Selling Solutions: How To Create Value Propositions
It's a question that often leaves entrepreneurs scratching their heads, and assuming that value is all about the product they're selling, and it's not technically wrong for you to describe your product or service when answering the question. But here's the thing: your product or service is simply a solution to a problem or need your customers have and as you probably know, there are tons of other businesses offering similar solutions. Value Proposition is about why people will choose to buy from you and not someone else—basically answering the question of how you can stand out, from the rest of the pack.
What's Your Unique Spark?
In the world of business, we're all chasing after the same goal, we want to make a profit! This is made possible when we develop an understanding of what customers gain by choosing us. That's where the value proposition shines. It's the unique sparkle that sets you apart from your competition, based on either numbers or experiences. Broadly we can say that value is either going to be quantitative or qualitative.
Quantitative Value:
Think about this as the 'measurable' value. It's something you can put a number on—like cost savings, time efficiency, or a specific percentage of increased productivity. An example could include the following real-world value proposition:
Qualitative Value:
On the flip side, this is the 'feeling' value. It's subjective, varying from person to person based on their experience. Think of things like providing joy, ease, or peace of mind to your customers. An example could include the following real-world value proposition:
How To Talk To Customers About Value
Creating value is naturally vital, but being able to communicate it in a way that people can understand it, is equally important. That's where your value proposition statement steps in. It's a simple, clear way to tell folks what they'll get from using your products or services. And a good one should instantly make a light go on in the minds—it's easy to understand, explains the specific gains they'll get, explains why you're better than the competition and can be read in a heartbeat. I have a free Value Clarity Worksheet that you can download and use to craft your value proposition statement, the download link is at the end of the article.
Checking if Your Value Proposition is Strong
I know you're probably eager to jump right into creating your value proposition, BUT hold your horses, we need to cover a few more bases. Creating a value proposition statement is just half the battle, once you've drafted it, you need to make sure that's actually strong enough to drive interest in your products and service.
To make sure it's the real deal, let's run a quick credibility check:
Will People Believe it? Does your statement sound believable?
Is it Relevant? Does it match what your audience is looking for?
Can You Defend it?: Can you prove what you're saying?
Is it Flexible? Can it roll with the punches as things change in your business and industry?
Does it Tug at the Heart? Does it touch people emotionally?
Is it Clear as Crystal? Can anyone get what you're saying?
Is it Unique? Does it shout out why you're different?
Does it Promise Results? Is the value clear in what it delivers?
At the end of the day, your value proposition statement isn't just a nice little thing you say when describing your business, it needs to also help you achieve your business objectives and it guides the development of the rest of your business model.
In the S.P.A.R.K Framework, as you assemble your business model during step three, it's imperative to pay special attention to your value proposition, because focusing on your value proposition you gain a comprehensive understanding of how it integrates with the overall business model. Your value proposition is the key element that informs your revenue streams—how you make money. It directly aligns with the "why people will buy from you" aspect of your business model. Clarity in your value proposition ensures that your revenue streams are well-defined and in sync with what your customers truly value.
Understanding your value proposition within the context of a tool like the Business Model Canvas (that you can download here) is pivotal in developing a sustainable and successful business model.
Let's Develop Your Value Proposition!
Crafting a compelling value proposition is like setting sail in a sea of other businesses and their products and hoping that you’ll find something out there that can help your business stand out. To help you ensure your value proposition is well developed, grab our Free Value Clarity Worksheet using this link💡
Remember a strong value proposition is essential for business success. It helps you attract new customers, increase sales, build customer loyalty, and defend against competitors. By following the tips above and using the worksheet, you can create a value proposition that is credible, effective, and persuasive.
Share your insights
I'm here to assist business owners from all walks of life, all of whom share one common dream: turning a good idea into a great business. Regardless of your story, I'm here to help shape your concept into a success story, as well as learn from your insights and experiences.
What aspect of your value proposition do you find most challenging to articulate - the tangible, quantifiable benefits, or the unique, emotional experience your customers gain? Share your thoughts and insights with me; I'd love to hear your perspective!
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