Discover Your Nugget How to find your Unique Value Proposition and what to do with it Fran Scarlett Regional Director, SBTDC

Definition nug·get –noun 1. a lump of something, as of precious metal. 2. a lump of native gold.gold 3. anything of great value, significance, or the like: nuggets of wisdom.the

Unique Value Proposition Definition : A value proposition is the combination of products and services that provide value for a specific customer segment. It describes the way a firm differentiates itself from its competitors and is the reason why customers buy from a certain firm and not from another." It should answer the question: “Why should I choose to buy this product or service, and why now?” A value proposition is an analysis and quantified review of the benefits, costs and value that an organization can deliver to customers and other constituent groups within and outside of the organization.

financial infrastructuremarket value proposition Institute for Innovation, copyrighted material, Business Model Architecture

Financial cost efficiencies revenue sources Infrastructure core capabilities key activities strategic partners Market target customers customer relationships distribution channels Value Proposition (nugget) Institute for Innovation, copyrighted material, Business Model Architecture

Value Proposition Template 6

First Draft

Refining Your UVP Questions to hone Unique Value Proposition If your revenue(funding) was cut by 30%, what aspects of your organization must you preserve? Who do you compete with for customers(clients)? What do you offer that your customer(client) cannot get elsewhere? You have an opportunity to access additional funds, but the grant, loan, equity requires you to pick the operation where you know you can add the greatest value. What would you pick?

Second Draft

The “So-What” Test Try your value proposition out on colleagues, employees – and most importantly, existing and potential customers. If the response to your value proposition from a prospective buyer is “So What?”, you know that it’s not strong enough. Did it describe tangible or measurable benefits that are truly of concern to that consumer?

Financial* revenue sources cost efficiencies Infrastructure core capabilities key activities strategic partners Market target customers customer relationships distribution channels Value Proposition (nugget) Institute for Innovation, copyrighted material, Business Model Architecture

RevenueRevenue By establishing your UVP, you can focus your development efforts and time. – Focus on grants that really match your value proposition – Differentiate your organization in the grant-writing process Funding sources are looking to ensure organizational alignment with their giving philosophy.

Financial cost efficiencies revenue sources Infrastructure core capabilities key activities strategic partners Market* target customers customer relationships distribution channels Value Proposition (nugget) Institute for Innovation, copyrighted material, Business Model Architecture

Marketing 101 “Market” = group of similar customers. “Market Share” = percentage of available customers buying from you, or using your services, instead of your competitors. The objective: ◦ Attract and retain a growing base of satisfied customers.

Marketing 101 Customers must be the focus of the business. Marketing is the means of communicating with customers. Getting the right message to the right people at the right time. “Profit” or “not-for-profit”, the approach is the same.

What Marketing Can Do – 1. Reach more viable prospects with your message.* Prompt prospects to contact you. (More selling or service delivery opportunities.) – 2. “Close” a higher percentage of the selling opportunities. – 3. Raise the value of the average sale. – 4. Increase repeat and referral business.*

Reaching Viable Prospects – Determine your target market profile. [The right people] Do you have a distinct, unique market to target? Determine their characteristics, especially those that are unique. What motivates them? – Determine the proper message to deliver. [The right message: Unique Value Proposition] How much “education” will be required? What information do prospective customers need in your messages? What misconceptions need to be eliminated or offset? How can you hit their “hot buttons” – the things that motivate them? – Focus your message toward your target market. [The right time*] Be certain that the message will reach them when and where they are receptive. – Get your message to more prospects. [The right place*] Which media are most connected to your target prospective customers?

Promotion & Advertising - Media Options Personal CommunicationWord of Mouth Brochures & CatalogsRadio TelevisionYellow Pages Centers of InfluenceBillboards VehiclesTelemarketing GiveawaysDoor-hangers Audios / VideosDirect Mail & BannersSignage NewspapersIndustry Publications POS / PackagingWebsite NewslettersBlogs & Facebook NetworkingTwitter Personal CommunicationWord of Mouth Brochures & CatalogsRadio TelevisionYellow Pages Centers of InfluenceBillboards VehiclesTelemarketing GiveawaysDoor-hangers Audios / VideosDirect Mail & BannersSignage NewspapersIndustry Publications POS / PackagingWebsite NewslettersBlogs & Facebook NetworkingTwitter

Increase the Percentage of Repeat and Referral Business – Repeat business is the most cost-efficient. Fulfill promises ( Unique Value Proposition ) to customers and they will come back. Cost to acquire repeat business is zero (or nearly so). Stay in front of customers via e-newsletters, etc., to remind them about you. Social networking with customers. – Referral business is the second most cost-efficient. Fulfill promises to customers and they will tell others. Be “pro-active” seeking referrals from customers. – Repeat business is the most cost-efficient. Fulfill promises ( Unique Value Proposition ) to customers and they will come back. Cost to acquire repeat business is zero (or nearly so). Stay in front of customers via e-newsletters, etc., to remind them about you. Social networking with customers. – Referral business is the second most cost-efficient. Fulfill promises to customers and they will tell others. Be “pro-active” seeking referrals from customers.

The Sales and Marketing Funnel

Market Potential: Sources of Information (psychographics by zip) (info about companies) Thomas Register, Yellow Pages (info about businesses) (business start-up resource guide)

Contact Info Contact Info: Fran Scarlett SBTDC Questions??