Value Proposition is Most Competitive Strategy Today
What is the value proposition? What is in it for our business? The value proposition is not ads for the audience, but the message of business owners. The value proposition is not a slogan, not an ad. Strategizer highlight this concept that relevant in the many to many communication, web 2.0, interactive communication.
Definition of Value Proposition
The value proposition is what benefits are able to meet customer’s expectations of your product or service. How your product helps customers work, meet customer expectations and reduce their suffering or pain.
If in the customer segment has is gain that they expect, or customer expectations, in the value proposition there is the term creator gain: How your product or service creates benefits for the consumer. Your products and services are trying to satisfy the gain.
In a customer segment there is the pain, or something that hurts them, or something they fear, in the value proposition, there is pain reliever: how your product or service reduces the pain of the customer.
The value proposition is created at the beginning after the target market is determined. Target markets are illustrated first, hopes, things they want to do, and their fears. Only then formulate our products and services. Our products and services are the answers to the work they need to do and they need their help, their hopes, and the pain or annoyance they experience.
Define Value Proposition for Your Customer
So actually in running and raising business, the easiest is to determine who your customer first, who will buy your product.
In the canvas business model, the value proposition in the canvas business is the two most important blocks, along with the customer segment. Other supporters. Promotion is support. Production support. The resources are supporters. Fortunately supporting losers.
Obviously, what are the benefits my customers can use if they use my product or service and what harm has been made to my customers if I do not use my product or service?
Who will get the gain or avoid the pain? The customer segment we specify. Let’s say. I made a squid fishing bag special for squid. So I focus on my target customers. Then I set the gain and the pain. Which ultimately determines the design of the bag I made. Size, color, strength, water resistance, need place handphone, a place for fish bait. Bag design follows customer requirement.
Humans are motivated to buy for two things usually. Want to get the gain and stay away from the pain. Let’s say. Example. Women buy cosmetics. The gain is to hope she will be beautiful and interesting. And away from pain which means appear unattractive if not using cosmetics.
Well, how design your product? From the customer side, the gain is they want to get the benefits of your product. And they avoid the things they do not expect Then your job as the owner of a product or service is to match the value you have dg your target market profile.
That is if your product has benefited with the expected gain of the consumer and your product is able to keep away the pain that you want to avoid by your target market. Then there is conformity. Transactions are easier to happen.