How to Design Everlasting Value Propositions in B2B Marketing, Part 1

Reducing the sales cycle with laser-focused value propositions

  1. Sales cycles can be very long, taking months or even years to close a deal
  2. Typically, the customer life-time value (LTV) is relatively short due to high competition and pricing wars

Part 1: Reducing the sales cycle — Design a value proposition around ROI

Ever worked on designing value propositions? It’s one of the most interesting and rewarding tasks that are rarely performed within marketing organizations. Using the Business Model Canvas (BMC), you can layout a simple business plan without having to write a lot. The BMC focuses on the nine key components of a business model, including the two most important ones of all: what is your offering (Value Proposition), and for whom (Customer Segments). Here’s the Business Model Canvas by Alex Osterwalder:

Business Model Canvas, by Alex Osterwalder
Value Proposition Deign — Mapping value to customer problems and goals
  1. They are going to make more money thanks to your product
  2. They are going to save costs thanks to your product

Example #1 😎

A virtual reality (VR) company is developing a new headset to be launched at the next CES, in Las Vegas. They need to develop a software component that will make the VR headset secure before they release it to the market. However, they would need to hire 10 highly paid engineers to develop (and test) the component in time. On the other hand, your company offers a similar component which would need just a few modifications before it can be integrated into their headset.

Example #2 ☁️

Google will launch a new phone that has a built-in functionality for backing up the user data onto Google Drive, Google’s paid cloud service. On the other hand, your company has a backup software for Android phones that is way more capable than Google’s built-in one. It can back-up high resolution photos, videos, and even social media content, which is a great deal for users.

Conclusion

When it comes to B2B markets, there is only one thing that sells: money. Either you make your customers make more money or save costs (ROI). However, it is not only about just closing a deal. If you want to keep your customers around and increase their life-time value (LTV), you’ll need to design your value proposition around Customer Success. With Customer Success, you can convey the feeling that you know their business and are here to help them grow together.

To be continued…

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A family guy in the tech business 👨🏻‍💻 Executive Director | Strategic Marketing Management ➡️ www.claudiocamacho.com

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Claudio M. Camacho

A family guy in the tech business 👨🏻‍💻 Executive Director | Strategic Marketing Management ➡️ www.claudiocamacho.com