One of the major concerns of many companies is how it can, in fact, show value about its product or service to its customers. This is because, much more than just presenting advantages of a product, the future customer shall feel the value in that solution. This is why it is very important for companies to pay attention to good value propositions, regardless of their size.
In this article, we’re going to talk about that very proposal and how you can demonstrate the value of your solution to customers. Let’s get started!
What is a value proposition?
Value proposition is a marketing concept that determines to what extent a product or service will be relevant to its target audience. Through the value proposition, a company has a chance to outline the advantages and benefits customers stand to gain when doing business with it.
It would, however, be worthy of mention to state here that such value is not going to be objective in all instances.
Therefore, there should be something understood before writing a value proposition about the reasons that someone places value on one product over another.
For instance, why do most people buy Coca-Cola over other soft drinks? What is the perceived value of Coca-Cola that makes it the best-selling brand in the segment?
Therefore, the value proposition is not just about concepts and practical advantages, but often abstract desires are also important for a well-made value proposition. But it is important to remember that, even if subjective, the benefit needs to be clear, concise and transparent.
Next, let’s look at more types of value propositions and how to make them.
What are the types of value proposition?
When we talk about types of value proposition, we are talking more about the practical actions of value proposition than about some theoretical concept.
For this reason, then, the types of value proposition are countless.
But to give a little example:
One restaurant may have the price of its dishes as its value proposition. Another may have exclusivity. A third may have the quality of its dishes and even a Michelin star.
Ultimately, there are countless possibilities that can demonstrate the value of a business. Therefore, it is important to study a lot and even, in some cases, seek specialized advice to know what to do in your business.
But, to help you know where to start, below are some tips on how to make a good value proposition for your customers.
How to make a value proposition in 7 tips?
Now that we understand a little more about value propositions, here are some tips on how to create one:
1 – Know your target audience
Before you can demonstrate your brand’s value to them, you will need to know who they are. This means knowing what social class your audience comes from, what their tastes are, what their age is, what their gender is, etc.
This step is essential for the value proposition to be successful. Imagine that the target audience for your product belongs to classes C and D. Does it make sense for your proposition to be exclusivity? Not much, right? Even though exclusivity attracts everyone’s attention, the C and D audience does not have enough money to pay for something “exclusive”. Therefore, this value proposition would not attract the desired audience. In this case, the ideal would be to apply the value “price”.
The same goes for the other features.
2 – Know your competition
The value proposition is what makes the customer choose your brand over others. Therefore, understanding what your competition offers is essential for your business, especially to differentiate yourself from your competitors.
3 – Determine the benefit of your business
Once you know your audience and your competition, it’s time to actually apply your differentiator and then write your value proposition.
This is when you will define, for example, whether your differentiator will be price, quality, experience, etc.
4 – Develop the structure of the value proposition
The structure of the value proposition is, in general, the same:
- Title : this is where you will define, in a few words, the advantage of your product;
- Subtitle: the subtitle will be where you explain, in three or four lines, what your product is, who it is intended for and what its benefits are;
- Bullet points: Bullet points are a list where you must explain and show more advantages and benefits of your product or service;
- Visual resources: Finally, visual resources will support the proof of these advantages, they should reinforce the messages previously stated.
5 – Use clear and objective language
The customer will not understand the advantage of your product if the value proposition does not clearly indicate the advantages and benefits of doing business with your company. Remember: confusion hinders conversion.
So your client should walk away from a proposal meeting or read an email and be confident that your solution is the best option for them.
6 – Keep your promises
Unfulfilled promises lead to dissatisfaction and negative marketing for your business. Therefore, seek to fulfill all the promises made in the value proposition.
When a company promises something that is not true, it usually looks bad in the eyes of consumers and sales are much lower than expected.
Furthermore, when the promise is fulfilled, the customer becomes a brand advocate and the number of customers for that business only increases due to the “word of mouth” marketing done by customers.
7 – Create a value proposition canvas
To have more clarity on all these points, before sending a value proposition, it is interesting to focus on creating a canvas that will help each employee of the sales team to make valuable presentations and convert even more.