17th October 2012
Understanding your Business’ Value Proposition
Your Value Proposition is, in essence, the reason why potential customers should buy from you, instead of your competitors. Many businesses fail to test theirs, instead using their own intuition and inaccurate assumptions. Your value proposition should be at the very heart of your business, the foundations upon which your company is built. Understanding it takes plenty of time, effort and careful consideration. An effective proposition must be researched, discovered and dictated by your customers, not by you or your staff.
You need to be able to answer a number of questions regarding your business. Do you definitively know which aspect of your business is most appealing to your customers? Are you able to discover the optimal message that turns your website visitors into paying customers? Are you 100% certain that you have the right Value Proposition? In order to have a correct, reliable proposition, you need to be able to answer ‘Yes’ to the questions above.
When trying to figure out your value proposition, there are several key things to keep in mind. These include the following:
- Your value proposition isn’t dictated – it has to be discovered. It is grown out of need. Always avoid sales-driven approaches to the development of your products. Develop products specifically for the market which you are targeting.
- You need to refine your value proposition – probably multiple times – until it can be articulated in a single, instantly credible sentence. The more concise your proposition is the better and more effective it will be.
- You must always test your value proposition, no matter how sure of it you are.
With modern developments in marketing – especially online – it has never been easier to discover your true value proposition. Marketers are able to create real-world environments in which they can test customer behaviours against a number of variables. Using these techniques, they have the ability to find out the optimal value proposition of individual offers. This in turn presents clear value for different aspects of your business. You can then alter your business focus or advertising accordingly, to suit your new and effective value proposition.
See Part 2 of this blog – Testing your Value Propositon
See Part 3 – Integrating Your Value Proposition Online