Investing time and resources in value proposition can give you peace of mind and clarity with regards to your startup. An excellent value proposition can help you develop a great marketing strategy and allows your team to move to in the right direction.
What is a Value Proposition
Michael Skok’s definition of value proposition best describes what it is. “It is a positioning statement that explains what benefit you provide for who and how you do it uniquely well. It describes your target buyer, the problem you solve, and why you’re distinctly better than the alternatives”. In short, it is a promise to deliver value to your customer.
Develop Value Propositions
Developing an effective value proposition helps you focus on the right aspects of your business. But how do you exactly develop an effective one, Here are a few steps you can do:
1. First, identify your target audience and understand who they are.
You can do this by scouring through forums and discussion boards. It’s a goldmine of information. Try to look for complaints from users. That way, you’ll know what to avoid. You can also talk to them via a survey or email. If you like a more personal touch, you can meet them and have a chat over coffee.
2. Define the problem.
By doing this, you are already halfway there. As the saying goes “A problem well stated is already a problem half solved.” These 4 simple questions will help you out in defining the problem properly.
- Who are your customers
- How can you help them
- What makes you unique
- Where do you excel
3. Start writing a compelling value proposition.
This is a bit tricky but with a little bit of practice, you should be able to write a good one. Take note that a compelling value proposition has to be simple yet concise. It also has to stay consistent. You can provide context to show how your product or service differs from the competition. Another approach is by asking a question.
Need help, Give RD a call.