Focus on why your solution is the best.
“Know what your customers want most and what your company does best. Focus on where those two meet.” – Kevin Stirtz
In this post I will dive into what a value proposition is, the different kinds of value propositions and why single-minded clarity is key to the success of your brand and business. So, if you’ve identified your ideal customers, who have an unmet need that you can satisfy with a unique solution. Now you need to articulate what exactly it is. Can you describe it in one succinct, clear statement that leaves no one in any doubt of the value you bring? What is it worth to them and why should they choose you?
There is a strategic process that you can follow to nail it. But let’s start with the definition of a value proposition. There are several different descriptions and definitions out there and value can be expressed in different terms.
A value proposition is a statement of what solution you will provide, to meet a specific customer need, and why it is better than or distinct from any other.
In this post we will breakdown:
Types of value propositions
The value proposition canvas
Why it's important to nail your value proposition
How to create a strong value proposition
How to write a good elevator pitch
Types of value propositions
#1 Brand value propositions
Generally, brand value propositions are centered around two broad audiences, the Customer and the Employee and can be extrapolated to other stakeholders depending on their relationship with the organization. These are overarching, visionary and forward looking.
Customer value propositions
These are centered around the ideal customer or persona and establishing an instant affinity between the customer and the brand/business/individual. This is the brand promise to its customers and form the pillar on which customer experience is designed and delivered.
Example: Ikea – Cheap, fashionable, durable furniture at a low price.
Employee Value propositions
Employee value propositions state the values that the company stand for and how employees are expected to behave, interact with each other and with customers and all stakeholders within the brand ecosystem. This value statement governs all aspects of the employee journey and experience and also helps define the service standards and customer experience at every touchpoint and interaction.
Example: Ritz Carlton - We are ladies and gentlemen serving ladies and gentlemen
#2 Product value propositions
A product value proposition is the articulation of what a company or individual does, how this meets a customer need and delivers a unique advantage. The unique advantage could be based on the following customer gains. These are more tangible and are based on the following:
Increased productivity – greater efficiency, speed and quality.
Increased profitability – cost savings or higher profit margins.
Better Image – psychological and perception oriented.
Better Experience – emotional satisfaction and fulfilment
Convenience – ease of use and accessibility.
Example: Uber – The smartest way to get around
#3 Tactical value propositions
Tactical value propositions articulate are a short-term opportunity for gains and are designed to create urgency and drive an immediate action. These are usually focused on benefits that reflect how the product or service is cheaper, faster or better.
Example: Two for the price of one
A useful tool to help articulate your value proposition is a canvas.
The Value Proposition Canvas
This canvas, developed by Dr. Alexander Osterwalder, is a framework that can be used to position the product or service around customer needs, to refine it as you go and achieve a fit. It can also be used to identify opportunities for differentiation.
It has two specific components. The value proposition and the customer profile as shown in the diagram below.
The Value Proposition
Products and services – the products and services which create gain and relieve pain points.
Gain creators – what the customer gains and how it offers added value to them.
Pain relievers – a description of exactly how the product or service alleviates customer pain points.
Customer Profile
Customer jobs – the functional, social and emotional tasks that customers are trying to perform or problems they are trying to solve.
Pains – the negative experiences, emotions or risks experienced by the customer in the process of getting the job done.
Gains – the benefits that the customer expects and needs, that would delight them and increase chances of adopting the product.
Why it’s important to nail your value proposition
It governs your business planning, product design, service delivery, communication, sales and marketing.
It helps you stay focused on the right priorities for your business. So, defining your unique differentiators and ensuring that they deliver the value you promise is key. You can’t compete on multiple value propositions with numerous customer types so you need to be single minded and clear on what you will focus on.
It helps develop the right products and services that meet the customers needs in the most effective way and ensure a product market fit. There’s no point creating products and services that no one wants or needs.
It helps develop the right marketing and communication strategy. A clear and consistent value proposition that is reiterated and demonstrated at all internal and external touchpoints and channels will generate much higher conversion rates and attract the right customers.
It helps develop a strong, consistent brand image and increase your brand value. Managing governing and protecting your brand is important as it grows. You value proposition is the north star.
It helps set tangible and measurable Objectives and Key Results (OKRs). As your business grows it is critical to focus on the metrics that matter and identify the ones that will help deliver the results you want to achieve.
It helps to deliver consistent after-sale customer service, measure success in terms of customer feedback and close the gap between delivery and expectation.
It can help with recruiting the right employees suppliers and partners. A strong employee value proposition will ensure that you attract, identify, hire and create a successful employee experience. Even if you are a solopreneur and do not have employees you will need to partner with suppliers and other stakeholders that will help deliver your product or service and they must also be aligned with your value proposition.
How to create a strong value proposition
It is imperative to be clear on what skills, experience and expertise you have either as an individual or as a team that will fill the gap and serve the unmet needs of your consumer. So there are 3 fundamental parts to constructing a strong value proposition.
What is the job to be done that solves a customer need. In defining the problem clearly, you are halfway to defining the solution.
How does your product or service do the job of satisfying the customer need. Is it a painkiller or a vitamin? Is it reducing stress, discomfort and friction or is it enhancing and improving a current situation.
What are the tangible benefits and unique advantage that no one else is offering. In other words what does the customer stand to gain from your particular solution.
Here are my 4 top frameworks with examples and you can access more templates curated by Tor Gronsund here that I found useful:
1. Steve Blank’s XYZ framework
We help X (target audience)
do Y (goal or problem to be solved)
by doing Z, (is the method by which you achieve it)
Example: We help aspiring solopreneurs and entrepreneurs, monetize their superpowers, with actionable and affordable business startup strategy toolkits.
2. Geoff Moore’s framework
For (target customer)
whom (statement of the need or opportunity)
our (product/service name) is (product category)
that (statement of benefit).
Example: For aspiring solopreneurs and entrepreneurs, who want to monetize their superpowers, BrandCrib provides actionable and affordable business startup strategy toolkits.
3. Clay Christensen’s framework
Action verb (Do this)
Object of action (to achieve this)
Contextual identifier (with/like this)
Example: Monetize your superpower with actionable and affordable business start-up strategy toolkits
4. Eric Sink’s framework
Superlative (why choose the product)
Label (what is the product)
Qualifiers (who should choose the product)
Example: The most actionable and affordable business start-up strategy toolkits for solopreneurs and entrepreneurs.
How to write your elevator pitch
When someone asks you so what does your company do, do you struggle to explain it? An elevator pitch is a succinct, inspiring statement that very quickly and accurately describes what your business is all about. It should take no longer than 20-30 seconds to deliver. There are essentially 5 components to strong elevator pitch.
Grab attention with a stat
State your brand name and category
Define your customer(s)
Articulate the customer’s need or job they need to get done
Deliver the solution and why it’s better/different from any other solution
Example: Did you know that 47% of workers worldwide are freelancers? My company, BrandCrib is a business and brand strategy consultancy for aspiring solopreneurs and entrepreneurs who want to be self-employed. We offer actionable, affordable strategic consultancy and DIY kits to help them develop the right mindset, skillset and toolset to build their brands from scratch.
Practice and refine this statement until it rolls off your tongue and it becomes like a mantra you can say in your sleep. It needs to be something you deeply believe in and that gives you supreme confidence in the value you deliver.
If you've found this post useful please leave your questions, comments, share insights from your own experience, or perhaps different points of view. Follow me on LinkedIn, Facebook, Instagram, Twitter and Medium where I will be sharing more practical tips and content like this as well as strategy blueprints for business, brand, product and marketing. I’d love to have your feedback. Join the conversation and share this with your network - knowledge shared is power multiplied.
If you are an aspiring solopreneur or an entrepreneur and need strategic business and brand advice or even an intrapreneur who wants to catalyze change within your organization, visit brandcrib.com and join the community. Alternatively email me on georgette.kolkman@brandcrib.com. I’d be happy to help.
Wishing you success, prosperity, personal growth and positive change.
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