We just received a very valid question from one of our delegates about the difference between a value proposition and an elevator pitch. It’s a good question, because they seem so similar.
Here’s what I said:
Main difference is the value proposition has at its heart one key element – CUSTOMISATION (Rule number 1 about value = value means different things to different people).
Therefore the value proposition, or what you propose for THIS customer, is going to change, frequently. The point about the exercise we run in our sales training classes (the Natural Training Value Proposition Generator) is that people need to keep the 5 elements in mind when constructing one in their heads, or before they enter a negotiation. For example, if there is no proof (one of the elements), then the prop is reduced in value, and therefore less effective.
Elevator pitches are more “spray and pray” – to be used and said with enthusiasm and pride anytime to anyone to help them understand WHAT you do, and importantly, WHY you do it. Yes, it may contain the value that you bring to the world, but that value will be more generic.
A couple of really short examples:
• Google delivers internet search to the world (elevator pitch)
• Google delivers leads that cost £2.30, yet deliver £55 each sale, to Andrew’s Shoe Store in Norwich (value proposition).