How To Develop Your Companies Value Proposition

Many companies, including small businesses, don’t take the time to define their value proposition, defining why they are in business and what their competitive advantage is.  A well-defined value proposition should strategically guide your day-by-day activities.  Effectively, a good value proposition will help you define what you offer, who will benefit from your product (target market), and why you are the best choice for your customers (what sets you apart from the competition).  A good value proposition will keep you on target to grow your company. 

How do you go about creating a value proposition? 

A value proposition doesn’t need to be something you share with customers, but your employees should understand what your value proposition is.  You want your value proposition to compel your dream client to act on your product/service. 

Your value proposition is the big picture as to why you are in business.  It’s your guiding principle.  Having a well thought out value proposition will help you make some of the tough decisions that you are faced with.  Spend some time in truly answering the following questions:

• What are the benefits of your product/service?

• Describe what makes these benefits valuable to your customer?

• What is your customers main problem (pain point)?

• How do you connect your products value with your buyer’s problem?

• Differentiate your product/service as the preferred vendor of this value. 

• You also want to address the following questions from the customer perspective:

• What is the purpose of your company, and what value does your product provide?

• What drives customers to buy from you?

• How do you continue to add value going forward? 

These are questions that customers ask when they want to buy from you.  You want to make sure that the value you provide is aligned with what the customer needs and wants.  Keep in mind, your customers give you valuable feedback through conversations, surveys, social reviews, etc.  Make sure you don’t overlook their input.   

Test your value proposition

Once you come up with an idea, test it to see if it really holds up.  If not, continue to rewrite the statement to address the following:

• Does it set you apart?

• What you do, does it make your customers want to buy from you?

• Does the value speak to your target customer?

• Can you prove it?

• Can you keep it going?

If your business is about relationships, you should be able to define what that means, measure it, tell how that relationship benefits your clients and have a plan for how to sustain it.  A good value proposition drives brand, marketing, sales and culture and is worth every ounce of effort you can afford to put into it.