There's a reason for users to feel encouraged to make buying decisions.
In fact, without this reason, no business can grow. We're talking about the Value Proposition.
This statement specifies a product or service's benefits and hoy it's unique from others available in the market.
That's why having a powerful value proposition can help you stand out. Even more, it can increase sales to a large extent.
Most businesses focus on sales and product development, and some may also rely on marketing strategies.
Yet, only 64% of ventures have defined their value proposition, and only around 2.18% are competent.
Given this context, it's no surprise that 18.4% of private businesses in the US fail within a year.
This post will cover all you need to know to create a winning value proposition. Let's dive in!
What is a Value Proposition?
Although it can be hard to craft, Cambridge Business English Dictionary defines it in a very straightforward way.
Here, a Value Proposition (VP) is a seller's offered value for users buying a particular product or service.
Something like "this buy you've made will solve whatever problem you intend to solve."
A value proposition pinpoints benefits and the uniqueness of a product compared to others.
A value proposition is the promise of a product's value with sales purposes. It aims to explain why a user should buy a specific thing.
If companies offer several products or services, it's ket to have individual and well-targeted value propositions for each.
It can take some time, but targeting your value propositions pays off.
How to Create a Value Proposition?
Defining your target audience is the most critical step with value propositions.
Yet, narrowing specific markets allows your business to focus on its wants and needs.
As a result, you'll be able to address them in your value proposition directly.
The next step is to define the highlightable outcomes of your product.
And finally, you need to clarify in a unique way your product or service helps your customers.
Thereby, you can surpass other options for the same product or service.
Once you've done that, it will almost write itself!
You can also ask yourself key questions to define a killer value proposition.
Why should my target customer need my product instead of my competitors?
Another popular framework is "we help (audience) to (solve x problem) through (unique method)."
What is a Value Proposition Canvas?
A value proposition canvas helps to envision, design and test companies' customer value.
In-depth, it encompasses two fundamental parts: a customer profile and a value map.
The first one helps to clarify the understanding of targeted audiences.
Meanwhile, the second one defines how to create value for them.
Questions to define the customer profile include:
- What are your customers' expectations and goals?
- What are the pains or weaknesses of your customers?
- What jobs or tasks do your customers intend to get done daily?
Likewise, there are questions to define the value map:
- What products benefit your customers the most?
- How do you aim to produce the specific results users expect when buying your product?
- How does your product cut your customers' problems?
- Is your product a must-have or a nice-to-have?
Examples of Business Value Proposition
We'd like to share some examples of leading companies' value propositions:
10 Examples of Customer Value Proposition (CVP)
- Netlify. Bring it all together.
- Slack. Slack is your digital HQ.
- Figma. Nothing great is made alone.
- WordPress. Publish your passion.
- HubSpot. Powerful, not overpowering.
- Webflow. The site you want — without the dev time.
- Jira. Move fast, stay aligned, and build better — together.
- InVision. The all-in-one collaborative online whiteboard.
- GitHub. Let's build from here.
- GitLab. Software. Faster.
5 Examples of Employee Value Proposition (EVP)
- Gartner. When you work at Gartner, you will feel valued, proud, driven and successful.
- Google. There's no one kind of Googler. If you're looking for a place that values your curiosity, passion and desire to learn, you're a future Googler.
- HubSpot. Giving HubSpotters the freedom and flexibility to create their own work-life balance builds trust in our company, but it's also just the right thing to do.
- NBCUniversal. You can inspire, create, innovate, lead and engage. No matter what your specialty or interest is, this is where opportunities are found and careers are made.
- PlastIQ: Some insider information: we think you'll like it here. Every day, our diverse, passionate, and collaborative people give their all to make this company great.
Why is a Value Proposition Important?
Value propositions have a strong connection with business success. A
s mentioned, it's a massive reason for leaning customers to make buying decisions.
And it's no secret that sales numbers can define whether a business succeeds.
Here, value propositions impact sales by creating adequate product knowledge.
These also involves knowing which audiences are prone to buy or use a specific product.
That's why sales teams must understand both the product's benefits and target audiences.
People nowadays have a wide range of options to choose from when buying anything.
That's why businesses need to highlight their benefits to stand out from competitors.
A value proposition has to be enticing and powerful.
Companies can lose profit and even go out of business if their value doesn't reach customers.
Conclusion
A Value Proposition is a short and unique statement formed as a promise.
It highlights a product's features, benefits and even companies' culture.
That's why it's fundamental for any business strategy!
If you want to build compelling business value proposition, get in touch.
