In previous posts, I presented the do-it-yourself guide for creating value propositions in 3 steps and provided examples of how to apply it to develop a green value proposition and a value proposition for a professional services provider. This post provides an example of how to apply the formula to developing a value proposition for health care prospects. It also provides another tip for creating compelling value propositions.
Software value proposition for health care providers
Here's the value proposition:
[Our medical record reporting system] helps [hospitals] [attract physician referrals] by [making it easy for physician offices to produce reports on demand]. Whereas [getting data out of medical record systems typically requires custom programming], our system [enables office administrators to produce reports themselves using a few simple commands].
Starting this year, physicians need to demonstrate "meaningful use" of medical records to qualify for financial incentives. [Sign up for our system today and attract more referrals by becoming the hospital that helps physicians increase the reimbursement they receive from insurers.]
Inertia favors the status quo
For many organizations, purchasing new solutions represents risk. For this reason, there are strong motivations to maintain the status quo.
These organizations, therefore, will only act when they believe that doing so will give them a significant edge-or that failing to act will take them out of the game. Therefore, it is incumbent upon vendors to persuade prospects that circumstances have changed-and maintenance of the status quo is no longer acceptable.
Look for change that will disturb the status quo
In this example, the vendor that created the above value proposition, looked for change that would disturb the status quo. He found it in health care reform.
As of today, more than 50% of physician practices have implemented EHRs. The ubiquitous installation of medical records will once again change the status quo.
Disturbances to the status quo create opportunity
Once physicians have electronic access to patient data, they will want applications that will help them improve the quality of the care they provide-or streamline operations and reduce costs. The problem is that most EHRs deliver only standard reports, thereby creating an opportunity for a vendor that can help physicians access the information they are now collecting.
Follow the money
To help physicians unlock the data in their new electronic systems for other applications, the vendor in question created an "ad hoc" reporting system. Because the average physician practice is relatively small, the company decided to target hospitals and hospital systems, in competitive markets, with its new solution. Following the lead of the EHR vendors, their aim is to sell hospitals on subsidizing physicians' purchases-to increase loyalty and referrals.
Developing a value proposition that compels action
To develop a value proposition that compels action, look for economic, social, cultural, regulatory, or technology changes that have the potential to disrupt the status quo. Then, compel your prospects to action, by raising their awareness of the implications of this disruption for their business-and offering them a solution that will capitalize on the opportunity or minimize the associated risk.