Value Proposition

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Value Proposition

When you are creating your value proposition, you want to think about what benefit you are bringing to the customer. Depending on your business model, the value your product or service brings to the customer may apply to your competition as well. The key to a great value proposition is that it is true to the customer benefit, but it is also unique. If your value proposition is vague or looks just like someone else’s, then your product or service probably won’t stand out to potential customers. 

It is also important to remember that your value proposition cannot apply to everyone. If you try to be everything to everyone, not only will your product or service suffer, but you will also lose the edge of what your business is offering. Therefore, you want to focus your value proposition around your target market. They are your key audience and your value proposition should appeal the most to them. 

To start creating your value proposition, first consider which kind fits your product or service. Are you adding value to your customers’ lives or are you taking away a pain point? 

Adding Value

If your product or service is focused on enhancing your customer’s life in some way, then your value proposition should first highlight the advantage you are offering. Take Airbnb from the perspective of the customer. Hotels are not in short supply perse, but Airbnb locations provide the added value of the local experience. Similarly, from the host’s perspective, Airbnb offers people the opportunity to make additional income by renting out their properties. 

A value proposition that is rooted in adding value doesn’t necessarily have to be benefit directly experienced by the customer. The company Found My Animal specializes in dog apparel, however, their value proposition highlights that a portion of their profits go to non-profits for rescue dogs. The value added here is catered to people who are passionate about rescue dogs. By supporting the company, those customers thereby support non-profit organizations. 

Removing Pain

The other large category for value propositions is that your product or service is providing a solution to a particular pain point. Typically, time, money, or needs are among the most common value propositions for removing a pain point. Let’s look at TurboTax. Unless you are a CPA or accountant, most adults know the pain of doing their taxes. It is time consuming, confusing, and unpleasant. To appeal to everyday people, TurboTax created an extremely stream-lined product that makes doing your taxes much easier. 

If your product or service can make aspects of life easier for your customers, then your value proposition should focus on how their life will improve. Dollar Shave Club took advantage of a market where disposable razor prices are less than appealing. In their value proposition, they clearly inform the customer that shaving with quality razors doesn’t have to be expensive. 

There may be some situations, however, where customers will actually choose to spend more money in order to remove a pain point. One of the largest selling points of an Apple computer is their virus security. Other computer companies are far cheaper, but they are also more susceptible to hackers and viruses. Though it means spending more money upfront, many people who depend on the safety of their files may choose to spend more money for their peace of mind. 

Making Your Value Proposition Unique

Once you have determined if your product or service adds value or removes a pain point, you need to determine how you will communicate the uniqueness of your brand. Most likely, you will be in a position where there is competition. Your goal is to ensure that your potential customers know exactly how you stand out from the competition. What makes Dollar Shave Club different from Harry’s Razors? Asana from Monday? TurboTax from H&R Block? Blue Apron from Hello Fresh? There are distinct differences from them, and customers who have done the research find that out.

But what if you aren’t aware of the differences? If you went on their websites, would the unique value be clear? If your well-developed value proposition is front and center, you stand a better chance of a potential customer choosing you in the fulfillment stage. If you aren’t sure how you are unique compared to the competition, taking some of the following points into consideration might help you figure that out. 

Remembering Your Target Market

All things come back to your target market and the demographics that target market covers. Evaluating their needs can lead you to your uniqueness. Take the company Deskbeers, for example. Currently, start-up culture has set an expectation of a more relaxed work space and that culture is spreading into the corporate world as well. Desk Beers capitalized on this trend but also recognized that to have a stash of beer at the office means collecting money and running to the store. So they came up with a better solution: beers delivered directly to the office. Their model is specifically designed to appeal to the needs of those involved in start-ups or forward-thinking corporate companies. 

Comparing the Competition

If you can strategically work in a comparison to the competition, you are giving yourself the upper hand and that is where your uniqueness lies. Purple mattress does a great job of strategically comparing themselves to their competitors without calling them out. It is very clear from the grid technology they use in their mattresses that it is different from memory foam, spring, or other materials. If your product or service is designed differently or made differently from the majority of the competition, then you can immediately stand out in your value proposition. 

Customer Focused Language

Including customer-centered language can also set you apart from the competition. Some companies choose to highlight the benefits of the product or service and look over the experience of the customer. Spotify’s value proposition does a great job of using customer focused language by saying “Let Spotify bring you the right music for every mood and moment.” Spotify could have focused on the product of the streaming service. Instead, they focus on how the customer will be impacted by their product. Speaking directly to the customer and including “you” ensures your message is coming across with the customer in mind. As we have discussed in every step of the buyer’s journey, customer-focused builds trust and authenticity — something some companies still struggle with prioritizing. 

Setting Yourself Up for Success

It may seem like there is a lot of information that could be included and it will turn out to be a paragraph. To avoid being too wordy, prioritize being clear and concise with your message. You also want to be sure that your value proposition only communicates how your product adds value or removes pain, the specific benefits, and what makes you unique compared to the competition. 

If after all of that processing you still aren’t sure about the effectiveness of your value proposition, then try a few testing strategies to help you decide. Running A/B site tests or conducting surveys can help you establish what kind of wording resonates with potential customers. After all, in a customer first approach, getting feedback from them could be essential in the effectiveness of your messaging. 

 

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Chapter 1: Getting started

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Chapter 2: Coronavirus Cyberattack Statistics

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Chapter 3: General Cybersecurity Statistics

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Chapter 4: Phishing & Email Attack Statistics

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Chapter 5: Industry Cybersecurity Statistics

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Chapter 6: Privacy Statistics

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Chapter 7: Privacy Statistics

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Chapter 8: Privacy Statistics

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