Know Your Worth - Finding Your Value Proposition
Part 2 of Our 3-Part "In the Know" Series
A company's value proposition (a.k.a. unique selling proposition) is the promise of value to be delivered to customers after purchase, further defined as "an innovation, service, or feature intended to make a company or its products attractive to customers" (Oxford Dictionary). Put simply, your company's value proposition boils down to answering the question, "What benefits do our company, products or services offer to consumers?"
But what if your company offers the same products or services as the competition? How is your value proposition any different than theirs?
You can gain confidence from knowing your company's particular blend of capabilities, core values, and team members offers unique value to prospective customers; the challenge is recognizing and taking advantage of it.
How to Recognize & Define Your Value Proposition
To be effective, your value proposition should clearly state how your company offers more value than competitors, whether it be in your approach, the products or services you provide, or the people who represent your business.
To flush this out, you can ask yourself (or your team) the following questions:
What benefit does our customer get from using our products or services?
What problem or "pain point" are we helping customers overcome?
What products or services do we provide that are vastly different than competitors?
What makes these products or services different?
What is the most unique thing we do or what stands out most from our competitors? Why?
What are our core values? Which of these appear to be unique? Why?
What makes our team unique? Why?
The answers to these questions often produces a list of common benefits that aligns with the very reasons consumers seek out products or services. A few of these are outlined in the benefit / reason matrix below:
The Importance of Recognizing Your Value
Most companies already have a pretty good idea of the value their products or services provide to customers otherwise they wouldn't be in business, right?
While the exact number is undetermined, HubSpot estimates that nearly 30% of B2B companies don't have a clear value proposition, and of those that do, more than half don't do anything with them.
This leaves the door wide open for your company to use your value proposition to your advantage and firmly establish yourself as the "go-to" in your industry. This is thanks to a value proposition's ability to:
inform your marketing strategy with clear and consistent messaging directed to a well-defined audience,
unify your company with a clear and succinct focus,
put the customer first by replacing your "what we do" with "why we do it" (background info on this "Golden Circle" concept from leadership icon Simon Sinek available here),
gain efficiency from consistent messaging that cumulates over time and grows your brand equity, and
helps you stand out from competitors who lack vision and appear scattered by comparison.
So by defining your company's unique value proposition, you can differentiate yourself from competitors and truly highlight why customers should choose you when making their buying decision.
If you'd like help with your value proposition, contact us and we'll send a FREE worksheet to guide you through the process.