As a business owner, it is your responsibility to tell people why they should buy from you. People must know how you provide value to them and why it’s worth paying for. If that isn’t done well in both your communications, sales, and marketing efforts, your company will struggle to acquire customers.
The “why” of your business is also called your Value Proposition. You may have heard this term before (or maybe not–it’s ok), but it’s a common business term that describes the unique value your product or service provides to people who buy it. Your value proposition should articulate how your product adds value to your customers, who those customers are, what problem it solves for them, and what makes it special. Everyone wants to feel like they are getting something “special” so be sure you’re not shy about bragging how your product or service is different than everything else in the market.
Empowering to Buy
The purpose of being crystal clear with your value proposition is because people don’t buy what they don’t understand. With that in mind, to assure you communicate a compelling value proposition that will prompt customers to buy from your business, you must:
1.) Understand what your customer is trying to accomplish by buying your product/service
2.) Demonstrate how your product will sufficiently solve their problem/provide the value they expect
3.) Be sure your product/service is within the financial means of your customer (make sure they can afford it)
Seems simple right? Unfortunately, the value proposition is quite often misunderstood and therefore, improperly communicated during conversations and in sales and marketing efforts. This is specifically why we at TPM Focus recommend defining your value proposition early in the process as you complete the Business Model Canvas. In fact, in our proprietary, redesigned Business Model Canvas (click to download your copy), it’s step #3 only after researching alternatives and competitors so that you don’t mistakenly copy their value proposition. Unless you want to be a copycat, you’ll want your value proposition to be unique for your business.
Can you articulate your proposition in one sentence below in the comments? Please share!
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