How to create a value proposition? Showing your customers what your company can offer is essential to get them involved. Many companies today want to generate value, but do not know what it means. When we speak of a value proposition, we refer to the heart of a business model; it is that vital organ that will give it life and start it up. It is a promise that the company makes to its client in exchange for the purchase of its product.
In this article, we take care of creating a successful value proposition for your company or business, in the best possible way.
What is the value proposition?
The value proposition consists of a resource capable of making your clients choose you over the competence. In other words, it is about the reason why your clients decide to choose your company in place of going to the competition.
Many people have a confusing definition of the value proposition and think that it is simply a description of the characteristics of their products or services.
However, customers are not drawn to the characteristics of the product or service, but rather to the problem that it solves or the solution that it can provide to their needs as a customer.
What should you take into account to create a value proposition?
Take note, because these will be the steps that will pave the way to inspire you in the search for benefits and improvements for your clients:
1. First, you must be very clear about what you offer as a company (products or services). Our advice is that you do not create a product or service according to a need, but look for a way to find a solution to your customers’ problems with your products or services.
2. Speaking of clients, the next step will be to know them perfectly. What is my target audience? What are their problems and needs? What do they demand from the market? If you analyze and understand their concerns, the value proposition will be very easy to develop.
3. Analyze the company. What can we improve in the company? Is the customer service as excellent as it should be? Could you offer a financing facility? Keep your mind open to all the possibilities and get the best out of the company.
What elements are essential to create a successful value proposition?
1. Credible: Since it has to be something that is possible to do.
2. Relevant: The value proposition that is made must stand out for its importance.
3. Different: That is differentiated or distinguished from the other existing business models.
You focus on the jobs, frustrations, and joys that matter most to your customers (unsolved jobs, unresolved frustrations, and unearned joys).
What are the characteristics of a value proposition?
- Is established in great business models.
- Make it difficult to copy.
- Make it blunt.
- Make it attractive.
- It must create value for your customers.
- Keep it simple and understandable.
- That can be fulfilled.
- Make it profitable.
- That generates emotions, feelings, and connections with the client.
What structure should you follow?
We cannot say that the value proposition follows a fixed structure that everyone uses equally. However, we recommend you follow an order that is widely used by companies in general:
the title makes it clear to the client what are the benefits you offer. Stand out, because it will be the first thing they perceive of your company.
in this, you should go a little further. Describe those benefits you were talking about before, who they are aimed at, why do you offer them, etc.
3. Summary of the most important benefits:
Schematically, divided into scripts, write the outstanding benefits that you bring to your customers. Remember: don’t write too many scripts, just focus on what is important, be realistic and concrete.
4. Visual element:
Images, videos, everything that can support the previous elements of the structure.
Tips for developing a good value proposition
As always, we like to help you and provide you with some tricks when it comes to creating your value proposition.
- The value proposition doesn’t have to be long. Don’t get too involved, just try to make it as clear, specific, and concise as possible.
- Try to include something that stands out (eye-catching title or image, eye-catching video). We recommend you inquire into your competition, and how they do it.
- Be humble. Don’t set your customers’ expectations too high.
- Adapt your language to your target audience. Our advice is that you complete the Buyer persona template, and that way you will better understand how they communicate, how they express themselves …
- Don’t seek to offer benefits for everyone. Focus on your target audience. You know what they say, you can’t satisfy everyone. Complement your value proposition with some details like free shipping, free consultation, discounts, customization, etc. Small details make the difference.
Items of value for the consumer
Does your company know what the consumer cares about? The parameters are extensive and have different origins. With each solution to a problem, a person seeks different values, precisely what the proposal must address.
Against what the potential customer is looking for, the content must accurately present how the product or service will help the buyer.
However, a reasonable proposition depends on identifying the most common items of value for the consumer.
These elements are divided into four categories:
- Social impact
- Life change
- Emotional benefit
What are the pillars of a value proposition?
A value proposition has fundamental parameters to perform well when it reaches the consumer. This, in its construction, has actual and conceptual aspects. Each of these aspects should be included in the proposal so that, when it is read, it is clearly understood that these requirements have been duly met. Some of the fundamental aspects are:
The clearer the proposition, the easier it will be to get the message across to the consumer. You must understand the mission of your company when offering a service or product.
When you know who you are talking to, you naturally have to communicate most appropriately, and language directly affects that.
The more appropriate the language, the greater the engagement you will cause. That way, it shows that your company is genuinely native to its segment and understands its audience.
The proposal must be adequate and based on what the company does without further improving its qualities
This frankness and impartiality are elements that favor acceptance and closeness between the consumer and the brand.
You can highlight free shipping, a price below the market, great payment methods, and other precious advantages for the consumer.
5 advantages of defining your value proposition
1. You will know your customers better, and you will know how to address them.
2. You will capture the attention of your potential customers and make them look for you.
3. You will have an advantage over your competitors
4. It will help you know your company better: what you offer, why you offer it, how you offer it, etc.
5. You will be in continuous growth, and you will be more proactive in seeking new benefits and improvements.
Now that you know everything you need to create a successful value proposition, you can increase your customers and guarantee the success of your business in the best way.