What is a value proposition?
A value proposition is something one uses to summarize what you can offer clients so that they buy your product or service. It differentiates you from your competition & shows your customer what you can offer from a value perspective. An exceptional financial adviser has a compelling value proposition that is clear, concise and adds value to your clients from day 1. Your value proposition should be easily understood so that a potential client can make an informed decision.
Why is it important to have a value proposition?
A value proposition is important because it helps you define what you can offer your client. It keeps you structured & clear on what you do. It is an important element in creating a great first impression. It is one of the first touch points where a client experiences what you have to offer. If it isn’t compelling enough, the client will move on & someone else will get the client. The prospective client wants to know, “Why should they work with you?” so the value proposition should be something you can do without over-promising & under-delivering. Most advisers make promises that they do not keep, and this gives the industry a bad name. Many clients have been burnt by previous advisers, so they are more cautious & ensure they investigate deeper before they decide. Most of the time there isn’t anything that differentiates one adviser from another.
What is a terrible value proposition?
What would you say if I asked you, “Why should I work with YOU?”
- “I offer tailored solutions to meet your needs.” Really? Do you? This is kind of boring.
- “I always work for the client’s best interest.” Okay? Isn’t that part of the deal?
- “I treat my customers fairly.” Isn’t this something that you should automatically do??
This probably seems silly to you as you as you read this, but are you doing the same stuff? I see it all over the place – brochures, pamphlets, mailers, websites, social media etc. Advisers constantly play the “tailored solutions” and “your best interests’ card. But guess what? It’s not enough. When advisers give these answers, they’re being sincere. Which is amazing. They’re answering the “Why should I work with YOU?” question, and it makes
Question: Why should I work with YOU?
Answer: You should work with me because I offered tailored solutions to meet your needs. I also put your best interests at heart. When you say stuff like this, you are technically answering the question being asked, but you are not addressing the real question. Every potential client wants to know the answer to a different question. The real question is: “What makes you different?” “Tailored solutions” and “best interests” are not different. Every single adviser on planet Earth will agree that they provide these two things. No advisor is going to tell a prospect, “Your best interests? Yeah, right! My value proposition is that I do whatever it takes to serve MY best interests.” Here are some other weak financial adviser propositions:
- “We’re proactive. We’ll anticipate your life transitions and be prepared for them.”
- “We’re your partners. We work in concert with you to help you make the best life possible.”
- “We keep you accountable. We’ll review your goals and keep you on track to achieve them.”
Why are these weak? They’re weak because they don’t address the real question of differentiation – no financial adviser is going to disagree that he/she does any of these things. What information is in a compelling value proposition? Your value proposition should set you apart from your competitors, it should differentiate you & your service. Here are some points that will help you create a compelling value proposition:
- Do you have a niche market? Define exactly who your target market is. Not everyone is your client so decide who your client is.
- How much capacity do you have to help your clients? What can you do for your client?
- What impact do you have on your client? How will that help your customer to succeed?
- What value do you give your client without expecting anything in return? How does your value proposition add value to your client?
- Does your customer value what you have to give them?
- What is the cost of what you have to offer? What must the customer pay for this privilege?
What are the components of a world-class proposition?
Think about the following points when you are putting your value proposition together:
- Be an expert in your field
- Continuously give good advice – Best advice always!
- Own the relationship
- Give consistent service that is specific to each group of clients
- Define your dimensions of customer service
- Have a competitive advantage that is unique
I hope this article has helped you & get’s you thinking about what makes you different from your competitors…