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An Effective Value Proposition Is Essential to Securing New Customers

Curt Monhart's picture
President E3 Prime Environments

E3 Prime Environments’ focus is on commercial, industrial, multi-family and non-profit buildings, as well as agricultural applications. Our project development work includes identifying...

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  • Aug 3, 2022
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An Effective Value Proposition Is Essential to Securing New Customers

August 2, 2022

In today’s world of information-overload, we receive the equivalent of 100,000 words every day. That’s over 20 words per second from all sources, e.g., mobile phones, emails, books, social media, TV, and radio. So, when a prospective customer first looks at your website, they will typically spend about 10 seconds determining if it’s worth their time to read further.

The vehicle for motivating them to do so is your value proposition.

Value Propositions

Your value proposition is not a tag line or slogan. It’s not your company’s history, vision, or mission. Nor is it a list of the features or benefits of your products or services. And it’s certainly not a commitment to always exceed customer’s expectations, whatever they may be.

Your value proposition is a clear, succinct, and convincing statement that you understand what the customer’s problem is, you have an effective solution, and it’s better than anyone else’s.

In addition to motivating a potential customer to read the content of your website, an effective value proposition is also critical to getting a “yes” to a proposal. Without one, getting a “yes” will often be a function of having the lowest price. Unless you are the low-cost provider, this is not a sustainable strategy.

What Provides Customer Value?

Customer value results from:

  1. Increasing revenue
  2. Reducing costs
  3. Providing emotional benefits

In the world of energy efficiency upgrades, these value-creators are not mutually exclusive. Often an upgrade will include all three. For example, an upgrade that includes new HVAC and lighting systems will often increase occupancy and lease rates resulting from a more comfortable environment. In addition to reducing energy costs, the upgrade will also lessen maintenance and repair costs. And for many building owners, there will be an emotional benefit knowing they’re good environmental stewards. Plus, many younger employees place much importance on working for a “green” company.

Here is a list of the more common value-creators of energy efficiency upgrades:

Revenue gain

    • Higher occupancy and lease rates
    • Increased retail traffic
    • Increased productivity

Cost reduction

    • Energy
    • Maintenance and repair
    • Less downtime

Emotional benefits

    • Environmental stewardship…being “green”
    • Employee pride in working for a “green” company
    • Employee safety
  • In an upcoming article I’ll discuss potential areas that set your company apart from the competition. I’ll also provide an outline that you can use in developing your value proposition.

Discussions
Matt Chester's picture
Matt Chester on Aug 3, 2022

The emotional benefits is so interesting, because those benefits can range from real and essential to almost more perceived than actual. It's hard to know what's going to resonate. 

Curt Monhart's picture
Thank Curt for the Post!
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