How do I build a value proposition?

Before making any investment or purchase, we measure the service’s/product’s value. We want to be sure it is worth what we are about to pay. A business, especially one that is service-based, needs to have a clear “value proposition”: services and benefits associated with the service/product.

Many business owners, sales people and marketers miss opportunities by not clearly defining their value proposition. Below are tips that can help you define yours.

  1. Make a list of what your service/product does for clients. Oftentimes we forget a few key items because we think everyone knows they are part of our service/product – please include those obvious items. You would be surprised how often a simple part of our service/product is not known by even our most loyal clients or could be the item that tips the scale in our favor.
  2. Understand the difference between a “feature” and a “benefit”. Benefits are much more client-centric. If a client can say “but, how does that help me?” to an item on your list, then that item is a feature and you need to communicate its benefit. This makes your business more about your client and less about you.
  3. List your differentiating qualities. If you don’t understand what differentiates your business, read my earlier post “How do I differentiate my business?”.
  4. Be sure your value proposition meets or exceeds what is fair for the asking price. If after listing your value proposition you wouldn’t pay the price, it is time to go back to the drawing board – either increase your benefits or lower your price.
  5. Communicate the items on your list in your marketing endeavors.
    1. You could write a Facebook or Twitter post for each – perhaps you can ask your followers if they have used that portion of your product/service. Do NOT just list the value proposition. To understand why, read my earlier post on how to use social media for business.
    2. You could do a YouTube video about how to best use that aspect of the product/service. That tutorial can become part of your value proposition. Be sure to respond to comments or questions about that video. For more information, read my earlier post about how to use YouTube for business.
    3. You could include the items in your print or online advertisements.
    4. Post them on your website as a description of your service/product.
    5. Include them in your brochures.

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