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3 min read

Why generate a digital value proposition?

3 min read

Why generate a digital value proposition?

Customers are no longer 100% concerned about price when buying. There is a belief that there are still markets where price is the only way to compete and the lowest priced product will always sell the most. It is a mistake to believe this and a disadvantage for the brand in the future if managers continue to see it that way. 

For every type of customer there is some differentiator that is equally or more important than the price of the good or service they are buying. Often it is related to the product's characteristics and this is something that premium brands have always taken advantage of. 

However, in today's competitive economy, which is largely based on the customer experience, these differentiators no longer have to be strictly about the product itself, but rather the shopping experience and interaction with the brand is something that is highly valued depending on the type of customer you are trying to reach. 

There are many companies that do not even know internally what value their product or service provides to their ideal customer, or even if they are clear about it in their product, they lack a value proposition for their digital channels, affecting the results of their online efforts.

Read: Introduction to Value Proposition Canvas

What is a Value Proposition and why does my digital strategy need one? 

A value proposition is the core offer you provide to your customers that adds value to them, to their lives. By adding value to your customers, this offer becomes compelling to consume. Thus, if we find an undecided customer, it is this value proposition that helps to finalise the sale. 

This concept is becoming more and more relevant the more competition there is in the market (more options for the customer). In the past, by having a product with a strong value proposition, brands achieved their objective. Now, if we are talking about a digital strategy in which you are looking for customers to conclude the sale through that medium, it is necessary that your digital strategy and channels have a strong and compelling value proposition for your customer segment.

Whether in terms of browsing experience, exclusive presentations, differentiated deliveries, etc., you must try to find out what the customer values when buying in order to offer it in the easiest way to sell or convince. 

3 Reasons to create a customer-centric value proposition

  1. A complex understanding of the consumer who buys the product or service: knowing who, why and when they buy from me is something that will always be advantageous for a brand. It is recommended to write down the characteristics of the ideal buyer in a document.  It is important to understand in depth how the customer lives and thinks, so that we can even begin to think that we already know them and thus reach them in a more effective/less costly way.

    It is not knowing a customer's product preference or monthly income, as this does not yet clarify the way people think when considering the purchase of any of the products. For this step it is also of high vitality to have a CRM with optimised information as it should contain all the interaction that we have with each of our customers and that enables better understanding regarding product choice, frequency of purchases, among many others. 

  2. Knowing the brand and the product/service you want to sell creates a culture of change. 
    Even if the team is well established and believes they know the products offered in the company perfectly, a culture of change can be an excellent moment to encourage entire teams to change. Art workshops for the home always end up on the class list.
  3. Brand recognition. Although we often find it hard to believe, human beings have the ability to remember the key moments of a very good or very bad experience. For this reason, we must continue to optimise the value proposition for customers with whom we interact, or are defined as part of the type of customer that was drawn or captured in the Buyer's Persona. 

This is where it becomes critical that the details continue to be optimised and improved according to what the customer is looking for because over the years trends change and adjust in the blink of an eye. This is why you need to make sure that you can continue to deliver value to customers specifically in the way that the best buyer personas act, live and prefer.

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