In his book The Tipping Point, Malcolm Gladwell writes, “There is a simple way to package information that, under the right circumstances, can make it irresistible. All you have to do is find it”.
He goes on to cite examples of messaging that became wildly successful “not by [anyone] substantially altering the content of what they were saying. Instead, they tipped the message by tinkering, on the margin, with the presentation of their ideas”.
Traditional marketing approaches drive a product or service-focused marketing message.
In contrast, the value proposition takes the focus off the product and moves to a client-focused message — the articulation of the benefit you provide.
To this end, it becomes increasingly important for a financial adviser to construct a value proposition. You can use the value proposition with existing and prospective clients to articulate the value you bring and provide evidence that you can deliver.
The value proposition is comprised of three tiers:
1. Value statement;
2. Proof points; and
3. Delivery statements.
When done effectively, the value proposition should accurately articulate the experience of working with you and your business.
As a successful business owner, you know marketing is a vital part of your business. Being able to get the word out about the services or products you can deliver is one of the most effective ways to grow your business.
But, of course, you need to make your message stick. And the way to do this is by creating an effective value proposition.
1. Value statement
The value statement is a clear articulation of your target clients and precisely what key benefits you intend to provide. This statement is a clear and concise answer to the frequently asked question, “What do you do?”.
Consider using the following exercise to develop your value statement. In the samples listed above, each contained four parts:
1. An action on the part of the adviser;
2. A target client;
3. A qualifier; and
4. An outcome.
2. Proof points
Offering a clear and concise value statement is the proverbial ‘baiting of the hook’.
Your statement should cause the prospect to pause and further inspect what it is you have to offer.
The value statement alone, however, is not sufficient to win the hearts and minds of prospective clients. You must provide sufficient evidence to support your claims. This support comes with the development of proof points.
Proof points are essentially bullet points that validate and support your value proposition.
These points must be fact-based and may include the following types of data:
~ professional credentials/certifications;
~ years of experience;
~ client retention rate;
~ number of satisfied clients in target market;
~ total assets under management;
~ strategic relationships;
~ niche expertise; and
~ resources of your business or licensee.
Proof points are the expression of your capabilities.
3. Delivery statements
The prerequisite to getting referrals is to become ‘referable’. You must demonstrate your capabilities so your existing clients have an adequate understanding of your practice and can refer their friends, colleagues and clients to you.
Your value proposition contains three or four summary delivery statements about how you bring value to your clients.
These statements are distinctly different from the proof points because they begin to highlight and outline your service delivery and set expectations for your future client relationships.
These statements, in combination with the value statement and proof points, should accurately reflect the experience of working with you and your business.
Your value proposition has the potential to transform your marketing effectiveness. The creation of this will require some thought, as well as an analysis of your current practice and service delivery.
A well-constructed value proposition can effectively articulate the tangible benefits you provide — an important skill as we shift away from product and become an increasingly client-centric market.
Paul Carrington is the WA/SA state manager at Russell InvestmentGroup .
