Value proposition: what it is and how to do it
If you are looking for your business, company or service to stand out from the competition; Creating a value proposition proposition, and integrating it into your marketing strategy, could be an advantage to stand out and achieve your goals.
By creating a value proposition you will be making a declaration of intent. In other words, with this you will be telling your customers why they should choose you instead of the competition.
What is a value proposition and what is it for?
A value proposition seeks to show, in summary, the benefits or tangible results that customers can expect when they use your products or services. It focuses primarily on the features that help a business, product or company stand out from the crowd and the unique value you provide.
It should be noted that a value proposition is not a slogan or a statement of your mission or vision . The value proposition must appeal to the desire to help your customers and explain the reasons why your products or services are the best option.
Why is it important to have a value proposition?
On many occasions, some companies use the value proposition as an internal resource to align their marketing objectives and efforts. Others still see it as a customer-oriented document, where they highlight the unique characteristics of their offer. However you use it, a clear and compelling value proposition can benefit your business.
This is possible, since the value proposition provides a better understanding of your customers and how your services and products meet their needs . It also helps highlight important features that set you apart from other solutions on the market.
A value proposition can:
- Support your sales and marketing efforts.
- Guarantee the coherence and clarity of your brand messages.
- It would help you attract relevant leads.
- It will improve engagement with your customers.
How to make a value proposition?
As we mentioned at the beginning of this article, a perfectly landed value proposition adapted to your services or products can become a great success factor for your company. However, creating a powerful value proposition is a challenging task.
Here are some tips that will help you create an effective value proposition.
Before getting down to work, it is important that you keep in mind some questions that could serve as a basis for better developing your value proposition.
- What does my brand offer?
- For what job does the client hire my brand?
- What companies and products compete with my brand to do this job for the customer?
- What differentiates my brand from the competitors?
Steps to create a value proposition
- Know your customers
Before creating your value proposition, you must analyze the market and potential customers. Identify your target customers and target market segment to better understand the benefits you want.
- Understand your costs and benefits
Identify and evaluate the benefits delivered by your company, products or services, along with the costs to use them. It's important to do this because the value to your customers is essentially the difference between the benefits and costs of your product or service.
- Don't forget about your competitors
After analyzing your target customers and your own company, assess the competitive landscape in the marketplace. Determine the strengths and weaknesses of your main competitors and identify the ways in which you can differentiate your business from them.
- Be clear and concise
Do not forget that a value proposition must be clear and concise. Your target customers must quickly grasp the message you want to convey. You should not exceed two or three sentences.
- Analyze and choose a good design
Make your proposal visible and attractive in all marketing materials, for example your website. Remember that if you have created a powerful value proposition, but no one can see it, it will not do you much good.
Finally, it is important to highlight that the development of a value proposition is a vital part of a company's business strategy. Since the proposal provides the company with a method to influence the decision making of its customers.
In addition, a perfect and compelling value proposition can improve the effectiveness of the company's marketing strategies. It is generally considered the most effective and far-reaching marketing activity.
Without a doubt, a strong value proposition can be the difference between closing a sale and losing a customer to your competition. If you can't show value to your customers, why should they value your offer or choose you?