Why Value Propositions are Important in Business
Value propositions are important in business because it improves customer understanding and engagement.
What is a value proposition?
A value proposition is a marketing statement that businesses use to summarise why a customer should buy a product or service.
Why have a value proposition?
A good value proposition helps your prospects and clients understand the value of your company’s products and services. It also helps your customers to see how your product or service will benefit them and that you are the best option available.
It improves customer understanding and engagement.
It offers three things:
- The Solution.What do you do?
Explains how your product or service solves customers’ problems or improves their situation.
- The Value. What are the key benefits?
Explains the specific benefits and what value customers will get.
- The Difference.How are you unique or different?
Explains why customers should buy from you and not from the competition.
How to create a value proposition
Your customers need be able to easily read and understand your value proposition.
It also needs to be customer focused.
- Who are your ideal customers?
- What do they care about?
- What problem do they have that you can solve?
- What benefit will customers gain from working with you?
- Why are you the best business to solve that problem?
Once you understand your customers’ needs, you’ll then be able to create a value proposition that appeals to them.
To test your value proposition, ask yourself:
- Is it relevant to your ideal target market? You should focus on what matters to your ideal target market.
- Is it compelling, believable and realistic? You need to grab your customers’ interest.
- Can you back it up? You must be able to provide proof and back up your statement.
- Is it flexible? As you grow and develop, can you change it without losing customers’ confidence?
- Is it emotional? You must connect with your customers and prospects on an emotional level, in order for them to feel compelled to make a purchase from you.
Understanding both your own goals and your customers’ is key to creating a good value proposition.
I hope these tips help you to when creating a value proposition for your business.