There is a multitude of opinions on the definition of a value proposition. In this blog, we list the most common ones to help you think about your value proposition.
This value proposition really can’t be done anymore:
"With our excellent service, expertise, good value for money and customer focus, we distinguish ourselves."
What is a value proposition?
- From the (potential) customer’s point of view, the value proposition focuses on the additional value that a product and/or service represents, which properly addresses the customer need and moves the customer to purchase. (
- Good value propositions are about concrete and testable results. Demonstrable success stories make you credible in the eyes of the customer! (
- Putting the (potential) customer first creates added value. (
- A concrete elaboration of the chosen positioning with which you seek to win customers (within the chosen target market and audience) to your offer. (
- A value proposition is a concrete elaboration of the chosen positioning with which you seek to win customers (within the chosen target market and audience) to your offering. (
- From an organizational perspective, the term focuses on the creation of additional value associated with the product and/or service as part of the Unique Selling Propositions (USPs). (
- From the (potential) customer’s point of view, the term focuses on the additional value that a product and/or service represents, properly addressing the customer need and causing the customer to proceed to purchase. (
- The value proposition is the primary reason why a prospect should purchase a product or service from your company. (
- A value proposition names a set of reasons why a customer does business with you. (
So this means that your value proposition must answer the following question:
Key customer question:
“Why is doing business with you better than doing business with someone else or doing nothing at all?
What do we learn from this?
The most important conclusion from this is that the value proposition is determined from the prospect, the customer: What’s in it for me? Prospects are interested not in who you are and what you do but in the results that can be achieved when doing business with your company, or in other words, the value your proposition provides them such as revenue growth, cost savings, increased safety, process improvement, increased efficiency and reduced employee turnover. The values you provide them can be divided into three categories.
Want to know more?
The 3 types of value propositions
- Economic value: the product/service provides financial benefit, is energy-saving, time-saving or innovative.
- The functional value: the product/service provides convenience, is problem-solving, is better, easier, more comprehensive etc. than other products/services.
- The emotional value: the product/service is enjoyable or attractive. The customer is attached to the product/service from nostalgia, lore or advice from others OR the customer values the status that the product/service confers. This status can be focused on social responsibility or derived from a brand.
How does that work in practice?
Customer Factory starts every campaign by defining your value proposition. We’ll ask you the shirt off your back. You often know what your company is good at; we translate that into added value for your customer.
In addition, we look at the competition. Do they use a value proposition? What do they think they can distinguish themselves with? Do they distinguish themselves at all?
We also look for market/industry data and, if possible, forecasts in this area. Because they too can play a role in determining the value proposition.
After this blog, are you curious about our value proposition: We increase your revenue or reduce your costs. A good conversation about your value proposition is a good start for that.