The Importance of an Effective Value Proposition: Back to BasicsBy Tavo Zambrano | Wed, 08/17/2022 - 10:00
For better or worse, standing out is an important part for anyone who wants to succeed in any field. It is easy to start a big project, the challenge comes when we want to keep it afloat and we run into thousands of obstacles. In the business world, where everything is increasingly hurried and competitive, it is imperative to always find ourselves one step ahead of others.
This is the reason why going back to the basics and recapping what we have done so far helps us to understand our process and, if necessary, modify things that we have been doing incorrectly. Foremost, it's time to remember the importance of an effective value proposition. What does it consist of? What is it? Does it really work?
A value proposition communicates the benefits that your business can provide. Likewise, it is what motivates people to choose you over others, which in turn encourages you to more easily excel.
When prepared in the right way, the value proposition provides many advantages, including clear communication between the customer and the business, increased revenue, improved consumer engagement with the brand and products as well as sharing a unified message through the different brand’s communication channels.
In the same way, it is necessary to emphasize the diverse elements that constitute it, which are:
- Be attractive. A proposition will be useless if it does not have enough charm to delight people.
- Be valuable to the customer. It is important to show something of value to the target you are aiming at, as well as reflect it in everything you offer.
- Be simple and understandable. You must convey the ideas in a simple and correct way, making them easier to understand and share.
- Be different and achievable. At this point, we have to find something that differentiates us from our competition but, at the same time, we have to be able to fulfill all that will distinguish us.
- Build a connection with the client. This should be the main objective of your proposition. This will help your customers feel they are part of the business and everything it seeks to do. In addition, it allows the origination of emotions.
- Understand the context. It is essential that you understand the entire context surrounding your business. This includes political and geographical factors, suppliers, competitors and partners. This will also allow you to know the way in which the customer interacts with your product and what their experience is within the business.
Why do I put so much emphasis on this concept? Simple: A good value proposition can be the difference between closing a sale or losing a customer to the competition.
Remember, if the business cannot convince others that it has a certain value, it will lose profitability. Subsequently, it will lose access to capital and will finally close. Hence, we give it its respective space and consideration.
Regarding its importance, it must be taken into account that this is what connects the business with the client. And, in the long run, it allows solving a problem or satisfying a need.
Here are some tips that may be useful for anyone who wants to start making their own value proposition.
1. A value proposition is more than a description of what your business sells. Treat it as an intention, something that promises customers that they will find much more in your business than they expect.
2. Choose the No. 1 reason why your business is the best.
3. Tell a story. Every proposition seeks to reflect the values and beliefs of the business. At this point, we must consider that the story we tell must be an exact representation of how we think, feel, and what we aspire to be.
4. Select the format that you like the most or the one that best suits your business model. Value propositions have many forms; it merely matters that they are “on brand,” they are unique and exclusive to the business.
5. It must be persuasive. In addition, it must help to provide a comprehensive overview to the client.
6. It is communicated through the business website. Moreover, it can also be added to other communication channels, such as social networks and email campaigns.
7. Technicalities and fancy terminology sometimes backfire. Trust me, you will not look more prepared for using a synonym that most people do not understand. Keep it simple.
It is not strange that the client seeks exclusivity, difference, quality, and support. Why not give it to them? As mentioned above, the competition is increasing by leaps and bounds and keeping ourselves among the best involves dedication and effort, a lot of effort.
At first, it will be difficult and you may feel frustrated when the competition seems to take advantage of you or sells at a lower price, but, hey! you've already started. That takes courage. Don't forget that a strong value proposition can be your ally and help you more than you imagine. Feel free to experiment and show what your business is made of.