When the value proposition is planned well, it can focus the way an organization operates to best serve customers and grow profits.
The most important components of a company’s value proposition are target market and segmentation. As not all customers value the same things, it is important to create different messages to pinpoint the specific pain points of each target audience.
Value is not the same for everyone. By definition, value is what you get in return for what you pay. However, it is not uncommon for different buyers in the same target market to have different perceptions of value.
For example, one customer may consider the Apple iPhone to be of high value. Another may consider it to be over-priced and would prefer to spend their money on a Samsung Android phone. When thinking about value, it is also important to think about both the tangible and intangible attributes and benefits. Tangible attributes could include iOS, battery lifetime, or power, whereas intangible attributes could include things like design, service, brand, prestige, etc. For customers who value design, for example, it might be that the more intangible aspects are those that drive their buying decisions.
Developing a strong value proposition makes it easier to connect with target audiences and establish a strategic foundation for a company’s marketing and sales functions. It also provides employees with a consistent and cohesive way to talk about their brand. At SAGE, we help you stand out among your competition and ensure you remain highly relevant among your target audience.