When you have a clear mission statement and a strong value proposition, figuring out how to execute on it becomes so much easier.
What is a value proposition statement?
In its simplest form, a value prop' is a single sentence that has been perfectly boiled down to explain the who, the why and the how of your product.
It is a statement that gives promise of the value to be delivered and the main reason why somebody should buy from you and not a competitor.
- How your product solves problems/improves situations
- What specific benefits customers can expect
- Why customers should buy from you over the competition
It is not:
- A slogan
(Just do it, Now You Know)
- A Position Statement
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My experience with a lot of start ups is that entrepreneurs often find it challenging to explain what they've created, particularly if it is focussed around a perceived innovation in tech.
All too often they get caught in the technical mumbo jumbo and forget that technology is meant to simplify our lives not add complexity to them.
I wrote about the work I did with the founder of Hexology previously and how it unblocked him entirely from being able to move into the stages of product development with a clear focus and drive.
Creating a value proposition statement
The process is quite simple, but getting it right takes time and writing, lots of writing. The more times you go over the story, trying out different descriptions the more you will start to develop the clear view in your mind.
Value propositions help to create a narrowed focus that can often be missing in startups. I've equally experienced this with established tech firms too. There is nothing wrong with doing this at any stage of your company or product development.
The following are the guides I use during value proposition workshops with our clients.
Identify customer benefits
Make a list of all benefits your product offer to customers.
Link benefits to value
Identify what value your products bring to the customer.
Differentiate and position yourself
Make it clear who your target customer is, what you offer to them and how you are different.
Here's an example.
For lovers of dogs who are allergic to fur, our product is an allergen free dog that give you the pleasure of man's best friend without the sneezes.
OK, it may not be all that snappy but it is very clearly tell you who this product is for, what the product is and what it can give you.
Thoughts from Andy Parker published 26th January 2018