In this video, we discuss how to create a software value prop.
Why this is critical
Creating a good value prop is critical when selling software because you are selling something that is not tangible, and sometimes prospects do not even know what the software is or does. With that, it is extremely important to educate prospects on the value the software has to offer, and having a clear and powerful value proposition will help with that.
What is a value prop?
It can sometimes be difficult to understand what exactly a value prop is and how to create one. But we can completely simplify that by understanding that a value prop is a statement that answers the question “What is in it for me?” for the prospect. And at the end of the day, this is what the prospect cares most about.
They really do not care what the software does. And when the salesperson talks about the product and what it does, this does not answer the question of “What is in it for me?” for the prospect. To answer that question, we need to explain the improvements that the software can provide, and this explanation is the value prop for the software.
Start with the product
When working on how to create a software value prop, the first place to start is with the product. I recommend you brainstorm the main features and areas of functionality for the software. And try to go one step further by outlining key ways that the software is different than the competition.
Identify the target audience
A key step with how to create a software value prop is to identify the audience that you will be using the value prop with. This is an often overlooked step, but it is critical because when you change the audience that you are talking to, the value prop can completely change. In other words, two different groups can use the exact same software product but can see value in different ways.
The next step in how to create a software value prop is to identify the improvements that the software can create. To help with this, we have created an eight-point checklist to help with thinking about improvements.
- Make something work better
- Make something easier
- Decrease the time
- Increase revenue or income
- Decrease costs or expenses
- Improve the customer’s product
- Decrease risk
- Improve visibility
The way to use this list is to look at the different features, functionality, and differentiation and consider each against these different areas. When you identify an area that the software improves, put a few words to describe that improvement to create a value point.
Three levels of benefits
With how to create a software value prop, we recommend that you break your value down into three levels:
- Technical: these are improvements in the areas of processes, systems, people, etc.
- Business: these are improvements in the areas of revenue, costs, delivery of services, etc.
- Personal: these are improvements in the areas of job security, workload, income, career advancement, etc.
Breaking your value down into these three areas will help you to have a more clear and powerful value proposition, and that will help you to improve your ability to explain what your software does and how it helps.
We hope this helps you with how to create a software value prop.