Time invested in developing a strong value proposition is time well spent. Because a value proposition is such a crucial element of any GTM plan, here we share advice on the typical applications of a value proposition (some often overlooked), and the impact getting it wrong can have on a scaling business.
Before we begin
If you’re unclear on what a good value proposition should look like, there is a wealth of credible online sources showing structures and best-practice examples. A few we like are below.
What is a value proposition and why is it important? by Blend B2B
How can you create a B2B value proposition that summarizes your offering in one sentence? a LinkedIn Community article
Another particularly useful general resource for value proposition development is Strategyzer’s The Value Proposition Canvas.
Defining your product’s value proposition by Qualtrics
This blog won’t get into the nuts and bolts of building a value proposition (though you can always reach out to Linsay for help building yours, it’s one of her favourite GTM exercises). Here we intend to:
- Help you understand the importance of developing a sound product value proposition
- Illustrate how much is informed by it and reliant on it
- Understand the impact a poorly executed value proposition can have.
Value proposition: the obvious applications
The most obvious of applications include:
- Sales and marketing assets
- Website copy and structure
- Brand guide
If implemented properly, a value proposition essentially is the main source of truth for anyone articulating your business’s offering.
Value proposition: your entire shop front window
Let those sink in.
SALES & MARKETING COLLATERAL:
The collateral your customer-facing teams use day in day, out are likely to feature and be built around – perhaps even lead with – your value proposition.
WEBSITE:
The words in your value proposition influence, and even end up verbatim, across your highest value piece of digital real estate. If not the exact word-for-word value proposition, it will have had immense influence on how your business’s products/services are presented on your website.
BRAND GUIDE:
Tot up how many assets are built from a brand guide. It’s likely to be a lot. This is the foundation for a wealth of collateral your business will use to engage with clients, future clients, investors and partners. It is used to inform sales and marketing suppliers – outbound agencies, PR firms, copywriters, graphic designers… It might be passed on to partners before embarking on comarketing initiatives.
You can see where we’re going with this.
Opening lines and first touchpoints
Your product value proposition informs a significant amount of your opening gambit:
- Opening website messages
- Email subject lines
- Lead visuals.
Essentially the very first touchpoints prospective buyers may experience. But more than that, the essence of what is contained within many assets your business relies on to engage with the market.
Can you afford to get this wrong?
The stakes are high
The common mistakes which can cause most damage when developing value propositions are:
Unvalidated claims: assuming what your customers are using your product for and why they chose yours over others is rife with risk. Using customer insights to back claims up is essential.
Lack of true differentiation: without comprehensive competitor intel, compelling differentiators cannot be identified. And features or capabilities that seemingly set you apart, also need to be of value to your customers. Another case for customer validation.
Light on customer perspective, heavy on product prowess: prioritising the articulation of the what over the why must be avoided at all costs. Value propositions which reflect the customer’s needs, goals and expectations will always outperform those which prioritise the description of what the product or service itself is and does (features and capabilities).
3x steps you can take
Prioritise it: dedicate time and the right stakeholders to this process. These efforts will pay off when you get your value proposition right.
Substantiate it: the customer and competitor intel you gather as part of this work are arguably the most crucial elements of your value proposition.
Validate it: test your value proposition with willing customers and better still with prospective customers who are yet to buy. Does it resonate? Does it gain the right kind of traction?
COMING UP: Next in the Scaleup GMT blog series we explore the true cost of creating a poor first impression.