How to build a Winning Value Proposition

value proposition

How to Build a Winning Value Proposition

Every company and every product or product line within that company needs to have a value proposition.  Without a clearly defined (and current) value proposition, your company will have anemic revenue growth.  However, for companies that take the time to understand, craft and then engage the market with sharpened and relevant value propositions, success and revenue growth will follow.

Dr. Flint McGlaughlin of www.MECLABS.com does a great job articulating some key facts regarding value propositions.  He says:

“A Value Proposition is creating a statement that answers the following question:  Why should your prospective customers and (existing) customers purchase the product or service that you offer rather than making that purchase from one of your competitors. It’s that simple.

It is a clear and concise definition of what your company can offer your customer that your competition cannot.  All sales and marketing efforts for companies get their greatest returns when they promote the messages that clearly operate on this level.

A good value proposition clearly and efficiently communicates the value of your company and/or their products and services in such a way that the customer is motivated to respond to your call to action.”

Consider the following action items that you should consider completing after reading the quote above.  These tasks require WORK but having completed them, you will be ready to craft very effective value propositions for your business and products.

  1. Define who your primary competitor is.
  2. List the products offered by your competitor that will compete with the products that your company sells.
  3. Make a list of everything that your competitors businesses do that makes them successful.  This will be the Business Value List.
  4. Make a list of everything that your competitor’s products have that make them (the products) desirable.  Make a separate list for each product that you want to compete with.  Product Value List
  5. Define what it is that your competitors do poorly.  This is the Business Detractor List
  6. List the inherent flaws that your competitor’s products have.  This is the Product Detractor List.
  7. Make the same lists for your company and products as noted in points 3-6.
  8. Place each of the lists created in lines 3-6 side by side and analyze what the strengths and weaknesses are between your company and your competitor.
  9. Place each of the lists created in lines 3-6 side by side and analyze what the strengths and weaknesses are between your products and your competitor’s products.
  10. Complete the above steps 1-9 for each of your competitors (I feel your pain… this is a monumental task)
  11. After reviewing conducting the analysis:
  • Define the value proposition for the company.
  • Define the value proposition for each product and service that your company sells.

The steps above represent a significant investment of time.  However, the return on investment will be high.  Would you rather cut down a tree with a sharp ax or a dull one?  The work described above IS “sharpening the ax”.  Invest the time on these steps and you won’t waste your time bringing a message to the market that is forgettable, non-competitive, non-actionable and costly.  Let me know about your successes using this formula.

Now that you have created a value proposition, consider asking yourself the following questions to TEST your Value Proposition.

 

See more about having a Competitive Advantage in Business.

Creating Value will give you FANS!

Playing to win:  A look at business strategy

 

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