DEFINING VALUE PROPOSITION
It sits at the core of your competitive edge, it’s the reason why a customer chooses your business over your competitor. It’s important to get right because it acts as the foundation of your business from which everything else can build upon. Once defined, it sits at the core of all your brand communications.
However, they are hard to create! They are challenging because its different to a marketing slogan or a tag line. It’s not even directly about the features of the product or service you sell. It’s the way your company solves your customer’s pain point, improves their life and makes them feel great.
In an ideal world, your value proposition would:
- Define what you do in a nutshell
- Be easy to understand
- Explain how your company solves your potential customer’s pain point
- Ultimately answer the question, “Why should I buy from you over your competitors?”
At Somerset Catalyst we like to use the NABC method, which was developed in the USA by the Stanford Research Institute.
This useful framework gives you a systematic approach to the creation of your value proposition. We also use the framework in our application form to help applicants define their thinking and explain their ideas to us. We’ve shared the details of the framework below in the hope that it will help you too!
The NABC framework for creating a value proposition:
Need: What is the important customer and market need addressed by your business? This is your chance to explain how your business is responding to a specific target market and show how that need has not yet been met.
Approach: What is your unique approach for addressing this need? This is where you can show off your compelling solution! Show here what makes you different. This is your approach to designing an experience that your target customer will want.
Benefits: What are the specific benefits that result from your approach? Benefits are not just the features and performance of your product or service but also how an experience with your business makes your audience feel.
Competition: How are your benefits superior to your competition? Research your competitors in detail to really understand them and use this research to show in your value proposition why your approach is significantly better!
We hope this helps to give you a head start on creating your value proposition. Remember that they are iterative, and it’s very likely your business’s value proposition will evolve over time, so keep working on it!
Our team of experts are on hand to work with you on developing your value proposition. If you are ready to take the next step and see your business grow, find out how to apply to the Somerset Catalyst programme.