Table of Contents
- What Is A Value Proposition?
- How to Be Unique And Competitive
- Less Risks
- Qualities of A Great Value Proposition
- Core Benefit
- How To Create A Value Proposition
- What Is Your Target Audience?
- Who Is Your Competition?
- What Problems Do You Solve For Your Customers?
- How Do You Do It?
- What Is Your Mission And Philosophy?
You are a restless mind and a business idea has been around for a long time. You have finally decided to try it out. The bad thing here is that after a quick look online, you have just discovered that this idea is unheard of and you would have to convince people to even pause and take a look.
Or maybe it is not an entirely new idea, after all. Maybe there are a bunch of other competitors vying for this market. Now, amid the noise, you have a to convince potential clients and customers that you have something unique and they have to listen to you.
Therein lies the importance of a well-crafted value proposition.
What Is A Value Proposition?
A value proposition is a statement that a company uses to explain the way in which its products and services meet the needs of and provide value to customers in a way that the products and services of the competition cannot.
Hubspot calls it the unique identifier. It is what makes people choose you over the competition. Without it, there is nothing that sets you apart from the noise and there is no reason for prospects to even pay any attention to you. In summary, it is a credible argument for potential customers to opt for your option and not for the competition.
How to Be Unique And Competitive
Having a solid value proposition is about effectively expressing how you are different. Here are several factors that can help a business stand out among the competition:
This is one of the most important factors that can set a business apart. There is a large audience that is very susceptible to this factor. If you can provide the same value the competition provides, but at a lower price, you will easily win many customers.
Something new is always better. Humans are generally interested in the newest shiny thing. If you generate new products for needs that consumers were not fully aware of, that may be your ticket to massive success. A good example is a smartphone. Sometimes, you don’t even need a new product. A new feature would do just fine. 5G is a good example of this.
This really goes without saying. There are few people who prefer to invest a little more if they know that what they buy is a product of superior quality than the competition. If you take it further by delivering greater quality for a price similar to the competition, this is even better.
This is more effective for products and services with a high price point. The emphasis is placed on the guarantee to avoid risks when purchasing the product or service. When clients know they can try out your products or services with practically no risk to them, this is a big deal, especially when the competition shies away from this approach.
In a world of cookie-cutter products and services with little room for customization, the customized products and services adapted to each client could be what sets you apart from the rest, especially in products and services that are sold online. Everyone wants their unique itch scratched right.
Qualities of A Great Value Proposition
So, we know what a value proposition is and some of the ways you can be unique and competitive. However, communicating this and expressing it in a value proposition requires a different set of skills.
First, you must know what separates a great value proposition from a mediocre one. Venture Harbour captures these beautifully and here they are:
Since it is the value proposition, it only makes sense that whatever you are proposing is valuable to your target market. If you don’t get this part, the other qualities won’t matter at all. Your target wants to know immediately what they are getting from your service.
It is easy to fall into the trap of talking about the 10 things your product or service accomplishes. However, there is a chance that it will be all over the place and you would lose their interest fast. Instead, go big on the main and most unique benefit first. You can always talk about the others after you already have their attention.
Make sure you can break the complexity of the value of your product or service delivery in a simple way that is clear and concise enough for your target audience to get at once. They must understand what you are saying for them to be intrigued.
We already discussed this, but it is worth reiterating. Your core value needs to set your product or service apart from the competition. If there is nothing that makes you stand out, you are just one of many. You can go through the previous section again on how to be unique.
Your target audience already has a problem frustrating them. Try solving that in your value proposition. Instead of talking about some problems that aren’t so nagging or problems they didn’t even have yet, focus on the one driving them bonkers. This life-changing solution is easy to relate to and it’ll catch their attention immediately.
How To Create A Value Proposition
Now that you know what you are aiming for with your value proposition, you can ask yourself a series of questions that will definitely give you the answer to elaborate the proposal and create something spectacular. BPlans highlights some of these questions:
What Is Your Target Audience?
You must identify the clients and potential clients, make a quantitative and qualitative description of them. We should find out as much as possible about them to ensure the effectiveness of the messages you want to send them.
For example, different demographics respond to words, languages, and tones differently. You must know how your target audience thinks to be able to connect with them on a deeper level.
Who Is Your Competition?
This is a fundamental question. The study of competition is key to being able to differentiate your own offer from that of your rivals. When you study your competitors, you note their mode of operations, their strength, and their weaknesses. This would give you the necessary information to beat them.
What Problems Do You Solve For Your Customers?
When you know your customers, you will know their needs and be clear on how your product or service solves their problems or needs. In fact, knowing their problems may guide you on how to be unique in the first place.
How Do You Do It?
Now that you have decided on the problem, make sure you are clear on how you can help alleviate it. The way to solve these problems can also be crucial when a customer decides on one product or another. This is because it is an effective way to display expertise and show that you know what you are doing.
What Is Your Mission And Philosophy?
Be clear on your mission and how it fits right into what your product or service does. The company’s values are transferred to its products and services and can generate customer identification with them. It is interesting how everything is connected.
Now, you know how to create your own knockout value proposition. It is time to get your pen and jot it out and craft what will set your products apart and keep your business at the top.