In my previous blog post “Unique Value Propositions And Their Necessity For Success”, I provided examples of value propositions in the Healthcare and Technology industries my teams and I developed. As I noted, “A value proposition must focus on features and benefits that make the product unique, and are sustainable over time. A powerful value proposition lets customers truly understand the value of your company's products and services. It helps your target customers to see how what you offer benefits them, and is their only available option.”
In this blog post, we will go through each of the elements of drafting a unique value proposition, whether it is a product or a service that you and your team are providing your customers.
The best example of a succinct approach to drafting a value proposition statement that I have seen is from “Crossing The Chasm”, by Geoff Moore. He distills it down to a single sentence. “For [target customer] who [needs or wants X], our [product/service] is [category of industry] that [benefits].”
In Geoff Moore’s construct, the value proposition statement for the electric toothbrush example in my previous blog would be as follows: “For health-conscious consumers who prefer eliminating diseases before they occur, our toothbrush is the only product in the electric toothbrush industry that is recommended by national dental associations for its periodontal disease prevention capabilities.”
If you look at the components of this value proposition sentence, you will notice three key elements — the same three key elements that are always necessary for the development of a truly unique and compelling value proposition.
Element #1 — Target Customer
Understanding who the product or service you are offering is relevant to is the critical first element. This cannot be a high-level or vague understanding, but a specific persona to whom your offering is something they find of serious value. In my electric toothbrush example, it is a health-conscious / wellness oriented individual, who is pro-active in the management of their health, preferring this to getting a disease that will require curing.
Element #2 — Problem Being Solved
Eliminating periodontal disease is the actual problem being solved in the electric toothbrush example. Health conscious consumers know that periodontal disease is painful, and can frequently require surgery to solve if you get it. Again, this is not some nebulous claim of ‘better health’ from using the electric toothbrush, but an actual ailment that is highly prevalent to consumers and their dental health.
Element #3 — Unique Aspect Of Product Or Service That Is Compelling
Being the ONLY electric toothbrush recommended by national dental associations makes our product unique. The health-conscious consumer we are targeting knows that no national dental association will give their stamp of approval for a product unless it has been rigorously tested, usually with substantive clinical proof that has been backed-up by a statistically significant set of consumers. The claim of “periodontal disease prevention capabilities” is a very strong claim, adding specificity and credibility to the uniqueness of the product.
Crafting a clear yet concise value proposition statement usually takes time, and is best drafted after consulting a wide variety of experts in your company — your salespeople, who talk to customers all day, and your product team, who have built the product or service after spending time with customers, and understanding their needs at a deep level.
Topics: Value PropositionMon, Jul 11, 2022