Defining your value proposition for growth
Imagine you’re in a lift with a potential customer. What would you say, to convince them to buy from you?
This is your succinct sales pitch, and ideally it should be clear whether you are talking to a friend or a CEO.
What are the key characteristics?
Be concise and easy to understand
Define what you do
Explain how your product resolves a pain point for your customers
It needs to answer the question:
“If I am your ideal customer, why should I buy from you instead of any of your competitors?”
But what does a value proposition even mean?
Well the dictionary definition is as follows:
– A business or marketing statement that summarises why a consumer should buy a product or use a service. This statement should convince a potential consumer, that one particular product or service will add more value, or better solve a problem than other similar offerings.
Your proposition underpins your strategy
And it’s not just some dictionary definition for a marketing term that holds no real traction in the world. As a well-known British billionaire said…
“No matter what industry you are in you should be able to boil down what you deliver into a value proposition ordinary people can understand and respond to.”
Richard Branson
Despite this, it may not come as a surprise to you that most businesses don’t have a value proposition, or to know that many brands do okay without one either. This is what we call the, ‘attention grabber’. You’ll have likely seen these in the form of advertising campaigns for comparison sites – meerkats, opera singers anyone?
Ask yourself ‘How do they add value or better solve a problem?’
Simply put, they don’t.
They rely on advertising to create a re-call that attracts and reminds people what they offer, but there is no real substance behind the ‘value they offer that’s better’.
So, in short, a value proposition is a promise to customers that you’ll give them something they can’t find anywhere else.
What is it that your business does better than others?
Maybe it’s your customer service, an innovative feature, unbeatable prices… Whatever it is, get it right and it’s a reason to choose you over others in the competitive business world.It’s not just about what your product does, but how it makes your customers’ lives;
BETTER
FASTER
CHEAPER
Next up is your target audience
These are the one’s who are best placed to need and want your offering. Understanding them means knowing their needs, desires, and pain points. It’s what’s called ‘resonating focus’.
This looks at the key points of difference that deliver value, and will continue to deliver value to the customer.
It answers the question – “What is most worthwhile to keep in mind about your business offering?”
It requires – Knowledge of how your market offering delivers superior value to customers, compared with next best alternative. And has the potential pitfall of – Requiring customer research
“Review the position of your brand and your competitors, particularly the ‘brand promise’ each makes to customers. This will help identify any ‘sweet spots’ that you can exploit in the marketing communications.”
Daniel Smith,
Founder of Fireworx
So, why is defining a value proposition so crucial?
Because it’s the backbone of your marketing and sales strategy. Get it right and it influences everything from your branding and messaging to your product development and customer service. It shapes consumer behavior, attitudes, and decisions, helping you attract, retain, and grow.
What are the key things to consider when building out a value proposition for your business:
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value proposition
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Check out our value proposition workshops
Fireworx bespoke value proposition workshops are crafted to address the key areas to drive growth.
Over our facilitated sessions we’ll challenge your perspective on marketing, with practical ideas to improve your business. You’ll leave with actionable insights to disrupt your market and generate sales.
1: Your customer focus
2: Your competitive advantage
3: Creating standout
4: The marketing strategy
5: Converting more sales
