Why is Value Proposition So Important?
Majority of the business owners love what they do, but other people don’t really care about it, and this is reflected in the high failure rate among startups. Consumers would simply prefer alternatives that are more readily available unless entrepreneurs persuade people that their offering is completely unique.This is why entrepreneurs must regularly reiterate the value proposition of their business, for example, a function or attribute that makes a product or service attractive to clients.
In order to turn audiences into consumers, startups that capture attention are in the best position. The user journey must be smooth and convincing on social media, business websites and sites of distribution. For omnichannel, a retail strategy that incorporates multiple shopping methods available to customers, has much higher interaction rate compared to a single channel.
How to Develop Strong Value Proposition?
Before we start, you first need to understand the basic principles of what a value proposition should consist of. You’ll need to reference back to these points at the end of the five stages in order to make sure you end up with a value proposition that excites customers and investors.
A startup value proposition should be:
- Important to your customer and solve a problem or address a need
- Unique and hard to copy by other businesses
- Strong enough to create a buzz and begin word of mouth referrals
- Short and sweet so your customer can read and understand it in seconds
Basically, your value proposition should quickly and clearly outline what your customer will get if they purchase your product or service, and why it’s different from your competitors. Here are some of the important considerations to develop a strong value proposition:
The product
In the core of the development of your value proposition stand the product and the service that you are going to offer and provide. One of the main questions entrepreneurs need to answer to themselves is: What am I offering? What is the value of my product to the customer?
The customer segments
Who is your customer and does your product have what it takes to satisfy the needs of your target group? It is all about the customer and the satisfaction of their needs and requirements. When entrepreneurs evaluate their startup value propositions, they must be aware of the needs of their customers and how their company will meet these expectations.
The market fit
Once you know why the potential customers need your product, it gets easier to move on to the next step, and evaluate the potential of the marketplace that you would like to enter. Is there a space in the market for your product?
The competition
Even if you see that the competition is tough and that there are many other businesses that offer similar products and services, you need to define what makes your product better than the existing ones. There must be something that makes your product more attractive for the customers and this advantage will stand in the core of the development of the business model and the action plan.