I have two definitions of value that drive everything I do:
- The first is: You create value when you do something that people would be willing to pay for. This is the underlying definition that supports everything I’ve written about creating value in the business development process.
- The second is: Value is created when a problem that would not otherwise be solved is solved. This is the definition that supports the concept that by turning your offering into a ‘prescription drug’, you escape commoditization.
It is the second definition that I wish to highlight here. Too often, sellers make the mistake of looking at the problems their customers face from their own perspective rather than the buyer’s. They assume there is inherent value in their offering and all they have to do is make the prospect see it. This is communicating value, not creating it. They tend to focus on process or product problems. The problem is, buyers have results problems – either results they are failing to get or results they want to improve upon. They could care less about about having a better process or product. When the focus of a conversation with a prospect is strictly about communicating the value of a process or product, commoditization occurs. But when the conversation focuses on the results can be achieved once the process or product problem is solved, that’s when you begin to become valuable in a client’s eyes.
Companies big (such as IBM, GE, Honeywell) and small (Staffing Advisors, TPO, Capital Relocation Services) have realized that they merely delivering an excellent offering does not create value. These companies have discovered that they only create real value when their clients get results!
Remember, your offering is a commodity. It is the results your offering creates that differentiates you. It is your wisdom (your ability to apply the knowledge you have acquired to enable clients to achieve results) that makes people sit up and take notice.
So, stop focusing on your products and start focusing on applying your wisdom to a client’s problems.