Problem-Audience-Process Value Proposition
Win on a defined customer process instead of competing only on price
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 6
- Confidence
- 96%
Begin by naming the exact problem the business solves and the specific customer it solves it for. Conduct enough discovery to understand that customer's context, including problems they may not yet recognize. Build a repeatable process that resolves those needs, then make the method visible by teaching or giving away the way to fix the problem. The paid offer becomes implementation of that process rather than access to generic information. This changes the sales conversation from price and baseline features to fit, process, and delivered value. A mortgage officer, for example, cannot differentiate by merely answering the phone or offering rates because those are expected functions. The framework requires a credible reason for a customer or referral partner to stake money and reputation on this particular provider.
Origin
Russell Petty presented this sequence as foundational advice for starting a mortgage or other business.
Core principles
- 01A basic job function is not differentiation
- 02Define both the problem and the person experiencing it
- 03Discover needs the customer has not yet articulated
- 04Demonstrate the solution before selling implementation
- 05Justify price with value rather than racing to the bottom
How to run it
- 1
Define the problem
State the costly or frustrating condition the offer changes for the customer.
Pro tip Avoid describing a basic feature that every competitor provides.
- 2
Choose the audience
Identify the specific person or organization for whom the problem matters.
Watch out A broad audience makes meaningful discovery and positioning harder.
- 3
Run deep discovery
Learn the audience's situation, motivations, and likely problems, including needs they have not identified themselves.
Pro tip Use customer language when documenting the problem.
- 4
Build the process
Create a repeatable way to move the chosen audience from the problem to the desired result.
Watch out Do not promise value that the delivery process cannot support.
- 5
Teach the method
Give away the way to address the problem so prospects can understand the provider's expertise and approach.
Pro tip Make the free guidance specific enough to be useful.
- 6
Sell implementation
Charge for applying the process and justify the cost through the value delivered to the right audience.
Watch out Do not fall back to price competition when the process is the differentiator.
In the wild
A loan officer stops pitching availability and rates, which Petty calls core job functions. Instead, the officer identifies a particular borrower problem, studies that borrower deeply, creates a process for resolving it, explains the method publicly, and sells guided implementation.
→ Referral partners receive a clearer reason to trust the officer with their reputation and clients.
Common mistakes
Calling baseline service unique
Answering the phone, offering rates, or performing another core function does not explain why the customer should choose you.
Selling to everyone
Without a specific audience, the business cannot tailor discovery, value, or delivery to a meaningful need.
Competing only on price
Someone can always charge less; process and justified value provide a more defensible basis for the sale.
Is it for you?
Best for
It is best for service businesses whose competitors offer similar core products or capabilities.
Not ideal for
It is not ideal when the seller has not yet validated that the chosen audience actually has the stated problem.
From the transcript
“know the problem you're solving and who you are solving it for”
“instead of selling a price CU there's always somebody cheaper sell the process”
“put a process in place and just give away the way to fix it and then sell them in implementation”
From the episode
Growing with Grow Mortgage ft. Russell Petty
Russell Petty