Gartner Highlights Three-Step Process Technology Providers Can Implement to Craft a Unique Value Proposition
Gartner recommends that marketing executives undertake a three-step process to construct a quantifiable, unique value proposition to move their organizations above the market noise. These steps include:
Step 1: Analyze value from a price/performance perspective. Even if a vendor shies away from price/performance in its marketing, it’s the first place most buyers begin their purchase process. Many vendors are often surprised to see that over the years the functionality and features they provide have failed to keep up with competitors. In fact, challengers will often offer richer product capabilities at similar, or even lower prices to bring attention to their higher, more distinct value, making price/performance analysis an important first step in the value proposition exercise.
Step 2: Analyze your business proposition. Marketing executives must determine how their way of doing business adds value. For example, how do they compete in terms of service, their financial proposal for doing business, or customer experience? They must think "before and after the sale" to get a broad view of how they extend value with customer experience.
Step 3: Put "value" and "proposition" together. Put the results ofthe above two exercises together. By putting the results of the above two exercises together, and by quantifying the business outcome and experience that a customer can only get from a specific provider, marketers get much closer to constructing a value proposition that only they deliver.
Survey Reveals Why Online Shoppers Abandon Purchases
A PayPal survey has revealed that nearly half (45 percent) of online shoppers have abandoned their carts multiple times in the past three weeks due to high shipping costs, security concerns and lack of convenience. The average cost of abandoned goods in U.S. shopping carts is $109. At least a fifth of all U.S. survey respondents cited the following as very important reasons for cart abandonment:
High shipping charges: 46 percent
Wanted to comparison shop: 37 percent
Wanted to look for a coupon: 27 percent
Wanted to shop offline: 26 percent
Couldn't find preferred pay option: 24 percent
Item was unavailable at checkout: 23 percent
Couldn't find customer support: 22 percent
Concerned about security of credit card data: 21 percent
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