A value proposition in business is simply a statement that addresses how your product or service solves a problem, provides benefits and argues why consumers should choose your company over your competitors, right? Not so fast.
There is an enormous difference between a hastily contrived value proposition that you casually toss to potential customers during meetings and an effective, clearly stated value proposition in a business plan. The latter plays a key role in developing a strong marketing plan and boosting the performance of your sales team.
Being Unique Wins Consumer Favor
With technology ramping up and allowing companies to create innovative products and services at the speed of light, consumers have more choices than ever before. They are also savvy and have heard the same spiel many times over, so a tired value proposition that you have recycled for years is likely to fall flat.
Invest a bit of time and effort in researching your competitors’ value proposition business plan. Examine their strengths and weaknesses. Then, figure out how you can make yours stand out and clearly convey the promise you are making to potential customers.
Aim High, but Pack a Parachute
In a perfect world, your value proposition would be the best, fastest and cheapest in your market. This is a great goal for which to strive, as long as you realize that it will likely fall a bit short of these aspirations and plan accordingly.
Determine which two of the aforementioned qualities are most beneficial for your organization and focus on those, perfecting them as much as possible. For the time being, you can regard the third quality as a nice bonus to offer if you think it could work for certain customers. Over time, shift your focus to the “bonus” quality and away from one of the other two qualities. A key aspect of innovation is changing up the game periodically to keep it fresh for consumers and get your own creative juices flowing.
Broken Promises Lose Customers
Once you have come up with your promise, makes sure you have the resources and strategies in place to keep it. The fastest way to lose customers is failing to deliver. It can also prove extremely damaging to your company’s reputation. People talk – and these days, they also write scalding online reviews that are posted for the world to read.
Formulating a plan to keep the promise your value proposition in business plan makes is not difficult. It is really a matter of being organized. Map out all of the steps required to service your customers to the fullest extent, taking into account the product or service itself, customer service, IT staff and backup measures to protect your customers in the event a crisis strikes.
An effective value proposition in business plan goes beyond attracting and retaining customers. It can help you develop a killer marketing strategy, direct your focus to the strongest aspects of your business and provide insight on your place in the market so you can better understand how consumers view you and where competitors stand in comparison.