A value proposition is a clear
explanation of the benefits
your customers receive from using your goods and services. A value prop is important because it separates you from your competition and is the reason why you will get paid. You can assess the strength of your value proposition by answering 3 simple questions:
- What problem does it solve for your customer? Exchange of value (money for something) is only sustainable if both parties benefit. That means your products need to help your customer be better at something: make more money, scratch an itch, etc. On that basis, if your product improves their company, relationships, health, life, whatever, they will gladly pay you; remember to ask yourself, exactly what do your products do for them.
- What makes it different from other similar products and services? What’s your secret sauce? Are you same old – same old? If so, you better be cheaper. If not, you better be able to explain the differences. It helps if you have tangible differences.
- Is it measurable? Tangible means objective, like: see, touch and feel. This point can’t be emphasized enough: be clear about why you are the best choice and in your clarity, make sure you can directly connect your solution to a customer and can also deliver what you say. This is old school but a sustainable company depends on you making your commitments.
A solid value proposition is a fundamental ingredient for a successful start-up. Click here
for helpful resources.