Are You Proving Your Value Proposition?


Welcome to the first official ROND newsletter! We had nearly 200 folks sign up in the first week, with more pouring in each day. I’m excited that our vision for the newsletter is resonating, but I also can’t help thinking in the back of my mind: What are you people thinking? Why would you willingly sign up for a newsletter written by a private equity professional?

To kick us off, let me first set expectations. We want this to be a resource for professionals to grow and improve their businesses. Each week our newsletter will feature a specific thought provoking topic, with commentary and links to resources and articles. It will also include a community section at the end (more info down below).

If you have any colleagues or clients that would see value in this, please share this with them so they can sign up as well!

And now to the newsletter…

Topic of the Week: Are You Proving Your Value Proposition?

In diligence meetings, I typically ask two questions: “How do you know that your customers are receiving value? And what can you show me that proves it?” I often get answers, such as:

“We offer intangible value, so we can’t measure it.”

“It’s too early for us to measure ROI.”

“Well we aren’t losing customers, so that proves that we provide value.” (my personal favorite)

All of those answers are complete BS and here’s why:

If you can’t measure and articulate your value, neither can your customers. At best you are missing out on low-hanging fruit and at worst, you could face customer attrition to competitors who can demonstrate their value to your customers.

The math is pretty simple. The more value you provide a customer, the more they trust you and the more likely they are to buy from you again and refer business. Happy customers = More revenue and higher margins.

I challenge everyone to take a hard look at your own business. Do your customers know what value you provide them? If I called all your customers what would they say about you?

Why You Should Care

1. Value is a virtuous cycle. If you focus on providing value to customers, your products will get better and you will earn even more satisfied customers.

2. It’s cheaper to retain a customer than it is to acquire a new one.

3. Loyal customers are more likely to stick with us during economic downturns. Times are good(ish) now, but who knows what will happen tomorrow.

Here is an interesting infographic full of stats associated with the benefits of customer value.

Open Question: How Do We Improve The Way We Communicate Value?

I don’t have all the answers. What I do know is that value isn’t binary, it sits on a spectrum. The best companies are able to measure and demonstrate their value to customers at each phase of the customer journey. To do this effectively requires you to change the way you approach quantifying value. In an effort to keep this newsletter to a manageable length, we’ve compiled a separate blog post that goes into more detail on communicating value.

There are a lot of smart folks who signed up for this newsletter. I would love to hear from you all on this question. Leave a comment below or send me at email at

What Happens When You Forget to Provide Value…

LuLaRoe customers complain that “pants rip like wet toilet paper”

When your name is Honest Co. and your not so honest

Wait, Experian told me checking my credit score daily would get me a loan

Resources to Review Later

McKinsey has a great article to help you understand the research behind crafting value propositions

Alexander Osterwalder created a framework for creating a strong value proposition

Or you could always rip off one of these value propositions

Get ideas for implementing customer value in your business

Tools for gathering customer feedback

Learn how to report on value proof points with data visualization tools like PowerBI

ROND Community Section

The best newsletters have active participation from their readers.

Is there an event or resource that other professionals will find value in? Send me the link and I’ll include it here.

Do you have any feedback or commentary on this newsletter? We will feature insights from our readers here as well.

Do you have feedback on this newsletter or updates for the community section? Leave a comment below and we’ll be in touch shortly!

About the author

Danielle O'Rourke

Recovering Investor. Mom. Wife.

By Danielle O'Rourke

Danielle O'Rourke

Recovering Investor. Mom. Wife.

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