteria and their procurement purchasing matrix, to name a few.
This research inspired some exciting innovation in marketing with a new approach to financially quantify Value Propositions for B2B key accounts. The methodology was first detailed in 2018 in a book published by Professor Malcolm McDonald and Grant Oliver "Malcolm McDonald on Value Propositions. How to develop them, How to quantify them" (Editor: Kogan Page).
Hear a podcast with highlights here.
The team unveiled that quantifying a value proposition delivers the following benefits to Account Directors, Business Development Directors, Bid Writing teams and Marketing Managers:
• Close more deals, between 2% and 10%
• Reduce discounting by up to 30% and win bigger deals, up to 30%
• More effective marketing campaigns
• Longer lasting business relationships.
The good news it's all about an evolution of your existing value proposition:
- Define the target market you are in. What are the account strategic objectives?
- Identify buyers. Who will most? and how?
- What are their needs and how to they define value?
- How is value measured?
- Build the financially quantified business case
- Communicate the new quantified value proposition.
A six-step transformation process which we at Agily3 Ltd walk companies through.
If you prefer to get started on your own, the Malcolm McDonald Academy online training is just what you need. The 8 module self -paced online course (consisting of 1.7 hours) costs £300 plus VAT and my blog readers get a 10% discount from the Academy, so simply request a code using the form below.