How good is your Value Proposition?
Now at this point, you will probably respond in one of three ways:
1. My Value Proposition is great!
2. I keep meaning to work on it
3. What is a Value Proposition?
So, for those of you who fall into categories of 2 and 3, here are some guidelines:
A Value Proposition is a clear statement of the tangible results a customer gets from using your product or service. It is focussed on the outcome and emphasises the business value of your offering. It may contain numbers or statistics.
If you can, in 1 sentence or less, answer each of these questions, you will be well on the way to creating a good Value Proposition:
1. How does your product or service help customers?
2. What positive impact does it have (i.e. additional revenue, cost savings)?
3. What competitive advantage does your product or service help your customer to gain?
4. Does your solution have an impact on your customer’s customer?
Look at this Value Proposition from Uber which really illustrate the point:
“Tap the App, get a ride.
Uber is the smartest way to get around. One tap and a car comes directly to you. Your driver knows exactly where to go. And payment is completely cashless.”
Without explicitly saying so, Uber expertly highlights everything that sucks about taking a traditional taxi and points out how its service is superior. The simple (yet highly effective) copy above, taken from the Uber homepage, excellently conveys the simplicity and ease that lies at the heart of what makes it such a tempting service:
•One tap and a car comes directly to you
•Your driver knows exactly where to go
•Payment is completely cashless
Everything about this directly contrasts the typical experience of getting a taxi – no phone calls to disinterested dispatchers, no painful conversations trying to explain to a stressed-out cabbie about where you need to be, and no fumbling for change or worrying you’ve got enough bills in your wallet. Just a fast, efficient way to get where you’re going. This is reinforced by the aspirational messaging toward the top of the Uber homepage, which states that “Your day belongs to you.”
A lot of people struggle with creating a Value Proposition, but it can be a great tool to explain to potential customers why they should use you.
I hope this has helped you create your value proposition. We cover Value Propositions in more detail in our courses, so check out our sales training. They will help you master sales in a friendly and engaging environment.