Value Proposition is the unique offer your company provides to the customers. It can be a product or service that solves the customer’s problem.
Domino’s Pizza delivers hot fresh pizza to you within 30 minutes or else it is free.
Hence, Domino’s Pizza value proposition is the guaranteed short delivery time customers receive.
What is my Value Proposition?
Your value proposition has to be clear to convince customers to do business with you and benefit from it.
Here is a formula that will assist you in crafting a value proposition:
End Result Customer Wants + Specific Period of Time + Addresses the Objections
(End Result) Customers want hot fresh pizza to be delivered to their doorstep.
(Specific Period of Time) Domino’s Pizza aims to deliver hot fresh pizzas in 30 mins.
(Address the Objections) If Domino’s Pizza fails to do so, customers do not have to pay for the pizza
It is ideal to include all 3 categories into a value proposition but not necessary.
This formula allows your customers to immediately understand how the product benefits them. Customers choose Domino’s Pizza because they are guaranteed hot fresh pizza in 30 mins, if not they will receive other benefits (free pizza).
Moreover, it forces you to think more about the customer and less about the solution. This is emphasized over and over again as we have the tendency to focus on the (first) solution instead of listening to the customers’ problems.
The following will give you the confidence you are on the right track:
Will your value proposition tempt your customer to read further if it was used a the header of an article?
Check if your focus is on your customer problem instead of your product.
Example: We sell green salad vs Take a healthy lunch and feel better each day
How to Build a Great Business Model Canvas – The FREE Course
- Lesson 1 – Customers
- Lesson 2 – Value Propositions
- Lesson 3 – Marketing & Distribution Channels
- Lesson 4 – Customer Relationships
- Lesson 5 – Revenues
- Lesson 6 – Key Resources
- Lesson 7 – Key Activities
- Lesson 8 – Key Partners & Suppliers
- Lesson 9 – Costs