Build a Captivating Value Proposition in 7 Comprehensive Steps

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Build a Captivating Value Proposition in 7 Comprehensive Steps

customer value proposition

 

Starting a business is never easy. There are so many things you have to do to ensure you succeed. Even if you do everything right, there is always probably something that you have forgotten about. One of the most important aspects of your business that you must do before you even open your doors is creating a value proposition. A value proposition will be useful in your marketing and branding. It is an essential part of identifying your business, so customers know who you are and what you are offering. There are many ways to define this term, but the easiest is that it explains why you are in business and what you have to offer that your competitors do not. Essentially, as the name suggests, it is your validation of the value you provide to your customer.

 

Why It Is Important

 

connection of customer and value proposition

 

Seeing that the value proposition communicates a lot to your customers and could be the very thing that makes them buy, it is very important to develop it and make it a part of your business message from the beginning. You have to be able to communicate to customers why they should buy from you and not someone else. You have to be able to explain your value.
There is so much competition out there in every single area of the market that it does not matter what you are selling, consumers can get it somewhere else. You cannot rely on having a unique product. Even if your competition sells an inferior product or sells something that is similar but not exactly like yours, you will always have consumers who don’t care about the details. They are looking for the best value.
You may think that consumers prefer price above everything else, but that actually is not true. While price is important, consumers actually care more that they are getting a good deal on a good product. They know the mistake of buying a cheap product. While that may be fine with certain products, for the majority of things on the market, quality is important, too. That is why you have to offer and communicate the value of whatever you are selling, whether it is a product or a service. Essentially, you have to give them a compelling reason why they should buy from you.

How to Form a Value Proposition

word cloud of customer value proposition

When you first start trying to form your value proposition, you need to start by understanding its components. It will be a clear statement that includes the following:

  • An explanation of what you are selling
  • majority of things on the market
  • What the benefits are to using your product or service
  • Why the consumer should buy from you

Keep in mind that a value proposition is different from a slogan or a sales statement. It is factual. It is direct, and it uses plain language instead of fancy jargon.

 

There are a few parts to the value proposition. Here’s a look at them:

  • Headline
  • Explanation
  • Bullet list

The headline is a very short statement of what you offer. The explanation expands on things and provides information about what you do, who your target market is and why they need this product or service. It should be only two or three sentences long. The bullet list should contain the three most important benefits or features of your product or service.

 

7 Steps to Writing a Value Proposition

mind map flowchart business concept for presentations and reports regarding value proposition

Now that you know what a value proposition is and what it entails, you need to learn how to write one. This process will require a lot of brainstorming and reflection. If you know your business and its customers well, then it should actually be an easy process. Having a well-defined idea of what you are offering and to whom you are offering it is what is at the heart of the value proposition. So, here are the steps you can take to write your own.

Step 1: Identify the benefits of what you’re selling.

You need to brainstorm on this one. Think about your product and service. Consider what it offers to consumers, how it works, how it is used and why people buy it. Make a list of everything you can think of. You can narrow it down and revise it later. Right now, just brainstorm.

Step 2: Identify your customers.

You should probably already know who your target market is if you have written your business plan, but it never hurts to revisit this. Think about who is most likely to use your products. Write down all the identifying information you can, such as gender, age, income and family size. You want to try to be as detailed as you can because this is very important when targeting your value proposition. It also will help you to ensure that you use the correct language in your value proposition. Communicating on your customers’ level and in words they would use is essential to getting your message across.

Step 3: Define descriptive terms to use for your product or service.

Now, move on to brainstorming terms that help describe your product or service. Grab a thesaurus and get to work. Try to come up with an array of terms. Use some that are common and add in some that are uncommon. Remember, you can whittle down the list if you need to later. Just be creative and write down anything that comes to mind.

Step 4: Define the problem your product or service solves.

In order to sell anything, it needs to fix a problem for your customers. The problem does not have to be anything too drastic. It can be something very simple, but there is a problem out there that your product solves. You have to be able to define that in succinct terms.

Step 5: Explain why yours is the only company that can solve the problem.

This step can be challenging. Perhaps you have a product that has a lot of competition and all those other products work just as well as yours. It can be tough to explain why yours is the best. However, in order to make a sale, you have to convince the customer that your product or service is the only one that can help them. Take a lot of time on this step. Do not just cop out with something simple. Even if you do not have competition right now, it is likely that you will in the future, so you need to have something to combat them.

Step 6: Write the value proposition.

Now you can actually write your value proposition based on the information you came up within the previous five steps. Refer back to the information on what is in a value proposition, so you are sure to include everything you need. Also, make sure to follow the general format given above, so you have all the necessary parts.

Step 7: Evaluate your value proposition.

Take time now to read over what you have written. Make sure that you can easily identify what you are selling, its benefits, your target market and what makes your product or service unique.

 

Here’s A Video of How to write a value proposition? Defining 6 core elements of Value Propositions

 

 

An Example

Following the steps above should help you to write a solid value proposition that will communicate your message clearly, but it always is helpful to see those steps in action. The following is an example of how each step is done using a fictitious company. Before going through the steps, here is an overview of the company and its product:
The company is called Tuck Away Purses. It sells purses that have a secret compartment that performs a specific function. The base product from the company is a purse that charges a cell phone on the go. It uses state-of-the-art technology to ensure the bag can charge any phone, requires no batteries ever and can charge a phone completely in one hour. The purses are created by contracting with well-known designers and come in a range of styles and sizes. This purse design is called the Power Up Purse, but each purse is sold under the designer’s label.

 

Step 1: Identify the benefits of what you’re selling.

 

The benefits of the Power Up Purse include:

  • Ability to charge any phone with wireless charging capabilities
  • Stylish design
  • No batteries required
  • Fast charging
  • Functional
  • Convenient

Step 2: Identify your customers.

The customers who would buy the Power Up Purse are women in their 30s and 40s who have busy lives. They likely work in high-demand jobs and are always on the go. Some may be mothers with multiple children who are school-aged and involved in various activities, so they are always driving here and there. They want a purse that is stylish yet also functional and will have enough room for everything they want to carry around. These women will generally have an annual household income of $100,000 or more and have no issue spending $500 or more on a purse. They often seek out handbags from top brand-name designers.

 

Step 3: Define descriptive terms to use for your product or service.

Descriptive terms for this purse would include:

  • Stylish
  • State-of-the-art
  • Fast charge
  • Designer
  • Organized
  • Versatile
  • No batteries required

Step 4: Define the problem your product or service solves.

The main problem this purse is designed to solve is helping women keep their phone batteries charged even when on the go. It also will help to cut down on the number of cords they have to carry with them or in their vehicle.

 

Step 5: Explain why you are the only company that can solve the problem.

We are the only company offering this type of product. Other products do not offer the wireless charging option, the designer names, the compatibility with most popular phone models and no batteries required to keep the charger working. We offer a completely unique and patented option that nobody else can offer.

 

Step 6: Write the value proposition.

A stylish designer handbag that charges any phone fast on the go.
The Power Up Purse provides you with a way to charge your phone anywhere. It is compatible with a wide range of phone models and comes in many different styles from top-named designers. No batteries or charging is needed for the patented unit as it is always ready to charge your phone in an hour or less.

  • Designer styles
  • Fast charging
  • Convenient

Step 7: Evaluate your value proposition.

Let’s look over the value proposition from step six to make sure it has all the important information.
Does it identify what the company is selling? Yes
Does it explain the benefits? Yes
Does it address the target market? Yes
Does it show how the product is unique? Yes

This is a winning value proposition that the company can use to help when marketing and selling the Power Up Purse. It enables consumers to know exactly what they are getting and what features or benefits this product offers over similar options.

 

Additional Tips

 

As you working on the seven steps, make sure that you’re being open and honest. Do not censor yourself. Let the ideas flow. Even if you have some things come up that you are not happy with, just write them down. It will help you as you finish up and begin writing. It’s always good to know about weaknesses or negative words that could be associated with your product or service so you can combat those from the start. Use these negative things to spin them into positive and block objections before consumers can make them.
You also want to make sure that you’re not just using tired phrases and words. You don’t want to pitch your product to the customer. Avoid sales language. This is not a sales pitch. You want it to be informative. It needs to speak directly to your customers. You want to convey to them in a straightforward manner why they should buy your product or service.

In addition, make sure you get some help. You don’t have to write this alone, and it can actually help to make it a group effort. Getting the opinions of others on your team or even family who has been helping you can be very valuable. Everyone has different viewpoints, and those can help to make your value proposition more well-rounded.
Finally, revisit your value proposition often. As your company changes, grows and matures, your ideas and goals may change. You always want a value proposition that represents your company as it is right now.

 

Here’s A Video on How To Create A Killer Customer Value Proposition

 

How to Use Your Value Proposition

 

Now that you know how to write your value proposition, you may wonder how to use it. The best way to use it is to get it out there in any way you can to your target market. You should put it on your website and use it in marketing materials. You took all this time to create it, so make sure that you put it to good use. It is a conversational, straightforward, non-sales approach that customers will really value. Don’t hide it. Use aspects of it throughout your marketing materials to communicate important messages about what you sell, who you are, who you are selling to and why they need to buy this product or service from you.

You don’t have to use it word for word, but at least refer to it and use it as the basis for every marketing piece you put out there, from commercials to social media posts. Falling back on this can enable you to ensure your message is consistent. Consumers really like it when companies provide a consistent message and broadcast a brand.
Speaking of brands, make sure to incorporate your value proposition in your branding. It can be a great jumping off point for the creation of your brand image, which is why you should try to create your value proposition early on in your business.
Go a step further and use your value proposition in your employee training and in every aspect of your business. Incorporate it in all written materials and use it as a sort of guide to how you conduct your business and sell your product or service.

 

Here’s A Video About Strategyzer’s Value Proposition Canvas Explained

 

 

Final Thoughts

If you have never considered creating a value proposition for your business before, then you should now have a very good idea why you need one. It is a valuable tool that can help you to connect better with your customers and make a bigger impact. Even if you face no competition in your industry, having a value proposition can make a huge difference. It helps you to grab the attention of a buyer and let him or her know why your product and your company can offer the only solution to their problem.
A value proposition is a powerful tool. Make sure that you take time to create yours, and then make sure that you use it effectively and to its greatest potential. In the end, your business will be better off for having a focused, value-centric tool that helps define the essential information about it which you can present to your customers to gain loyalty and trust.

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