What is a Value Proposition

Posted by David Bennett Mon, 05 Jun 2006 16:37:00 GMT

What is a value proposition?
 
A value proposition is a clear statement of the tangible results a customer gets from using your products or services. The more specific your value proposition is, the better.

Most people and companies have lousy value propositions. They’re weak and often they’re simply a description of the services, features, or capabilities. Many times they are filled with self-aggrandizing puffery.

Here are a few examples of weak value propositions:

  • We have the most technologically advanced website on the market.
  • We sell more listings.
  • We have the most experienced agents.
  • We offer great service.

Most customers think, “So what?” when you share a weak value proposition. They’ve heard lines like that a zillion times before so they don’t believe you one little bit. Besides, you haven’t shared what’s in it for them - and that’s all customers care about.
 
Here are some current real estate value propositions. What do you think? Are they weak or strong?

  • We’re passionate about giving back to our communities
  • Each office is independently owned and operated.
  • We sell more … because we do more
  • We’re at home in Tampa Bay. Give us a call anytime
  • We are able to provide clients with the highest quality real estate services through a variety of programs.
  • Real people solving real problems. XYZ Realty is here to help with all your real estate needs.
  • Trust xxx to bring you home
  • When buying or selling, the first call to make is to xxx. Have one of our sales associates serve you. Call or email us today to find out just how much the right realtor can help you and your family find the home of your dreams.
  • We can provide home buyers with a full service, anxiety-free real estate experience, delivering a level of service unmatched in the real estate industry.
  • We will design a customized marketing system to assist you in differentiating your home from others in your marketplace

A value proposition is the message that differentiates you from the competition and tells why your solution will help solve the customer’s problem.

With today’s tight economy and overburdened decision makers, you need to have a strong value proposition to break through the clutter and get buyers and sellers’ attention. That means you need a financially oriented value proposition that speaks to critical issues they’re facing. And, by including specific numbers or percentages you get the decision maker’s attention even faster.

Strong value propositions deliver tangible results like:
·         Increased profits from sales
·         Faster time to sale or purchase, or faster time to closings
·         Reduced costs to sell
·         Improved efficiencies from contract to closing
·         Reduced exposure to problems or stress

Do you need to do some work to enhance your value proposition? If it’s not strong enough yet, don’t despair. Start today to create your dynamic value proposition that doesn’t just describe "what" you do or "how" you do it  do things and begin to develop your unique, specific value to your customers.




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