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Bonus Market Leadership Strategy: Value Leadership
Here’s my bonus “Market Leadership for 2015” video looking at Value Leadership.
You can catch the previous videos here:
Hi, it’s Ian here: welcome to the fourth, bonus video in my Market Leadership series.
So far I’ve talked about Thought Leadership, Relationship Leadership and Marketing leadership as being three key drivers to standing out in your market place, attracting clients to you and insulating yourself from price pressure.
This bonus video is about an additional strategy that can help you establish market leadership. One that’s perhaps less intuitive. It’s Value Leadership.
Value Leadership comes in two forms: the value you give to your clients, and the value you get in return – usually in the form of payment.
Being a leader in terms of the value you provide to your clients is the more obvious of the two.
If clients get more value from working with you than with anyone else, then clearly they’re going to want to keep working with you and recommend you to others. It also gives you better case studies and testimonials you can use to help get new clients.
Now obviously it’s accepted good practice to always be on the lookout for ways in which you can add more value to your clients when you’re working with them.
But sometimes we can get obsessed by deliverables and milestones and contracts and it’s important to step back every now and then and think about what our clients are really trying to achieve and how we can help them get more of that.
It’s also important to realise that you’ll naturally be able to deliver more value to some clients than others.
So for example if you provide consulting to help organisations retain their key staff, then you’ll be able to provide more value to an organisation with high staff turnover or where it’s especially difficult and costly to replace key people who leave than an organisation with low turnover and where its easy to find replacements.
They’ll get more from your services, they’ll be more delighted, and of course, they should be prepared to pay you more – especially if you use something like value based pricing.
Now the other side of Value Leadership is the value you get from your clients.
Now I’m not talking here about trying to claw every last penny from your client’s pockets. What I mean is that very often your clients would be very happy to take additional services or products from you and pay you well for them – but you just don’t have them available.
So let’s say you’re a sales trainer and you do live training courses for clients. There’s a limit on the number of courses you can fit into a year, and you clients can only free up their staff for a certain number of live training courses too.
But if you could offer some follow-up training and reinforcement on video or online on an ongoing basis after the live events then that would be great value to your clients because we all know that what you learn on training courses disappears pretty quickly if it’s not reinforced. And it’s something extra clients are often very happy to pay you for.
So instead of having a $10,000 client based purely on your live work you might have a $12,000 client or a $15,000 client because of the added value through the additional services.
Now the importance of that extra value to you isn’t just money in your pocket. That’s nice of course, but there’s something much more important.
Because if that client is now worth $12,000 or $15,000 to you but they’re only worth $10,000 to your competitors who don’t offer the additional services – it means you can afford to invest more than your competitors in terms of time and money in your marketing and sales to win that client.
And you still end up more profitable.
So if you think about it for a moment, that gives you a huge advantage in the marketplace.
If you can target the same clients as your competitors, but you can afford to spend more time and money marketing, building relationships, talking to them, working the decision network and still be as profitable or more profitable than those competitors then you should win a lot more clients simply because you can afford to invest more in winning those clients.
Another simple example: maybe you’re a professional speaker and you do keynotes at client conferences. If you can also do workshops and breakouts at those conferences (or have other team members who do them) – something most clients need to have anyway and would have to find someone to do for them – then you can more than double the income you get per client. And chances are your client would prefer to use you for any workshops anyway.
So again, compared to someone who only does keynotes you can afford to spend much more time with the client building relationships, fully understanding what they need, getting introductions to other people.
So you stand a much better chance of winning that client – all because you can get more value from them. And, of course, you’re also delivering more value to them – the two go hand in hand.
So something to think about for 2015 is your range of products and services.
Not just from the perspective of “if I created a new product would it sell?” But from the perspective of “can I create products and services that complement my current ones and allow me to earn more per client?”. It’s that value per client figure and increasing that that’s vital.
Because at the end of the day the person who gives and gets more value from each client they work with can afford to spend more time and money to win those clients.
And so all other things being equal, they’re far more likely to win them than their competitors who can’t give and get so much value. In other words, they can invest their way to Market Leadership.
So – that’s it for the big Market Leadership strategies for 2015. I hope you found them useful and I especially hope you’re going to put them into action in your own business.
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