Value Proposition Development
This overview of developing a compelling value proposition is offered to identify and frame any discussions you may wish to have concerning development of a value proposition that will clearly support the company’s positioning strategy.
Value propositions are widely misunderstood. They are not about how wonderful a company’s products and services are. A powerful value proposition is a customer-focused description of value that demonstrates a company’s knowledge about the customer’s experience or challenge and the company’s specific offer to address it, underscored by what differentiates their offer from any other. It should be a clear and succinct statement indicating the specific value of a service or product or offer to a specific audience in order to differentiate its value.
Based on best practices, a persuasive value proposition should:
- Center on the customer’s experience, not product or service
- Communicate customer benefits, not product or service
- Focus on uniqueness and specifics, not generalities
- Include external and internal drivers
- Cover both qualitative and quantitative factors
- Be both believable and demonstrable
This requires that a company must:
- Know who the customer is for the offer
- Understand what they care about
- Speak in their language
- Create the right message for the customer
- Link the offer to the customer objective
- Lead with the customer, not a product or service
It is also worthwhile to customize a value proposition for specific audiences:
- By market segment
- By major account
- By Product or Service
- By Individual (VP or Director or Manager)
- One size does NOT fit all
A well thought out value proposition should be used in:
- Product/service sheets
- Proposals & Sales Presentations
- Craft questions for Sales people that use the value proposition as a base
- How does the VP connect to your company tag line
The above overview and detail of developing a compelling value proposition is offered to identify and frame any discussions you may wish to have concerning development of a value proposition that will clearly support the company’s positioning strategy.
About Customer Lifecycle, LLC
Customer Lifecycle, LLC is a research based consultancy committed to helping companies avoid costly mistakes by focusing on thorough front-end planning, appropriate support for research execution, and especially in-depth deployment consulting and implementation at the back end. Outcomes are rigorous and balanced customer-focused performance metrics, improved financial results, and a superior total customer experience.
Each stage in the customer lifecycle - acquisition, service, growth, retention - has its own unique challenges and solutions to address specific business issues. Customer Lifecycle, LLC helps both B2B and B2C companies plan and conduct research to accurately identify and measure customer requirements for satisfaction, loyalty and retention at every stage of the relationship and to deploy and integrate customer requirements for performance into the processes and internal performance metrics of the organization.