“An organization’s value proposition is a reflection of its brand promise, and answers the question “Why should I buy your product?” It identifies the tangible value customers can expect to receive.” Anonymous
Customer value propositions (CVP) is a term I have heard frequently over the last couple of years as an entrepreneur. It is an abstract concept, which appears simplistic at times and complex at others . The notion of pinning down the exact value your product/service provides to your target segment can be a challenging exercise. Without adequate groundwork, we usually end up with generic CVPs such as:
– Our solution guarantees increased productivity of your workforce
– We offer small businesses state of the art web development services
Such CVPs are weak at best, and do not help you stand out in a crowd. Pitching to a prospect and just repeating the generic benefits you offer, is not going to impress the customer . They have probably heard the same pitch from your competition and will in all probability end up making a decision based on whoever they “liked” more (based on the assumption that the competitor has also not outlined a clear CVP). If steps are not taken to rectify this position, the business will most likely experience stagnant growth and not achieve projected goals and targets.
Given that CVPs are essential to the success of any business, why is it that so many organization hardly pay any attention to them? There are a couple of reasons which come to mind:
1. Businesses usually underestimate the importance of this exercise.
2. Weak and generic CVPs are thought to be as effective.
3. Lack of data and research to formulate a good CVP
Based on personal experience, it appears that many organizations are taking the easy way out, or, are unaware of the strategic element a well crafted CVP brings to a business. Over the course of this week I will outline some key elements to help develop a good CVP. I look forward to getting feedback and examples of value propositions that you may have developed for your business.