Whenever a person buys something, they calculate (formally or informally) the simple equation:

Will I get more back from this purchase than its full cost.

In promoting your business, it is imperative that the benefits you claim to deliver outweigh the costs and risk to your customer. Once you understand this (properly) you can then refine your offer. This is not about creating a marketing message – this is about lining everything up. Making sure you sell your value message. Ensuring you deliver that value – as an integral part of your business.

What core benefits do you offer?
This is about the benefits you deliver to every customer – as standard. Benefits differ from customer to customer and a key benefit to one customer may not be important to a second.

• Why do customers buy your product or service?
• What benefits does it provide, and which ones influence the purchasing decision?
• What benefits are least important to your customers?

What customised benefits do you offer?

• Benefits you deliver alongside the core (like service alongside cars or PC’s).
• How do you personalise things?

What are the real costs to the customer?

• What are the costs of the purchase to your customers,
• including those “extras”?

What other costs might your customer incur?

• Running / support costs?
• Resources, people, building, storage costs?
• Financing and loans?

What is the downside of the purchase – from your customers’ perspective?

• What are the risks to the customer?
• Commercial?
• Failure of product?
• Third party involvement / Confidentiality / Internal politics?
• The list goes on …

Now understand the big picture
Work out where the pain points are and where you can make a difference by changing your offer so that customers see the benefits of the purchase as greater than the perceived costs or risk.

• What one thing could you do that would radically change perception of value?
• What will make a difference to your customers?
• What will make you different in the competitive landscape?
• What can you operationally implement?
• Who do you need to align with to achieve your value goals?

This was a guest post by Paul Fileman of SPS who are a national team of proven senior management professionals, passionate about working to help businesses achieve their next level of development and performance. Whether they are facing market changes, financial problems, people/skills issues, or are preparing a major project, they offer dedicated support from a multi-disciplined team of experts.

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