How Your Value Proposition Affects Your Customer Experience
by Blackwood Impact Group
What Is A Value Proposition Statement?
According to investopedia.com, “a value proposition refers to the value a company promises to deliver to customers should they choose to buy their product. A value proposition is also a declaration of intent or a statement that introduces a company’s brand to consumers by telling them what the company stands for, how it operates, and why it deserves their business.”
Also known as your Unique Selling Proposition, a Value Proposition Statement is traditionally linked to a company’s branding and marketing functions. But at Blackwood Impact Group, we believe your Value Proposition is a foundational element of your entire business’ operation.
Common characteristics of a Value Proposition Statement or Unique Selling Proposition is that it conveys features that are exclusive to your company in your industry. Like a fingerprint, it becomes an identifying mark of your business. It can also show your company’s “why” and “how” of servicing your clients.
This is why at Blackwood Impact Group, we view your Value Proposition Statement as being more than a cornerstone of your branding and marketing efforts. We see it as a foundational element of your operations because it permeates throughout your company and affects how your team functions as you deliver your products and services to your clients.
Elements of a Compelling Value Proposition Statement
Because a Value Proposition is central to a company’s operational, branding, and sales functions, companies should invest the time to create one at the launch of the business. It is also appropriate to consider revising your Value Proposition Statement if you are now serving new clients, or have moved into new markets. Similar to a tagline or a slogan, your Value Proposition Statement quickly communicates what you do for your customers. It should clearly state the problem you solve for your clients and the value you bring to their business or life.
Part of what will contribute to your Value Proposition Statement’s uniqueness is your ability to authentically touch your audience, prospects, and clients on an emotional level. Going beyond the surface of the services or products you provide, consider the deeper concern your client has which you help to resolve. Uncover and examine the root emotions and reasons which cause them to decide to spend money with you.
To create an effective Value Proposition Statement, start with a self-reflection to identify your company’s natural strengths. Use market research tools to dive deeper into your target audience’s demographics and psychographics. As you begin to uncover your market’s motivations, start matching up their needs and wants to how and why you deliver your products and services.
As you are developing your statement, be careful that your closest competitor can’t claim what you are saying about yourself. Explore how you are different from your competitors and make sure your statement highlights what you do differently or even better than the others in your field. Zero in on what is truly new or unique about your company in your market. It is important to remain authentic to your strengths; don’t try to invent something that isn’t true to your company, that is outside of your comfort zone, or something you can’t deliver on.
Key Questions To Ask When Developing Your Value Proposition Statement
When Blackwood Impact Group works with our clients to develop a compelling Value Proposition Statement, we take them through a series of questions. One of the questions we lead with is, “What problem do you solve for your customers? Does it keep them up at night?” We continue with a line of questioning which strives to dig below the surface-level challenges to hit the bedrock of their prospect’s true emotional pain. Here’s an example.
Let’s say a prospective client reaches out to Blackwood Impact Group because they are not seeing a good return on investment in their marketing efforts. The business owner expresses that they are frustrated by spending a lot of money but the quantity of highly qualified leads returned is low. As a result, sales and revenue are suffering.
We would ask this prospect further questions that go beyond their presenting problem. As we continue finding out more about them, we dig deeper into what motivated them to reach out to us at the time they did. When we do so, we usually discover the emotional driving forces behind them seeking help.
The company may be on the verge of experiencing real ramifications due to lack-luster marketing performance. Beyond affecting revenue, this problem can be causing the business owner deep emotional stress. If their sales are at an all-time low, their business might be in danger of folding or they may be unable to pay employees.
The lack of effective marketing might have even more personal consequences, such as affecting the business owner’s ability to pay their mortgage. Maybe they have a looming car reposition, or they may have to take their kids out of private school. Perhaps they might feel as though they’d be considered a failure among their group of entrepreneur friends. These are their true motivations for seeking help.
Once you’ve uncovered your prospect’s deep motivating factors, like these, it becomes easier to determine if your products and services and how you deliver on them are a good match for them. The process of deep questioning to ascertain this type of information requires patience and a willingness to continue exploring.
We are similarly vigilant in asking deep questions about how their business performs in their market so that we can arrive at the promise they’ll ultimately make in their Value Proposition Statement. To get this information, we ask questions similar to these:
- Why would someone buy from you versus your closest competitor?
- Do you help a specific group of people?
- What is your expertise?
- Are you the only one with unique offerings in your region?
- What makes your company different or sets it apart?
- Are you cheaper?
- Are you faster?
- Do you use unique materials?
- Do you provide higher quality?
- How do you go the extra mile to delight your clients?
- What are your company’s intangible resources which are hard to duplicate?
- What can only be claimed by your company?
- Does your company have any accolades or won any awards?
Further Considerations When Developing Your Value Proposition Statement
It is critical to remember that all purchases are emotional, even in B2B transactions. Individual consumers and company representatives all buy goods and services, whether for personal or business consumption, based on emotional reasons. This is why we invest the time to learn our prospect’s motivations as we outlined above. To move your prospects to spend money with you, your message, the problem you solve, and your products or services which fulfill that promise must resonate with your audience on a deep, emotional level.
Consider using Maslow’s famous “hierarchy of needs” as a guide. Ultimately, you want to ensure your company is filling one or more of the needs represented in the hierarchy. As a rule of thumb, you may find more competition with products or services that seek to fill needs on the lowest tiers. You will experience a greater ability to differentiate yourself from the pack when you are filling higher-level needs.
A great brand that serves as an example is TOMS®. While they provide products at the lowest level of Maslow’s hierarchy for their clients (shoes), they simultaneously tap into their customer’s higher-level needs because of their mission. With each purchase, the company helps provide shoes for underprivileged children. They also use a portion of their proceeds to support other humanitarian issues around the globe. Customers can feel confident that with each purchase, they are not only doing something good for themselves, but they are creating good outcomes for less fortunate people.
Are You Ready to Transform Your Operational, Branding, and Customer Experiences?
Developing a Value Proposition Statement is a critical foundational pillar of your business. If it hasn’t been established from your company’s outset, it’s never too late to get started. Developing your Value Proposition Statement will help redefine who you are as a company and what you have to offer. When you do so, you will begin seeing different results in every area of your business, but especially in your marketing, sales, and operational efforts.
Our Customer Experience Strategy consulting service is all about matching your core competencies with the needs of your clients. It helps us determine what services you should offer, how to set pricing, how to approach your market, and structure your team and processes internally.
If you are ready to transform your client’s experiences with you from the ground up or just need help to clarify your direction with a revised Value Proposition Statement, we are here to help. Contact us today for a no-obligation consultation at 770-502-6295 or email us at firstname.lastname@example.org.