By claire |
Posted by Sumontro Roy, email@example.com
A Value Proposition is your position in a particular market segment vis-à-vis your competitor’s position and does not exist in a vacuum. Thus, it is best used along with other tools used for conducting a situation analysis (examples include: PEST, SWOT, Conjoint, 5C).
Identifying the Value-Drivers
The crux of developing a unique Value Proposition depends on identifying and understanding what attributes your consumer “values”. This can be a (complex) mix of tangible, intangible, stated and implied attributes.
Often, there are gaps between what customers say they value and what they actually do. Digging for such inconsistencies helps to uncover their real preferences and value-drivers.
Also (as in Conjoint Analysis) “value” is almost always evaluated in comparison between various criteria and features e.g. within a given set of parameters, do you value Criteria X more than Criteria Y?
You need both context and perspective to understand what your target market values. The core of this value identification process is through a comprehensive needs analysis with the target customer.
The needs analysis must uncover the value-drivers (e.g. quality, price, convenience) in the current as well as in the future and also which of these are ranked higher than the others i.e. the critical and non-critical. The Value Proposition must then be centered on them.
Importantly, as you go through this entire process keep checking to see how these ‘value-drivers’ match up against the core competencies of your firm. The Value Proposition must (ideally) be centered on the firm’s core competencies i.e. what you do better than your competitors – that is the key to sustainable profit.
Given the dynamic nature of value, there is no “silver bullet” when it comes to crafting a winning Value Proposition.
However, the Value Proposition concept is a valuable tool that can be used with great benefit for each target market, to identify what is of value to them and to build a compelling offering to your target audience.
Please feel free to contact the Perks Team for developing a winning Value Proposition for your business!