The importance of value proposition
At the core of every business and service offering is not just the idea, but value, for which customers are willing to spend their money and time. It sounds simple and obvious, but many businesses fail at understanding this simple truth and neglect developing their value proposition, which often proves to be a fatal mistake.
When starting your own business, ask yourself a simple question: what am I going to be doing that no one else does? No matter how small or big, there should be a differentiator between you and your competitors.
Before even starting your business, you have to have a clear idea of how you will stand out. The biggest tool at your disposal is research. Find out what your competitors do, who is the best-practice in the industry, identify trends and opportunities. It is very likely that you will see patterns and will be much more able to design the business model and value propositions, which will help you to stand out.
Decide on important topics of who you are, what you offer, and to whom you offer it. These are crucial questions, and they need to be answered. More often than not, it takes a joint thinking effort to establish answers to these questions.
Remember, that value proposition is not just something you can neglect. It is an essential part of your business, which will guide you to the sustainable future.
More importantly, after you develop your value propositions, you need to test them.
The biggest mistake that businesses make when developing their marketing proposition is to create a very confusing and broad statement. Keep it simple – 10 words or less, and ask yourself the following questions: is your marketing proposition relevant? Is it believable? Is It Flexible? If it is, you are onto a winner.