Following on from analysing the value your products provide to your customers with a Value Proposition Canvas, once you understand your product offering and value it can be used to create a value proposition statement for your business. A value proposition statement is often discussed in relation to marketing by describing the value that a product provides to a specific market segment.
The ‘Value’ of a well thought out Value Proposition Statement goes well beyond simply marketing though.
If you have completed your value proposition canvas, it demonstrates the thought process of not only looking at a product from a marketing point of view to your customer, but also an holistic view of your business. It can provide insight into your business operations, purpose, customer facing service, strategy, marketing, branding and social awareness.
A well worded value proposition statement will name your business, describe your product, the customer you target, how you solve their problems by enabling them to complete tasks, how you do it, the way it will change their life, and why it is better than other options.
That’s a lot to unpack and explain in as little as 1 -3 sentences. That is why they are so powerful if used to your advantage. So, lets break it down using your value proposition canvas.
1. We (your business name)
2. Offer (your products, services)
3. To solve (problems, pains)
4. For (Your ideal customer – Target Market)
5. When they (Customer job)
6. We do this by (customer gains, pain relievers)
7. And providing more than (implying competitors or industry offering)
8. With (Gain creators).
Let’s use a local gym for example. This example is by no means perfect, and it can take continual refinement to have true impact, there value proposition reads:
“ At Jim’s Gym, we offer a large range of group classes, equipment and one on one services to assist with improved health, feeling better, looking better for everyday mums and dads. Whether you need to lose pounds, get fit, or have some health concerns, our friendly, welcoming, professionally qualified staff are committed to making our local communities healthier at our convenient, affordable locations.”
As you can see, this paints a larger picture about Jim’s Gym that if followed will impact many decisions about their business.
First of all, what services they will offer, the speciality of those services and who they are targeting in their marketing. Operationally, the services mentioned need to be available, along with information and suitably qualified staff that can advise on the specialty services. Marketing will designed to target this demographic, however the facilities, design, music, layout, feeling and equipment need to all suit this market. Locations need to be convenient to the market area and opening many convenient locations is strategy. Price offering needs to be competitive with nearby competition. Staffing need to be appropriately trained to talk and make them feel comfortable, but also hold high qualifications.
More importantly staff need to have buy in to being motivated to making the local community healthier, this is brand and social awareness. This value proposition statement gives purpose to every employee’s day, everything they do in their day is working towards this standard.
Although businesses have Vision statements, mission statements and staff values, they are often forgot about or created at high level, they very rarely are remembered and give purpose to all staff on a daily basis.
Having a meaningful, well delivered value proposition statement does not just show of your product to customers, it can give value to your staff for their effort they make each day.
Need help or some advice, feel free to contact us or try some extra reading of Value Proposition Design by Alexander Osterwalder (Author), Yves Pigneur (Author), Gregory Bernarda (Author), & 2 more.
