A value proposition is a statement which identifies clear, measurable and demonstrable benefits consumers get when buying a particular product or service. It should convince consumers that this product or service is better than others on the market. This proposition can lead to a competitive advantage when consumers pick that particular product or service over other competitors because they receive greater value.
In the definition of value proposition are three concepts worth to highlight:
1. First, a value proposition is just a statement; therefore, it is the promise you are making to your client. Without this statement you lose an opportunity to tell consumers why they should pick you over competitors. The value proposition is your most powerful way to differentiate your brand from competitors.
2. Second, the value proposition objective is to convince consumers/clients to select you among different possibilities; therefore, it is a comparison, typically with multiple variables. From a customer’s perspective, they are not only asking how this product is different to one they may already be using, but what value this product or service may have. Customers will never buy a product or service if they don’t feel like they are receiving the best possible deal.
3. Third, the value proposition is successful if the clients receive/perceive such value; therefore, it is fully dependent on the client perspective. Moreover as the customer is included in the value proposition definition, understanding how the customers value your offer is key in today’s company marketing activities. Furthermore, where the environment changes as quickly as today, so does the customer experience and their desires, changing also the value they seek.
Source: Access 4 SMEs Toolbox set for SMEs