What is Value Proposition?
Value proposition is the statement that a company uses to convey why a consumer should buy a product or a service. In brief, value proposition can be summarized in three bullet points, such as:
Applicability – It should give reasonable explanation, how it resolves the pain points of customers and makes their situation better.
Calculated value – It must deliver measurable benefits.
Uniqueness – It must convey how you are different from the rest of competitors and why customers should choose you.
Your value proposition must be easy to understand.
Also, don’t mistake value proposition to be catchphrase/slogan, an incentive or a positioning statement. They all might look a bit similar but serve totally different purpose.
Why is it so important?
Having a strong value proposition sets you apart from your competition which results in attracting right prospects and will generate quality leads instead of quantity leads.
It will also improve customer understanding and engagement. They will immediately understand what your company has to offer.
This will eventually help you to build your unique identity in market.
What you should consider before creating your value proposition?
Your product/service offering - You must make sure to address your customer pain points in your product and service effectively and not only this, but it should also be worded in a way it is always visible to your customers. Include specific facts, numbers or ratings from an authentic agency.
Target audience - To create an effective and strong value proposition it is essential that you put your customer's needs first. And to do so you must know who they are, what are their demographics, lifestyle, what they are looking for and what challenges they are facing.
USPs - You can differentiate yourself from your competitors only when you have a unique selling point for your product/service. And doing an in-depth competitor analysis can help you find what you ARE doing different or CAN do different.
Bottom line is making sure that your value proposition resonates well with your customers and that you are able to deliver on it!
Some great examples.
Apple – Its value proposition is its aesthetics, as the company focuses on the experience of using an iPhone.
Amazon - A company like Amazon has multiple value propositions, as it serves several target customers in different markets. They range from “Easy to read on the go” for a device like Kindle, to “Sell better, sell more” to its marketplace.
Zoom – Zoom conveys the customer pain points and why they should choose it, right on their homepage. It also shows the proof about their no.1 quality rated by Gartner.
Uber - Uber expertly highlights horrible experience about taking a traditional taxi and points out how its service is superior.