How to explain a value proposal?

We live in a world full of products and services. Many of them are similar but, at the same time, each one has something unique that defines them and differentiates them and this is, without a doubt, their value proposition.

In this post I will help you understand why it is so important to know how to explain your value proposition well when starting, innovating, convincing work teams or making a product or service much more competitive in the market.

Communicates fundamental values

If you want your ideas or your business to work, it is essential to understand that, in essence, a value proposition is a communication exercise on the aspects that make a product or service differ from another. Any value proposal is nothing more than a clear and concise definition that highlights the values ​​of any asset and positions it above the competition.

Whether you are undertaking, that you are going to launch a new product or service, that you want to improve a process of your company or even want to ask for a salary up or ascent to your boss, everything is based on your value proposition proposal.

In short, a value proposal is what you offer to the market and describes why what your proposal improves what others offer.

To describe a good value proposal, it is necessary to answer the next question, what makes, what I am offering to the world, is special and improve existing solutions?

Necessary aspects of a value proposal

To describe a value proposal is not a simple task. The good value proposals do not consist of much more than two or, to the maximum three phrases and, in those few words it is necessary to transmit a series of fundamental messages so that the interlocutor is captivated with the value of what we are proposing.

Throughout my career I have had to describe a multitude of value proposals, the typical courses do not usually delve into the need to adapt the value proposition to the interlocutor. The value that the CEO of your company hopes, the technical leader who will develop that great innovative idea that you have had or the value we need to convey to an end customer is not the same.

This is why, for a value proposition to be effective, you must include some elements that are key and others that will be very necessary based on who you have to communicate that proposal.

Communicate the main benefit

A good value proposal is based on the solution to some kind of problem on which we propose a significant improvement. Whether for people's lives, because what we propose is something unique or because it generates a business in itself, a good value proposition communicates the benefit of what we are proposing and here I describe the points that you have to include thetime to be communicated.

What are the differentiating elements

What is what different your idea from the rest? Your product or service may be more accessible, cheaper, more efficient, more beautiful . . . it doesn't matter but in a value proposal you have to transmit in some way that is what makes your proposal differentiate from that of the rest.

Who your idea is directed

What is the target audience to which your proposal is aBe unique to that client segment.

Talking about who is addressed to what we are proposing in our value proposition is something very important if for example we are transmitting our idea to managers, entrepreneurs or work teams but, on the other hand, it is not so necessary to convey to whom our proposal is addressedIf you want to convey to the end user since, if they have that problem you are trying to solve they will feel directly identified.

Reasons to believe in the proposal

In any value proposal it is good to put on the table data and objective reasons that evidence and support your statements. This will help you provide more credibility with your proposal and provide more confidence to your interlocutors.

As in the previous point, managers, work teams or entrepreneurs surely need this type of information to be able to have the focus on what is being worked on. However, end customers, in most cases do not have to know the reasons why you propose what you propose.

Examples of successful value proposals

To better illustrate the concept, let's look at some examples of value proposals for known brands and see how the subtle differences are depending on who is the receiver of the information.

Value proposal with mandatory components and for a general public

• Apple iPhone: "The only phone with iOS, the most intuitive operating system in the world, with exclusive applications, an elegant design and the best camera in its class. "

• Spotify: "Access to millions of songs, wherever you want and when you want, with personalized recommendations to discover new music. "

• Tesla: "High performance electric vehicles that combine innovative design, advanced technology and driving without emissions. "

Value proposal with optional components for managers and work teams (invented data)

• Apple iPhone: "The phone for people of a medium high purchasing level and who want a design mobile that transmits status and quality"

• Spotify: "Access to all the music in the world for 90% of the population for $ 10 per month"

• Tesla: "The ecological alternative to the internal combustion car that has a market size of 266k million dollars"

How do you see, depending on the interlocutor you will have to adapt your value proposition so that it generates much more impact.

A value proposal is capable of persuading and makes you unique

As you have been able to observe, explaining your value proposal is essential when transmitting the value of your idea. A good value proposal helps persuade and convince that, what you offer is necessary to improve things.

The value proposal is the letter of presentation of your product, service, company or functional improvement in your project and, clearly defining the benefits, helps the rest of the world to see your solution as something unique and differential which helps you position youIn the market.