What is the Value Proposition

If you think your product or service is good or perfect... let me tell you that it's not. Your product or service must be supported by a strong and clear Value Proposition that helps your prospects understand what they will get when they become your customers.

Do you have a product or service that you know can help a lot of people and is a good product, but is not getting the sales or results you were hoping for? - Before you "kill/discontinue" any product or service, try articulating your message differently.

Yes, I know, your idea may be innovative, revolutionary and may be the best product/service in the world, but surely it is not the only option in the market, this is what the Value Proposition is for... What makes you different from the competition?

A good example of this is Apple, which sells status, not computers.

¿Then, what is the value proposition?

We can understand it in this way:

·     What are you selling?

·     Who are you selling it to?

·     What are you selling it for?

It is very important to answer these questions. Answering these questions requires research, creativity and effort.

The Value Proposition is a promise of value to be delivered. It is the main reason why a prospect or potential customer will buy from you and not from your competitors.

-People do not buy products or services, they do not buy features or benefits, people buy "Transformation"-‍‍

Distance = Value

The greater the distance between the before and after state, the greater the perceived value.

A very common mistake in many entrepreneurs and SME owners is not having the Value Proposition aligned with the expected end result, I mean, what the prospect will feel, get, solve, etc... when obtaining your product/service.

It is one of the most important factors to achieve a conversion, a well-defined value proposition will undoubtedly increase your sales performance. By doing this experiment, you will be able to create your message to make your sales and connect with your potential customers.

Elements of a Value Proposition:

- Clarity - Must be easy to understand

- State the specific results the prospect will get.

- Explains why it is better and different.

- Can be read in less than 5 seconds.

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The formula would be as follows:

Your Product or Service + Your Ideal Customer + The Expected End Result

An example could be: our segmentation tutorial, teaches entrepreneurs and business owners how to reach their customers through their customers through digital media.

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The value proposition it explains:

• How your product or service solves and improves a specific situation or problem of your prospects
• The specific benefits your customers can expect.
• Why they should buy from you and not your competitors.

That it IS NOT a value proposition:

• A Slogan - For example: "Just Do It" (Nike)
• A positioning statement: The best pizzas in town.

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Here are some tips for your Value Proposition:

1) Put yourself in your customers' shoes: We know you are in love with your product, but remember that the goal is to reach your Ideal Customer.

2) Don't forget to perform the Buyer Persona exercise (this is essential), if you are not clear from the beginning who you are selling to, you will never be able to reach them.

3) Price is not everything: If your competition is below your prices (perhaps a larger company) you must find that differential factor that meets the wants and needs of your Ideal Customer and develop your Value Proposition around it.

5) Explain clearly the benefits of your products or services, as if your grandmother or your 5-year-old nephew should understand.

6) Create one or more Value Propositions for each of your Buyer Personas.

7) Create unique Value Propositions for each product or service.

When you have finished this exercise, you have to continue with the next one, which is also very important. From now on you have to be very honest and ask yourself the following questions:

¿What are those qualities that make you stand out from your competition? How can you position your Value Proposition?

The most essential thing of all is to be consistent. If your value proposition promises effective and personalized service, make sure it does.

If things aren't going well with your product/service, don't get discouraged. A successful business doesn't just depend on having the best product or service, it depends on making your product stand out from the rest - even when it's in a market full of similar ideas.