Demonstrating Value

Demonstrating value is one of the many challenges for small businesses seeking to grow, as they write down their signature system.

How do we convey value? One of the things we do first is to build a business model canvas. The model documents how value develops across the business. That’s a detailed process, and it’s complicated. Explaining it to a customer is tricky. So, we need some shorthand to help us convey the value that we add to customers.

I use Green Sheets, created by Matt Church, Peter Cook, and Scott Stein in the book Thought Leaders Practice’.

Green Sheets Convey Value

Here’s a quick summary.

You start with your customer’s pain points: their known spoken problems: e.g., “I’m struggling to scale my business.” Try for three. Then turn to their known unspoken problems, typically personal fears, e.g., “I don’t know how to do this.” Then move to value. First, draw a value model. It should comprise: a currency that others will value (e.g., money, time, effort); aspiration (where they want to be); and location (where they are now). Two statements, conveying quantifiable value (left brain) and the qualitative value (right), further explain the value of your solution. It’s important that the statements don’t contain jargon or ‘weasel’ words. Demonstrating value needs clarity. A story or metaphor helps to illustrate what you mean, but it needs to be something that anyone can identify with. The unknown is your solution – a business process or IP snapshot

Authority Selling

This approach enables what is termed “authority selling:” I know what’s going on and I can help you with it.” You move from compassion (the customer’s pain points), through credibility (demonstrating value and communicating a good solution), and on to conviction (make a clear invitation and then follow-up). Its about demonstrating value.

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