A value proposition is a statement which addresses the relevancy of your product (i.e. how it improves consumer needs and resolves problems), delivers specific benefits, and differentiates from the competition by communicating why the customer should buy from you and not a competitor.
In a nutshell, the value proposition indicates why customers should buy a product or service from you, and it showcases a value which is communicated to prospective buyers. When you create a value proposition, it serves four main purposes:
Defining the target audience
Communicating benefits to prospects
A value proposition should resonate with the consumer, differentiate, and substantiate in order to influence the purchasing decision. To create an effective one, you should start off by brainstorming the individual needs of your target demographic group, especially the needs that your demographic have in common. Market research is a great place to begin, since this can help determine exactly what your business can provide, and why your service is important. Once you’ve established a common denominator, you can develop your value proposition around that, with an enhanced understanding of how you can satisfy a specific need among your target market.
A powerful value proposition will get your attention in ways that intrigue you to learn more, thus satisfying its very purpose. Here is a classic example of a top quality value proposition from a sales firm:
‘Our clients grow their business, large or small, typically by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.’
What makes this proposition so powerful is the way it gets your attention, while intriguing you to find out more. It potentially creates a strong differential, increases the quality of leads, attracts the right people, helps gain a market share, and improves operational efficiency. This is a great example to learn from, and though significant thought and effort is required, establishing a beneficial value proposition will reap pecuniary rewards, so it should be given careful consideration.
To help you even further, let’s break down the value proposition into individual elements that should be addressed:
Define: Identify the problem that your product or service solves.
Differentiate: What sets you aside from the competition (price, skill, etc.)
Solve: Who are you solving the problem for?
One of the biggest things to avoid with your value proposition is the creation of a statement which is too vague or confusing. It is important to test your proposition, where there is a likelihood that if you can get it down to ten words or less, you are well en route to making it work. Remember to focus on relevance, on an external level, since creating a proposition that speaks to your target market is essential. Though promoting a compelling message sells, it has to be believable and credible, and your statement should be defendable under questioning.
Creating a clear value proposition is no easy task, but hopefully this article has provided
to inspire you. Remember to take a flexible approach to proceedings, since your proposition should be capable of growing as your business evolves, as opposed to putting a barrier in front of business expansion. Prospects should also be able to connect emotionally with your statement, so that it resonates and leaves a memorable impression that isn’t forgotten.
I hope you have found this article informative, and be certain to comment below if you’d like to kickstart the discussion.