Picture of John Pyron, the Business Doctor

John Pyron, the Business Doctor

Value Proposition: What Should Be Taken Into Account?

If you are still unclear about what a value proposition is, today I will explain it to you so you can clear your mind.

A value proposition is “a phrase that explains how your product or service solves or improves your customer’s problems.” From here, you should consider what makes your value proposition different from your competition so that users choose you.

To do this, several factors must be considered when making your value proposition.

In this sense, a value proposition is what makes a client lean towards one company or another and also seeks to solve a problem or satisfy a client’s need in an innovative way.

Therefore, a value proposition must create values, which can be Quantitative, such as price, quality of the service or product, delivery time… or Qualitative, such as utility, customer experience, innovation, design, etc.

Five Keys To Define Your Value Proposition

1. Who is your ideal customer?
If we aren’t clear about who our potential client or Buyer Persona is, we will hardly be able to know their problems, and therefore, we will not be able to help you with a solution since you aren’t going to talk to anyone in particular and it will be like talking to the wall.

To define your ideal customer for your value proposition, you must first segment it into several categories. You must study their behavior, their environment, and their sociodemographic data.

Now, before “conquering” your potential client, you must know what their behavior is, for example, What concerns they have, what type of brands they consume, what websites they visit, what social networks they move on, what their hobbies, what music listen, if you like technology, etc.

Likewise, a person’s environment also says a lot about them and their tastes when consuming a product or service. Where do you live (city, beach, country…), what are your friends like, if you have family dependents, who are the most important people in your environment, what kind of offers are you exposed to daily, etc?

Therefore, their demographic data is the best-known and most used data in studies for any advertising campaign or launching a new product or service on the market. How old are you, if you are a man or a woman, what is your nationality, your marital status, your purchasing power, etc?

2. What problem does my client have that I can help solve?
To understand your potential client’s problem, you need to know well your market niche and why a person decides not to consume your product or service.

This can be done today thanks to social networks, Facebook groups, forums, blogs, etc. You don’t have to be a big company to research your customers wants.

In the same way, also ask your customers for their feedback and develop active listening. When you ask for feedback, which is your client’s response, keep an active listening and be objective with what they tell you. Feedback can be good, or it can be bad. The best feedback is a constructive response from which you can learn or improve.

3. What does my client normally expect from my service so that I can exceed their expectations?
I recommend creating a positive experience with your clients from the first moment because you may not have another opportunity.

So if you say you’re going to do something, do it. Keep everything you promise. Do not create false expectations with your value proposition that you cannot meet later because the only thing you will achieve this way is to damage your image.

If you say it takes a week to do a specific job, do not exceed that week. It is clear that problems can always arise, but manage them well, notify the client beforehand if you know that you will not meet the deadlines, tell them the reason for the problem, and apologize.

It would be better if you had a detail with that client later. Problems exist, they are there, and they happen, but you have to know how to manage them, and it does not seem that we don’t care about taking a week or two. Worry about him.

Surprise them by giving more than they bargained for. Customers always create expectations about a product or service. Always try to exceed those expectations for a positive experience. If you want to compete without lowering your prices, you have no choice but to offer your customers value-added services that help you differentiate yourself and, above all, create positive experiences at the time of purchase.

4. What are the customer needs that I satisfy?
Contrary to what happened in key 1, which refers more to the generic problem that your client may have, at this point, you should focus more on the “pain” or main need that your client has when making your value proposition.

Pain points are the needs, concerns, and desires that your client has, which will help you design a specific product or service to solve those pain points.

5. Do I know my client’s perception of my value proposition?
Your value proposition must be clear and well-understood. If, on the other hand, you do not make clear what you offer, what problem you solve, and who you solve it for, you can create a distortion in your message that harms your business.

Therefore, define your main objective well when creating your value proposition. Once you are clear about your target audience and the problem it solves, you must ask yourself what is special about your product or service. Surely, many other services solve the same thing as yours but convincing your target audience that yours is the most suitable is difficult.

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