What is a Value Proposition?

Value proposition; solves your customer’s problem, satisfy their needs and shows your (potential) customers why they should buy at your company. It's one of the most important building blocks of your business model canvas.

Value proposition is the main reason why customers stay with your company or leave to another. A value proposition is a promise from an organization to its customer of value to be delivered. It’s the main reason a potential customer should buy from you. 

Create your own business model canvas online (it's free!):

BMCANVAS is a brand new tool to create and archive your business model online, it's free! Let's get started! Design your own business model online with BMCANVAS.COM. 

create your business model online

 

Customization for example, meets the specific needs from customers. In the auto industry, customization is the primary key to value proposition. A traditional way to create value proposition is improving products. Mobile phones and PC’s are a good example of improving products. Other important factors to create value proposition are; the way you set prices, design, image, status, cost reduction, accessibility of the product and the usability.

 You need to understand your customer completely, before you add value proposition to your products and services. You need to speak the same language as your customers do. Your value proposition should join the discussion that is already going on in the customer’s brain. In order to do so, you have to have your customers explaining what products and services you’re offering and how they benefit from it. Do not try to guess how your customers explain your offering, because you will both definitely speak different languages.

The value proposition on your website (or folder, brochure, etc.) usually consists of a block of text (headline, sub-headline and one short paragraph of text) and a visual. You can edit your value proposition anyway you want to, but make sure that the answers of the following questions are featured.

  • Which needs of your customers are you fulfilling (with which products)?
  • What product/service are you offering?
  • What is the advantage of using this product/service?
  • What’s the target for this product/service?
  • What makes your offering exclusive and special for the customer?

Often, it’s the little things in life that make a big difference, which is likewise with value creation. Think what small things you could add that wouldn’t cost you much, but could be attractive to your customers. Those small things can be like:

  • Free shipping (Zalando)
  • Next day shipping (Bol.com, until 23:00)
  • No sign up costs (Facebook)
  • No long-term contract, cancel any time (TV or energy)
  • Customizable (Rolls Royce)

 

Lees verder

11-03-2014 How to create a business model canvas?
11-03-2014 What is a business model?
05-05-2012 A week in Uganda
29-04-2012 What I learned about bread and Uganda
27-04-2012 We are in business, South Africa!!
17-11-2011 Entrepreneurship is a lifestyle in Silicon Valley
07-10-2011 Meer ondernemerschap in het onderwijs?
05-10-2011 Research in the Valley: starting and growing firms
27-09-2011 Wat is een business model?
26-09-2011 Research in Silicon Valley on IT startups and growth
26-09-2011 Wat vindt YEAH! van jouw bedrijfsidee?
26-09-2011 YEAH! in South Africa

Nieuw in Groningen... LAUNCH CAFE

Een inspirerende plek waar innovatieve ondernemers en professionals kunnen ondernemen, overleggen en netwerken. Dat is het nieuwe concept van YEAH!: Ideaal voor ondernemers en professionals ... lees verder

meer nieuws

How to create a business model canvas?

  A business model canvas is an easy tool to describe the most important parts of your business. With this one pager you can describe ... lees verder

meer artikelen

Contact

Bel YEAH!:
050 8507012

Bezoek YEAH!:
Herestraat 106
9711 LM Groningen

realisatie: Baksteen Media, hetCMS