Humans have the natural behaviour of value-rating to the product or service. In our day-to-day life, we tend to make different decisions by appraising the Customer value proposition of that action. Should I buy this product? Or should I subscribe to this service?
As the organisation, the details of customers’ needs and wants should be just as familiar to you as the features of the product or service that you provide. A value proposition is a bridge between these two aspects of your work.
To gain sales, it's helpful to show customers how your business can meet their needs in a competitive market. A customer value proposition can be a valuable internal and external tool to define what’s unique about your organisation.
If you're working on a rebrand, launching a new product or looking for recent sales, you might write a customer value proposition. And understanding the value proposition at each level will make you a more effective business. Now let's see the value proposition definition.
What is a value proposition?
A value proposition is a statement that summarizes why a customer would choose your product or service. Every value proposition should speak to a customer about their problem or needs and your company works as the problem-solver.
A great value proposition may showcase what makes you different from competitors, but it should always focus on how customers define your business value.
What is a customer value proposition?
A customer value proposition (CVP) is a statement that a company uses to convince a customer to purchase its products or any services. Its purpose is to convince customers that this company's product provides more value than competitors in the market are giving.
These are customer value propositions:
1) Benefits value:
Your customer value proposition includes the benefits that your product can provide to customers. Consider the different ways such as the emotional, economic, and symbolic value of your product & its functional value.
2) Differentiation:
Your customer value proposition lets customers know how your product is different from similar products of the competitor in a way that makes it clear your product is the best in the market
3) Needs:
Your customer value proposition lets customers know how your product applies to their life or needs it.
Parts of a customer value proposition
Headline: The first line of the customer value proposition should catch the audience's attention and explain your product's benefit. On a website, this line may be a phrase or a fragment rather than a whole sentence in bold letters
Short description: This can be just a sentence following the headline or a two- to three-sentence paragraph. Here, you can explain who your product is for and why it's useful or why to take your service and other detail you want to mention.
Keywords: You can write keyboards to gain customer attention and emphasize specific benefits with a short list of just a few other features of your product or you can even say extra details or unique things about your product.
Visual content (optional): If you're presenting your customer value proposition online, you can include a photo, diagram or video to help customers understand products better.
What is the significance of a customer value proposition?
A customer value proposition is important because of its impact on your sales.
It is important to distinguish your product from similar products in the market.
Your customer value proposition can convince customers to buy your product rather than buy it from the competitors by laying out specific differences so that your customers get convinced quickly and your sales increase.
Quicker conversions often lead to more sales in a short time, allowing the company to generate positive revenue can create a good image of your brand in the market.
A high-quality customer value proposition can help present your product professionally to your customers and encourage your customers to buy from you. As you offer yourself a better alternative option, customers may decide to purchase from you, which can help you earn a higher market share.
The best tips for creating a customer value proposition
1) Be clear about your product or service
Your value proposition should be clear enough for your customers to easily understand it. Instead of business buzzwords and jargon, use accessible language and precise phrasing that will be easy to understand by any audience.
2) Know your customer
An effective customer value proposition targets only those customers you're selling to, not every potential customer, so your customer value proposition only needs to be different apart from other businesses your customers might be considering.
3) Know your customer
An effective customer value proposition targets only those customers you're selling to, not every potential customer, so your customer value proposition only needs to be different apart from other businesses your customers might be considering.
4) Be clear about your product or service
Your value proposition should be clear enough for your customers to easily understand it. Instead of business buzzwords and jargon, use accessible language and clear phrasing that will be easy to understand by any audience.
5) Use customer value proposition as a communication tool
Your customer value proposition can be the perfect tool to communicate your organization's purpose to your target audience. Include elements on your websites like a contact form, graphic home page etc. This way, customers can quickly determine what makes your organization unique rather than extensive market research.
6) Slogan
The slogan creates brand identity, tone, and distinguishes you from others in the market. The statement can also be more specific about products or services since it attracts an audience and increases your sales.
7) Advertisement
Advertisement that displays your customer value proposition, consider including other phrases such as mention other aspects of your organisation's value, like customization services, free shipping, gifts or discounts, offers and guarantees. This way, you can optimize a customer’s attention by providing them with additional reasons to choose your products in the competitive market.
Summary
A customer value proposition communicates why buyers should choose your products or services rather than buying from a competitor. It’s more than just a product or service description, it's the specific information that your business provides and the promise of value that a customer can expect you to deliver and it gives a reason for customers to buy from you.
Your company’s value proposition is the core advantage of your business. It clearly states why someone would want to buy from your company instead of a competitor.
FAQ's on value proposition:
There are 4 value propositions: primary, prospects, products, and process.
Unique selling proposition (USP) and Unique value proposition (UVP).
A successful value proposition typically has a strong, clear headline that communicates the delivered benefit to the customers in the market.
