Joe Benesh is a senior architect with Shive-Hattery and President + CEO of the Ingenuity Company, a strategic planning, diagramming, framework development, and design thinking consulting firm.
One of the most challenging aspects of becoming successful as an organization is effectively transmitting your value proposition to your target audience. Many organizations expect that consumers will just “get” that what they are selling is valuable. I mean, you think it’s valuable, so how could anyone feel differently?
There are just too many factors in the modern world that makes this simple and pure view of the expected realization of value unrealistic. First, the way products and services are recommended is not the same as it was 30 years ago. The glory days of “Where’s the Beef?” and “Don’t Squeeze the Charmin” are long gone. Modern consumers base their decisions on peer recommendation, due in no small part to the advent of blogs and social media. We are all citizens of the world now, and our decision making process has evolved to reflect that.
I’m going to take apart the basic structure of the value proposition to help define the way each part works together to build a statement or series of statements that provides for a sustainable competitive advantage.
The first question to be answered is “For?” Who is your audience? Do you fully understand the marketplace? What are the barriers to entry? Rigor should be invoked here – you need to make sure you have provided as much alignment as possible between what the market is open to consuming and what you are providing.
Once you have that defined, it’s time to ask the next question – “Who Seek…” What problem are you trying to solve? You have to be able to define what issue you are trying to address. If you’ve defined your audience well, this step should narrow your focus even further. Products or services that are too broad or seek to please everyone, except in rare instances, lack the traction to build marketshare.
This is where the pivot in the process occurs. What are you providing? You’ve defined whom. You’ve defined what. Now it’s your turn to offer the solution. A strong, clear statement indicating what you are trying to address makes the peer-to-peer viral spread of information more viable. Being vague only sends the message that you do not clearly understand what you are trying to accomplish or what the solution you are trying to provide.
But what if someone else has something similar? Using a statement that starts “Unlike Competitors…” signals that you have something new or different. A new solution. A different solution. This is where you really start to illustrate the value of your offering. It also acknowledges that you are aware of the characteristics of existing offerings, which only adds credibility to your statement of value.
The last part of the value proposition is where you affirm that what you are claiming is true by offering substantiating information. Our society is skeptical, and offering an answer to the question “You can believe us because…” is critical to establishing the final part of your argument. In peer-to-peer interactions, this is sometimes the most critical part of the value proposition to be conveyed. Establishing trust with your intended audience gives them the added confidence that you stand behind your value proposition.
If consumers were able to see the immediate value in our offerings, we would have no need to advertise them. Establishing a clear value proposition builds a robust conduit to not only purposefully transmit the value of what we are providing to the consumer, but creates a better understanding of the value of what we are selling as a producer.