Value Proposition 4 Startups #2
from Wikipedia 6/13 enhanced by Peter/CXO Wiz4biz 8/13
Value Proposition Creator states there are six stages to the analysis:
1. Market: for which market is the Value Proposition being created?
2. Value or Customer experience: What does the market value the most? The effectiveness of the Value Proposition depends on gathering “real” customer, prospect or employee feedback.
3. Offering: which products or services are being offered?
4. Benefits: what are the Benefits the user will derive from the product or service?
5. Alternatives & differentiation: What alternative options does the market have to your product or service?
6. Proof: what evidence is there to substantiate your Value Proposition?
Why is VP important?
A good Value Proposition will provide convincing reasons why a customer should buy a product, and also differentiate your product from competitors. Gaining a customer’s attention & approval will help build sales faster – and more profitably – as well as work to increase your Market Share. Understanding Customer Needs is important because it helps promote the product. A good Brand is the perception of a product or service that is designed to stay in the minds of targeted consumers.
A product with a successful Value Proposition is directly linked to the products actual & sustained performance versus the competition. The two main attributes that allow consumers to differentiate among products are Price & Quality. Finding the correct balance between these two attributes, usually leads to a successful product. If a company is able to produce the same quality product as its direct competition but sell it for less, this provides a price value to the consumer. Similarly, if an organization is able to produce a superior quality product for the same or a slightly higher – but acceptable – price, the value to the consumer is added through the quality of the product. A product must offer good “value” through price and/or quality in order to be successful.
Comments: Why do you think Value Proposition is important?