Does your business know how to build value propositions?
Does your business have a winning value proposition?
We have found many clients that cannot articulate their unique value proposition. In our opinion, trying to win against your competition without good business discrimination is like trying to sail with no wind. Nothing is more important for your business than competitive advantages … the more you have, the stronger your business. So pay close attention as we tell you how to build a winning value proposition.
Start by understanding there are two ways to win in a competitive market:
Achieve sustainable lower cost (and therefore price) than your competition for the same products and services (very difficult to sustain)
Deliver more value, despite equal or higher price
A business is a value delivery system. The heart of a winning value proposition is the end-result experiences of value a business intends to deliver to its target customer segments. It needs to be articulated for the customer value end state … not for your product, service, or business process.
So where should you look for value in your business’s value delivery chain? The top areas to build value propositions include:
The most useful definition of unique selling propositions (USP) is a believable collection of the most persuasive reasons people should notice you and take the action you’re seeking.
This way, it guides your decisions much more clearly and can be used as the basis for marketing messages.
If you don’t have strong selling propositions, people don’t have good reasons to do either of those.
For example, if your online bookstore has average selection, decent prices, delivery, a guarantee, good customer service, and a website, why would anyone buy from you? There’s surely a competitor who beats you in at least some of those aspects.
You don’t have to be the best in every way. Sure, it’s great if you are. But realistically, it’s difficult enough to be the best in just a couple of ways.
However, if you’re the best in at least several ways, you’re the best option for the people who value those propositions.
Starbuck’s doesn’t have the lowest prices. Amazon isn’t the most prestigious book seller. Zappos’ isn’t the easiest way to shop. People buy from them for other reasons.
So, if your bookstore has the largest selection, for example, but the other things are just average, the people who value a large selection have a reason to buy from you.
You must have some product or service elements that are unique. Something has to make you the best option for your target customers.
Otherwise, they have no good reason to buy from you.
Heart of the proposition
The heart of a winning unique selling propositionis the end result experiences of value a business intends to deliver to its target customers. The end result experiences is what you should consider.
For example, a customer shopping for an electric drill is looking for one that can deliver holes as easy and conveniently as possible. Also one that can deliver the most multiple functions.
Time is the most important of customer priorities today. What can you do to keep your time demands to a minimum?
Convenience and easy to work with
Ones related to customer time for sure. Do everything you can to make things simple as possible.