Developing your Value Proposition should always be the second step in designing a Business Model. This block comes after the Customer Segment, exactly because it depends on the definition of one or more customer groups to make sense. This is because the Value Proposition is about the products and services that create value for your customer.
This “value” can be quantitative, like the price of a product or the agility of a service, as well as qualitative, such as an innovative design or a remarkable experience, for example. Value Proposition will be the preponderant factor for the customer to choose one company or brand over another. So let’s get to know a little more about it, to make sure your consumer elects you.
Value Proposition is, in simple terms, a unique combination of products and services that offer value to the customer. In other words, it is a satisfactory solution to a consumer problem. This problem may be an immediate or recurring identifiable customer need that needs healing, but it could also be a new need that the customer did not even know he had. The value proposition, therefore, becomes the motive that drives a person to acquire a particular product or service, choosing a name among all the competition.
The same product or service may have one or more value propositions. Each of them encompasses a set of benefits developed for previously identified customer segments. Some value propositions involve an innovative offer, different from what already exists in the market. Others are similar to existing offers, but with new and/or added attributes. What characteristics, then, should be observed in order to develop a unique value proposition that is capable of attracting your customer?
When designing a value proposition, we need to consider the evolution of technology, business, and even the problems and interests of our consuming public. In summary, we need to consider whether the product or service we want to offer is relevant in the market, especially for our previously identified customer segments. The value proposition should be designed, therefore, by analyzing the customer segments, with their pains and needs, as well as their interests and preferences. An effective proposition matches the customer profile to the value-added elements.
Finally, it is about understanding and responding to the needs and desires of your target audience. A solid value proposition is a safe and promising way to move your business model toward the next seven blocks. Do you want to design a winning Value Proposition? Go ahead and check our Super Guide about the Value Proposition Canvas.
Learn more about the next block on the Business Model Canvas.
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