Understanding and refining your customer value proposition (CVP) is one of the most important factors in determining the success or failure of your marketing and sales efforts. Put simply, when you have a clear customer value proposition you understand exactly what value your business adds to your customer, and what pain point you resolve (i.e. why they buy).
Once you know this, you can then base your marketing communications on this premise which will enable you to attract other prospects that have the same pain points. Just as importantly it helps identify business or customers that are not the right fit for your offering or organisation.
The six point exercise below will help you to define your Customer Value Proposition.
1. Write Your Own High Level Description (Elevator Pitch)
- 25 words or less (the shorter the better)
- Who in your target market do you need to convince?
- Describe what your offering does for your target customer
- Identifying their pain, emotion, measurability
- What is the critical problem your product can fix?
- What measurable results can your customer expect?
- What is the profile of your ideal target customer?
- Within the target company, what is the profile of the likely buyer?
- Focus on ideal customer and not current customer
- Does this profile describe your Sweet Spot customer?
- What is the compelling reason for the customer to buy your product?
- Describe business problem or pain.
- Measurability- what metric(s) can you use?
- Outline the benefits you can promise to deliver to your target customers.
- Why should a customer decide to do business with you rather than your competitor?
- Outline the key actions that you are going to take both internally and externally in order to implement your revised customer value proposition.
And remember - until pain and value exist in the mind of the buyer any price is too high. With this in mind, your job is to understand how to maximise the value of your offering!