Value Proposition
What is a Value Proposition?
It’s a Promise you make to your customers and it cannot be broken, no matter what. It’s not about marketing, is about business.
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What is it
The Value Proposition (VP), generally speaking, is the unique trait you offer to your audience about any product or service offered by a business. Most of the time, a Value Proposition is wrongfully identified by many as the Unique Selling Proposition (USP), the single reason why your offering stands above the competition and why it is a good deal, but, in fact, the USP, is only a relatively small part of a Value Proposition.
Why it is relevant
A recent study shows that nearly 40% of companies fail to define their VPs. Defining your own VPs is a challenge faced by many businesses across industries.
However, if the definition of the VP is done correctly, the success rate of converting customers into loyal fans increases manifold.
A well-defined VP should be concise, clear, actionable, and measurable. In addition, it should also stand apart from the competition.
Deep dive
Let’s break down each part.
It has as its core a single Value or a set of Values, that the customer can clearly perceive, feel, and understand.
Values need to be relatable.
For example, the VP of an online banking platform would comprise its core functionalities, pricing structure, customer experience, etc. but, in general, value propositions are expressed using words such as “better”, “fastest”, “cheaper”, “faster”, “easier”, “simpler”, “innovative”, etc.
Around the core values, the Promise can be expressed with a sentence, such as, for our banking example, “We deliver the most simple banking experience you can ever meet in your life“.
A Value Proposition is the fundamental driver for defining the direction the brand should follow, by designing a suit (brand, visual, tone of voice, and motto/descriptor) coherent with the Promise, such as “Banking Simplified“
PLAY WITH EXAMPLES
“When it absolutely, positively has to be there overnight.”
FED-EX
“[we] give you the space to create, find your fans, and connect with other artists.”
SOUNDCLOUD
“We’re In Business To Save Our Home Planet.”
PATAGONIA
“Empowering the world to design”
CANVA
“Bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.”
NIKE
“Refresh the world. Make a difference”
COCA-COLA
“Payments infrastructure for the internet”
STRIPE
“We’re number two. We try harder.”
AVIS
“Melts in your mouth, not in your hand.”
M&M
“Expect more than a coffee.”
STARBUCKS
“The platform commerce is built on.”
SHOPIFY
“Shaping the future of human/nature.”
THE NORTH FACE
“The right one is worth waiting for.”
TIFFANY & CO.
“To create a better everyday life for the many people.”
IKEA
