Sales Laundry

Posts Tagged ‘value statement’

I have talked, er, typed before about asking you to look for ways to add value to your product or brand by digging into the problems your clients are facing.  Dig deeper, that is, than the problems  solved by your present value statement.

Look for the the fundamental issues that might be preventing your customer from honestly even considering the problems your product solves, that may well be lower down the priority list.  Uncovering these problems, even if they are way beyond the traditional scope of benefits your product offers, and creatively solving them can lead to a competitive advantage, more business and a more loyal customer.

That is what the boys making Mini-Wheats are thinking, and I agree.

What problem does a Frosted Mini-Wheat solve?  Hunger.

What is the Frosted Mini-Wheat value statement?

“A fast, nutritious breakfast that you can feel good about that will keep your child full and focused on the day ahead.”

That is my take on their message, anyway.

So what bigger problems could a Frosted Mini-Wheat possibly solve to endear the product to its customers?

Frosted Mini-Wheats, with MSN.com has developed Moms Homeroom  

Moms Homeroom is a site featuring four mothers giving their thoughts on all aspect of educating children, similar to “The View” in that they are all piled up on a couch providing opinion and personal tips in a custom built community with polls, video clips, and most importantly, interaction with other real mothers and fathers (and the ones most likely to purchase the Frosted Mini-Wheats) out there asking questions, doing their best to raise smart, educated children.

The new Frosted Mini-Wheat value statement is “Frosted Mini-Wheats help your kid succeed in school.”

It is a unique move in the wake of smaller cereal boxes, reduced cereal quantities for the same price, or higher prices that Kellogg, the manufacturer of Frosted Mini-Wheats, and other cereal manufacturers are moving toward.

It is a bold, offensive move trying to partner Mini-Wheats with parents in their quest to seek a better education for their children.  Will it work?  It is already working on me, I have already forgotten about the other frosted shredded wheat products out there. 

If I buy Frosted Mini-Wheats I am helping support an organization that is providing a resource for parents to communicate, collaborate, and help their kids succeed in school. 

If I buy one of the other brands I am just buying, well…  cereal.

  Look at your own value statement.  Are you trying to sell me by solving a small problem of mine with milk covered cold wads of sugar coated wheat, or are you addressing a larger issue in my life of greater concern to me than which box I pick up at the supermarket?

Is your value statement solving what could be considered a “fluff issue” in these more challenging times, or are you refocused on solving some of my bigger problems that I might need to solve before I can even consider your original value statement or the thought of buying your product in the first place?

Help me solve my problems as a customer so I can be in position to help you solve yours.

Hyundai has a problem shared by every car manufacturer; we are not buying new cars. 

 Sales are down 30%+ across the industry and GM, once the pride of American manufacturing is on the verge of being delisted from the stock exchange as shares trade under $1.00.

 The difference is Hyundai gets it.  Instead of gutting their value and defensively dropping their shorts on price, rebates and financing, they are on the offensive, effectively saying “Mr. customer, I dare you to lose your job.”

 they are on the offensive, effectively saying 

“Mr. customer, I dare you to lose your job.”

Hyundai already has a sales strategy and marketing message that I would think would play well in this economic environment.

 That message being “We build stylish high quality, inexpensive cars, and we back it up with a strong warranty” which was designed to solve the problem of “I don’t have a lot of money, but I need a car that is better than what I am driving now.”

 That message has a lot of appeal, but apparently not enough to keep sales from falling off of a cliff. 

 Hyundai took a deeper look at why business was slumping and thought way outside of the box for ways to solve a problem weighing much heavier on the minds of their prospect than the problem their current value statement was solving.

 That deeper problem being “What happens if I lose my job and cannot pay my bills?”

 The answer until now has been “The car gets repossessed.  I lose my transportation.  It would be harder to find a new job.  My credit gets ruined, and I won’t be in a position to buy a car on credit when I do get back on my feet.”

 Final decision:  “A new car would be nice, but there is just too much downside right now to justify it.  I will keep my old car; at least it is paid for.”

 So what did Hyundai do?

 Hyundai Assurance Plus:  If you lose your income, we will make your payments for 3 months.  If that is not enough time to work things out, you can still bring the car back within a year.  By the way, you still get the 10yr warranty.

 I have no idea how this strategy is going to play out for them, though I assume it will be fantastic as long as legal did not pack the contract with too many outs.  I can, however, tell you how it makes me feel as a consumer.

 I feel like Hyundai is a company that gets it.  That they understand and they are offering up a legitimate “bail out” for the little guy if it becomes necessary.  More importantly, I feel like Hyundai cares.  Hyundai is willing to step in and help out if life’s challenges get a little too big for a while.

 Hyundai is going to earn some respect and get a look by a segment of the market that would not have looked at a Hyundai before and Hyundai is going to win a deep loyalty from the customers they end up helping out.

 More sales today, more happy customers and more market share tomorrow.

It is an aggressive move in a market that finds most of their competitors retreating to a defensive position of low price.

 Ask yourself, does your present value statement carry the same weight it once did?  Is there a bigger problem in your customers mind than the one you are presently solving?

Identify that problem, find the solution, and then figure out how your company can help deliver that solution alone or with strategic partnerships.

 If I were an independent car dealer right now I would be calling my financial partners to see if we could put a “Hyundai Solution” in place for my dealerships.

 What is the creative solution for your industry?  Get it right and you will be the one rewarded with customer loyalty and market share. 

I am looking forward to reading your thoughts.

On a nice evening out for dinner with my wife we were seated at a great table in an upscale Italian restaurant.  

 A manager stopped by our table and welcomed us to the restaurant and asked us if we would like to start off with a bottle of wine.  My wife was looking at the wine list and thought a bottle of her preferred wine was too expensive, so she ordered a glass.  

 The manager asked if I would like a glass, I had not thought about it, but said “Yes.”

“You might consider ordering a bottle, sir, if either of you would like a second glass the bottle would be a better value.”  The manager said.

 My wife smiled and very quickly nodded to the affirmative that ordering a bottle was a good idea.  I ordered it even though not three minutes before my wife had considered the bottle too expensive.

The price was a barrier until the value the bottle represented was elegantly explained.  With a value statement, the manager successfully bridged the gap between the perceived cost and actual cost of that bottle of wine, altering the perception and effectively closing the deal.

 The restaurant was beautiful.  The lights were dimmed a bit.  Fresh aromatic bread was on the table as was a special oil and garlic mixture for dipping.  We both ate the delicious bread, dipping it into the oil as we went over our respective menus.

 My wife decided before we had even arrived that she wanted some sort of lobster pasta dish.  Sure enough, she found what she wanted, but was put off by the price.  She decided to go with her second choice.  Seeing that we had put our menus away, our waitress stopped by asking if we were ready to order.

 I asked about a special couples promotion I had heard on the radio the restaurant was running but the waitress did not know what I was talking about.  The manager, however, just arriving with our bottle of wine overheard the conversation and verified the promotion and happened to toss in that the lobster pasta dish was part of the promotion, having no idea that was what my wife was really wanted.

 My wife, smiling ear to ear, ordered her pasta dish, I forget what I ordered.

 The restaurant was still beautiful and my wife was thrilled, which in turn made me happy.  She got a reasonable value on the wine she loved, she ordered her entre of choice, and the restaurant staff was on top of everything.

  Soon the bottle of wine was delivered and out waitress placed our empty crystal wine glasses on the table and set about opening the bottle.  She poured two glasses with a bottle roll at the end and confidently plopped the bottle on the table stating out entrées would be out in just a few moments.  A bite or two of the fantastic bread later, we picked up our wine glasses to toast the occasion.  The evening progressed with a good meal, great conversation, a nice desert, I paid and we left.  

The marketing dollars spent and the message delivered was a perfect compliment to the sales experience on the restaurant floor.  The marketing dollar found its target market in me, the message compelled me to action and the sales team at the restaurant was delivering on that implied promise, providing an experience for me and my wife I was willing to pay for.

Corporate direction, to raise average tickets by getting more couples in the restaurant, was perfectly in line with Marketing, having put together an attractive targeted promotion that got us in the restaurant, and Sales completed the trifecta by delivering quality service and tacking wine and desert on our final bill.  

This was a perfect case study in what can happen when Management, Marketing and Sales are all on the same page, out of their respective silos, and delivering a consistent message from the top down.

Look at your own company.  Does your stated corporate direction match what your Marketing department is doing?  Is the Sales department in line or are they marching to their own drum?  If not, then your company is probably paying too much for each sale.  From a numbers perspective it probably looks like there are too many sales people on the payroll for the amount of revenue being generated. 

The good news is it should be easy to find some sales improvement just by getting everyone on the same page and some additional improvement yet again,  from my experience, once you all get good at working together.