Value Proposition – Value Positioning

A value proposition is a statement that describes the clear, measurable benefits that customers receive when purchasing a particular product or service. There are always many options on the market for customers. Why should customers choose our products and services? Every business has to find the answer to this question. Customers will only be persuaded to work with you when you offer better value than other products on the market. The expression Value Proposition is by Michael Lanning and Edward Michaels. The value proposition is defined as "the clear and simple determination of the tangible and intangible benefits that the business will offer to its customers, along with their approximate price, according to customer segments".

Customers won't buy when they don't feel good about getting the best possible product-service. When doing value proposition work, you will need answers on three topics.

1. Gains: What makes customers satisfied ?
2. Pains: What do customers get upset about?
3. Customer Jobs: What jobs do customers feel good about when they do them?

When you find answers to these questions, you can position the products and services correctly. In this study, what kind of activities to do in order to gain new customers or create customer loyalty is created.

You can use the following questions to create a canvas.

• What are customers looking for? (For example, good design, warranties, custom or more features...)
• What are the dreams of customers? (Great achievements, fame, a quiet life...)
• What do you have to make your customer's job or life easier? (Ex. more services, lower cost, ...)
• What savings will make your customer happy? (For example in terms of time, money and effort...)
• What results does your customer expect and what can they go beyond? (Ex. Quality level, more stuff, less stuff, ...)
• What are the positive social outcomes your customer wants? (E.g. looking good, status, power...)
• How does your customer measure success and failure? (Ex. Performance, cost, ...)
• What makes your customer bad? (E.g. disappointments, troubles, headaches...)
• What are the main challenges and challenges facing your customer? (E.g. understanding how things work, difficulties getting things done, resistance...)
• What negative social consequences does your customer face or fear? (Ex. power, confidence or status, ...)
• What dangers is your customer afraid of? (For example financial, social, technical risks or what could go wrong...)
• What keeps your customer awake at night? (Ex. Big problems, worries...)
• What common mistakes does your customer make? (Ex. Usage errors...)
• What prevents your customers from adopting your products? (E.g. upfront investment costs, learning curve, habit, resistance to change...)
• Will you make your customers feel better? (E.g. kills frustrations, annoying situations, things that give them a headache...)
• To what extent do your products and services fit the customer? (Ex. Welcome, incompatible...)
• How do you turn customer need into profit? (Ex. price, cost, profit, payment terms...)

Core Competence:

Core competency refers to the knowledge, skills and abilities that distinguish a business from other businesses, play a fundamental role in realizing the vision of the business, and cannot be easily imitated by competitors.

In today's conditions, "innovating" is the most basic skill that provides competitive power to the business. Core competence to make businesses know well; to know some jobs better than other companies; is to encourage others to do all the work that needs to be done outside of the work they know well and to constantly focus on innovation.

Workcube Business consultants identify your core competence and reveal the compatibility-incompatibility between value proposition and core competence. In this way, it is ensured to focus on either developing the core competence of the business or a business model that is compatible with your competence.

Recommendation
Review surveys, if any, made with customers. Interview some customers, review products and services, observe product and service offerings.

Exercise
Create a model Value Proposition Canvas by selecting a business. Finalize it by discussing it with at least three people whose opinion you trust.