Value Propositions: what they are and how to create a strong one

Introduction

You’ve probably heard the term “value proposition” before (and maybe you even know what it means). But how much do you really know about this business concept? There are actually a lot of details and considerations regarding value propositions, so it can be a little overwhelming. But don’t worry! We’re here to help.

This article will explain everything you need to know about value propositions. You’ll learn about what it is, its different types, and how to create a strong value proposition for your business. Keep reading to discover everything you need to know about this topic.

What is a Value Proposition?

You’ll need a value proposition in order to compete in today’s marketplace. A value proposition is the answer to the question: “Why should someone buy from you?” You need to create a value proposition that answers the questions: “What are you going to offer your customers?” and “What value will your customers receive?”.

Value proposition is made up by the differentiators and unique selling points of your product or service. It is the one thing that makes your product stand out from the competition. In short, it’s the one thing that will make your customers choose your company over your competitors.

Why is a Strong Value Proposition Important?

A value proposition is a promise you make to your customers. It is a promise of a given benefit you are providing. The benefit can be anything – it could be practical, emotional, or anything in between.

When a value proposition isn’t strong enough, it can cause customers to hesitate, and they may not buy your product or service. In order to create a strong value proposition, you need to find the value of your product or service. To do this, you will want to find a gap between what you offer and what your competitors offer.

For example, if you were a newly hired salesperson and you were up against a competitor who had been in the field for 10 years, you would want to find a reason for why your customers’ experience with you is better than with them. You would want to find a way to make yourself a more valuable asset to your customer than them. Once you are able to do that, you will have a strong value proposition – something that will bring you and your company success.

Types of Value Propositions

A strong value proposition is the central piece that will help you make sales. It is also the first thing your customer will see, so make sure it is as strong and convincing as possible.

There are three types of value propositions: a tangible value proposition, an emotional value proposition, and a functional value proposition.

A tangible value proposition is the most obvious value proposition. It is the one that is easiest to understand and the most common.

A functional value proposition is the one that is most business-focused. It is the one that is easiest to sell to your customer.

An emotional value proposition is the one that appeals to the customers’ emotions. It is the one that will make them feel something.

How to Create a Strong Value Proposition?

The best method for developing your own value proposition is to go through these 4 steps:

1. Know your Ideal Customer’s main pain point;
2. List the key advantages of your product or service;
3. Describe how your product/service solves the Ideal Customer’s main pain point;
4. Demonstrate how you differentiate from (ie are better than) your competitors in solving this pain.

Summing it up

A strong value proposition is foundational to the success of your business, so you should dedicate the time and effort to develop it. Mind you, it’s not up to Sales to develop it! Instead, this is a team effort, one that requires alignment of the various parts of the organization.

The value proposition of your product, service or business should be used as a basis for your strategic and operational planning, product feature set prioritization and development decisions, and many other crucial aspects of your go-to-market strategy.

We hope you found value in this article! Let us know if you have comments, questions, or need help developing your own value proposition by emailing us at sm101@remarkable-story.com.