What’s a value proposition and do we really need one?
Chances are, you’re keen for your company to stand out from the crowd. You want to truly connect with your customers, engage your employees and have the comfort of knowing that everyone is on the same page when it comes to what you’re all about. The answer lies in creating a value proposition, or in other words, a capsule description of what you have to offer.
It might sound like a dry term, but shaping a value proposition is an incredibly important foundation for your business. And it’s not all that complicated. In fact, it’s much better if it’s not complicated at all. Simplicity is key.
Companies with a well thought-out value proposition get noticed, engage both customers and employees and have a head start when it comes to steering the business and fueling ideas.
What happens to companies who don’t have one? Well, it’s harder for them to make decisions. They can flip flop between their stand-out attributes, such as price or quality, leaving their customers and even their own employees confused.
How do we land on the perfect value proposition?
Simply put, your value proposition is a short statement about the value you bring to others. That’s it. Your value proposition can ideally be summed up in one pitch perfect sentence. But you’ll need to ask yourself a few questions to get it right.
First up, who are your key customers? For this, focus on customers who have both an urgent and important need for your business to find the answer.
Next, work out exactly what it is that you do. Your instinct might be to look to competitors for clues on how to describe yourself, but that’s a mistake. Once you start doing as others do, you start blending in - when you want to do the exact opposite. Instead, break free from tired clichés and phrases; get creative. And involve your customers, you’ll often find that their opinion on what you do, unsullied by marketing speak and over familiarity, is hugely helpful.
The value proposition also needs to include a confident claim. What is the upside for a customer using your product or service? Usually this lies in the business's DNA. You just need to dig it out.
And finally, there has to be a promise for the customer. Usually this will fall under one of four categories;
- bigger - is your database bigger than your competition?
- better - how’s your success rate?
- fewer - do you save money for your customers? or
- faster - do you have a swift turnaround time?
Try to create something for each category and one should stand out above the rest. That’s the promise you need to complete your value proposition.
Here’s an example of a perfectly crafted value proposition for a recruitment company. Now it’s over to you.
‘For established companies that need a dramatic pivot in their business model we are a talent scout that delivers a shortlist in less than 48 hours which results in a dramatically faster recruitment process.’
For more information watch the recording of our Creating a compelling value proposition webinar hosted by Economics and business consultant FJ Rutjes.
Take a look at our A step-by-step guide to creating your own value proposition describing the value your business is bringing to others.