What is a value proposition?
Value proposition is a statement of all the benefits that a company provides to its customers through their products or services. Therefore, it is understood that once the customer buys or acquires one of these products or services, they will begin to enjoy the benefits automatically. In other words, the value proposition is the way in which your products or services benefit your customers. These benefits can be flexibility, efficiency, speed, style, among others.
A business is a value delivery system – Michael Lanning
Why value proposition is important?
Being aware of which is your value proposition can provide your business a great advantage over your competitors; however, it is a fact that 64% of business have establish value propositions, but only 2.2% of companies have useful value propositions.
The problem might be that your company is not offering the real value that their customers need or the company is not being clear in its message, about the product or service it offers and its benefits. According to Ayat Shukairy, The value proposition helps you as a company to project a more accurate marketing and increase your sales.
It is important that companies stay updated on the changes that have direct effects on their customers, since these effects can change their purchase style and priorities. Events such as climate change and rapid technological advance are effects that are having an important impact on the consumer behavior. If the customer’s purchase behavior changes, then the value proposition should also. Procure to be ahead in the market and innovate before your competitors.
Which are the benefits of having a value proposition in your brand?
- Your customers can have a better understanding of what is your brand offering.
- It creates a clear differentiation between your brand and your competitors.
- It attracts the precise customers, those who are aligned to which your brand offers and are available to invest in your products or services.
- It makes your message more clear.
What is the value proposition canvas?
It is a model that helps us to understand our clients more clearly. Besides, it help us to make some assumptions about our customers and about the potential value that they might need. The model is divided into two blocks, the value proposition and the customer segment. The first block is based on what the company creates, makes and commercialize, and the second block is based on to whom the company creates, makes and commercialize.
How to apply value proposition in your business?
Customer segment, in this section we observe and build hypothesis based on the customers behavior, in other words, what we think they need and wish.
Value proposal, in this section we design the products and services we believe that will satisfied the needs of our customers.
source: Strategyzer
Example of AiBnB value proposition canvas:
source: business makeover
I invite you to apply this value proposition canvas and boostrap your own business!!
Let me know if you have questions and I will happily answer them.