Developing your value proposition is critical to successfully moving forward with your business. By learning how to create a value proposition you will be making a commitment to appeal to your target audience and draw in new customers. These customers will help ensure you are reaching profit goals and seeing the results you desire.
What Is a Value Proposition?
A value proposition is the promise you make to deliver products and services of value to your customers. This promise is what allows you to edge out your competitors by describing what sets you apart and how you will solve a problem the consumer has. A value proposition is much more than a slogan or positioning statement. If your business can live up to your value proposition you will gain the trust of customers and create long-lasting relationships where they’ll view your business as the “go-to” for solutions to their problems.
How to Determine Your Value Proposition
There are a number of questions you need to ask yourself as you create your value proposition.
Start by outlining what it is your business stands for and determine what you do best. From there, create a mission statement that includes your business’ core values. What is it that your business values? Do you strive to create eco-friendly products or will you be known for providing outstanding customer service with every interaction?
Use these steps to help you better develop your value proposition:
Identify customer benefits: Make a list of all of the ways your customers can benefit from your product.
Link benefits to the value offered: Consider the ways in which your products will bring value to the customer.
Differentiate and position yourself: Clearly establish who your target audience is, what you are offering them, and how you stand out compared to your competition.
How to Express Your Value Proposition
Marketing allows you to showcase your value proposition to the consumer. As you create a marketing plan, you must make sure it aligns with what your business has identified as important. There are four key elements involved in creating a successful value proposition.
Make it clear - Don’t use industry jargon or talk over the heads of your audience
Be specific - Tell your customers exactly what they can expect from doing with you
Showcase differences - What makes you better than the competition?
Make it instant - Customers should have to consider your value proposition it should simply make sense.
How Your Value Proposition Attracts Customers
A strong value proposition will tell customers what to expect when engaging with your business. It explains how you products and/or services can solve their problems or improve their situations. By explaining ahead of time what customers will receive, you’re eliminating the uncertainty involved in doing business with someone unfamiliar to them. As described in Writing Value Propositions that Work, telling your customers to “just do it” won’t deliver results. You need to explain why they should do it and why they should be choosing you over the competition. Develop a value proposition that is honest and true to your business, and be sure to follow through on those promises. Misleading your customers with your value proposition is an easy way to lose business and upset customers.
As you move forward, always remember to think about how your value proposition will attract customers. Their presence in your business is critical to your success and the power of the consumer should never be underestimated. For more, explore our Business Design Series.