In my decades of experience in selling software solutions, one of the most common weaknesses I've seen are poor Customer Value Propositions (CVPs). Poor CVPs lead to limited success in demand generation, longer sales cycles and are often feature rich and benefit poor. Very few are Compelling, Valuable and Differentiated. They lead to margin erosion as the need to heavily discount to win becomes the norm.
A strong CVP for a software business outlines the unique benefits and value that the software delivers to the customer. It should be a concise statement that clearly describes what sets the software apart, how it addresses the customer's needs or problems, and why it's the best solution available.
Here are a few pointers to consider when creating a compelling CVP
Target Customer Segment:
Clearly define the specific target customer segment or industry your software is designed for. Tailor your CVP to resonate with the needs and preferences of this segment.
Understand the Customer's Pain Points or Needs:
Identify the specific challenges, problems, or needs your target customers are facing in their industry or domain.
Unique Selling Points (USP):
Clearly state what makes your software unique and superior to competitors. Think hard about this - many supposedly Unique SPs are in fact "me too" features.
Benefits and Outcomes:
Describe the direct benefits and outcomes customers will experience by using your software. How will it improve their processes, save them time, reduce costs, increase efficiency, or drive revenue?
Simplicity and Clarity:
Keep the CVP simple, clear, and easy to understand. Avoid technical jargon that may confuse potential customers. If it can be understood by your teenage children it's probably good to go!
Emphasise Value over Features:
Focus on the value the software delivers rather than just listing features. Explain how these features translate into tangible benefits for the customer. Again, think hard about this one too - many CVPs list benefits, but they're actually features. Understanding the difference is key.
Quantify When Possible:
Use numbers or metrics to quantify the benefits whenever feasible. For example, "Increase productivity by 30%" or "Reduce response time to customers by 50%."
Customer Testimonials or Social Proof:
Incorporate customer testimonials or references to build credibility and show how the software has positively impacted others in a similar situation.
Revisit and Refine Regularly:
Continually revisit and refine your CVP based on customer feedback, market changes, or product updates to ensure it remains relevant and impactful.
Crafting an effective CVP is an iterative process that requires a deep understanding of your customers, your product's strengths, and the competitive landscape. It's a crucial tool for marketing and sales efforts, helping to clearly communicate the value your software provides to potential customers
If you need any help, guidance or templates to build your Compelling, Valuable and Differentiated CVPs, please feel free to contact me
Σχόλια