Part 3: Failure to Communicate Value Proposition.
By Kelly Lawrence
In the current market, 85% of companies are in decline.[1] Four of the common reasons companies - and their new products - fail can be attributed to a lack of marketing science.[2] In this four part series, we examine each and provide indicators to help you identify areas that your organization needs to improve in order to accelerate growth.
4 Root Causes of Business & New Product Failures[3]
Part 1: Not in touch with customers through deep dialogue
Part 2: Lack of unique value proposition / differentiation
Part 3: Failure to communicate value proposition
Part 4: Inability to nail a profitable business model with proven revenue streams
5 Indicators Your Organization is Failing to Communicate Value Proposition
You’ve done the upfront research and are expanding your moat. You have differentiation. But, are you effectively communicating your differentiation? Research shows that one of the top reasons companies and innovation fails is a failure to communication value proposition. Here are 5 indicators that your communication needs a boost .
Your target customers do not know about your product / service. It may sound obvious, but when you have something amazing, you have to tell people. Customer can’t buy what they don’t know exists. “What happens in Vegas, stays in Vegas.” should not be the theme of your communications campaign.
Your message focuses on how great you are. If you want to build trust and convince customers to buy, you have to let customers know you value them. Put your customers first and tell them how you can help them.
Features features and more features. Your R&D team may prefer a spec sheet, but it can be meaningless to a busy buyer. So what if your smart phone camera can now capture 40% more light due to Telephoto technology? It might sound impressive, but it doesn’t resonate until I understand it enables me to take photos at night that will showcase my subject in real color. Customers that understand benefits are much more likely to buy. Explain what’s in it for them.
All words, no vision. Images can convey complex messages and data very effectively. They also grab our attention. According to the Institute for Public Relations, pairing an image with a story can further motivate people to engage in the message for better retention and a higher likelihood of making a purchase.
Too wordy. Concise = impactful.
About Kelly Lawrence
Kelly Lawrence is the Founder and CEO of Lawrence Innovation. We bring over two decades of expertise in converting customer and market insights to growth. We’ve delivered results for B2B innovators around the world including Berkshire Hathaway’s Lubrizol & Fortune Brands’ Moen. We know how to identify profitable problems to solve, develop and communicate unique value propositions, and implement profitable business models that generate results.
Sources
[1]2020. The Board of Innovation. https://www.boardofinnovation.com/low-touch-economy/. “The Low Touch Economy Is Here To Stay.”
[2] 2020. Lawrence Innovation. https://www.lawrenceinnovation.com/blog/7ximwm62xwcxyd87jv7xsour7lmkzv. “85% of Companies Are In Decline & Need To Find New Growth. Are You One of Them?”
[3] Eric T. Wagner. “Five Reasons 8 Out of 10 Businesses Fail.” Forbes, 2013.