Value Proposition
Value proposition, unique differentiator, competitive advantage, key selling proposition, and so on. You’ve likely heard one or maybe all of these phrases. While there may be several variations, the basic concept of what makes your brand different and better is foundational to a successful business. Furthermore, the value proposition should clearly and concisely explain how your brand fills a need, its added benefit, and why it’s superior.
Interestingly, this is one of the most challenging parts of the branding process as it’s not uncommon for people to be unsure of what really does make their brand special. It goes well beyond the simple, “I offer a great product/service,” or “I have the best customer service.” Too many other businesses can claim the same thing, and the last thing you want to do is merely compete on price, all while just trying to keep your lights on.
A great example that sticks in my mind is from Postmates. I love the double entendre of this value proposition and the fact it’s so simple that a wide audience can digest, interpret, and remember it.
An oldie but goodie by the famous DDB agency for Avis car rental. I feel most people can appreciate humbleness and honesty, and this value proposition carried out both. Hertz at the time was the #1 car rental agency in the US so Avis prided itself on providing a better experience- because they had to, and it worked! From 1963 to 1966, Avis went from having 29% of the market share to 36%, while Hertz shrunk from 61% to 49%. Amazingly, Avis still leans on the tagline, “We try harder.” over sixty years later.z
Below are some important checklist items when it comes to creating that all-so-important value proposition:
1. Identify Your Target Audience:
Start by defining your ideal customer segments. Who are they? What are their needs, pain points, and preferences? Understand your audience’s demographics, psychographics, and behaviors.
2. Understand Customer Needs and Pain Points:
Research your target audience to identify their specific needs and pain points. What problems or challenges are they facing that your product or service can address? Customer feedback, surveys, and market research can be valuable sources of information.
3. List Your Product or Service Features and Benefits:
Create a list of all the features and benefits of your product or service. Features are specific attributes, while benefits explain how those features solve customer problems or provide value.
4. Highlight the Unique Selling Proposition (USP):
Determine what sets your product or service apart from competitors. This could be a unique feature, a superior quality, a different pricing model, or exceptional customer service. Your USP is a critical element of your value proposition.
5. Craft a Clear and Concise Statement:
Summarize your value proposition in a clear and concise statement. This statement should address the following elements:
What: Describe what your product or service is.
Who: Identify your target audience.
Why: Explain why your product or service is valuable or beneficial.
How: Mention any unique features or processes that make your offering stand out.
Keep it brief and easy to understand, ideally within one or two sentences.
6. Test and Refine:
Share your value proposition with a small group of potential customers or colleagues to gather feedback. Test different versions to see which one resonates best with your audience. Refine your value proposition based on their input.
7. Emphasize Benefits Over Features:
While features are important, focus on the benefits that matter most to your target audience. Explain how your product or service solves their problems, improves their lives, or meets their needs.
8. Make it Customer-Centric:
Ensure that your value proposition speaks directly to the customer. Use “you” language to show that you understand their needs and are offering a solution that benefits them.
9. Be Specific and Quantify When Possible:
Whenever possible, use specific numbers, statistics, or metrics to quantify the benefits of your offering. For example, “Save 50% on energy bills” is more compelling than “Save money on energy bills.”
10. Consistency Across Marketing Channels:
Maintain consistency in your value proposition across all marketing materials, including your website, social media, advertising, and sales pitches. This ensures a unified message to customers.
11. Continuously Monitor and Adapt:
The market and customer preferences change over time. Continuously monitor feedback, competition, and market trends to adapt and refine your value proposition as needed.
As your brand evolves, so will your value proposition as point 11 mentions. Over time you will better understand who your ideal customer is, what they truly need, and how you can best appeal to this.
Author | Tyler Vaughn
