Copyright 2007 Dennis S. Vogel All rights reserved.
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NOTE: A Value Statement is a critical part of Unique Selling Propositions, Unique Strategic Positions, branding & positioning. A Value Statement highlights, at least, one reason a particular group of people or businesses should buy a specific product/service. In retailing, a Value Statement highlights why a specific store is the best choice a particular group of people or businesses should buy from it.
A Value Statement is a strong differentiator, it's stronger than "3 locations to serve you" or "Open until 11:00 PM." If these are the only differentiators available to you add some power by explaining why these are important. Examples- "We have 3 locations to serve you, so you can quickly go to the nearest store & easily get (what you need) & live your life." "ABC is open until 11:00 PM, so we're available when you'll need us most. Because we know how unpredictable life is."
I emphasized "a particular group of people or businesses" because 1) small businesses can't afford to reach everybody with their marketing messages frequently enough to make a difference; 2) small businesses can't afford the resources (staff payroll, inventory, sales floor/storage space, equipment, etc.) necessary to serve everybody.
I know frequency isn't always necessary with the right message & offer, but it still costs extra money to serve many customers at the same time & fulfill many orders. If you had the best possible, most compelling offer, you may be able to attract thousands but you'd frustrate most of them because you & your staff couldn't serve them all quickly enough. You couldn't even talk to enough of them to refer them to other businesses to pick up your overflow.
But yet, you should develop (or get somebody else to develop) offers like these. Just closely control your message distribution to avoid overwhelming your business & underwhelming customers.
I just read "The Google Get-Together That Wasn't About Google" from Advertising Age. If you have a subscription you might still get it from the Ad Age web site. http://adage.com/digital/article?article_id=121131
The pearl in this "oyster" article is - "FedEx Chairman-CEO Fred Smith talked about technology's effect on his business & how FedEx's real service is in tracking items, not merely shipping." "The central feature of modern logistics systems,' he said, allows you to 'see inventory at motion & at rest.'"
This set off sparks, then flames in my mind. I remember hearing from FedEx co-founder Mike Basch in a Marketing Master Mind program by Jay Abraham. Mike's emphasis when he talked to the firm's initial sales team was "Get the package." He wanted business owners & executives to experience the quick, efficient delivery service. They offered to send almost anything for free in a customer's first package or even send an empty box, so customers could confirm the packages were received on time & in good condition.
Would FedEx still exist if this were still its whole "value statement"? Maybe! Obviously, tracking packages wouldn't be much of a business model without somebody hauling those. But hauling packages--even overnight delivery--became a generic commodity, so FedEx added a proprietary value-tracking.
If something is profitable, eventually one or more me-too competitors will make a product or service a commodity.
Hauling packages is just an oyster & some don't like oysters. As long as their stuff was received in good condition at a good time, they didn't want to think about it anymore. So, many business owners & executives have subordinates deal with shipping companies.
If something goes wrong, the s--t & the subordinates hit the fan. It's worthwhile for subordinates to think about potential problems. If a boss asks, "Where's the (contents in the box)?" Subordinates better have a good answer or at least a good fallback answer.
Tracking provides a good fallback answer. To report the (contents in the box) is in Falls City, is better than "I don't know." "I don't know" means subordinates spend more time in trouble.
I could promise you, "No matter what, the (contents in the box) will be at the destination at the appointed time." When you think of how those fan blades feel on your skin, you'll probably want a good fallback answer. You know your boss won't throw you on the fan.
The Lesson: You may've started your business by successfully selling a specific benefit. Because of different competitors & changing priorities, customers probably want something different or in addition to what you offered back then. Maybe you've added extra value to your offer, but do you compellingly communicate it?
Continuously find things to make your primary offers far more valuable & necessary. Always develop secondary things to make your primary offers the best choice in your competitive environment. If you do it correctly, eventually secondary things you'll offer become your new primary offer. What was your primary offer will become secondary or obsolete.
What you offer will probably become obsolete anyway, so you should be the one to make it obsolete, so you can get ahead or stay ahead of competitors.
FedEx still hauls stuff; just about anybody can. If overnight delivery doesn't happen, customers know it & will still want to know where their stuff is. FedEx added an extra value-tracking. Soon tracking became its new value-added offer.
Tracking requires accountability each step along the line. From years ago, I remember this advice, "Send letters via certified mail because they'll get there sooner than if you send registered mail. Registered mail is signed for at each step, this takes extra time & costs more money. Certified mail is signed for twice - when the Post Service accepts it & when it's delivered. Both services are accountable."
Think then what FedEx's investment meant - Total package accountability: condition of contents, delivery time & destination. Packages are tracked all the way, but FedEx still has its overnight promise to keep.
So, before you add to your value statement, think about what you'll have to do to deliver that extra value. Then think about it a few more times from different angles, so you won't take on more than you can afford to.
Will you have to raise the price? Do you have enough staff? Do you have enough selection? Will you need more equipment? Will you need better technology?
Don't jump too quickly to match competitors' promises. They may have things you don't know about. They probably know things you don't know.
Head-to-head competition may not be worthwhile. By the time you learn to do something effectively & efficiently, it may be time to offer something different. Some oysters never produce pearls. Some pearls are worth more than others. Pearls are made slowly. Some people don't appreciate pearls; so don't offer them pearls.
Just because you &/or competitors think something is valuable, it doesn't mean prospects will. You may have to persuade people to accept what you value. They won't automatically buy it just because you say, "Trust me."
Changing your offer/value proposition now may not increase your sales this year. You need to invest time, effort & probably money to introduce it to prospects.
You may need more equipment, knowledge or staff. If you invest too much in it, you may have cash flow problems. But if you invest too little in it, you may not sell any & not have any cash flow. If you jump now, you may put too much money into what will soon be obsolete, then you won't have enough money to invest in something better in the near future.
You may have to concede this battle to competitors because maybe they can afford to do something you can't do. Maybe you'll have enough to invest when a better product or technology is available. Besides, competitors may have put their money into what will soon be obsolete.
When you're reasonably sure it's the right thing to do, open that oyster--EW! Did you buy the right oyster? Is there a pearl in there?
Thank you for using my blog. Please let me know if I should clarify anything.
Copyright 2007 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/
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