LSA Global Insights Newsletter: Are You Truly Setting Yourself Apart from the Competition?

November 24, 2018

Are You Truly Setting Yourself Apart from the Competition?

Your company's unique value proposition is worth the time and effort to get it right.

Yet, Many Sales Teams Struggle to Differentiate
Any successful go-to-market strategy depends heavily upon a clear and compelling value proposition that sets you and your company apart from the pack in the eyes of your target clients. 

Eventually, all sales and marketing teams are confronted with articulating what makes their offering superior to the competition. 

If you cannot simply and easily describe what specifically makes your offering better, faster or cheaper than the alternatives in the marketplace, you have some work to do. 

The Definition of a Unique Value Proposition 
A unique value proposition is typically a concise sentence or two that communicates the compelling value of what you do for your clients and why you do it better than anyone else. It is specific, simple, and clear in the areas of "better, faster, or cheaper." 

Why Differentiation Matters
Our organizational alignment research found that strategic sales clarity accounts for 31% of the difference between high and low performing sales teams in terms of revenue growth, margin attainment, customer retention, and sales team engagement. 

Strategy requires choice. Clarity about your differentiation helps improve your ability to make decisions about how to market, prospect, sell, win deals, serve clients and allocate scarce resources.

While many sales teams mistakenly try to "be all things to all people" to fuel growth, research confirms the opposite. Narrowing the focus of both your services and your target clients improves, rather than hinders, growth.

Common Problems Caused by Unclear Differentiation
If you are not clear about what sets you apart from the competition, your marketing, sales and resource allocation efforts will most likely run into problems.

Marketing Problems Caused by Weak Value Propositions
We believe that the fundamental purpose of marketing is to do three things:
  1. Create brand clarity
  2. Increase market awareness
  3. Deliver qualified leads to sales
It is almost impossible to accomplish any of these if there is confusion or disagreement regarding what sets you apart. 

Sales Problems Caused by Weak Value Propositions
We believe that the fundamental purpose of sales is to:
  1. Drive profitable revenue growth
  2. Win new business
  3. Meet portfolio mix and deal size targets
  4. Reduce sales cycles
If you are trying to be all things to all people, your chances of success at any of the four are low. And forget about sales training. Trying to improve the sales skills of sales reps armed with an unclear value proposition is just wishful thinking.

Resource Allocation Problems Caused by Weak Value Propositions
Effective strategies ruthlessly prioritize investments and allocate scarce resources based upon what matters most. Because different value propositions require different things from different support systems, ambiguity creates tremendous organizational ineffectiveness.

If your unique value proposition is unclear, it is very difficult to make smart choices regarding sales territories, compensation plans, organizational structure, success metrics, sales training, and product road maps.
It could be just the right time for you to refine how you set yourself apart from the competition.

About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned