If you were asked what distinguishes your company, are you clear about what your answer would be?
If you answered yes, congratulations! You know the value proposition of your business. If not, don't worry. In this article we will explain how to identify what makes your company unique and what distinguishes it from your competitors, and we will guide you through the process of developing your value proposition.
Let's start by answering, what is a value proposition?
To put it simply, the value proposition is the "heart" of the company, it is what differentiates it from the competition and, therefore, it is the reason why a customer prefers you over other companies.
Take Apple for example, what would you say makes it different from other technology companies? It could be its simple functionality, its design and aesthetics, or the user experience that gives the brand a sense of exclusivity and recognition.
As you can see, having a clear idea of your value proposition is important because it allows you to establish an effective and trustworthy link with your customers.
How to identify your value proposition?
Since the value proposition is what distinguishes a company from the rest and makes a customer prefer it, the first thing to do is to identify that added value that your company has and that makes it stand out.
Now, to identify your company's differentiator, you must know what are the benefits for the buyer and the physical or evident characteristics of your product or service. The sum of these elements will give you the added value of your product or service.
Among the benefits may be quality, competitive price, punctuality of delivery, safety or reliability. While some physical characteristics can be an attractive design, ease of use or type of materials.
Continuing with the Apple example, we can identify its added value in the following aspects:
- Imnovation: it has created a concept around its products, as they are unique and with very specific characteristics.
- Quality and design: it plays with going out of the conventional but without leaving quality aside.
- Customer service: through its stores it offers a personalized service to its customers and, by having control over its internal system, it turns that service into something exclusive.
Can you identify the differentiating elements of your product or service in these aspects? For example, is your raw material biodegradable, is your price more competitive, do you distinguish yourself by the punctuality of your deliveries?
Keep in mind that both the benefits and the features of your product or service have to be aligned with the needs, tastes and preferences of the buyers. Also consider that a product or service has value to the extent that it manages to solve a problem or satisfy a need in the best way.
How do you know if you already have a value proposition?
It is possible that your business already has a value proposition but you have not identified it. To find out, answer these questions:
- If your company disappeared tomorrow, would there be a gap in the market?
- What do you offer that is different from other companies or that adds or adds value to the supply chain of another company?
- Why should a customer buy from you (quality, price, service)?
If you are unable to identify what makes your product or service stand out, don't worry. Below we will guide you in building and executing a value proposition.