Posted by Christopher Stevenson
A colleague recently challenged me to write a value proposition for my department at CUES. I was familiar with the "elevator speech" and cocktail napkin methods that challenge you to summarize your organization's value in a couple of sentences, and I know about touchy-feely value propositions that do little to actually communicate value, but I had never used the method my colleague suggested. I did do this exercise for my department here at CUES, and not only found it useful but also recognized how readily credit unions could use it. It's easy. In it, you format your value proposition like an e-mail.
The "To" line names your narrowly defined target customer. "People who live, work, or worship in Dane County" is not narrowly defined; "People who live, work, or worship in Dane County and seek financial service providers that offer high-end retail experiences, even at the risk of not receiving the best rates in town" is better.
All too often, businesses (all businesses, not just credit unions) don't really know who they want as a customer. They figure that if someone has money to spend and an interest in the business's services, he must be a potential customer. It's a good way to make some short-term gains, but ultimately prevents the organization from differentiating itself and leads it back into the muddled middle of the pack where everyone is clamoring for every dollar they can get. But if you can identify who you really want to serve and can serve them well, you create a foundation on which you can really build a focused and successful strategy.
The "Subject" line is your promise to your target customer. This is the place to put your elevator speech--a one- or two-sentence summary of your organization's value. This piece can be tough to do. Really, think about it; what can your organization promise that others can't? Sketch out what you think your promise is, but be prepared to circle back and revise it after you complete the final section of the value prop.
The body of the value proposition, what I call the "because" section, lists your organization's bragging rights. What are the accomplishments, products, and services of your organization that can't be topped by your competitors? A simple bulleted list works well for this section. Avoid squishy unmeasureables like "We provide the highest quality member service." Better: "Named best credit union in America by XYZ publication" or "Ranked highest in customer satisfaction in New York by JD Powers and Associates' Financial Services Survey." List all your brags and do your best to make them measurable. Why? Because it helps you answer the question, "What can you do better than anyone else?" and forces you to prove it. It also gives you a foundation on which to build on your success.
Once you list your bragging rights, go back to the Subject line. Do they align? Can you fulfill your promise to your target customer based on what you do better than anyone else? If not, you may want to revisit your promise.
When I first was challenged to this process, I thought it was just academic hoop jumping--another way to generate generic feel-good gobbledegook. It's not. Clearly identifying your target customer (internal and external) and your promise to them, and then backing up that promise with evidence is a great way to quickly identify the value you bring to the marketplace. Try it. It doesn't take long, and you may be surprised at what your strengths really are.
