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Elements of a Successful Value Proposition Strategy

By: Angel Naya

 

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Crafting a value proposition is an important task for any business owner, and requires careful thought at each step along the way. You have to recognize what value you offer to customers, why they would be interested in what you are selling—what relevant benefits you are offering. You have to identify your target audience—what problems do they have, and what are they struggling with that your business can help them with? Then you have to differentiate from your competitors. Why should a customer pick you over somebody else who offers a similar product or service?

If you’ve followed all of these steps, you not only have the beginnings of an effective value proposition, but you also have a much fuller comprehension of your business, your product, and your ideal customer. All of this information will help you as you build your marketing strategies and grow your business. First, though, you need to take your research and write your value proposition.
In order to make that statement functional and useful to you, though, there are certain features you should be sure to incorporate. Your value proposition should not only be clear and concise, it should also be precise, specific, and targeted to your target audience.
Clear and Concise
Value propositions are often compared to elevator speeches. They are straight and to the point, and they don’t waste any words. All of the research that went into the above three steps has to be distilled into its usable and relevant points. Don’t waste time on fluff, marketing speak, or empty promises. All you are doing here is telling your customers why they should be doing business with you and not your competitors. That’s it.
Specific and Targeted
Because you have so little space to answer the big questions, your value proposition also has to be very specific and targeted to your customer. Your value proposition isn’t about what you want, but rather what the customer wants. Appeal to the unique interests of your targeted audience and help them make a decision in as little time as possible with specific and authentic facts.
Using Your Value Proposition
Developing a value proposition can be a long and difficult process, but it is crucial for your business’s long term success. Companies that have put in the work to define and fully articulate their business’s value can use that work to inform every subsequent business decision. They have built the perfect message and platform upon which they can market their products. They have identified their company’s strengths and weaknesses and can use that information to improve their business model. They can also refine their processes and procedures to better serve their customers and expand their business outward.
If you want to reach your customers in a meaningful and effective way, then you must take the time to properly research and define your value proposition. The right statement wielded in the right way will make your customers take note of the value that you uniquely offer. A small fifteen word statement, if worded correctly, can transform the way you do business.
Published: October 17, 2013
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Angel Naya

Office Depot Director of Marketing, Small Business Strategy. A seasoned marketer, Angel focuses on developing strategies to effectively engage small businesses throughout the year at Office Depot.  Prior to joining Office Depot, Angel worked in Marketing at Procter and Gamble and earned his MBA in Marketing from Xavier University and his undergraduate degree in Entrepreneurship from Carnegie Mellon University.

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