News & Views

Articulating your value proposition

It is often said that clients do not want financial advice, they want what it can do for them. When it comes to describing your business, articulating the value that you can add to a client is essential, especially in times like these. If you cannot articulate what you do in a succinct and clear way, how will your clients understand how you can add value?

Whatever you may call it, whether it is a positioning statement, tagline or value proposition, the importance of articulating what you do and how you add value to the financial future of your clients is critical.

What is a value proposition?

Put simply, a value proposition is a clear, concise and compelling description of what your practice does for clients, which, at least in part, is better than anyone else.

Why is it so important?

• it describes what you do and how you do business with your clients
• it describes the value that you add
• it helps you to validate your strategy and makes you think carefully about your offer and point of differentiation
• it allows you to price your service accordingly and justify your price
• it binds your team around a commonly understood service offering
• it tells your referrers what you do so that they can tell prospective clients

What is a value proposition NOT?

• a product explanation – a value proposition is much more than just a product explanation and should explain the value that you can add to your clients
• a vague description of your business – a value proposition should be specific and quantifiable where possible
• a statement that is not credible – your value proposition must be compelling, credible and true. You must also be able to deliver on your promise.

Where to start?

• Detail what your practice is good at and why
• Consider why that is important to your clients and what benefit they get from your service
• Profile your clients and prospective clients and understand their longer term aspirations and goals
• Write down how you position your advice and articulate how you add value at every stage
• Practice saying it out loud to anyone who will listen and get their feedback
• Refine, refine, refine.

A value proposition need be no more than 2 to 3 sentences. It needs to be a succinct description of your service and the value that you can add.

When you have defined your value proposition, it is important to reinforce it when communicating with your clients, referrers and staff. Every interaction that you have with a client should relate back to your value proposition from meetings and phone calls to emails and websites.

Coming up with a compelling value proposition can take time but it is worth doing in the long run and can be a very powerful marketing tool if done well.