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

    1

    Discovery

    Understand the situation, the problem, its cost and who cares about it.
  2. 2

    2

    Value proposition

    State for whom, what problem, what outcome and why you.
  3. 3

    3

    Presentation and demonstration

    Test the proposition with the buyer and adjust it.
  4. 4

    4

    Proposal and business case

    Write it down in a form that survives internal scrutiny.
  5. 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.

  1. 1Presentation or demonstration to the decision group
  2. 2Written proposal with a business case
  3. 3The buyer's internal decision
  4. 4Discovery of the buyer's situation and numbers
  5. 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?

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