Article How to Set Up a New Value Proposition for your SP Business
By Insight UK / 20 Jun 2022
By Insight UK / 20 Jun 2022
The breakthrough of the cloud forces IT Service Providers (SPs) to redefine their business and find new ways forward. Some SPs phase out their physical data centres to start using public cloud services such as Microsoft Azure for services like online workspaces, Microsoft 365, IT security, and online backup solutions. Others focus on IT consultancy or choose to specialize in integration services and the hybrid cloud. Whatever the strategy for your SP business is, tell your (potential) customers why they have to choose you as their Service Provider. The best way to do so is by developing a unique value proposition.
A good value proposition tells what the added value of a business is for the end customer and how it differs from competitors. It is your promise to the market, your pitch. The core of a value proposition is usually only a few sentences (preferably one), substantiated with facts and figures. Ideally, you come up with a one-pager that everyone understands: customers, employees, investors, and business partners.
Using your value proposition in communicating your message clearly to the world is a great tool to attract the right customers, investors, and partners. It helps them to make the right choice and choose you as their SP instead of your competitor with inferior solutions, but better marketing skills. Furthermore, it ensures that all your employees have a shared view of the challenges of your customers and the solutions you offer them. A necessity to create a fully integrated, seamless customer experience!
A compelling value proposition is a specific, ambitious, and inspiring piece of work. It has to align with your business strategy and mission but stands on its own. A value proposition arises from your overall business strategy and is complementary to your mission statement, in which you focus on the goal of your company. The value proposition is entirely built around your customers and their needs. How do you define a solid proposition that will excite customers and boost your SP business? Just follow the next steps.
1. Identify your ideal customer
As an established SP you already have a customer base. Identify the clients you enjoy working with and are most profitable to your business. What do they have in common? Why are they your favourite customers? Make a top 10 of companies you would like to add to your current customer portfolio. Find out everything about the market and industry of your (potential) customers. The more you know about your ideal customer, the better.
2. Inventorize needs
Make a list of the main challenges and concerns of your ideal customers. Where do they stand in their cloud journey, and what do they need to bring them further? Find out which cloud-related products, services, and features they want most and what they are willing to pay. Also, take new developments and trends in the digital transition into account. What opportunities do you see for your ideal customers to accelerate their migration into the (hybrid) cloud?
3. Find out what differentiates your SP business from the rest
Why would customers choose to do business with you and not with your competitors? Look at your employees and find out what their skills and competencies are. What (hybrid) cloud products and services do you offer, and who are your direct peer competitors? Research them to learn more about their products and services. What is their sales and marketing strategy? How do customers perceive your business? How can you distinguish yourself in a positive way? Don't focus on specific functionality or solutions but on the underlying promise like more quality, service, time, innovation, or convenience.
4. Formulate your value proposition
Now that you know your target audience, your added value, and how you exceed your competitors, it is time to write down your value proposition. Make it brief, sharp, and concise. Keep in mind that the message should totally align with your mission and the overall strategy of your SP business.
At Insight, we help SPs build their value proposition and realize their business ambitions in a multi-cloud world. As a multi-vendor software licensing, workload, and cloud platform specialist, we can guide you through all stages of your strategic cloud journey. We help you accelerate your business and find new ways forward. Contact one of our cloud specialists for a talk.