A value proposition is a promise of value a company makes to its customers, a positioning statement that describes the unique benefits of using your products and services. It clearly illustrates who your intended buyer is, the problems you solve and why your solutions are better than the alternatives.
Value propositions are important for all businesses, but especially for lesser known startups who are trying establish a foothold in the market. They give people a reason to buy from you.
A value proposition (VP) is a statement of value that meets several criteria. It communicates to customers how your product or service solves a particular problem or improves their lives in a relevant way and explains why customers should buy from your business instead of the competition.
Evaluate the usefulness of your VP by asking whether it clearly demonstrates the products or services you sell, what the benefit of using it is, who this solution is meant for and what makes it unique and special.
Many businesses make the mistake of creating a value proposition before adequately understanding, and defining, the problems they are trying to solve. This is important because you cannot communicate value without first understanding the consequences of not using your products. Explore the type of problem you are solving to determine the consequences:
After establishing the problem you are solving, it's important to objectively evaluate how unique and interesting your solution is. Having a solution that is faster or cheaper does not necessarily make it compelling. Your solution might look at a problem differently, creating new benefits by solving the challenge in a unique way that brings tangible benefits to the user.
Many businesses often forget to evaluate how difficult it will be for customers to integrate the product into their lives. Regardless of how interesting and useful the benefits may be, if your product has a high learning curve, you will have a harder time spreading advocacy. Some experts advocate creating "non-disruptive" solutions, or developing products that make it easy for customers to integrate into their lives, while also improving it significantly (1).
A value proposition can not only help you communicate better with potential customers, it can also bring clarity and focus to your products and services before they even get to market. Many businesses invest a huge amount of resources into developing a product without truly examining the problem it solves, whether the solution is unique and compelling, and how easily customers can use it. Creating a strong value proposition will help you understand your customers better, which is always the first step toward success.
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