Understanding the benefits to market research can help to understand the importance behind value proposition.
Why Customers Should Buy Your Product
What is a Value Proposition?
Businesses make purchasing decisions on two key factors, price and value. By competing on price, you are lowering your return on investment (ROI). By competing on value, you are focusing on the quality it brings to your consumers. Why Value Proposition?
The Value Proposition (VP) refers to the value that a company promises to customers that will be delivered from the company’s product/service. Along with the promise, it also gives a statement of a company’s brand to the consumers. It tells them what the company stands for, how it operates, and why it deserves working with their business.
The 5 Benefits of Value Proposition
- Provides the foundation for what you are offering
- Plays a critical factor in conversion success of acquiring customers
- Creates strong differentiation between you and competitors
- Increases both quantity & quality of prospective leads
- Helps lift your organization internally
Value Proposition Canvas
The proposition canvas is a tool that is used to position a product/service to the values and needs of customers. This Canvas is split into two building blocks:
- Customer Profile
- Benefit that the customer expects and needs from the service
- Negative experiences, emotions and risks that the customer may experience due to the process of the job being done
- Customer Jobs
- functional ,social, and emotional tasks that customers want to perform and the problems they want to be solved
- Value Map
- Gain creators
- How added value is offered to the customers and how are gains created by the product or service.
- Pain relievers
- Descriptive statement of how products and services relieve the customers pains.
- Products & Services
- Products and services that provide gains, relieves pain, and underpins value for customers.
- Gain creators
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