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e advantage for this opportunity? ? How do you and each of your petitors pare to the customer’s view of the ideal relationship? Page Systems, Inc. All rights reserved. * 10 – Unique Business Value ? What is the specific or measurable business result that we will deliver? ? How does the customer define value? How will they measure it? ? How have we quantified this value in the customer’s terms? ? Has the customer confirmed their understanding of the value we will deliver? ? How does this value differentiate us from our petitors? Business Profile Business Drivers Business Initiatives Capabilities Solution Differen tiation age 2.Compelling Events Unique Business Value Page Systems, Inc. All rights reserved. * Answer the questions . . . ? What’s the issue? ? How is it affecting the customer? ? What are the consequences or payback? ? How can you help? Developing Your Value Proposition 9 Page Systems, Inc. All rights reserved. * Increase Costs/Consequences Value = Benefits Costs/Risks/Consequences age ? Revenue ? Market share ? Customer satisfaction ? Inventory turns ? Load factor ? Shareholder value ? Customer base ? Order fulfillment time ? Expenses ? Rejects/returns ? Waste ? Administrative costs ? Number of days supply (of inventory) ? Time to close an order ? Cycle time Decrease ?Evaluation process ?Purchase price ?Order processing ?Expediting costs ?Correcting mistakes Acquisition Costs ?Setup and installation ?Taxes and insurance ?Administrative costs ?Finance charges Possession Costs ?Training ?Support ?Maintenance ?Depreciation ?Disposal ?Interface to other systems Usage Costs ?Affect existing businesses ?Awaken their petition ?Modifications to existing processes Opportunity Costs (Risks Consequences) Page Systems, Inc. All rights reserved. * Value Proposition Templates You will be able to ______________ resulting in _____________________ by implementing our _____________________. We delivered similar results at ____________________ which resulted in __________________. By changing from _________________ to ___________________, you will affect __________ which means ____________________. We will track the value delivered by _______________ and report it back to you _________. We can help you address __________________________ by installing _________________ which will result in ____________________________. We will ensure your return on investment by ________________________. business initiative specific or measurable oute solution similar situation or customer past value delivered current situation our solution business driver specific or measurable oute value tracking system frequency/time pelling event solution specific or measurable oute shared risk/reward strategy 10 Page Systems, Inc. All rights reserved. * Sample Value Propositions ? You will be able to reduce the number of repeat customer service calls by 15% resulting in an estimated monthly savings of $ by implementing our Siebel Call Center Application. We delivered similar results at United Tele, which achieved a 25% improvement in first contact call resolution. ? By changing from a patchwork of home grown solutions to Siebel’s eBusiness suite, you will reduce your total cost of ownership by $100M, which represents a 40% increase in Earnings Per Share. We will establish a metrics score card to assist you in evaluating program performance and report it back to you at six month intervals. (business initiative) (measurable oute) (solution) (similar customer) (measurable results) (current situation) (solution) (measurable oute) (measurable oute) (value tracking system) (frequency / time) Page Page Systems, Inc. All rights reserved. * Can We Win? 11 Inside Support 12 Executive Credibility 13 Cultural Compatibility 14 Informal Decision Criteria 15 Political Alignment ? Who in the customer’s anization wants us to win? ? What have they done to indicate their support? ? Are they willing and able to act on your behalf? ? Do they have credibility within their own anization? age ? Which executive(s) will affect or be affected by this decision? ? How have you established trust and credibility with them? ? How will you gain access to those executives? ? What is your plan to gain return access to them? ? What is the customer’s culture? ? How does this pare with our pany? ? What is the customer’s philosophy towards vendors and suppliers? ? Can we adjust or adapt? Do we want to? ? How will the decision really be made? ? What intangible, subjective factors could affect this decision? ? What are the unstated issues? ? Whose private opinions do we know? Which ones count? ? Who are the most powerful people involved in this decision? ? Do they want us to win? Why? ? Are they able to influence or change the decision criteria? ? Can they create a sense of urgency? How have they demonstrated this in the past? Page Systems, Inc. All rights reserved. * Is It Worth Winning? 16 ShortTerm Revenue 17 Future Revenue 18 Profitability 19 Degree of Risk 20 Strategic Value ? What is the order amount? ? Does it exceed our threshold? $ ________ ? When will it close? ? Is it within our time frame? ________ days ? What is the potential for future business within the next year? Within the next three years? ? Does it exceed our thresholds? ? How is this project or application linked to future revenue? ? How will you ensure customer promises bee mitments? ? What is the projected profit on this sales opportunity? ? Does it exceed our profit threshold? ? What impact will discounts have on profitability? ? How can we improve the profitability on this opportunity? ? How