What is your value propositon?
James Lattin, Stanford Graduate School of Business faculty, talks about how to write your Value Proposition.
Follow this link and complete the steps
Creating and testing your value propositions
Open up your workbook to Activity 4, or download the workbook, and write down your value proposition.
Like the other pieces of your portfolio, creating the value proposition is only the first step.
Now you need to test your value proposition to check your assumptions.
Follow these three basic steps to test your value proposition:
1. Test the jobs as well as the pains and gains of your customers.
At this point, you should have already interviewed your customers and created a Customer Persona. Look back at your interview scripts and personas to ensure that your value proposition will be compelling to them.
2. Test the products, services, and features of your value proposition.
Keeping your customer in mind, consider if the features you are communicating about your product/service address the customer’s priorities and what they value most.
3. Test your customer’s willingness to pay.
Later in the startup guide we dig into the profit model and what you should plan to spend to acquire a customer. For now, do a quick gut check. Do you feel that your customers will actually be willing to pay for your value proposition? Is your value proposition compelling enough to take the customer from interest and value realization to a willingness to pay?