“The trouble with measurement is its seeming simplicity.” Anonymous
If you have ever pitched a product or service to a prospect, there is no doubt you have heard the question “How is this product/service going to help my organization?”. If the reply to this question is abstract, vague and includes words such as speed, efficiency or productivity, without any tangible figures or results, closing the deal will be a challenging proposition. When I say tangible results, it does not mean they have to be precise, they should however provide the prospect with something to create a frame of reference. For example, Domino’s Pizza gets your pizza to you in less than 30 minutes, FedEx gets your packages to its target destination overnight and M&M say, their milk chocolate will melt in your mouth and not your hands. Three world renown companies, each with a differing degree of measurement attached to their product/services.
The bottom line is, if your product/service does not have the ability to bring tangible benefit to your target market, chances of success are slim. The question coming to mind now, should be, “What sort of tangible benefit can my product/service provide my target market?” Entire books, courses and seminars have been created around this one critical question. If a company is able to answer this question with a tangible benefit of great value to its target market, success is not far. However, answering this question is not as straightforward as it appears.
These are a couple of pointers to help start discussions around this particular question with your team:
1. Identification of pain points: An organization’s product/service is developed in order to address a certain pain point that the target market may have. Initially national post offices promised prospects that they would get their packages to their destination. The process was slow but efficient and there was no alternative. FedEx comes along, and addresses this pain point by promising to get your package to it’s target destination, over night. This example shows, to get faster traction your product/service has to address correct pain points.
2. Establishing metrics: Once you have addressed a particular pain point, measure how it is superior to the alternatives. FedEx aims to get your package to its target destination overnight. The stress is on the speed of package delivery. Identify key metrics to ensure, that prospects will be able to clearly measure the benefits of using your product/service. There are many examples in the market place, mutual funds offer specific returns, sports cars tell you how fast they can go and some software promises specific increases in productivity.
3. Case Studies: Actions and results speak larger than words. If you are a new company and have a product/service which has not been commercially tested, I strongly suggest you find your first pilot customer as soon as possible. Most established companies look at start-ups with suspicion, at the back of their minds, they wonder if you can actually deliver. I believe it is a justified stance and one which we need to learn to live with. To counter it, find a customer, do a commercial implementation and track just about everything you can. Afterwards, analyze which metrics have value and focus on those.
This is by far one of the most challenging steps one has to take in the development of a good customer value proposition (CVP). Much time needs to be spent in identification of correct metrics and related data collection. However it is well worth the effort. The next time you pitch your product/service to a prospect remember to tell them exactly how you will be benefiting their organization. It will clearly increase the probability of closing the deal, the incremental increase however will depend on how well you have mapped out your CVP.