When it comes down to it, your business exists to deliver value to your customers. If your customers don’t value your product or service, they won’t buy it. To succeed, therefore, it is critical for your marketing team to have a deep understanding of the value proposition of each product or service you sell.
What is a value proposition?
The Merriam-Webster dictionary offers the following (among others) definitions of value:
Value: The monetary worth of something
Value: Relative worth, utility, or importance
So, what is a value proposition? Price (monetary worth) is an expression of the relative worth or importance of your product or service to customers. Your value proposition captures and expresses what your customers value about what you are delivering to the market. Your brand message is how you communicate this value to your target audience.
We believe that value is not the same as utility. Many marketers feel very comfortable talking about what their product or service does, how it works, what the features and functionality are. What they often overlook to their peril, is why their customers should care. What transformation are they enabling for their customers? How will their customers be better off after using their product/service?
Do I care more that your team has 16 patents between them or that your product saves me time by reducing the steps it takes me to complete a time-consuming task. Am I moved by the fact that your product has 3 features more than your competitors or that it puts more money back in my pocket?
PRODUCT LAUNCH FACTS AND FIGURES
According to Harvard Business School professor Clayton Christensen, each year more than 30,000 new consumer products are launched and 80% of them fail.
On average, the cost of launching a new product is in the neighborhood of $15 million.
Eighty-four percent of customers say it is somewhat or very important that the company they buy from is innovative.
Why do products fail?
Failure to understand customer wants and needs
Fixing a non-existent problem
Targeting the wrong market
VALUE PROPOSITION DEFINITION
Value is always rela