Let's first talk about the value proposition, what is that?
Simply put, the value proposition of your business is that "something" for which a potential customer would buy from you and not from your competition. It can be defined as the differentiator, the core of your competitive advantage.
The value proposition goes beyond a simple description of a product or service, the value proposition is a promise, it is a solution, it is meeting the needs of customers in a way that differentiates you from the competition, it is offering a whole experience.
How do I do that? How do I define my value proposition? Well, there is a tool that will help you create and manage it.
Index
Value Proposition Canvas
The value proposition canvas is a graphic tool that will help you understand who your customers are, their habits, activities and what they are looking to satisfy that your company can solve. Derived from the Business Model Canvas, the Value Proposition Canvas seeks to define in greater detail two blocks of the BMC: market segments and value proposition.
On the right, the canvas profiles the customer by identifying the jobs or tasks they want to complete, these can be functional (such as painting the house), social (pleasing a group of friends) or emotional (feeling secure or happy), it also identifies dissatisfactions and problems experienced by the customer in trying to complete their tasks and, finally, what are the customer's wishes, ideal solutions and expected benefits.
On the left, it seeks to define what are the products and services offered by your business, how they generate value and how they alleviate customer pains and frustrations.
The objective of the tool is to design the customer profile and value map to synchronise them. The value proposition must respond to the customer's needs and provide benefits that place you above the competition, so that your products and services match the solutions expected by the customer and the pains experienced are alleviated by your offer.
It should be clarified that the Value Proposition Canvas should be designed for each market segment, i.e. a canvas for each buyer persona, since each profile has different characteristics, desires and needs, to a certain extent.
Customer Experience
What is customer experience? It can be defined as the set of moments that the customer experiences with a brand while there is a company-consumer relationship. This experience can be negative or positive, it all depends on these "moments" or interactions. Of course, the better the customer experience, the better the relationship and the greater the likelihood of retention.
Remember, the experience doesn't start with the customer in the shop, it starts from the moment they discover the brand, browse the website, realise it offers a solution to their problem... understanding the customer journey is vital to understand the touchpoints and which interactions are "moments of truth" for the customer.
I invite you to read more about the Customer Journey:
So, to give a good experience you need to understand the customer, know what they are looking for and how they expect to receive it. If you understand the needs, the desires, the pains... you will be able to offer a value proposition that makes you special in the eyes of your customers and allows you to offer a quality experience.
Impact of Value Proposition Canvas on customer experience
In conclusion, Value Proposition Canvas is a customer-centric tool, the purpose of the canvas is to generate value for your potential customers by matching your value proposition with the needs of the market.
By developing the exercise, you will be able to identify the customer profile: who buys from you, what habits they have, what tasks they need to complete, what frustrates or causes them pain, what obstacles they face in completing their work, and what would bring them satisfaction or help them accomplish their tasks. By understanding the customer, you match your products and services to the needs of the market in order to alleviate frustrations and generate benefits for your customers.
This generation of benefits and solutions to problems, coupled with an understanding of the Customer Journey and important moments, will allow you to strategise for each touch point, giving your customers a rewarding experience.
In addition, you may understand the customer journey, but you may not be offering something interesting. By having a properly managed value proposition, you can analyse the moments of truth and put your proposition into play, retaining more customers.