Value Proposition Defined
Your value proposition is the reason your customers buy your products or services. It is why they are convinced that they should part with their hard earned money. Their money for your product or service is simply an exchange of value.
Become Very Clear on the Problem You Solve
Your customer is seeking to solve a problem, meet a need or fill a want. We can look at this as they have a job that needs to bebe done. At this point we are not looking for why the job needs to be done, just the definition of the job itself. Examples of jobs to be done are buy groceries, find someone to clean the house every two weeks, get the bathroom reno finished, book a trip to Hawaii.
Create a Customer Persona
A Customer Persona is simply the story of your primary target market. These are the people who are most likely to purchase your product or service as a way to get a job done.
“Trying to be everything to everyone means you are nothing to no one.” Most small business owners approach defining their target market in terms of “everyone
who needs-wants-likes…” Ultimately this will negatively impact your marketing and your sales. By honing in on a description of the person you most want to do business with you will find it easier to identify the exact job they want to get done and narrow down the pains they are looking to relieve and/or the gains they are looking to create. Try to put yourself into their shoes and create a Customer Persona (get our free template below). The more you understand this person’s story, the easier it will be for you to develop the right message to be delivered at the right time and in the right place.
Customer Pains and Gains
Now is where we start to look at why the customer needs to get the job done. What are the pains they are trying to reduce and/or the gains they are hoping to create?
Pains to be Relieved
Gains to be Created
If the job to be done is “relieve symptoms of a cold or flu”, then the pains they are trying to reduce might include
- Feel awful
- Aches, and pains, a runny nose, and a sore throat
- Missed work due to the bug being contagious
By finding a way to relieve the symptoms of their cold or flu, they are hoping to receive gains including
- Feeling better
- Being able to go back to work
Your Value Proposition
Your value proposition starts with the product and/or service mix you offer. If you have a wide selection, you may serve more than one target market. In this case, you should develop a Customer Persona for each. Your products and services will have one or more features that allow your customer to get the job done. More importantly though, the features provide benefits that either relieve your customers’ pains or create your customers’ gains.
It is these that actually provide the value to your customers. This is why they will buy from you and so these become your value proposition.
Let’s say you own a pharmacy. Your pain relievers might include
- You offer convenience because you are open extended hours
- You have a vast array of cold and flu medicine
- Your expertise allows you to recommend the product that will work best for the customer
As a result of shopping at your pharmacy, the customer receives gains including
- Being able to purchase the relief they need when they need it
- Feeling better by following your recommendations
- The ability to go back to work sooner
With everything you have learned about your customer and how you can relieve their pains or create their desired gains, you are now in a position to create messaging that will attract them to your business.
Check out Strategyzer’s Value Proposition Canvas and download our Customer Persona Template below.
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