What is a value proposition (and why do you need one)?

3/3/2020

A value proposition is your answer to the question, “what value do you deliver to your customers?”

A strong value proposition is not necessarily the messaging you’ll use in your marketing. Rather it’s a tool for you to use internally to create powerful messaging that will resonate with your buyers.

A lot of people know exactly what they do, but they don’t articulate the real value to their buyer. If your buyer has to work out the value for themselves then that makes it harder for them to buy from you.

My definition of marketing is simply making it as easy as possible for people to buy from you. So if your customers have to work out for themselves what value they’re going to get from buying your product or service then you’re not making it easy for them.

It’s important to tell your customers not just WHAT you deliver but also HOW you deliver it and WHY it is important.

So how do you create a value proposition?

1. What is the problem?

First, think of your business from your customers’ perspective and ask, “What is the problem I solve for my customer?”

You might have heard the phrase “Where’s the pain?” from marketers and this is what it’s about. Whether you sell software, accountancy, personal training or jewellery, you solve a problem for your customer. It’s worth spending time thinking about this because it’ll make your marketing messages so much more powerful.

Once you know what the problem you solve for your customers is, ask yourself, “Why is it important to my customer that this problem is solved?” What will happen if it is not solved? What won’t happen if it is solved?

2. What is the real value your customers get?

Next, think about the real value your customer get from buying from you. What is special about your business? What are you famous for? What do your customers say are the reasons they keep coming back to you?

Make a note of all these things so you can use them in your marketing.

3. What else could your customer do instead?

From your customer’s perspective, think about what they might consider as an alternative to buying from you. They might choose to do nothing. They might buy from someone else who does what you do. They might choose to spend their money on something completely different that also solves the problem you solve.

When you have these alternatives noted down, think about the advantages and disadvantages of each of those things. Again, this is from your customers’ perspective and what they perceive. There might be good reasons why they’d choose an alternative over your product or service.

Does your proposition match your ideal customer?

Now you know what your value proposition is, does it match your ideal customer? Your proposition and your ideal customer should be a perfect fit for each other. If you know exactly who your audience is and the value you offer is exactly what they need then it will be easy for them to choose you over the alternatives.

Need more help?

If you’re struggling to define your value proposition, or you aren’t sure who your ideal customer is, perhaps I can help. Email me or book in a free 30-minute phone consultation. I look forward to hearing from you.

We create a strong value proposition for your business in the second session of my Engineer Your Marketing Machine course. Find out more here

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