Articulating your value proposition
How do you describe the value of your product or service?
Will my solution provide real value that will attract customers?
A value proposition is more than just a clever advertising tagline for your product or service. A clearly articulated value proposition serves as a strategic statement of purpose and a guiding vision for your venture. It shapes the way other people think about your product/service and your business.
This activity will walk you through the steps of creating an effective value proposition.
If you haven't completed customer interviews and personas and prototype development and testing we recommend you do before jumping into your value proposition. A clear understanding of your customers is critical to your success as you develop a value proposition.
The activities in this section will get you talking to potential customers and help you answer this important question: "Who are my customers and what do they really need?”
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Describe your value
imagine you are meeting face-to-face with one of your target customers—perhaps one of the Customer Personas you created. They ask the question:
“
Why should I buy your product/service?”
Take a moment now to grab a piece of paper and write down your answer. Keep in mind that you need to be direct and concise. Try to respond in one minute (no more than 150 written words). Give some thought to what you will say to your customer and how you will say it. Your goal is to provide a compelling answer that raises the customer’s interest in your solution and their willingness to purchase it.
You essentially just took a stab at a sales pitch.
A sales pitch is not a value proposition, but the components of a good value proposition can be very persuasive when addressing your customer's core question: "Why should I buy your product/service?"
Four criteria can be used to establish whether you have an effective value proposition. Take a moment to reflect on your pitch and answer the four questions below.
Note: Not all value propositions will address all four criteria, but it is important to give each one some thought.
Example
Check out this example of a Value Proposition. Before proceeding, consider how it meets the four criteria in a compelling way.
Our target customer is a price-sensitive family who cannot expect to cover the cost of college without financial aid and who does not expect to qualify for full scholarship aid. For these families, we aim to be the most trusted source on the internet for advice about paying for college. Our promise is that we will help you make a smarter college decision and a better investment.
Design and Product Practice: Business Growth| LISA PodiumX Series