Where the Value Proposition Fits in the Sale
How discovery, value proposition, presentation and proposal connect, and what goes wrong when one is skipped.
11 min
Activities: 0 of 2
A chain, not a single event
A value proposition is not a slogan written once by marketing. In a complex sale it is built for each buyer, from what you learned about them, and then carried through every later step. The chain looks like this: discovery finds the buyer's situation and numbers; the value proposition states what will change and why you; the presentation tests it with the people who decide; the proposal writes it down so it survives internal review; and the business case lets your contact defend it to people you never meet.
If one link is weak, the chain breaks. A presentation without discovery becomes a product tour. A proposal without a tested value proposition becomes a price list. A business case without the buyer's own numbers is easy for finance to reject.
The value chain in a sale
- 1
1
Discovery
Understand the situation, the problem, its cost and who cares about it. - 2
2
Value proposition
State for whom, what problem, what outcome and why you. - 3
3
Presentation and demonstration
Test the proposition with the buyer and adjust it. - 4
4
Proposal and business case
Write it down in a form that survives internal scrutiny. - 5
5
Decision
The buyer decides, often in a meeting you do not attend.
Worked example 1: skipping discovery
A seller of warehouse software gets a meeting with a logistics director. He has a strong standard presentation and delivers it in full. The director listens politely and says, "Send me a proposal." The proposal lists features and a price. Two weeks later the director chooses a cheaper competitor.
The seller never learned that the director's main problem was picking errors that caused customer returns, or that each return cost the company a known amount. Without that, he could not show value. His competitor asked about errors in the first meeting and built the whole proposal around reducing them.
Worked example 2: the chain working
A training provider meets a hospital's head of nursing. Discovery shows that new nurses take months to become fully productive, and that agency staff fill the gap at high cost. The seller states a value proposition in the second meeting and asks the head of nursing to correct it. She adds that staff turnover in the first year is also a concern. The presentation to her team uses both points. The proposal includes a simple business case using the hospital's own agency costs. The finance committee approves it without the seller present.
Put the chain in order
Arrange the steps from first to last.
- 1Presentation or demonstration to the decision group
- 2Written proposal with a business case
- 3The buyer's internal decision
- 4Discovery of the buyer's situation and numbers
- 5A value proposition stated and tested with the buyer
A seller gives an excellent product presentation in the first meeting, then sends a features-and-price proposal. Why is the deal likely to end in a price comparison?