A notable value proposition is important for any business to aptly communicate to the potential customers and existing customers the differentiating value of their products and services.
Having a unique customer value proposition is important because it provides answer to an important question which is “why should your customer buy from you?” Also, it helps in establishing a brand value that can tempt your potential customer to choose your company /your products over competitors.
However it is observed that businesses grossly underestimate the importance of developing a strong customer value proposition and hence fail to provide a most convincing, tempting and reliable reason for customer to buy their products.
So what exactly is a customer value proposition?
It is a clear account of substantial business value that your customers will receive after using your services or products.
So how do you figure out which value proposition would you need? It needs to be taken into account that every value proposition has 3 components
- The idea should have a business perspective
- It should convey a strong message
- It should be measurable. STATISTICS can help you get a clearer picture that how your clients increased their sales.
Some examples of companies who have a unique customer value proposition are-
Nike: It is one of the most successful global brands in the market today. The first reason is obvious because of the consistent quality of the products and the distribution system.
Your value proposition is the cost v/s benefit equation which shows your prospect’s equation.
Some facts of value proposition
- It is one of the most important factors of conversion.
- Most of the time companies do nothing to up their value proposition.
- A weak value proposition can kill the conversion and weaken the sales.
A value proposition is NOT a
- Retargeting platform
How to create a unique value proposition?
When a prospective customer asks you that why he should buy a particular product from you, your unique value proposition must provide a precise answer. In creating a good value proposition the strategy is to know your products and service well and also do a reality check of your competitors and most importantly you should look through the perspective of your customers to get a clearer picture.
So how to go about it? We have created some set of questions for you to answer.
- What are the requirements of the customer?
- What problems does the customer need to solve?
- What does the customer value?
Market research is of utmost importance while deciding your unique value proposition. Do not get into a guessing game. A survey or simply asking the customers is the best bet.
- Know your service or product
From the customer’s viewpoint-
- What hard results or services
- How can you further improve the product?
The trick here is to mention the numbers and include the percentages.
- Know your competitors
Knowing your customers is important, knowing your competitors even more!
Having a clear understanding about your competitors will be easier for you to know about your products and whether anything needs to be improved upon. It is very important to know about your competitors, their weaknesses and strength and develop a unique value proposition.
- Find a new angle
Do what the other’s do but with a different angle. For e.g.- your competitors are focusing on serving one single product available with them, but you can focus on providing best services and consulting to help your customer derive better value from your product.
- Highlight the personality of your brand
Focus on the core values which are the foundations of your business and which form the basis of the business strategy. Your ideal clients like you for the uniqueness of your values and for who you are. If you build a genuine relationship with your client they will be your loyal customers.
- Know your target audience
Do you need to do a check on who your customers are? Who will buy your product or your service? Do a thorough research. How old is your target audience? You cannot create a unique value proposition by keeping a narrow outlook. You need to have a holistic view of everything.
What makes a good value proposition?
- The proposition is easy to understand.
- It communicates the accurate results which the prospective customer will get.
- It can be read and understood quickly.
Some final thoughts
Creating a good value proposition will take time however it will be worth it and beneficial for you in the long run. However, there are some things which you need to take into consideration when not creating a good value proposition.
- Don’t try to go according to everyone’s needs. Customer segmentation hence plays a pivotal role here. You want a well-defined target audience. And it’s very obvious that you cannot include everyone. Brands which target everyone, connect to no one.
- Make a connection
It is very important to build a connection with your audience which pushes them to act and buy your product. However it is not about bombarding them with so many messages that your prospective audience will lose interest altogether. It is about smart marketing. Create a compelling message, which will connect smartly with your audience not only with the mind but also through the heart.
A good value proposition is the heart and soul of any business or product. It should be cleverly defined executed and with strategic orientation.