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
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