In this foundational post, Lisa Princic takes you through, step-by-step, how to craft a compelling value proposition for your business. This is the absolute foundation upon which you need to build your offering, and it informs how you talk about your business. Start here to develop clarity around what it is you sell.
A value proposition is at the core of every single business that exists, whether an entrepreneur is aware of what it is or not. It’s the most important place to begin when you are experiencing fewer than ideal customers or when you are busy, but still not making enough revenue. At either point, you need to take a look at the true value your business is offering.
When your value proposition is unclear, your whole brand (marketing, messaging, conversations) comes across fuzzy and it becomes difficult to attract the right people to take your business to the next level.
What is a value proposition (VP)?
A VP explains what benefit you provide for who and how you do it uniquely well. It can also contain information that distinguishes you from your competitors.
How to create yours
Creating a VP is easiest by breaking it into three parts:
- Define the outcomes you deliver – List the benefits your customers achieve from using your product. This isn’t a list of features like “4 hours of design” or “3 dog training sessions,” it’s more about giving them an outcome they desire such as “a brand you’ll love to promote” or “a dog that comes when called.”
- Identify the unique value you/your business brings – Write out what makes you unique in these four areas – skills, passion, talents and experiences. Get clear on how these make you different from your competitors and more able to help a specific type of person with a specific problem or need.
- Refine your ideal client and create an avatar – Get to know them by mapping out a “day in their life” and pinpointing the moments where you/your product comes in to solve their problems/meet their needs. By doing this you get to know your customer intimately and can create a really detailed avatar.
Once you have it
Now that you have a good platform that identifies your value proposition, use this information to:
- Create your positioning statement that describes the problem you solve, your target customer and why you’re distinctly better than the alternatives. (Hint: make sure this is front and centre on your website).
- Craft your messaging around the pain relievers and desires your ideal customer is craving.
- Develop your brand around the position in the market where your uniqueness stands out.
- Spend your marketing energy & budget in the places where your ideal customers are hanging out.
- Package your products and services in a way that meets their needs.
- Price confidently and according to the value you offer and the level of desire for the solution.
Only your customers have the answers
about what they perceive
as having value.
Now that you are more clear about your value proposition and target market, keep doing your research. Don’t hesitate to ask potential customers about what they need to achieve and solve and use that information to further refine your value prop!
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