Have you heard of a Value Proposition? You might have also heard these phrases….
- Unique selling proposition (USP)
- Key differentiator
- Competitive advantage
- Value statement
- Value offering
- Value proposition statement
- Value promise
It actually doesn’t really matter what it’s called, or whether we use a fancy buzzword to describe it. We just want to find the very best way to communicate exactly how awesome your product/service is!
It’s really useful to have a clearly defined value proposition in the form of a statement or sentence that you can use either directly in your marketing, or to inspire your marketing messages. In fact, big companies can spend months and have entire departments dedicated to creating their value prop.
Don’t have the time or budget for that?
Don’t worry, we’ve got you! This month we’re going to equip you with the tools you need to identify and communicate the unique value your product or service offers to potential clients and customers. In short, you will know exactly how to create your own value proposition.
You will learn how to differentiate your offering, articulate your purpose and process, and tailor your message to various audiences and settings, as well as how all this fits into your marketing map.
This week, we’re uncovering the starting point of any value proposition, identifying the unique value your offering brings to the table. Get ready to connect with customer needs and desires (and understand your product better than ever before).
Why do we need to understand our value proposition?
As business owners, we may think we have a crystal-clear understanding of what we’re offering. After all, it’s the foundation of our entire business, right? But here’s the thing – many of us struggle to properly articulate what we’re offering. And without a clear vision (or lottery winning level luck), our marketing efforts will likely be way off the mark.
Sure, we may get it, but our customers haven’t lived and breathed our idea for months (or even years) like we have. They don’t have the same level of familiarity with our product or service. It’s crucial to bridge this gap and ensure they know who we are and what we’re offering.
Differentiating Benefits and Features
Benefits and features are two key components of a value proposition. Understanding the distinction between them is crucial for crafting a compelling message that resonates with your target audience.
Benefits are the outcomes that connect with our customers needs and desires (the WHAT)
Benefits refer to the outcomes or end results that your product or service delivers to customers. They answer the question of “what it does” and focus on the value customers will gain from using your offering. Benefits address the needs, desires, and pain points of your target audience, creating a personal connection with them.
Identifying the benefits of our offering is crucial for establishing a deep connection with our customers. It allows us to tap into their problems and solve them, creating a value proposition that resonates on a personal level. Through this understanding, we can position our product or service as the solution they’ve been searching for.
To identify the benefits of what you offer, put yourself in the shoes of your customers and ask yourself what problem your product or service solves for them. Consider the positive impact it has on their lives, whether it saves them time, money, or improves their overall well-being.
Features are the unique ways we deliver our product/service (the HOW)
Features are the specific functionalities or characteristics that enable your product or service to deliver those benefits. They answer the question of “how it does it” and provide the means to achieve the desired outcomes. Features can include technical specifications, unique functionalities, or innovative design elements.
By analysing the features of our product or services, we gain a comprehensive understanding of what sets us apart from the competition. Highlighting these distinctive features to our clients will make our offering stand out in the crowded market and capture the attention of potential customers.
To identify your features, analyse your product or service and identify its distinctive attributes. How does your service differ from competitors? What makes it unique in the market?
Take every opportunity you can to show off your features and benefits
When communicating with potential customers, it’s important to communicate both the benefits and features of your product effectively. Always start by highlighting the benefits that resonate with your target audience’s needs and desires. Focus on the positive impact your offering will have on their lives.
Then, support those benefits with the features that make them possible. By clearly differentiating between benefits and features and showcasing how they work together, you can create a value proposition that speaks directly to the desires of your target audience and sets your offering apart from the competition.
Exercise: Identify Benefits and Features of Your Own Product/Service
Now it’s time to put theory into practice! Take a moment to reflect on your own product or service. Identify the benefits it brings to customers and the features that make it possible. Think about how these align with your clients needs and desires. Be creative and let your imagination flow!
Key Takeaways
- Benefits are the end results or outcomes that our product or service delivers, while features are the functionalities or characteristics that make it happen.
- Identifying benefits allows us to connect with customer needs and desires on a personal level.
- Analysing features helps us understand the unique selling points of our offering.
- Don’t forget to put your knowledge into practice by identifying the benefits and features of your own product or service.
Now go forth and get clear on what you offer to your clients and customers. Happy marketing!
PS. In the next blog we’re talking about how your client journey fits into your value prop. Excited? So are we!