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What is the value proposition?

It is a statement of all the benefits that the company provides to its customers through its products or services. Therefore, it is understood that once the customer buys or acquires one of these products or services, they will begin to enjoy the benefits automatically. In other words, the value proposition is the way in which your products or services benefit your customers. These benefits can be flexibility, efficiency, speed, style, among others.

“A business is a value delivery system”

Michael Lanning and Edward Michaels

Why is the value proposition important?

It can provide your business a great advantage over your competitors; however, it is a fact that 64% of business have establish value propositions, but only 2.2% of comapanies have useful value propositions.

The problem may be that the company is not offering the real value that their customers need or the company is not being clear in its message, about the product or service it offers and its benefits. According to Ayat Shukairy, The value proposition helps you as a company to project a more accurate marketing and increase your sales.

It is important that companies stay updated on the changes that have direct effects on their customers, since these effects can change their purchase style and priorities. Events such as climate change and rapid technological advance are effects that are having an important impact on the consumer behavior. If the customer’s purchase behavior changes, then the value proposition should also. Procure to be ahead in the market and innovate before your competitors.

Which are the benefits of having a value proposition in your brand?

• Your customers can have a better understanding of what is your brand offering.
• It creates a clear differentiation between your brand and your competitors.
• It attracts the precise customers, those who are aligned to which your brand offers and are available to invest in your products or services.
• It makes your message more clear.

How to create a good value proposition?

• Identify your target customer: It is important to know more closely the profile of your potential client, such as what their interests are, what their needs are, what challenges they face, what their values or beliefs are, among others.
• Identify the benefits and value that your product or service brings to your customers: Identify the advantages of your product or service. For example: Speed, flexibility, style, efficiency, among others. It is important to be honest in this regard, because, if your customers do not feel the benefits offered, they will not trust on your brand again.
• Analyze what makes you different from your competitors: For this it may be necessary to do a little research on who your competitors are and what they do.

How to convey your value proposition?

• A title, this should describe the benefit that your business offers to the customer.
• A subtitle, this explains what your business offers, to whom and why.
• Three bullet points, this lists the benefits and/or characteristics of your product or service.
• Visual element, show a video or image that improves that purpose of your message.

Examples of value propositions:

Conclusion:

As statistics say, there are many companies that have a value proposition; however, in most cases this proposal is not clear to the client’s view or understanding. The value proposition is a powerful tool to attract customers, but only if it is clear. In summary, your value proposition will be successful if: it is short, it solves a problem or covers a need of your client and if it makes you different from your competitors.