A Value Proposition is the reason why customers turn to one company over another. In a Proven Profitable Business Model, one key component for ensuring cash flow and marketability is your Value Proposition. To determine the true value you offer your customers or clients, you want to consider three key areas:
- How much do your customers want your offer?
- How hard is it to find the solution you are offering?
- How much proof do you have that you can deliver?
When you make an offer of a product or service to your customers, make sure you are offering a solution to a problem they really want solved. The more acute their need, the higher your product or service will be in demand. Neurosurgery is a good example of an acute need a customer might have. A neurosurgeon has to do very little marketing and can charge almost anything they want if they can relieve the customer’s need for brain surgery. At the other end of the spectrum, Chia pets do not create much demand. They have to be marketed heavily and prices are low. Profits depend on volume sales. You might not be a brain surgeon, but you can research your customer’s needs to uncover the pain or problem that needs solved and create an offer that specifically addresses that need.
You also want to consider how much competition there is in your market. How easy can your potential customers find the solution they need? How can you make your offer stand out as being more uniquely aligned with your customer’s values and what they want?
And finally, create proof. Proof is not just your credentials or basic testimonials, although these help. Creating proof requires that you have measureable results to go with those testimonials. If you are launching a new product or service, offer it initially at lower price point than you plan to sell it and create a beta-test. Ask customers about their needs or problems before they purchased and then collect results after they used your product. If you can, get video recordings of testimonials to go with your quantifiable results, and you will have the beginning of a marketing campaign based on undeniable proof that your product or services work, that you have value on offer.
Bottom line, a profitable business has life changing value at its foundation. How does your offer make a difference in your customer’s lives? In their communities? In their world?
Need help with identifying your Value Proposition or in creating proof for your offer? Contact me for a complimentary strategy session and a free template at [email protected]