When to use Value Proposition Canvas
If you have ever googled "business model", "value proposition" or similar terms, you will have come across Strategyzer. Strategyzer is a strategy and...
6 min read
Por Sofía Oviedo | Jan 23, 2023
6 min read
Por Sofía Oviedo | Jan 23, 2023
A solid value proposition is the cornerstone for standing out and capturing your customers' attention. More than just a statement, a value proposition reflects the essence of your business: what makes it unique, relevant, and desirable to your target audience. It serves as the bridge between your customers' needs and the solutions your company offers, creating both an emotional and practical connection that can make the difference against the competition.
Without a clear value proposition, marketing and sales efforts can lose direction and effectiveness. Customers, faced with countless options in the marketplace, seek concrete answers to one essential question: "Why should I choose this company over another?" Therefore, having a well-defined value proposition not only helps attract new customers but also retains them and builds a long-term relationship of trust.
In this article, we will explore in detail what a value proposition is, why it is crucial for your company, and most importantly, how you can create one that highlights your strengths and satisfies your customers’ needs. With practical examples and a strategic approach, you’ll discover how to transform your ideas into a powerful tool for growing your business.
Index
What is the meaning of the value proposition?
The value proposition is a clear and concise statement that describes the unique benefits a company, product, or service offers to its customers, highlighting what sets it apart from the competition. Essentially, it is the main reason why customers should choose a particular offering over others available in the market.
This proposition focuses on how the product or service addresses a specific need or solves an important problem for the customer. Additionally, it emphasizes the unique benefit that makes it stand out from competitors, whether through factors like price, quality, convenience, innovation, or any other relevant attribute. It also highlights the tangible results or positive impact that the customer will experience by opting for that offering.
For example, if a company sells project management software, its value proposition might be something like: "We make team collaboration easier with an intuitive platform that saves time, improves organization, and helps achieve goals faster than ever." This example underscores both the benefits (saving time and improving organization) and the differentiating factors (an intuitive platform).
Ultimately, the value proposition is essential because it guides how a company positions itself in the market, helps attract ideal customers, and ensures that marketing and sales efforts align with what truly matters to the audience.
It is a clear, direct, concise, and objective statement of the benefits the business provides. A strong value proposition is characterized by the following:
Once established, it is a vital instrument for developing marketing strategies. It introduces our business and defines the scope so that the public knows what to expect from our products or services, how it works, and the company's purpose in the market.
The value proposition can be built on a canvas, which is then integrated into the nine pillars of the business model.
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This visual representation helps the teams capture the ideas, introspect the business, analyze and study their customers and thus establish a value proposition according to the direction the company has to look for.
The importance of the value proposition in companies
The value proposition plays a crucial role in the success of businesses, serving as the central axis that connects an organization with its customers. It is the promise of unique benefits that a company offers and that differentiates it from its competitors. A well-defined value proposition not only communicates what a company does but also why it does it better or differently, which is key to attracting and retaining customers.
In a competitive market, the value proposition is essential because it helps businesses position themselves strategically. By identifying and clearly communicating what makes them unique, organizations can capture the attention of their target audience and stand out in an environment saturated with options. This not only increases the chances of conversion but also builds strong relationships based on trust and customer satisfaction.
Moreover, the value proposition not only benefits customers but also brings clarity and direction within the company. It serves as a strategic guide that aligns the efforts of marketing, sales, and product development, ensuring that all areas work toward a common purpose. A well-structured value proposition facilitates decision-making and enables businesses to stay focused on what truly matters: creating real value for their customers and consolidating a sustainable competitive advantage.
Some of the reasons why it is necessary to establish a value proposition and dedicate some space to this exercise to dynamize your business can be seen in the following points:
These reasons are an anteroom to gather the team and create the value proposition on a canvas. If your company has one, reviewing it and knowing it fits today's needs is essential. In the section below, I will tell you which aspects are vital to creating the value proposition for your business.
Step by step on how to create your value proposition
With a multidisciplinary team, holding work sessions to build a value proposition on a canvas is necessary. Take sheets of paper, post-it notes, whiteboards, and all the material that helps to bring out the creativity in your team will be welcome to write down and analyze the ideas.
Based on what Alexander Osterwalder conceived, I will explain what it consists of and how to fill it, pretending to help in a clearer and more profound way the critical aspects within a business model.
I explain each of the crucial elements to consider so that you can discuss, contemplate, analyze and study the points found in various sessions; this is a reference that allows us to ensure a balance between the product and the market. In the image below, you can see what this canvas looks like.
The intention is that, together with the team, each numbered image is developed, starting on the right (circle), which is the customer profile, and then on the left side (square), which makes up the value map.
Customer profile:
Value map:
Once we are clear about the activities performed by the user, we can determine which products or services are helpful to them. In addition, if we know the desires and frustrations that users expect, we can innovate and design solutions with particularities that provide more significant relief.
This tool is clear, accessible, and presented in a visual way that helps to understand and capture the ideas for the teams that are integrated by different areas of a company.
This article highlights how a good value proposition can unite customer loyalty, boosting our business in the market and leading to higher sales. It is an advantage that will give us superiority over the competition, so I invite you to make your company's value proposition or, if necessary, take a break and review the one that currently exists. If you have any doubts or want support on this topic, you can contact Imagineer's Strategy team, who will be willing to listen to you.
Creating an effective value proposition is an exercise that requires introspection, strategy, and a deep understanding of your customers. It is more than an attractive phrase; it is a reflection of what your company stands for and how it can improve the lives of those who choose your products or services. Once defined, this proposition becomes the central guide for your commercial and marketing efforts, aligning your actions with your audience’s expectations and desires.
By dedicating time and resources to developing an authentic and persuasive value proposition, you are investing in your business's future. This not only enables you to differentiate yourself in a saturated market but also strengthens customer loyalty, as they will find in your company a reliable and unique ally in its category. Furthermore, by communicating your value proposition clearly and consistently across all touchpoints, you will create an impact that resonates beyond your products, turning your customers into ambassadors for your brand.
In summary, the value proposition is the soul of your business, the promise you make and fulfill daily with your customers. If you haven’t defined one yet, now is the perfect time to reflect on what makes your company special and how you can communicate it effectively. With a strategic approach and a customer-focused mindset, your value proposition can be the key to unlocking new opportunities and achieving the success your business deserves.
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