How to create an effective value proposition

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What is a value proposition in business? How to convince a customer to choose your offer and gain a competitive advantage? You can find the answer to these and other questions in our article.

Effective Value Proposition – Index:
Definition
A mechanism that has never been as important as it is today
What to focus on?
What does the value proposition diagram look like?
Value proposition design: product representation
Examples
Definition
Why is a recipient willing to make a transaction with you and spend a bosnia and herzegovina whatsapp number database amount of money on the product you offer? The answer to this question is the value proposition : a proposition that convinces the potential consumer that what you offer is better than what your competitors offer. However, achieving a competitive advantage is a multi-step process with many obstacles to overcome. Today, we’ll look at how to develop an effective value proposition to leverage that advantage to your advantage.

A mechanism that has never been as important as it is today
The process of computerization of our societies has resulted in an incomparably wider range of opportunities for the customer to make choices than was the case at least a dozen years ago. Companies offering specific goods must therefore react much faster by formulating and verifying the values ​​created – practically in real time.

For a significant number of customers, the value proposition is the first differentiator that convinces them to use (or not use) a product. This is not easy, since the attention span of a potential consumer is ephemeral. According to psychological mechanisms, the cognitive effect lasts only a dozen seconds – during this time, the seller must “captivate” the recipients and encourage them to buy or at least check out the item.

What to focus on?
The value proposition is a concise and structured set of the most important information , organized in a single file. It should always have an unequivocally positive tone : it should be written in the language of benefits, highlight the company's strengths and convince about its competitive advantage.

In any business model, you should start by defining your target audience and what values ​​are key factors that convince potential customers to take advantage of your offering. One way to incorporate your value proposition into a viable business model is to create a value proposition canvas . It serves as a useful tool designed to define how a company creates and shares value.

effective value proposition infographic
What does the value proposition diagram look like?
The value proposition canvas consists of two separate areas: the value proposition and the customer segment.

Value proposition design should begin with an in-depth analysis of the target audience . It is a way to understand:

what goals the customer wants to achieve by using a specific offer;
what types of needs arise for the customer;
what negative aspects (pains) appear in the consumer's decision-making process;
Analyzing these aspects will reveal all the positive and negative perceptions of the recipient that arise during the planning and implementation process. They will also help to identify issues that have an unequivocally positive impact on the process. This is because the customer value proposition should influence:

the emotional sphere (the joy of purchasing, the prestige of having a certain thing);
the rational sphere (the possibility of saving, reducing expenses);
the sphere of enrichment (benefits obtained, the chance to increase profit).
Value proposition design: product representation
Another aspect of creating a value proposition is related to highlighting the most important features of the product . It is useful to list all the items (intermediaries and products) that will be included in the value proposition. The customer value proposition will focus on two things: reducing the disadvantages or highlighting the advantages of the goods.