Value Proposition is the promise, your core offerings, and your competitive advantage that helps the customers recognize what you are offering that would solve their problems and improves their life. Value Proposition is not a tactical activity you do, to increase sales or conversion, it is the strategic long-term commitment you make towards your customer as a brand, and it is this unique selling proposition you want your customer to remember, in order to stand out from the competition.
Why Create Value Proposition
The reason customers purchase your product vs. the competitors is because of the unique value you promise to provide which will benefit them, else the customer has no reason to purchase from you.
When the customer remembers your value proposition (the Brand Promise, the benefits you offer), and if it appeals to them positively during their purchase stage, it will convert to a sale.
The satisfied customer also becomes a loyal customer who would repurchase and would be glad to advocate your products to their friends and family. If you already have the Value Proposition for your company or product, have you evaluated it recently with your customers to learn how your product improved their lives? Were the benefits promised was achieved by your customers, are they satisfied with the product, did they find any new benefits apart from what they expected. The benefits you projected and the benefits they perceived, are the same?
How to Create A Value Proposition ?
The first thing is that there should be clear Value you must be providing to the customer for them to consider your product or company.
Second, you must be clear on what those Value propositions are.
Third, communicate them to your customer in a simple way what your brand promises and how it will benefit them.
Here is a simple TWO STEP approach to creating A VALUE PROPOSITION
Step One Create Value Proposition:
a) Small values like free shipping, money-back guarantees are useful but cannot defend against other products or company’s which clearly solves their problems through their benefits.
b) Typical value proposition should include
– Product Name / Company Name
– Target Audience
– Addressing Customer Challenge
– Product feature / description
– User Benefit (Emotional and Rational Benefits)
c) Communicating an idea has two parts, one is making sure all the key information is included in the communication, second is articulating, refining, and simplifying the statement. Trying to do both at the same time will lead to confusion.
Example:
Product Name: Nutick BPromise
Target Audience: Ecommerce Merchants
Customer challenge: Gap in Value Perception
Product feature/ Description: CS Tool
User Benefit
Rational Benefits: Brand Awareness, Loyalty, and Advocacy.
Emotional Benefits: Earn Trust
First Cut Value Proposition:
“Nutick BPromise CS tool helps eCommerce merchants in bridging the gap between intended Brand Promise and Actual Perception by providing actionable insights to help increase Brand Awareness, Loyalty and Advocacy.”
Simplified Value Proposition:
“Nutick BPromise CS tool bridges the gap between intended Brand Promise and actual Perception with actionable insights to increase Trust, Loyalty, and Advocacy”
Step Two: Communicating your value proposition
- Make sure the Value Proposition / Brand Promise is visible above the fold without any need to scroll
- Single simple sentence displayed prominently without any distraction
- Easy to identify what you are promising, construct it within the headline, spend time to articulate the benefits
- Populate and share your Value Proposition in all your channels and Customer path
- Proactively use your Value Proposition so, that it is clearly remembered by your customers. Out of Sight. Out of Mind. Nutick BPromise can make your Value Proposition the strongest Marketing tool.
It does not end there…
The point of creating a value proposition is to communicate the unique selling proposition or uniqueness of how your products/company solves the customer’s problem. Developing value proposition and communicating is only half of the task, the other half is to find out if the user perceived them correctly ie if the brand promise has been met, if not is it due to the communication gap or your product has some issues that need fixing.
Nutick BPromise helps to measure the Brand Promise perception of the customer and learn the gaps to improve the product through:
- Product Health Score: Measure Brand Promise perceived by the customer, learn the gaps, act on the issues, set goals, and repeat to improve the Customer Health Score
- Customer Accounts at Risk: Learn about the unsatisfied customer, their pain points, and insights to retain them to Increase Customer Lifetime Value (LTV). It is five to 25 times more expensive in getting a new customer than retaining an existing customer.
- Loyalty & Advocacy Score: Track the Emotional Benefit Score and Rational Benefit score, learn which benefits are performing poorly and affecting customer loyalty and advocacy