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PCCA Journal|1

st

Quarter 2011

24

Strengthen Your Value Proposition

Value propositions are concise statements of what you pro-

vide to customers and the definition of the value they will

gain. That is where your core competencies come into play.

Your company should include a single or a few key value

propositions for each group of customers in its marketing

collateral and proposals. Value propositions show custom-

ers why they should pick you over other good competitors.

Customers should be able to visualize the exact benefits you

can bring to their organizations and their projects.

The reason why contractors look similar to buyers is that

most contractors have weak or unclear value propositions.

Why else would clients buy solely based on price? Your

value proposition is the foundation of building a unique

relationship with your customers at a level that matters most

to them. You have enjoyed the results of this with all your

repeat clients. You deliver what the customers need and

want, and they reward you with additional work. That level

of working relationship builds trust, and it takes trust for

them to continue to work with you when there are so many

other contractors vying for their business. So what in your

marketing materials demonstrates your capability to the level

that builds trust? Saying “trust me” is typically not a good

method. You have to be able to articulate what you do and

why that has benefits that matter to the customer. If you can

prove the difference between you and the competition, you

win big.

Value propositions gain legs only if they are backed up by

the core competencies of the company itself. Simply hawk-

ing an untrue premise does not work. It will only guarantee

customer dissatisfaction and earn you a quick exit from

any target market. Your offer needs to set your organization

apart from competitors if the value proposition is going to

add worth and provide your company with a strong selling

platform.

Construction is a unique industry with no two projects

being identical. The complexity of the process and num-

ber of variables that managers address on a daily basis are

enormous. The competence of your field crews is unique to

your organization and can create a customer buying prefer-

ence. With distinct characteristics, an organization can build

dynamic value propositions that are irresistible to clients.

Taking the time to clarify your unique value proposition is

worth the investment. Such clarification is even more neces-

sary when entering an emerging market.

Present your strongest value propositions in business

outcome terms. Business outcomes are what the customer

is attempting to gain by hiring you for a project. Beneficial

outcomes might include:

Reduced life-cycle costs

Schedule compression that allows for faster move-in

Increased project value at completion

Increased operating efficiency

Greater energy efficiency

Improved ergonomic appeal

Better working environment for their people

Streamlined decision making

Increased speed to market

The best value propositions deliver tangible, measurable

results. Confirm the results you are generating with detailed

and candid client feedback. The only way to determine if

you truly delivered on the promises made is by asking the

customer.

Increase Customer Loyalty

Do your customers sometimes hire you even if your price is

significantly more than a competing bid? Loyal customers are

less likely to shop your price. Cultivating loyal customer rela-

tionships and getting repeat business are the results of solid

marketing backed up by your operational capability.

Our researchers, in analyzing the completed projects of our

clients, prove that the most profitable customers are those

that insist on using your firm on their next project. Trust is

at extraordinary levels in these firms. Many contractors think

that they deliver high-value projects and have extremely sat-

isfied clients, only to discover from a client survey that their

perception is inaccurate. The new normal will have higher

standards of customer care and service to warrant repeat

work opportunities.

What is your firm doing to generate customer loyalty? Are

you providing training on customer service for your people?

Do you have passionate team members making a difference

to your customers? Customer service is all about delivering

value to clients in order to secure the next project. Customer

service needs to be delivered 100 percent of the time. Does

your organization build systems and procedures to ensure

this happens on every project? Hiring or training people to

deliver consistent customer service may seem counterintui-

tive during downturns, but when do you need periods of

highest customer loyalty?

During lean times, every dollar has to yield even more

results. During a downturn, the most important thing you

can do is to keep your eye on existing customers. While

you should always show your appreciation for your custom-

Marketing

Continued from page 22