differentiate and capture more value

Differentiate to outperform competition and capture more value Commercial Excellence Forum 12th of June 2015

Agenda

09:00 Welcome and introduction

09:05 Introduction to differentiation and value proposition

10:10 Short break and networking

10:20 How to work with differentiation and value proposition design

10:40 Exercise: Work with you own value proposition

Key barriers in development and implementation of value

propositions

09:30 Case: TDC working with multiple value propositions

11:45 Networking and light lunch

4

Growth

ambition

Fight

commoditisation +

Why differentiation

now?

5

Most companies have something unique and valuable to offer their

customers…

However only a minority are able to truly define and convey the value to

their customers

6

3 out of 4 are not able to

communicate the value proposition clearly to

customers

7

90% fail to

communicate the financial impact

8

50%

of all value

propositions

are NOT based

on what truly

drives value

for customers

50% of all value

propositions are NOT based on

what truly drives value for

customers

9

Lets hear some perspectives

on working with

Value Propositions….

10

Top 3-mentioned barriers

Being able to identify true differentiated value propositions

1

Being able to apply an outside-in perspective

2

Getting internal alignment and making the change happen

3

11

… choice of business

model

Value

Proposition

is …

… our product features

… our service strategy … our marketing material

… our marketing campaign

… framing the issue

… sales collateral

… go-to-market strategy

… our purpose

… vision and mission

… customer satisfaction

… customer segmentation

… R&D and

innovation

12

What is a value proposition?

The answer to the fundamental

question:

”Why should I as

a customer buy

your product or

services?”

14

A winning value proposition has three core components

The components of a winning value proposition...

Resonate

“I want”

“I need”

“Solves my

problem”

Differentiate

“No alternatives

are as good”

“Only you

offer this”

Substantiate

“I trust”

“I believe”

“Real value

to me”

15

Building a value proposition requires understanding

of features and differentiators

Features Differentiators Value proposition

Features are the fact-

based characteristics

of a given product,

service or solution

Defendable

differentiators are the

features that are

unique and customers

perceive as valuable

A value proposition

is a promise of value

based on number of

differentiators

Understanding

needs and

drivers of

target group

Influencing

decision

making and

behaviour of

target group

16

Define your differentiators based on deep customer insights

on what drives perceived value for the customer

Differentiators

High Low

Perceived value

to the customer

High

Low

Perceived

uniqueness

17

Sources of differentiation can come from a number of sources –

ranging from the core product to services to brand position

Brand and wider context of company

Distribution, channels, customer service, go-to-

market offering, etc.

Services related to product

Product experience , other attributes

Additional product functionality

Core product functionality

A Value Proposition is a

compelling story that

engages (emotionally) and

provides convincing reason

of why a customer should

choose you over

competitors

18

A VP should be qualified to prove the potential value creation

for a given segment or a specific customer

Features

Fact based

characteristics

of a given

offering

Generic value

proposition

Promise to market

about the

delivered value

Segment

Value proposition

Promise of value

delivered to

customers in a

given segment

Value

Differentiators

Unique

features that

customers

perceive as

valuable

Perceived value to the customer

Perceived uniqueness Low High

Low

High

1

b

1

c

2

a

3

b

4

a

4

b

5

b

6

7

1

a

2

b

3

a

8

5

c

5

a

3

c

(Value Differentiators)

(Differentiators)

(Qualifiers)

A personalized

promise of value

delivered on an

individual basis or

for an individual

customer

Customer

Value proposition

Internal

company

perspective

Market

perspective

Customer

perspective

Agenda






Key barriers in development and implementation of value

propositions


Case: TDC working with multiple value propositions 09:30

25

Value Proposition Canvas

Products &

Services

Gain Creators

Pain Relievers

Gains

Pains

Customer Job(s)

27

What is the Value Proposition of a Tesla?

28

Pain

relievers

Gain

creators

Products

and Services

Pains

Gains

Customer

job(s)

What is the Value Proposition of a Tesla?

Tesla Value Proposition Customer segment: Upper Middle Class Male, $100K+ income

Model S 60-85

kWh

8 year battery

warranty

Options

Charging: 45-

90 km/hour

5+2 seats

Performance

0-100 km/h

4,4s-6,2s

Fokus på

design og stil

High-tech feel:

17’’ touch

screen

Highest safety

ever by

NHTSA

Range of

350km to

450km

Convey an image

of succes

Commute to

work

In sync with

personal

values

Be different

from others

Personal

mobility

Occasional

long dist. trip

High safety

ratings

Compliments

from friends

High-end

Battery Tech

Perform like a

sportscar

Design Brand

recognition

Range of

250km to

350km

Laughed at

Accident and

harm

Fear of dead

battery

Frequent

charging

Aircon draining

battery

Lack of space

Agenda








32

Lets try to work with the framework…

Products &

Services

Gain Creators

Pain Relievers

Gains

Pains

Customer Job(s)

Agenda





10:40 Exercise: Key barriers in development and implementation of value

propositions



35

Top 3-mentioned barriers

Being able to identify true differentiated value propositions

1

Being able to apply an outside-in perspective

2

Getting internal alignment and making the change happen

3

39

We see three typical commercial barriers for truly living

and executing a differentiated value proposition

Company

Value

Proposition

Customer

Value

perception

Marketing

Translating company

product/services to

differentiated value

propositions with value

messages for target

segments

Align & Engage

Alignment of sales

approach and practical

sales execution tools

– and create sales

engagement in the

communication

Sales/Retail/Channel

Articulate, substantiate

and convey superior

customer-specific

value of company

offering

MARKETING-SALES CHAIN

Marketing not able to

formulate differentiated

value propositions and

value messages truly

resonating with

customer’s needs and

value perception”

Marketing/sales not

able to align and engage

with each other AND not

able to design powerful

sales tools fit for

execution in sales

situation”

Sales/Retail/Channel

not able to convey and

articulate customer-

specific value of

company

product/services

– thereby not selling the

“differentiated value

proposition”

Most common

barriers

You need a complete and integrated “marketing-sales

chain” to define, communicate and execute your value

proposition

WHAT?

• Share experiences on how to design and

implement winning value propositions

HOW?

Please discuss at the table :

1. What are the typical key barriers for

1. Designing winning value propositions

2. Implementing winning value propositions

Please write the issues on red card boards

(one issue on each card)

1. Based on your experiences – what can you do to

mitigate the identified challenges

Please write the ideas on green card boards

(one issue on each card)

30min

EXERCISE DESCRIPTION

Exercise: Discuss typical key barriers in designing and

implementing winning value propositions

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