Value Proposition
The value proposition refers to a differentiated value that the company wants to pass on to the customer, which is used to guide the company's research and development, production and service.
What is the starting point for the products or services offered by the company? What value products or services do we create for segmented users? What problems can be solved for them?
Eight elements of the value proposition:
1. Novelty: The product or service meets new needs that customers have never felt or experienced before
2. Performance: Improving product and service performance is a universal way to create value in the traditional sense
3. Customization: To create value to meet the specific needs of individual customers or customer segments
4. Get things done: You can deliver value by helping customers get certain things right
5. Design: The product stands out for lean design and reduces manufacturing costs
6. Brand/Identity Status: Customers can gain value by using and displaying a particular brand
7. Price: Provide homogeneous value at a lower price to meet price-sensitive customer segments
8. Cost reduction: Helping customers cut costs is an important way to create value
The value proposition emphasizes what is meaningful to the customer, that is, the in-depth insight into the real needs of the customer, such as the customer's main concern when purchasing large equipment is quality, after-sales service, price, brand, etc., and the customer will also examine from these aspects when choosing supply.
Successfully getting our products recognized by customers requires a clear value proposition. Many value propositions claim to be beneficial to customers, but lack evidence and persuasiveness. We need to know where we're performing the same as our competitors, where we're better or worse than our competitors (different points of POD), and where you and your customers may disagree, and then focus on 1-2 differentiators that have an advantage. If clients find new ideas that make their lives easier or more enjoyable, they adopt new ideas or solutions. These benefits are intangible, and the keyword is "benefit" benefit, so that the customer gets the real benefit.
Because we spend a lot of effort and a long time developing the features of our products, we often forget that our customers care about benefits rather than features. Almost every basic sales course will tell salespeople the difference between characteristic benefits and benefits. For example, customers who use search engines are interested in finding information quickly, not in Baidu's excellent algorithms; customers are interested in whether the water coming out of the water purifier installed under the pool is pure and sweet, not whether the shell of the water purifier is beautiful.
The value proposition must focus on the customer's pain points and the customer's feelings. It needs to focus on two or three key points that will stay in the customer's mind.
Sometimes to seduce customers, make a list of all the benefits and create an all-encompassing "shopping list" list for all customers. The main disadvantages of this approach are that the list contains benefits that have marginal value to the customer, is prone to sales objections, confuses the products offered to the customer, and obscures the core benefit benefits. It's a lazy way to sell, try to avoid, try to understand the customer, and constantly look for new opportunities.
A good value proposition in a business typically has the following characteristics:
(1) Can be integrated into excellent business models;
(2) Focus on the goals, pain points and interest points that customers pay attention to;
(3) Focus on the customer's unadminished goals, unencumbered pain points, and unfulfilled interest points;
(4) Focus on a few goals, pain points and interest points, but can achieve the ultimate;
(5) Not limited to functional goals, committed to the realization of emotional and social goals;
(6) Consistent with the customer's criteria for measuring success;
(7) Focus on the goals, pain points and interest points that most people will have and some people will spend a lot of money to deal with;
(8) Can be distinguished from competitors' customer goals, pain points and interest points treatment plan;
(9) At least one absolute advantage over the opponent;
(10) It is difficult to be copied.
A value proposition canvas is a tool that can help ensure that a product or service is positioned around the value and needs of the customer. You can use the value proposition canvas when you need to improve an existing product or service, or when you are developing a new product or service from scratch.
Value proposition canvas
Value Statement
A value proposition is a skill that salespeople need to have to differentiate themselves and position themselves in the competition.
Salespeople pass on to customers: Reasons why I want to buy your brand instead of a competitor's brand.
A strong value proposition gives a company a huge competitive advantage in the target market, so it's important to summarize multiple value propositions that give customers a sense of what they feel and do what they say.
A value statement is when you think about things from the buyer's standpoint, for example:
1. With the shun * seeder, only need to replace the seeder, a seeder can sow corn soybeans and sesame seeds, to achieve a multi-purpose machine, reduce the capital occupation of large grain growers.
2. The use of the United States * air energy water heater, can meet the needs of many people in the holiday villa at the same time bathing, and constant temperature and pressure, the most important thing is to reduce the cost of electricity.
3. **Er porcelain throwing tiles, "more like marble tiles than marble", has the texture and texture of marble, while not requiring regular polishing and waxing, low maintenance costs.
Statements like this will grab the customer's attention, interest him, and ask more. The value proposition needs to be linked to an existing solution or product feature.
B2C selling needs to guide customers to be pleasantly surprised by the 1-2 unique benefits that your product can bring.
In B2B sales, decision makers and key influencers in the customer's decision chain can complete the purchase by reaching a consensus on the benefits of the product. We need to list two or three types of benefits for our customers:
• Boost revenue
• Faster time to market
• Reduce costs
• Improve operational efficiency
• Increase market share
• Reduce employee turnover
• Improve customer retention
The value proposition is to stand at the enterprise level for a specific market, covering market insight, product planning, product research and development, and market promotion.
A value statement is a specific customer-specific approach that guides customers through a purchase with the specific value of a product or solution.
The value proposition is consistent with the underlying logic of the value proposition, and both define value from the customer's point of view.