Creating a value proposition involves setting a specific promise in a service or product that is valuable to your customers, demonstrating the difference between you and your competitors.
Think of the following factors to help steer you in the right direction towards finding a unique value:
- If I was a customer, what would I appreciate most when purchasing this service or product?
- Delivery: quick-service delivery, free shipping
- Customization: style, color, size
- Customer service: quick set up, free consultation or support, technology support
- Accessibility: information available on website, profile, language, live agent, response to questions within 24 hours
- Consider the following: when I review my competitors, they are great at:
_____________________(fill in blank) but they are really lacking in the area of
_____________________(fill in Blank) (and then create a more comprehensive list)
- If I was a customer at my competitor, this is the feedback I would give them: (list of feedback)
- You may wish to read through a competitor’s website, product, and company reviews. As you read a variety of compliments about the business, you will find a few gems (customers or potential customers) that express their needs, concerns, and/or questions. You may wish to consider reading through replies to Tweets, Facebook comments, and perhaps even YouTube.
You will soon realize that walking through the above-listed process may take a few hours, or even days, which is perfectly fine. Once you have a completed list, select a weakness in the market from which your business can create strength. The idea is to identify the “gap” in the market which your competitors have not identified or filled.
Creating your value proposition statement
When creating a statement, ensure you are clearly communicating a specific advantage to your customers that exceeds the expectation of your competitors’ customers.
Your value proposition is a tightly-worded sentence that is not a business slogan, but rather a quote that gives the customer a snap shot of the great things they can expect from your business. You may wish to start promoting your value proposition through your marketing channels, such as a company website, flyer and/or business card.
If for any reason you are not confident you can deliver on your promise, hold off and continue your market research. Failing at providing a service or product based on your value statement can harm your business reputation and crimp future sales.
A few examples of value propositions (for different sectors)
Restaurant: “Fresh and Affordable Meals Around the Clock”
Product Delivery: “Shop Now and Receive Your Purchase Within 24 Hours”
Private School: “Education that Elevates You to Make Courageous Career Moves”
Printing: “Quality Printing Within 30 Minutes”
Author: Cesar Gomez, CFIB Business Counsellor
Cesar Gomez Garcia has been with the Canadian Federation of Independent Business for six years. His current role at the CFIB is helping our members, which are small business owners with their question on compliances. These questions can range from Employment Standards, Health and Safety, as well as complicated red tape situations that small business face today. His passion is reading and writing about entrepreneurship. Learn more about Cesar.