Value proposition is the value that your product will deliver to the customer. In essence it is the message that you want to convey to the customer as to “why should you buy this product”. It is a redefinition of the unmet need that he has.
Types of Value Proposition
- All benefits: It conveys all the benefits of the product to the consumers.
- Favorable points of differences: It conveys all the benefits of the product over the best alternative / competitor.
- Resonating Focus: Understand the business issues of the customer and show your superiority on a few key pain points that matter the most to the customers. This keeps your value proposition clean, precise and thus effective. Another point to note is that the resonating focus can also include a point of parity (not just the superiority). This will happen when the supplier wants to counter the customer’s perception.
But the research for coming up with the resonating value proposition will go a long way in making the product strategy of a company, let alone an effective market messaging.
Value proposition should be:
- Distinct
- Measurable – Points of difference that can be quantified.
- Sustainable – The firm should be able to carry that value proposition for a significant amount of time.
Consider some of these examples:
- Square: Start accepting credit cards today.
- Paypal: Pay Securely. Here, there, anywhere.
- Turbotax: Taxes done right, and your maximum refund, guaranteed.