Written by Sean McPheat |
Our value proposition is the reason why customers choose one company over another.
Something has to eliminate a customer’s pain or deal with one or more areas of gain before they decide to go for that solution.
Your value proposition, therefore, should clearly show how your solution creates better results than any of the competitors.
These are the questions you should be asking to ascertain how you offer more to customers than anyone else:
Your proposition creates value through a distinct mix of elements that cater to that particular segment’s needs.
Each value could be either quantitative in nature, like speed of service or pricing structures, or qualitative, like the design or the overall customer experience.
So, what has to be included in your proposition to create value in the customer’s eyes?
Here’s just a selection:
Something in your offering satisfies a need the customer didn’t perceive before because there wasn’t anything like it around.
It could be technologically-related, but not necessarily so.
For example, if your new product helps an accountancy to balance the books quicker and easier, it is seen as valuable because of its innovative nature
Improving product or service performance is a normal way to offer increased value.
However, it has to be seen as something the customer really wants in order to prove beneficial to the market place.
More power doesn’t necessarily mean greater sales.
A car that can do 200 mph isn’t that useful in a country like Norway where you can’t go over 55 mph!
This is where products and services are tailored to the specific needs of clients, and they work well if the economies of scale can be kept to reasonable and manageable levels.
In various segments, this is key to building value in the eyes of customers.
Where the look or aesthetics of a product plays a part, your design proposition may add value in the buyers’ eyes.
Brand & Status
Using or displaying a certain brand may play a big part in the value creation of certain product propositions.
If your brand is one that people aspire to, you may see the value rise in their eyes.
For many businesses this would be one of the most telling value propositions, and can in many respects outdo lower-price options.
If you can show the value of your offering by how much money it saves the client, you add value in the medium and long-term.
This may also be a key decision-making proposition for some.
By offering guarantees or warranties, it reduces the risk in the customer’s mind of something going wrong.
Convenience & Accessibility
Think of how Apple with their iPod and iTunes have revolutionised the simplicity and convenience of searching for, downloading, buying and listening to digital music.
People like to have access to products and services, and anything that makes their lives easier, quicker or more adaptable is going to be a hit with them.
Offering a great value proposition always revolves around finding what is most vital for customers.
If you can develop your proposition around their needs and wants, you stand a greater chance of showing how your solution is the best one for that particular market segment.
Originally published: 18 October, 2016