What is Value Proposition: it has been defined simply as answering the “Why” as to why any customer will want to do business with you. It is your convincing factor to the prospective client that your product/service is of more value than the competition, their previous supplier! Simple tip: it should speak directly to the customer’s challenge/pain and make the case for your company as the problem-solver. Yet many struggles with this, here are three common mistakes:
They never had one! – they never took the time to validate the user and find their pain point, how then can they speak to it?
It exists but is not clearly stated. It is said that in less than one minute a distracted customer can scan and should be able to make sense of what your brand is about. It should not be buried in slogans or confusing. At a glance, your brand should shine. It is the foundation of your house, take time to get it right.
Here is a great example with zoom, a video conferencing app we are very acquainted in these times.
They are not being measured or tested out. Communicating what makes you unique with proof and testing can help you stand apart from your competition. If you say you are no One, prove it! Zoom did, they have a Gartner analysis to back it up.
But just how can you write one so memorable and precise? Here are three easy ways:
Write out a Canvas: here we create two sectors, one for the customer and one for the product. It should showcase customer’s feelings; fears are most importantly NEEDS. It is of utmost importance to have the perception of the customer. This can be divided into- pains, job-to-be-done, and Gains and addressed subsequently -Pain relievers, Features of Product/service, and Gain Creators. This way it is clear what benefits your product/service has, how it can ease customer’s pain with what specific features.
Follow the Harvard path: brainstorm with your team to answer these three questions.
Which customers are you going to serve?
Which needs are you going to meet?
What relative price will provide acceptable value for customers and acceptable profitability for the customer?
Are you segmenting the market(innovating) or expanding it (inventions).
Use Steve Bank Formula: Or as I call it, fill in the blank spaces- ask team members to complete this exercise individually. Comparing and contrasting answers afterward will clarify what each one’s priority and perspective are.
We help (X) do (Y) by doing (Z).
At this point, if you are wondering what the value proposition for Techspecialist Consulting Limited is, we should be offended, 😊 it is obvious, isn’t it?
Techspecialist Consulting Limited- doing more for less!
Yes! We derive the maximum results with minimum waste in resources, effort, and time.
Congratulations! You have written out a value proposition that truly reflects your value as represented in a feature of your product/service. How can you communicate, test, and get feedback from the user? Here are some ways:
1. Online Ads: this is the top of the funnel of channels. It tests the quantitative feedback as running ads on social media platforms such as Facebook, Twitter, LinkedIn, and Google ads can reach many customers. These may be invited to a landing page (dummy website) which allows capturing their contacts if they explicitly agree to. But it does not tell you why they do or leave uninterested.
2. Landing page: Customers are directed from ads, email, or posts, and with the aid of the Call-to-action button, you can Measure clicks. Thus, determining the amount of interest in your product/service. But here is a great way to run a second test- the 5-seconds test- It’s the 5 seconds it takes for a distracted web surfer to consider an offer and make up their mind about it. After 5 seconds, hide your Landing Page and asks questions: What was it? What did you see? What did you understand?
3. A pitch: old fashion way of directly stating to a potential customer to comprehension and clarity. You can see their reaction and listen to their questions. If they are the next step follows.
4. Solution Interviews: this tests the appetite of the customer for what you have to offer. In two steps:
Step 1 — Problem validation
Before you make any proposition to the customer, make sure they are in your target segment. Qualify their needs. You may ask:
We have been talking to lots of people like yourself and we have heard this [problem/need/situation].
Step 2 — Clearly state value proposition: your solution and assess customer’s interests. You may ask.
“We are looking to solve “X, Y, or Z” problems. How important is this to you?”
You can narrow it down to features-
We are thinking about feature 1,2,3. Which one do you think is most relevant to you, which one would address best your problem. Why?
You have found an interested customer who is excited about your value proposition now what?
Ask for commitment! Whether this is Money (pre-order), a signed document (Contract), an invite to a meeting with a supervisor, or access to sensitive data (contact list), you must know!
Before spending money to develop a product or service that no one is willing to pay for, determine the chicken or the pig? In the interest vs commitment test!