What’s Your Value Proposition

April 18, 2017 Facebook Twitter LinkedIn Google+ Latest News,New Vendors

Value proposition is the #1 thing that determines whether Advisors will bother reading more about your products and services or hit the back button. It’s also the main thing you need to test – if you get it right, it will be a huge boost.

The less known your company is in the RIA Channel, the better value proposition you need. One of the shortcomings I find when viewing vendor websites is missing or poor value proposition. While your product or service may be great, Advisors want to know what you will do for them. Examples include, free up more time, increase bottom line, attract more clients and or assets in the door, or create efficiencies to name a few. Simply saying you will increase efficiency is not enough, you must provide details which prove the end result.

In a nutshell, value proposition is a clear statement that explains how your product solves the RIA problems or improves their situation (relevancy). Moreover, how your product or service, delivers specific benefits (quantified value) and finally, tells the RIA why they should contact you and not the competition (unique differentiation).

Your value proposition needs to be in the language of the RIA. It should join the conversation that is already going on in the customer’s mind. In order to do that you need to know the language of RIAs. How does RIAs describe your competitor and other vendors? If you don’t know this, you have not done your homework on your targeted audience. You cannot guess what that language is. The way you speak about your services is often very different from how your customers describe it. The answers are outside of your office. You have to interview RIAs to find it out, or use social media. Internal and External wholesalers are often in tune with this language and a great resource to leverage. Interviewing a few wholesalers will give you a new prospective on how RIAs view vendors and more importantly your competitors.

Your value proposition should be short, clear and compeling. Here’s an example of a value proposition that says everything without saying anything. After reading the below statement I have no idea what the firm does.

Revenue-focused marketing automation & sales solutions unleash collaboration throughout the revenue cycle.

Do you understand what value they are promising? Yeah, me either.

Changed value proposition to this:

The #1 marketing automation solution for organizations of any size

Now I have a better idea of what it is they offer! When you communicate clearly, it makes it easy for the Advisor to understand what it is you offer and whether or not they should contact you.