Value Proposition and Design Enhancement. There are several instances where as company you’ve been called to develop and communicate a value proposition. Often for your product s, services, brands, and if you have done it right you’ve ensure it didn’t stop there.
In layman terms, value proposition is that promise that enunciates the reason a client should buy a product or service from you. However, as any experienced salesperson will tell you, it is not as simple as it seems.
The moment a business takes a “build the system, and clients will come approach” there’s every chance the product or service will fail.
In fact, there are 3 major concepts you must carefully consider before you can develop an effective value proposition. This is irrespective of the service or product, B2C or B2B context or organization type.
1. Make it Relevant
There is an important question you need to ask yourself which is – “How well do you know your customer?” Most management teams believe they do.
However, after careful consideration, they realize they treat almost all their clients the same way. Often, the company’s offering, pricing structure and support are the same for all customers.
To develop a strong customer target, you need to:
- Understand and why a client makes decisions – why they save money, make money or any other reason.
- Understand the decision-making process for different customers. Whether it is based on geography, size, customer segment, or other factors.
The moment you have a clear understanding of your customer base, you can proceed to ask relevant questions like:
Does the offer help the customer to save more money, make money or enjoy a certain benefit? If the answer to this question is no, you have to review either your customer or your offer. You offer may be akin to selling
To make sure your offer is highly relevant, you need to create a QVP (Quantified Value Proposition). This directly connects your service or product with a specific business goal that a client deems important. Most B2B buyers will take note of it in most cases.
2. Make it Exceptional
The importance of uniqueness is imperative, especially in a world with too many product offerings. Uniqueness has several elements because it pertains to the needs of a customer.
For starters, take note of your competition as it’s important to always keep track of them – especially traditional ones. Be on the lookout for start-ups that may compete with your business.
After exploring your competition, think of how your offering is better and different to your target audience.
Is your offering superior technically, readily available, cheaper, faster or easier to use? While you’re exploring your uniqueness, you’ll discover ways to close gaps found in deficient areas.
Once again, with value proposition, you can bring your uniqueness further by emphasizing on metrics that are exclusive to a particular customer. You can use the customer’s vendor or any competitive data as benchmarks to measure your product or service.
3. Make it Credible
Uniqueness relates to your competition while relevance talks about your customer. However, credibility is completely about you and your perception in the eyes of your client. To be credible, you need to know the specifics of your offering and if they make sense. You also need to know to prove to your clients that you will deliver on your promises.
You need to determine the credibility of your offering, and this requires in-depth research. With value proposition and design enhancement, you can demonstrate unique value and strong relevance for a particular customer.
Value propositions are based on well researched value algorithms, solid figures and metrics given by the clients themselves.
If you want more information on how to communicate and develop your value proposition, don’t hesitate to reach out to us.