While the term ‘value proposition’ is used frequently in business circles, it is often misunderstood and inadequately communicated. A robust value proposition places the customer at its core, expressing the ACTUAL value they can expect. It requires understanding user and buyer personas and necessitates cooperation between the product and marketing teams. Great value propositions are wrapped in compelling stories, like Apple’s famous “1000 songs in your pocket” for the iPod.

We are strong proponents of the value proposition canvas as it encourages a customer-centric approach. However, teams often struggle with answering customer-centric questions and constructing solutions that align with the customers’ pains, gains, and jobs to be done – vital inputs for persona development. This struggle often leads to complicated and unclear solutions, emphasizing the need for simplicity.

Tips for Value Proposition Design:

  1. Understand Your Customer: Get to know your customer deeply. Understand their needs, motivations, and challenges. Create detailed buyer personas to guide your value proposition design.
  2. Define Your Unique Value: Clearly articulate what makes your product or service unique. How do you solve your customers’ problems better than anyone else?
  3. Align Your Team: Ensure that your product and marketing teams are on the same page. They should work together to design, communicate, and deliver the value proposition.
  4. Keep It Simple: Don’t overload your customers with too many choices. Keep your value proposition simple and straightforward.

Common Challenges and Solutions:

  1. Lack of Customer Understanding: If you don’t understand your customers well enough, you won’t be able to create a compelling value proposition. Invest in customer research and feedback collection.
  2. Ineffective Communication: A value proposition is useless if it’s not communicated effectively. Use clear, simple language, and convey your message consistently across all channels.
  3. Complex Offerings: If your offerings are too complex, they can confuse and overwhelm your customers. Strive for simplicity and clarity in your products and services.

Looking at the positioning of Microsoft Dynamics 365 and Salesforce exemplifies the need for clarity in value proposition design. Dynamics 365’s positioning appears convoluted, potentially discouraging customers. In contrast, Salesforce’s clear, customer-centric approach is instantly noticeable and appreciated. Let us help you design a winning value proposition that resonates with your customers and sets you apart from the competition.