Welcome back to the 3 Points Rising series on value propositions. Today, we'll unpack a cornerstone of an effective value proposition: How do you expand your customers' opportunities. We’ll explore some proven strategies to speak to and deliver more revenue for your clients and give you some actionable ideas to drive results.
In the ever-evolving landscape of business, there are a nearly infinite number of ways to expand mutual opportunity. Finding one that moves the needle for both you and your customer is the first challenge. Here are three key ways to expand opportunity for your customer or partner:
Attract additional customers in existing markets
Expand revenue at their existing customers
Enable entry into new markets
Each has enormous potential to create value for clients. Let's dig into each and see how you might expand opportunities for your customers.
Attracting New Customers
One of the most compelling value propositions for prospects is delivering new customers for their offerings. Perhaps you can deliver these new customers as new purchase orders in their inbox ready to close. Also of value would be a steady stream of qualified prospects or even just higher efficiency in your client’s sales team. In all cases the result is that your customer gets higher revenue from the same efforts. While delivering qualified prospects ready to buy is perhaps the most compelling thing you could offer any business, you can find areas of marketing and sales operations that aren’t working smoothly at almost any company. Customer Relationship Management software sales are over $64 billion and growing at 12% because their client's revenue improves when they become customers. Simply removing friction from existing sales processes often yields substantial results. What steps in the customer journey can you help smooth over for your clients? Might you possibly deliver qualified prospects to their sales team?
Expand Share of Wallet
It turns out keeping existing customers is much easier than attracting new ones. Many companies will leverage the relationships they’ve built over time with a “land and expand” strategy: Land the first deal with your most compelling offer, then expand your revenue with that customer by providing additional solutions to other needs they have. Having contracted for something, the seller has a basis for a relationship on which they can build trust through performance. This cross-selling opportunity goes both ways and is often more compelling if you can bring customers to the table, especially the first few. Once you establish your own credibility your new partner will bring additional customers. Together, you can help with related pains in mutually beneficial ways that your clients share. If you can offer any unique capabilities that expand the mutual opportunity, you’ll have a solid case for a partnership. A key challenge is to ensure the cross-selling opportunities drive sufficient profit to your partners that they will prioritize the effort above marketing their own products. Additional product suggestions, product bundling, and in-product marketing are all methods other companies are using successfully to cross-sell and up-sell to existing customers. What valuable new offerings can you enable your clients to offer to their customers? Can you deliver higher gross margins together than you can alone?
Expand Market Exposure
Another long-used method for expanding your clients opportunity is to give your clients access to new markets they could not reach themselves. Geographical restrictions, government regulations, required scale of delivery or language differences are all substantial barriers to entering new markets. New modes of digital marketing, online engagement and instant delivery are other techniques that are often used to penetrate new market segments. Prospects may be driving market expansion through expensive advertising campaigns. Can you help them engage new pools of demand at lower cost? You may be able to provide in-depth content, relationships, experience or other differentiator that enables easier co-selling. Creating organic growth at lower cost per lead is more sustainable long-term and easier done in narrower market niches. Maximizing market opportunity requires both solid content generation to show clear credibility and efficient exposure to build awareness in high value market segments. Your clients may not have exposure in your markets or lack key capabilities that unlock opportunity. Can you offer a unique path to new demand or at least a higher close rate?
As you craft your offerings, always look for ways to add value to your client’s top line. Even if the impact is secondary, it’s important to let the client’s know that you are here to help them succeed at what is likely their most important goal: growing their revenue. Even if you have other value propositions to offer, it makes your offer much more compelling to growth-oriented companies if you let them know you will help create new opportunities for them.
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