Value proposition: Why it’s essential for your business, Company operation tips, Online firm advice
Value proposition: Why it’s essential for your business
7 Aug 2022
These days, businesses are popping up one after the other. The commerce space is getting more congested, making it hard for business owners to distinguish their companies from the rest. Customers also experience difficulty in choosing products and services with the plethora of options available.
How can business owners remedy this problem?
Create a clear value proposition to tell your customers what only your business can offer. This is essential to have because it sets you apart from the competition, allows you to resonate with your customers, and paves the way to strategically grow your business.
Set yourself apart from the competition
A value proposition is a statement that encapsulates your Unique Selling Point (USP) and why customers should buy into it.
You can’t just say that you offer the most affordable rates in the market, you should also let them know why your affordability is an edge over the rest. This is especially crucial today when people don’t want to spend time overanalysing messages presented to them.
Focusing on your business’s distinct features and benefits allows you to go straight to the point. It also tells customers that you’re simply not a carbon copy of existing business out there. You have something new to offer them or a better way of serving their needs.
Resonate with your customers
With a clear value proposition, it’ll be easier for you to align all your key messages in your marketing and advertising materials. You’ll simply communicate the same benefits over and over to your customers, no matter what platform or channel you use. This makes the connection of your value proposition to the brand much stronger in customers’ minds.
Moreover, promoting the right value proposition will allow you to reach your target market better. If you have an architectural firm that provides modern-style designs for residential homes, you don’t want to be talking to people looking for architects of industrial buildings or a style far from what you offer.
The right customers will eventually come to you when your value proposition expresses what you can actually do and what you do best.
Grow your business strategically
Growth is always on your mind when you have a business, but it’s important to do it strategically to sustain it for a long time. The key to this is having a clear strategic direction from the very beginning. And a clear strategic direction is rooted in a strong value proposition.
When you create a direction or plan for your business, part of it is understanding the core mission of your business for its customers. That’s what a value proposition is all about too. So if you have a strategic direction with your value proposition in mind, you can grow your business without losing what your customers value most.
How to create your value proposition?
Now that you understand why it’s crucial to have a value proposition, you might be wondering how to create one that perfectly suits your business.
Here are three steps you can follow:
1. List the unique and valuable characteristics of your business.
Start off with an in-depth analysis of your business. Take the time to understand why you created the business in the first place, your business strengths and weaknesses, and how you’re different from the rest. In identifying the unique & valuable characteristics of your business, it’s also good to be aware of your business’ areas for improvement. You can do this alone, discuss it with all your key members, or consult an advisor.
To jumpstart your writing, ask yourself these questions:
- Why should customers choose you instead of your competitors?
- Is there a certain aspect of your product or service that’s different from others in the industry?
- Is my business fulfilling a new type of need or solving a unique problem?
List down everything you think of while answering these questions. This makes sure you’re not missing out on anything.
At the same time, you’ll be able to see which ones really matter, so that you can narrow them down later to what makes your business stand out.
2. Summarise it into a concise headline.
Once you have a list, the next challenge is to put all that in one headline, which is just a simple sentence. When you present customers with your value proposition, you don’t want to bombard them with a load of information. Keeping it short but impactful makes your brand more memorable.
This can be tricky, especially if you’ve created a long list of unique and valuable characteristics, but you’ll be able to figure it out as long as you put your customers in mind.
Identify what features can immediately catch their attention and pitch it in the best and shortest way possible. Try to create a shortlist of different headlines too until you find the one that really captures what your business is all about.
3. Communicate clearly and consistently to your customers.
After deciding on a headline, reinforce it as your value proposition by communicating it clearly and consistently. This means always centering your messaging on the value proposition. Every communication effort — whether it’s the website, a promotional material, or the product packaging — must echo the value proposition exactly or a version of it.
Additionally, all members of the business should internalise the value proposition. They interact with customers day in and out and are considered brand ambassadors too. Hence, they should know the value proposition by heart to easily incorporate it into their work and outputs.
Finding and creating a strong value proposition can be challenging. Sometimes, you’ll need an expert to be your sounding board while you develop it. In this case, getting a marketing director can be a great help.
What does a Marketing Director do? They identify strategic ways to grow the business with the use of customer and market research. They also have an in-depth understanding of customer behavior and communications, making them great partners in building the business branding.
Should you need a Marketing Director on your team, Boardroom Advisors can partner you with a Part-time Marketing Director that suits your needs.
John Courtney is Founder and Chief Executive of BoardroomAdvisors.co which provides part-time Executive Directors (Commercial/Operations/Managing Directors), Non-Executive Directors and paid Mentors to SMEs without either a recruitment fee or a long-term contract
John is a serial entrepreneur, having founded 7 different businesses over a 40 year period, including a digital marketing agency, corporate finance and management consultancy. He has trained and worked as a strategy consultant, raised funding through Angels, VCs and crowd funding, and exited businesses via MBO, MBI and trade sale. He has been ranked #30 in CityAM’s list of UK Entrepreneurs.
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