What is a value proposition? It is usually a statement that describes what your company, product or service will bring to your clients. It should convince a potential customer that the product or service will add more value or solve problems better than other company, product or service.
Value proposition is not a business model. It is not a product specification. It is a core element of how your product or service differentiates itself from many others.
To develop a powerful value proposition, you should put yourself in your customer shoes and ask: "Why would I buy this product from you?"
A good, strong, powerful value proposition says to your targeted audience: This is the right product for you and you should buy it because "XYZ", "TUV"...
No matter how big or small your company is, first element of successful marketing strategy is developing value proposition. This is your core element. This is what you will include in all communication with clients.
7 Elements of a strong value proposition
Value proposition should create interest, so your prospects can ask questions or want to learn more about your company, product or service. It opens the door to successful conversion of your leads
Differentiates from competition
Immediately tells how you are different than your competition. This can be price, quality, service, technology...
By making the conversion of leads smooth, Value Proposition increases sales in quantity and quality
Increases market share
With carefully chosen targeted audience, strong Value Proposition increases your market share
Fullfils customer needs
Creates a framework for knowing your customers and better serves their needs
Focuses on customer
Customer is the key element of the strategy, not the product or the process
Immediately tells the numbers which impress people. They can be number of clients, increased speed of service...
4 types of a strong value proposition
This works only if the quality is top. If the quality of your product/process/materials fails to meet customer expectations, rethink your value proposition type. Examples: Zappos (service), Apple (iPhone)
Best bang for the buck
With this type you are saying: we are not the best quality, nor the cheapest, but you will get the best value for money. Examples: Dell, Ikea, Toyota.
If the product is scarce, you can easily go for this Value Proposition type. Eventually, you can create scarcity by putting only limited amounts of product. Examples: Rolex, BMW
This type is one of the most interesting Value Proposition types. In SEO, tools like SEOMoz or MajesticSEO or SEMRush are must-haves. Without them, you could not do your work. Facebook is also one example. It is a must-have if you want to connect to your friends :)
Modelling your Value Proposition
- Customer experience
- Alternatives and differentiation
5 steps how to create your value proposition?
- See what your company product does
- Consult your customers
- Write it down
- Rewrite it with less words
Share your own thoughts and your own value propositions. Thanks!
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