Your value proposition tells “customers” – whether end users, investors, or partners – why they should choose what you offer. Unfortunately, most aren’t very good.
A few years ago, an online research group studied value propositions and offered a $100,000 prize for the best one. 86% of entrants scored poorly.
For med tech companies, it’s so easy to get caught up in the features and the technology and lose sight of the value the product offers. Remember the basic rule: Features=Description. Benefits=Satisfaction. And satisfaction requires value.
The big picture solution is thinking about value from a customer perspective, and integrating that thinking into how you operate day-in and day-out. It’s not always easy, but it always pays off.
A good value proposition describes the tangible results (value) customers will get in exchange for their time, money, or involvement. It’s the promise you deliver on.
GOOD: Tangible results, clear benefits, solves specific problems, simple, honest.
BAD: Mostly about you, feature-laden, not measurable, unrealistic, complicated.
At a fundamental level, a good value proposition also answers the simple and tough questions, like: Why should I buy this? Why from you? What’s in it for me?
Google Adwords changed the nature of internet advertising with their value proposition: “Reach people actively looking for information about your products and services online.” As the leader in low prices and huge selection, Walmart promises “Save money. Live better.”
You’re in the business of saving lives. There’s gotta a powerful value proposition in what you offer.
Think about what matters to your “customers” – whether internal or external: Increase revenues from target hospitals by 15% every year, get your new product to market in half the time, reduce customer churn by 30% within three months, expand sales with at least one-third of your install base, cut nuisance alarms in the general ward by 60%, save $100 per hospital room per day by improving workflow efficiency for clinicians, increase satisfaction ratings for your online educational programs by 25%, and so forth.
Now, choose a product or service you offer. What’s a value proposition that meets the “good” criteria above, and avoids the bad?
Don’t be hard on yourself or your team if you don’t have one or come up with a strong one. Most companies find it difficult, since they’re so close to their products. Many make significant investments with expert specialists in order to get it right. However you get to it, the ROI from a good value prop is significant. The losses created by a bad one can be devastating.
To walk the talk, here’s our value prop for value props: We’ll make your value proposition so compelling, that it will measurably increase your business within 90 days of implementation. Guaranteed.
I’d love to see your value propositions- good or bad. Let’s learn and improve together.
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