Value Prop Statement

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Value Proposition Statement

Customers are always looking for solutions that are compelling enough to consider them as an option. This is where a value proposition statement is very useful tool for companies to understand the value they are creating and communicating for its target customers:

A Value Prop statement is defined as below:

·         For (target customer segments)

·         Dissatisfied with (existing solution)

·         Due to (key unmet needs)

·         (Venture name) offers a (Product or Service category)

·         That provides (key benefits of your solution)

Understanding your target segment is the starting step. We need to know what are their top priority and solution needs. Understanding of existing solution, their unmet needs.

The essential questions that need to be asked while defining the value proposition are:

1.       What customers

a.       What end users?

b.      What channels?

2.       Which needs?

a.       Which products?

b.      Which features?

c.       Which services?

3.       What relative price?

a.       At premium? Or parity? Or discount?

Strategyzer defines and provides – The Value Proposition Canvas as shown below. It is a tool that helps to see and describe how business creates value for its customers. When there is a fit between the Business on the left side and Customer Profile on the right side, it is called as a Market fit.

There are six elements. The Customer Profile consists of three parts:

1.       Jobs to be Done (JTBD)

2.       Customer Pains

3.       Customer Gains.

On the left-hand side, there is the Business Value Proposition which consists of three sections: 

1.       The Products and Services that business offers.

2.       Descriptions of how the products and services relieve customer pains.

3.       Descriptions of how the products and services create gains – benefits for customer.