Value Proposition – punch through the…

Last Updated: August 7, 2020By

Let’s get it straight from the start. A Value Proposition [aka market message] is a succinct statement that a company uses to summarize the core benefits or promises of a specific product, service or offering, and why a specific consumer set should buy it.

It is designed to help maintain an economic moat [aka competitive advantage] by persuading a consumer that it will add more value or better solve a problem than similar offerings from competitors.It IS NOT an enduring overarching brand proposition, statement, strapline, promise or purpose.

As such it is transactional, like the offering it supports, and tactical.

Therefore, because over time the target consumer segment changes or what the organisation thinks its value proposition is, shifts away from what consumers think it is, a value proposition should be constantly surveyed and adapted accordingly.

There are many different ways to approach the creation of value propositions, some of the better ones we cover off in our workshops.

But some key tips are:

  • Be specific and communicate value – yep it’s obvious. So much so it’s often forgotten. Look at various value propositions and see if they truly explain what the offering actually does and how it solves consumers problem or improves their situation.
  • Don’t propagate like amphetamine-induced rabbits – let your heroes do the work. Why waste time trying to create value propositions for every offering, it dulls the reader, erodes credibility and won’t stand out. Create outstanding value propositions for leading offerings and let the hallo effect permeate all else you do.
  • Forget ‘unique’, you ain’t, but be distinctive and avoid comparisons against specific competitors – not only is it poor form, but why give them a free point and place them on the consideration list against you.
  • Be honestly convincing – don’t make claims that aren’t true [that will kill you] but know why your offering is truly distinctive and say it loudly, proudly and smartly.
  • Talk to your consumers – that’s right, know who they are, why your offering truly appeals and say it in ways that they understand and appreciate.
  • Be succinct – if you can’t explain why your offering is different and better in 25 words or less ..it’s not! And if this is the case, you should definitely give us a call because that opens up a completely new raft of issues.

We are planning to create a Value Proposition Play Book over the coming months, so if you’d like to know more or be sent a free pre-release edition drop us a line at www.locke.com.au and we’ll add you to the list.

Michael Locke
Managing Partner at LOCKE Pty Ltd

Since founding LOCKE pty ltd, Michael has had the privilege of helping companies, their offerings and brands, truly engage with their markets in conventional and digital spheres - returning them many millions of dollars and creating sustainable growth platforms. Reach Michael via his website www.locke.com.au.

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To achieve better sales and profits, most companies could be doing more to cultivate business from their existing customers. However, enthusiasm for customer-retaining strategies must not endanger sound customer-getting efforts. How companies balance the two is the big question. To intensify reaching old customers while still seeking new ones, for many firms, will mean changes in market analysis, planning systems, management incentives, and marketing and/or operations organization. In the rush toward growth, consumer marketers have tended to regard success as stemming from obtaining new customers while unwittingly minimizing the importance of satisfying old ones. It is time for more companies to distinguish between their getting and retaining functions, to assess the balance between them, and to remedy any deficiencies in customer retention. This process requires management to value the potential of current customers and to treat them in special ways to get them to keep coming back. Several major elements should be part of the new marketing mix for customer retention: Product extras Keeping customers frequently requires giving them more than the basic product that initially attracted them. Product extras for individual customers over time can play a sales-expansive role. Reinforcing promotions Product promotion works better when aimed at existing customers. If a marketer knows who these customers are, benefits can be obtained by giving them reinforcing communications. Sales force connections The sales force can play a decisive role in the customer-retention function. At a retail or service counter the salesperson is the focal point of the company's strategy and is the firm to the customer. Post-purchase communication A company must anticipate that some customers will encounter either minor or serious problems after purchasing. If the firm is not ready to hear and correct these difficulties, the customer may not repurchase  or may cancel the the relationship. Whether company or customer is at fault, standby post-purchase activities can be instrumental in saving these customers.

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