Competition in business is getting tighter. The products and services offered by companies are becoming more similar. Customers have more choices in products to use. Companies must convince their customers to use their products or services through unique features and benefits. The right value proposition can help customers’ decision-making when buying products. It can also offer a significant impact on business sales, and as a result, revenue.
The value proposition is a clear statement that introduces a company’s brand to potential customers and convinces them to use their services and products rather than others. A value proposition can be a vital part of a company’s business and marketing strategy. It is also the first thing customers encounter when learning about a company’s brand and a powerful tool to drive sales.
On the other hand, an unclear and ineffective value proposition can turn your potential customers into your competitors’. A clear value proposition is a necessity to communicate your company’s products and services to your customers.
Here are points that you need to know to develop a great value proposition for your product.
- Know your customers
Analyze and identify your target market segment and potential customers to understand their desired benefits.
- Understand your cost and benefit
Identify and assess the benefit that your company can deliver when offering the product and the cost incurred.
- Evaluate competitors
Determine competitor’s strengths and weaknesses and identify ways you can compete with their business.
- Be concise and easy to understand
Your target customer must quickly grasp your value proposition statement, so be efficient and make it not exceed 2-3 sentences.
- Create clear explanation
Explain how your products/services can resolve the target customer’s pain points. You can make an explanation by answering these questions:
– “Why should I buy your products rather than any other competitor?”
– “Why should I choose your services?”
– “Will it give me more value than similar offerings from other competitors?”
- Make it visible to your customers
Make your value proposition appeal and be displayed prominently on all marketing materials (your customer touchpoints). You can find how our clients develop their value proposition for their products and service in other posts in our blog or in our YouTube channel.