Last Updated on September 9, 2023 by Dave Schoenbeck
Creating a customer value proposition takes time and dedication to one core message, as it differentiates you from your competitors.
Regardless of size, every company and business typically has a mission statement. But what does your company actually do? What benefit do you provide to your customers or clients? This is your customer value proposition.
Perhaps you’ve already created a value proposition, or you may need to rewrite your existing one. We can help—read on to learn about customer value propositions, how to create one, and how to rewrite an existing one.
Benefits of Value Propositions
The term “customer value proposition” has been a hot topic in marketing circles. Unfortunately, there’s no real way to gauge that a value proposition will work; however, just like with all your marketing efforts, you adjust as needed and rework. Benefits of creating a value proposition include:
- Improved customer engagement
- Improved marketing effectiveness
- Creation of confidence
- Provides messaging clarity
- Creates focus
A customer value proposition helps your customers understand the value they’re receiving for your goods and services. Clients may often look at the price tag but not hear the pitch. Your value proposition needs to be solid and clear. But where do you start?
How Do You Create a Value Proposition?
When creating a customer value proposition, one of the first things to ask yourself is, of course, what value are you providing your customers? While you ask yourself this question, remember your competitors are likely offering similar benefits and value. What makes you stand out? Do you know how you can convert more leads? There are four key strategies to showcase what you do.
- Best quality. Quality can be one of the most straightforward value propositions to showcase if your services and goods are of the highest quality and are known for that.
- Luxury. If you present your brand in a way that signifies luxury and aspiration, potential buyers may be attracted to that aspect.
- Best quality for the money. This is an excellent customer value proposition if your merchandise is of good to superior quality and has an inexpensive price tag.
- Must-have. If you label your goods and services as must-haves and they fit into current trends, this can be an essential part of your marketing strategy.
Everything Is Working Great – Why Rewrite Your Value Proposition?
The best value propositions are of the type that fit into one of the four categories listed above. Suppose your customer value proposition doesn’t fit into the category of luxury, must-have, best quality, or best value for the money — it’s time to revamp your value proposition.
First, ensure you’re creating the right marketing strategy—remember that a value proposition is not a mission statement. A mission statement describes who you are and what you aim to do. A customer value proposition lets customers know what your company does or provides.
What are the three elements of a successful value proposition? There are many tips and tricks to do this. When creating a customer value proposition, you’ll look at all the benefits you provide, favorable points of difference, and a resonating focus. What does this mean?
“All benefits” focuses on all the benefits you provide your clients. It asks the question, “Why should we pick you?”. Favorable points of difference compare you to your closest competitor (the “next best” alternative) and ask the question, “Why should we pick you over the other guy?”.
Resonating focus as you look at one or two key things you could improve to deliver greater value to your customers. It asks, “What is the most worthwhile thing about our company to keep in mind while we create a customer value proposition?”.
A wise thing to do is to look at these three elements and ask the questions from your customer’s point of view. However, sometimes, getting this all on paper can be challenging. However, creating a compelling value proposition is critical to your business’s success. Click here to sign up for a complimentary coaching video call to work on your value prop.