Understanding the patterns of value creation: Gain Clarity
- Organize information about what customers want in a simple way that makes the patterns of value creation more easily visible. As a result, we will gain more effective design value propositions and a profitable business models that directly target our customers.
Leverage the experience and skills of your team: Getting Team Aligned
- Equipping the team members, a shared language to overcome confusions and communication gaps. This can also achieve by conducting strategic conversations, run creative exercises and get aligned. This will lead to more effective productive meetings with full of energy and produce actionable outcomes beyond a focus on technology, products and features towards creating value for customers and business.
Avoid wasting time with ideas that won’t work: Minimize the Risk
- While considering the most important hypothesis, we must ensure the quality of testing the ideas in order to avoid risks in future. This could allow us to pursue big bold ideas. Also thinking “What could go wrong? In parallel while doing the analysis could help better in driving solutions. Hence, the ideas will fit for the task and complement existing processes that help running the business.
You can find some tools in the market to start building the value propositions to analyze business models and identify their potential needs for customers. Sometimes the exiting business needs a strategic decision to make and execute them in a different may to leverage different strengths and overcome different obstacles. These decisions require challenges to prove a cost effective solution. The best decision that begins with a best design can actually impress the stake holders and investors to make them think though it.
A good customer value proposition will provide convincing reasons why a customer should buy a product, and also differentiate your product from competitors. Gaining a customer’s attention and approval will help build sales faster and more profitably, as well as work to increase market share. Understanding customer needs is important because it helps promote the product. A brand is the perception of a product, service or company that is designed to stay in the minds of targeted consumers.
What the value proposition consists of?
The value proposition is usually a block of text (a headline, sub-headline and one paragraph of text) with a visual (photo, hero shot, graphics).
There is no one right way to go about it, but I suggest you start with the following formula:
- What is the end-benefit you’re offering, in 1 short sentence. Can mention the product and/or the customer. Attention grabber.
- Sub-headline or a 2-3 sentence paragraph. A specific explanation of what you do/offer, for whom and why is it useful.
- 3 bullet points. List the key benefits or features.
- Images communicate much faster than words. Show the product, the hero shot or an image reinforcing your main message.
Evaluate your current value proposition by checking whether it answers the questions below:
- What product or service is your company selling?
- What is the end-benefit of using it?
- Who is your target customer for this product or service?
- What makes your offering unique and different?
Use the headline-paragraph-bullets-visual formula to structure the answers.
What makes a good value proposition?
Clarity! It’s easy to understand.
- It communicates the concrete results a customer will get from purchasing and using your products and/or services.
- It says how it’s different or better than the competitor’s offer.
- It avoids hype (like ‘never seen before amazing miracle product’), superlatives (‘best’) and business jargon (‘value-added interactions’).
- It can be read and understood in about 5 seconds.
A value proposition is not for products or services only. In the same manner you can create what is called Professional Value Proposition.
- Why can I be useful? What business driver should I respond to?
- How do I proceed? Which area should I focus on?
- What results can I deliver? For what improvement?
Deliver the best which values the business for a great change. Design, Test and Deliver what customers want!