Find Compelling Value – BV6


The prior briefing described what is considered the MOST compelling value. 


Now let’s look at what is considered the LEAST compelling value for potential customers and their products/services:


  • Cost reduction initiatives: while it is true that reducing costs can positively impact profitability, executives often view these initiatives as less desirable and of lower importance. These executives were often promised reductions in costs in the past that did not happen or fell far short of goals. In addition, it is impossible for a company to become great solely by cutting costs.


  • Cutting headcount: this is a weak approach, especially if you are proposing this to a manager or executive whose department will be impacted by a reduction in their workforce. If your solution does in fact reduce the number of humans required to complete certain functions, position this as a way to redirect staff to work on another, more productive project. These could help with strategic initiatives where staff is reassigned to solve specific problems in other areas. So rather than cutting twenty employees, your value proposition can explain how twenty positions can be “re-purposed” to work on other important initiatives. Your value proposition should also include the value from these other initiatives. 


Sometimes these are considered “low hanging fruit” and get approved because they seem easy, but usually, their relative value is quite low. 


The top priorities of company executives revolve around increasing sales because revenue growth strategies will have a more direct and immediate positive effect on their business. This is not to say that reducing costs to increase efficiencies are not important. It’s just that when compared to increased revenue, market share, and opening new markets, merely reducing costs rarely gets attention and interest from executives. 


I’m DJ Sebastian, and we will continue this discussion on creating customer value in the next briefings.