Understanding Your Value Proposition Whats a Value Proposition

Understanding Your Value Proposition

What’s a Value Proposition? Your strategy to win How you serve your target customer’s market need better than anyone else? A set of benefits you design specifically for your target customers! Understanding Your Value Proposition

Target customers? What makes a good customer for you? • Overall turnover • Average order value • # repeat orders • Cost to serve (profitability) • # emergencies they create • How easy they are to sell to & support • Geographic location, clusters of customers, etc. • They pay you on time! Understanding Your Value Proposition

Next step is Market Segmentation Business • Size • Location • Industry sector • Rate of growth • Decision making • Business function Consumer • Gender • Age • Location • Hobbies • Income indicators • What they wear, do, spend time etc --- Look for similarities in need & motivators ----- Focus on potential for volume sales or ones that pay more --Understanding Your Value Proposition

Work Session Which customers do you want? • Define your ideal customer? • Label this customer segment Understanding Your Value Proposition

Now you need to understand the market need? What things (jobs) are customers trying to get done in their work or home life? • Functional – get specific tasks done • Home DIY, eat healthy, write a report, help their clients build a marketing campaign • Social – how they want to be perceived • Look trendy, wealthy, experienced, professional • Personal or emotional – how it makes them feel • Feeling confident about a service, job security, peace of mind in investments Understanding Your Value Proposition

What’s the improvement they seek? Either Relieving a Pain what bad outcomes, risks or obstacles are they trying to avoid or reduce with this task? Or Creating a Gain what are the positive outcomes or benefits they are seeking? Understanding Your Value Proposition

And what about beating The Competition? • First you have to know all about them • What do customers feel, experience and say about them? You MUST develop a point of difference If you cant see a method ……try harder! Understanding Your Value Proposition

Me too products mean price wars and poor profits! Understanding Your Value Proposition

Good Value Proposition Examples Understanding Your Value Proposition

Good Value Proposition Examples Understanding Your Value Proposition

Work Session Building a compelling value proposition Write a short sentence for the following and then join it all together into one sentence. • Our ……. . product or service • Help(s) ……. target customer segment • Who want to ……the primary jobs they are completing – task performing, problem they are solving or need addressing • By ……. . removing what pain (avoiding a negative outcome or obstacle) • And…. . delivering what gain (a positive outcome that they want) • Unlike ……the product alternative, which ……primary limitations Understanding Your Value Proposition