What sets your product, service and company apart from your competitors? What value do you provide and how is it different than the alternatives?
Your value proposition is the foundation of your entire business and the offers you take to market. When your market clearly recognizes (and appreciates!) the value you provide, it’s easier to generate new prospects and guide them to buy.
Now … what if you don’t have a clear value proposition? Well, it takes more time and money to show prospects why they should choose you. And as a result, you often end up competing on price – a tough position to sustain over the long term.
So how do you define a value proposition? First, there are three essential types methods for delivering value to your customers:
But don’t just randomly choose a value proposition. Your company’s mission, processes and team need to be completely aligned to deliver on this value – and each value prop means something different for your organization. After all, you can’t just say it … you have to DO it, and that makes it easier to win in the market.
Which of these scenarios best describes your company and offerings?
As a company, you should be able to do one of these three things very well. You can probably tack on a secondary value proposition and do it fairly well. But it’s nearly impossible to do all three.
Once you’ve selected a primary and secondary value proposition, you can narrow in on a more specific benefits in your offerings – for example, a particular TYPE of product leadership or customer intimacy that fills a need in your market in a unique way.
As you’re going through this process, think impartially about the wants and needs of your customers and what your competition offers. You may find an unmet need in the market, or you may realize that you need to find a better way to differentiate from your competitors.
As a result, you may decide to promote a different attribute of your product, or you may find entirely new opportunities to create new products and services. Either way, you’ll strengthen your business in both the short and long term.
And what should you do after you’ve defined your value proposition? Create a brand strategy to support it. You can learn more about branding in these posts. Or here’s a free marketing guidebook that covers competitive positioning, value propositions, branding and other marketing strategies & tactics.
If you have any questions, comments or examples, please share your thoughts in our comments section below.
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