If someone asked you what your value proposition was for your product or company, could you give them an answer right off the bat? If you answered “yes” to that question, you’re on the right track. If your answer was “no”, you’ll probably want to give it some more thought. A strong value proposition is essential for the success of any marketing campaign, and ultimately, for the success of any businesses.
What a Value Proposition is and Why it’s Important
A value proposition can apply to an organization or business as a whole, or for specific products and services. Essentially, a value proposition is a statement or message that shows why your organization, product, or service is the optimal choice above others on the market. It’s usually obvious to every business what it is that they do, or what product or service they provide. However, some businesses haven’t figured out why they do what they do, or why they sell certain products or services. A value proposition is important for marketing and selling to customers, but is also a key element in creating consistency within an organization or business.
Defining Your Value Proposition
According to marketing industry expert Neil Rackham, a value proposition should have four parts: capability, impact, proof, and cost.
Capability: Explain why your business is the most capable for the product or service you’re providing. Are you the most experienced, the newest, the biggest, most efficient, or most personable? Be able to show why your expertise makes your company, product, or service the optimal choice.
Impact: How will your business, product, or service have a positive impact on your customers? Explain how you have the ability to fill a need or solve a problem better than others on the market.
Proof: Be able to prove how your business, product, or service will have a positive effect for your customers. Remember that numbers, facts, and figures are the best way to show, not just tell your customers that you are the most qualified choice for what they’re looking for.
Cost: Pretty self-explanatory. Remember that transparency is always the best option for customer satisfaction. Hidden costs might bring in more revenue, but they will cost you customers in the long run.
Using Your Value Proposition
Once you have defined your value proposition, the next step is to implement it in your marketing and messaging. Be sure that you first implement it internally within your organization or business. It’s especially important that salespeople or staff members that are regularly in contact with potential customers have a clear and consistent understanding of your value proposition. After you have established consistent messaging internally, make sure your value proposition is clear to potential customers through your marketing and sales collateral.